Capital journal. (Salem, Or.) 1919-1980, 1920-11-17
Americans
Must Seek
Oil Abroad
United States Exhaust
ing Resources'to to Sup
ply Foreign Demand
/ Declares Expert

DSAoACo AAlSeIt
Washington. Nov. 1.-THE AM
erican petroleum industry must
look in the future to foreign coun-
tries for its raw material, ana
cannot "close its eyes to a por-
tent of obstruction that looms in
its way" due to the attitude OF
foreign governments, President
Walter G. Teagle of the Standard
OH company OF New. Jersey, told
the American Petroleum Institute
here today.
Companies Frozen Out
Certain governments. their re-
aiization of the Importance of Pc
troleum quickened by the war, are
not only esaaying to enter the oil
business themselves, but also di-
rectly to engross the sources of
supply and reserve the develop
ment of such sources to their own
citizens companies and capacity'
he said. The speaker classed these
efforts as tending to the "estab-
lishment of system which we
believe unjust. injurious and un-
wise" He mentioned England,
France, japan and Mexico In con
nection with his presentation of
the situation.
Essentially, Mr.. Teagle said the
American industry has to face the
problem of production. During the
present year, he estimated, the
United States will consume 445.-
100000 barrels of crude oil pro-
duced within the nation, ana I'M
port 120,0O0,00 barrels additional
from Mexico.
These figures matter little but
the tendency is. all important"
Mr.. Teagle said at emphasizes
the relatively smaller part our
home production is going to play
in the future.
British are Scored
"Our British friends, in en-
deavoring to explain the position
their government has taken since
the armistice, have argued that as
the United States is now supply
ing seventy 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 heediessiy on to the
quick exhaustion of their own SUP
ply and then retire from the oil
business. the American petroleum
industry cannot accept such a
conclusion. 1t must look to the
development Of petroleum outside
the United States.
What we are now Obliged to
consider Is the fact that by the
policy of government control and
restriction, the oil industry has
been injected into international
politics. where. as occasional rev.
Citations during the past year com
pei us to believe, the r,lle Of open
covenants openly arrived at has
fallen into a state of deplorable
neglect"
Russian Fields slump
| Russia, Mr.. Teag1e said, had
gone who1eheartedly into the oil
business and fields which produo
ed $4,000 barrels under pri-
vate management in 1915, produc-
ed 34,000,O00 in 1919. Neither
Special privilege nor direct gov
ernment management has given
or will give the people of the
world the production desired" he
added.
As examples of foreign gov
ernments deliberately placing OBJ
stacles in the way of those who
would like to assist In the devei-
opment of new sources OF sup
ply" Mr.. Teagle cited the San
Reno agreement, proposing a
division of Mesopotamia and 9TH
er Near East territory between
the British and French" and
] "the tripartite agreement" recent
lly entered into between Great
Britain. France and Italy defin-
ling spheres of influence in Tur-
key, which is susceptible of diplo-
matte inquiry as to its true mean
ing"
Americans Shut Out
you know that Persia is anios'
entirely limited to the develop
ment work of an English com
pany," he continued. that "a
Dutch company enjoys almor con
piete monopoly in the Dutch Eas'
Indies: that Japan restricts de-
yelopment of petroleum proper
ties to her citizens. while thf
French provide for complete ma
tionaliation Of all mineral re-
sources.
! "The petroleum. question con
stitutes one of the most acute fac-
tors in the Mexican pEoblem
though a confiscatory program mas
as vet failed Of more than partal
success"
Pointing out that the United
states had never limited aliens II
exploiting oil resources within n'
territory or reserved suo-soil
rights in privately owned land. Mr
Teagle said ''it might be forced a
A matter of necessary self protee,
ition. to consider the adoption oi
measures reciprocaily to conserVe
:ts petroleum resources for its ow'
people." and stop the suopw o.
: nr0dfIcf,