Omaha daily bee., 1920-09-13
Oil Supply
For World
In Mexico
Shortage in United States
Gives Emphasis of lmpor-
tance of Peace in
= Near Future.
Imports Show Increase
BY ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.

Dy AN II N SGANS 11GNNAN1e
Chicago Tribune Omaha Bee Leased Wire.
Washington, Sept. IA peaceful
and orderly Mexico would produce
mere oil than is now produced i'll
the entire world, according to re-
view of the Mexican petroleum in
dustry, issued by the Bureau Of For
cign and Domestic Commerce.
With the oil supply of the United
States doomed to exhaustion in 20
years, and Great Britain and France
annexing overseas fields capable OF
producing for 200 years, new empha-
sis is given the importance to Amer
ica of peace in Mexico and full de-
velopment of the $300,000,000 Mex
ican oil properties, Is per cent of
which are owned by American inter-
ests, 2l per cent by British, 4 per
cent by Dutch aud 2 per cent by
Spanish Mexican capital.
Imports of oil from Mexico into
the United States in the fiscal year
eLded June 80, 1920, showed an in
crease of more than 100 per cent
over the imports of 1918. The June,
1920, imports of Mexican oil into
the United States amounted to 340,-
10000 gallons, or slightly more than
100000 barrels. I
Increase in Consumption.
The nations are interested as
never before in the oil supply of the
world says the review. The enor-
nous oil requirements of the war
period have not lessened under peace
conditions; in fact, the consumption
of oil in the industrial world threat
ems to overtake production. The de-
velopment of the oil resources of the
world promises to be one of the most
important activities of the recon-
struction period The United States
contributes approximately two-thirds
of the oil supply of the world, but
40 per cent of the producing fields
in this country have become ex-
hausted, and it is estimated that the
oil reserves of the United States will
not last longer than 20 to Is years.
Already this country consumes more
oil than it produces"
A comparison of the production
figures for Mexico, the United States
and other parts of the world since
1918 shows that the Mexican produc-
ton has multiplied more than three
times in the last seven years. While
in 1918 Mexico supplied only one
fifteenth of the worlds production
of oil, in 1918 it furnished more than
one-eighth.
a Large Production.
The worlds actual production of
oil in 1918 was abou- 5l5,000,000 bar
rcls," continues the statement. The
potential production of Mexico dur
ing 1919 was 547,000,O00 barrels. By
the term potential production is
meant the amount Of oil that would
he produced if each we'll were per-
n,itted to flow without any restraint.
In 1919 Mexico was potentially able
to produce 32,000000 barrels more
oil than was actually produced in all
other countries in 1918, and 10000
000 barrels more than the United
States production OF 377,000,000 bar
rels N 1919.
"The application of new 4egisla-
tu-e to the industry, the effect of
Which it has not been possible to
July ascertain. has tended to halt de-
velopment operations Yet, the ex-
ports of oil from Mexico in the first
kali of 1920 show a notable increase
ever the shipments in previous
years.
1t is stated that OF the investment
in the oil industry in Mexico, 81 per
in contrast to the petroleum indus
Try of the United States, of which
but 4 per cent al tile total amount
invested is foreign capital.