The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-28
AMERICAS FUTURE OIL RE-
SOIIRCEG

Although 1T is estimated that at the
present rate of production the Oil
fields of the United States would be
exhausted in about 20 years, these fig
ures do not indicate that the country s
petroleum resources will come to ar
end within that period, according to
he National Bank Of Commerce In
New York. The country's wells are
likely to show long periods Of declining
productivity before their final deple-
ton, and the nations huge deposits OF
oil shale offer enormous supplies as
soon as it become economical to use
them, the bank points out in its mag
azine, Commerce Monthly, for Febru-
airy.
eff an annual rate of production o.
100000 barrels, figure nearly
reached in 1920 and probably exceeded
in 1921, were to be maintained in the
United States until the wells were ex-
lausted, the known supply would rur
out in about 20 years." CONNIE ~ce
Monthly says. These oil fields, how
ever, are likely to show long periods c.
declining productivity before they are
completely exhausted. 1t Is impossible
to estimate when the United States
will have used up its petroleum re
sources, but a period of constantly de-
creasing production with occasional
increases as new wells are opened up
and new methods of recovery are in
stituted may be expected to begin
within the next few years.
ITO meet the emergency of a de-
clining output of petroleum the United
States has in reserve huge deposits o.
oil shale from which great quantitie.
of petroleum products may be obtained
when it becomes economical to PRO
luce them. Enormous amounts Of oil
5hale rich in oil are found in north
western Colorado, northeastern Utah
southeastern Wyoming and in northern
Nevada. Deposits of more limited eX-
tent and generally less rich are located
IN Pennsylvania, Indiana, Kentucky
Texas, Wisconsin, Michigan, West Vir-
ginia and elsewhere. Though the oil
shale industry is of long standing il
other parts of the world. notably Scot
land, France and Australia, it has not
yet passed the experimental stage il
the United States.
1.-THE United States has long beer
pre-eminent in the petroleum indus
y
sition of eXhausting its resources more
apidly than the rest of the world
Starting with "a apply estimated at
Ia billion barrels, it has used up some
) billion, leaving only about billion
barrels, or GA per cent of it's original
still available. On the othe
hand the world outside the United
States is thought to have Sc billion
barrels, or over 80 per cent of its
original supply of approximately so
billion barrels. AS the United States
regularly produces three-fifths o.
more of the worlds annual output
each year finds this country in O. rela-
lively worse position.
while the using up of natural re
sources is deplorable, still the material
gains resulting from their exploitatio
should not be overlooked, for in ltre,
measure the gradual exhaustion o
American petroleum has been offest b5 |
the advances Of American industries !
thus made possible.
'Tt is significant Of the peculiar con- |
iitions prevailing in the production o. |
that despite prevailing bust !
ness depression accompanied by a fall !
n petroleum prices the output in the /
first eleven months of 1921 showed an /
IN lease OF 6 per cent over like period !
II 1920. The gain was shared by all /
but the Illinois field, whose production |
las regularly been falling off in re- !
cent years.
Depression in the petroleum indus |
ry does, however, limit to some extent .
he drilling of wells in the known fields |
md to an even greater degree the ex-
oloration of new territory. Since pro-
luction Is sustained only by drilling |
IN increasing number of wells in any
given field. and since new terrific y |
must be opened up to compensate for
of old fields decline in
lrilling is after a time followed by q
'alling off In production. Conversely,
| period of prosperity brings increased !
production after a delay of months.
Thus, while the increasing produc-
ion in the first part Of 1921 was prob
IDLY result of the prosperity in 1919 (!
IND the first part of 1920, there Is like
Y TO be period Of declining output
head which win reflect the depression
# the first part OF 1921. The number
" new oil wsIls completed felt of
rom about 1880 IN January, 1921, 30
.bout 752 in October, the latter figure
,eing the smallest in the last five
ears. November returns, however.
how an increase to sos wells''