Weekly journal-miner., 1920-02-18
SHY. CONSERVATION
 NECESSARY
(From Fridays naily.)

all agents of the Standard Oil com- pany California; by K. R. Kings bury, the president. to take no con- tracts for the sale of fuel oil without referring to the home office in San Francisco At the same time it has been decided that eXportations of re. fined products, already materially cutrailed, shall be kept at a minimum and be only such as to meet the com pany's contractual obligations.
 The condition of the petroleum in- dustry which has .necessitated these actions is one which so closely and importantly touches the interests of the public, industrially and other wise, that a description of it will be useful in giving a thorough under standing of the situation In its simplest terms, 1t is that the crude oil production of California is not sufficient to meet the demands.
 California was called upon in 1919 to supply approximately 475,0OO,0O0 gallons of naphtha products This quantity could not be obtained from the production of crude oil in Cali fornia and the shortage of over 20,- 000,000 gallons was imported from the east. With the demand for gas oline and heavier fuels in direct pro portion to the number of internal combustion engines. embracing au- tomobiles, trucks, tractors, marine motors and pumping plants and the production of this class of equipment constantly increasing, the 1920 de- mand for naphtha products, it is es- timated, will exceed the 1919 demand by at least 25 per cent, indicating a total requirement. of 500,000,000 gal Ions. From the present supply of crude oil the total possible produc- ton of naphtha products is but 450,- 000,000 gallons, indicating a shortage in the products named of 150,000,000 gallons.
 There are two simple factors. pro duction and consumption. Today the crude oil production of Califor- mia is 25,0O0 barrels daily less than the requirements, and the deficiency for 1920 at the present rate of pro duction will exceed 10,000,000 bar rels. Since 1910 stocks have de- creased 14,000,000 barrels, which means that the public consumed thai quantity over the amount produceu. Stocks of crude oil on hand today of 50000,000 barrels are lower than at any time since 1910 and of this quantity it is estimated only H. 000,000 barrels are available for the market. At least 10.000,000 barrels are required as a working capital, or, so to speak, as merchandise on the shelf" and the remaining 6,000,000 barrels are in pipe lines and tank bottoms and entirely unavailable
 This company has been successful in increasing its production of crude oil In 1918 the increase was four and a half million barrels over 1917, and in 1919 three million barrels over 1918, but even these considerable in creases on the part of one company does not save the whole situation. In view of the shortage existing, the company has increased the prices in its offers for rehnable crude oil Other purchasers of rehnable crude oil have been paying large premiums over the prices offered by the Stand ard Oil company
 + The remedies are increased produc- ton and importations, and to a les ser extent but quite as important, conservation and the elimination of waste by careful and scientific hand ling of petroleum and its products by the oil industry on the one hand, and its scientific and careful use by the public on the other hand