The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-04-23
BY DAVID LAWRENCE


ests. ......--
BY DAVID LAWRENCE.
Especial Despatch to The Reformer.)
Copyright 1921.
sWASHINGTON, April 23.-The
United States government after a careful
investigation of the oil supply of the
world, has come to the conclusion that
for its own safety. as we'll as the future
of the American oil industry. new oil
bearing territory must be acquired in the
western hemisphere.
Whether the plan shall be government
purchase of oil rights in other countries
or cooperation between the American
government and the oil interests as
whole, has not yet been decided, but Ger
tain facts. more or less startling in their
significance, have come to the surface,
which show why prompt action will be
necessary to safeguard the national inter
est.
In the first place. the American govern
ment has been informed that the Mexican
oil supply is running dry. Estimates
range from Is months to three years as to
the time when AleXico's production will
have vanished almost entirely unless
fields other than those already developed
shall be found. When il is considered
| that the oil fields of the United States
! furnish approximately ~ per cent of the
world production and Mexico has about
20 per cent of the remainder. it will be
observed that oil fields of the United
States and Mexico combined have been
supplying the world with fuel oil. Should
| the Mexican supply suddenly be sub
| tracted, it is obvious what a serious sit
uation would result. especially with the
many uses which oil serves in the Ameri-
can navy.
! Mexican Supply Failing.
The United States shipping board has
! Investigated the question and has found
| that the TuXhan and TampiCO regions
contain many wells which are running
! dry every few days. 1t Is declared that
I there are other areas further south IN
| Mexico. which will produce oil but no
! body is very eager under present cOndi-
tionS TO do promoting work there any
more than elsewhere in this hemisphere
! until it is certain that the United States
| government will stand back of American
I interests. There is a crack in the earth :
| surface running north and south through
J the two American continents and the *
! perts say oil may be found along this
/ line if development is begun on q large
! scale. The American government wants
| that development started ut once for the
/ danger of a shortage in Il couple years.
due to the dryneSs Of the Mexican field.
means that the problem is not theoretical
but immediate. If the American govern
ment simply said to American interests
/ that it Is a national duty to get oil for
II the use of the American people and to
safeguard the navy. that alone would not
solve the problem. The competition be
Il tween American interests is one factor
! of course, but greater factor is the
way the oil interests of European Coun-
/ tries have sought an entering wedge i'm
II South American countries The United
! States has never asked for preferential
i treatment in Central and South America.
though her position as the champion of
Il the republics to the south of uS mas mcT-
II tied such a request. What the United
/ States may shortly ask. however. is that
for the safety of the Americans the oily
/ supply of this hemisphere shall be de
voted to the uses of the nationals of the
two continents along lines that will be
mutually beneficial.
The plan most talked of is one that
/ would eliminate friction among American
oil men and bring about a combination or
pool of all American companies. Behind
such a corporation, the United States
government might put its influence very
much as it did in the Chinese consortium
II when it required American banking inter
ests to get together before governmental
support would be extended.
May Go South.
The ratification of the Colombian treaty
has paved the way for development of
new oil fields in Colombia and that much
at least has been gained, but the cOndi-
ton of the Mexican fields is such that
one substitute alone may not be sufficient
and the idea seems to be to explore for
oil through the entire northern region
of South America and down the west
coast along the Andes. The project would
involve billions of dollars and the Ameri-
can oil group would not be justified in
undertaking it without a definite under
standing as to the extent to which the
United States government would stand
behind it all. The Washington govern
mcnt is in a position to negotiate with
the governments of the Central and
South American countries because the
entire direction of the Harding foreign
policy seems to be turned toward on,
Portunities south of the Rio GIra,nde. But
diplomacy isn't alone involved. WheT
one we'll in Mexico began producing
10000 barrels the first day and went
dry in the next 24 hours on account oil
salt water, and another we'll came il
, with $4,000 barrels only to go dry in f.
hours, some idea of the uncertainties ot
. the situation may be gathered.
, President Harding has discussed tn,
situation with various members of his
; cabinet and the consensus of opinion seem!
! to be that the government here must ge
! back Of the entire project Of developing
new oil fields and lend its influence toward
the acquisition of oil-bearing areas by
I American interests in countries Othe
thap Mexico. Indeed the dash for oil il
{ the MesODOtamian and Persian fields il
! an indication that Mexico can no longe
: be depended upon either by the British
Z or Americans As a permanent source o
supply.