Evening star., 1920-11-17
WARNS Of FOREIGN
| MONOPOLY OF OIL
Petroleum Institute Speaker
Cites Effort to Control
Sources Of Supply.

| me American petroleum Industry
must look in the futur. 10 foreign
countries for lis raw material and
cannot close its eyes 10 portent
OF obstruction that looms in it's way
due TO the attitude OF foreign gov
iernments. President Walter q Tea :
gle OF the Standard Oil Company OF
New Jersey told the American Pc
troieum institute her. today
Certain goYernments. their reali-
zation OF the Importance OF petroleum
quickened by the war. are not only
essaying TO enter the oil business
themselves. but also directly to en-
gross the sources of supply and re-
serve the development Of suoh sources
! to their own citizens. companies and
| capital Mr.. Teagle said.
| The sneaker classed these efforts as
/. tending to the establishment of sys-
tenn which We believe unjust. Injurious
and unwise." He mentioned England.
! France. Japan and Mexico in connec-
. tion with his presentation Of the sitna-
; ton.
/ Face Problem Of Production.
| Essentially. Mr.. Teagie said. the
/, American industry has TO face the
! problem of production. During the
present year. he estimated. the United
States will consume 445.000.00D bar
rels Of crude oil produced within the
! nation. and import 100000 barrels
additional from Mexico.
These figures matter little, but the
tendency is all-important. Mr.. Teagle
said. 1t emphas sizes the relatively
smaller part our home production is
going to play in the future.
Our British friends. in endeavoring
to explain the position their govern
ment has taken since the armistice.
have argued that as the United States
is now supplying 20 per cent of the
worlds current production. we should
be well content with things as they
are. This is an entirely fallacious
view. Is it reasonable to ask that
Americans go heedlessly on to the
quick exhaustion of their own supply
and then retire from the oil business? :?
The American petroleum industry
cannot accept such a conclusion. 1t
must look to the development of pc
troleum outside the United States.
Vow in International Politics.
slider is the fact that by the policy
!of government control and restric-
ton the oil industry has been in
tected into international politics
where. as occasional revelations dur
ing the past year compel US to be-
openly arrived at has fallen into a
state of deplorable neglect
Mr.. Teagle asserted that it was not
necessary for any nation to go into
oil produceian on public account be-
cause of possible war requirements.
since developed resources would be
available to the country in possession
of a territory whenever war develop
ed. Such governmental activity, he
id. would fail to secure increased
pr oduction.
Russia. Mr.. Teagle said. had gone
ness" and fields which produced g.,
100000 barrels under private manage
ment in 1915 produced 34.000,0O0 in
1919. Neither special privilege nor
direct government management has
given or will give the people of the
world production desired he added.
As example of foreign govern
ments deliberately placing obstacles
in the way of those who would like
to assist in the development of new
sources of supply" Mr.. Teagle cited
the San Reno agreement. proposing
a division of Mesopotamia and other
near-east territory between the Brit
ish and the French" and the 'tri-
partite agreement" recently entered
, into between Britain. France and
Italy. defining spheres of influence in
Turkey. which is susceptible of Dip
lomatic inquiry as to its true mean
ing"
Persia In British Hands.
You know that Persia is almost
entirely limited to the development
work of an English company" he
continued: that a Dutch company en-
joys almost complete monopoly in the
Dutch East Indies: that Japan re-
stricts development of petroleum
properties to her citizens. while the
French provide for complete nation
aligation of all mineral resources
The petroleum question constitutes
one Of the most acute factors in the
Mexican problem. though a confisca-
tory program has as yet failed of more
than partial success. To this list
could be added many more countries
or possessions under foreign control
where restrictions retard the develop
ment of petroleum resources by their
own nationals or by aliens"
Pointing out that the United States
had never limited aliens in exploiting
oil resources within it's territory. or
reserved subsoil rights in privately
owned land, Mr.. Teagle said it might
be forced. as matter of necessary
self-protection, to consider the adop-
tion of measures reciprocally to con-
serve its petroleum resources for its
cwn people" and stop the supply of
present-day petroleum products to
other ma tions.
1T is to be ho~ed the United States
will never be forced to such steps"
he concluded. We do not believe it
will be necessary. The world is too
anxious for petroleum. This it can
obtain only il there be maintained
everywhere free and fair field to all.
with special governmental favor to