Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-02-24
Americas Future
Oil Resources

Although it is estimated that at the
present rate of production tle OIL
fields of the United States would be
exhausted in about twenty years,
these figures do not indicate that the
country's petroleum resources VIII
come to an end within that period, &C
cording to the National Bank OF
Commerce in New York. The coun-
try's wells are likely to show long
periods of declining productivity be-
fore their final depletion, and the ma
tons huge deposits of oil shale offer
enormous supplies as soon IS 1t be-
comes economical to use them, the
bank points out in its magazine, Com
merce Monthly, for February.
"If an annual rate Of production Oh
$50, 900, 900 barrels, figure nearly
reached in 1920 and probably exceeded
in 1921, were to be maintained IN the
United States until the wells were
exhausted, the known supply would
run out in about twenty years." Com
MERGE Monthly says. "These Gil fields,
however, are likely to show long peri
DDS of declining productivity before
they are completely exhausted. 1t is
impossible to estimate when the Unit
ed States will have used up its pctro-
leum resources, but period OF con.
stantly decreasing production with oc-
casional increases as new wells are
opened up and new methods OF recoV-
cry are instituted may be expected TO
begin within the next few years.
"To meet the emergency of de-
Ginning output of petroleum the United
States has in reserve huge deposits OF
oil shale from which great quantities
of petroleum products may be obtained
when it becomes economical to produce
them. Enormous amounts of oil shale
rich in oil are found in northwestern
Colorado, northeastern Utah, south
western Wyoming and in northern Ne
vada. Deposits of more limited eX-
tent and generally less rich are located
in Pennsylvania, Indiana, Kentucky,
Texas, Wisconsin, Michigan, West
Virginia and elsewhere. Though the
oil shale industry is of long standing
in other parts of the world, notably
Scotland, France and Australia, it has
not yet passed the experimental stage
in the United States.
"The United States has long been
pre-eminent in the petroleum indus
try, but it occupies the unenvlable po-
sitlon of exhausting its resources
much more rapidly than the rest OF
the world. Starting with supply es-
timated at IA billion barrels, 1t has
used up some billion, leaving only
about billion barrels, or 81 per cent
of its original resources, still avail
able. On the other hand, the world
outside the United States IS thought
to have Sc billion barrels, or over 80
per cent Of it's original supply Of APP
proximateiy 80 billion barrels. As the
United States regularly produces
three-fiftns or more of the worlds an
nual output, each year finds this coun-
try in relatively worse position.
while the using up Of natural re-
sources is dcplorable, still the ma
terial gains resulting from their e%-
ploitatlon should not be overlooked,
1or in large measure the gradual
exhaustion OF American petroleum has
, been offset by the advances OF Amer
;can industries thus made possible.
I 1T is significant of the peculiar
conditions prevailing in the production
/ of petroleum that, despite prevailing
business depression, accompanied D!
d fall in petroleum prices, the output
! in the first clcvn months OF 1921
! showed an increase OF per cent over
like period in 1920. The gain was
shared b. all but the Illinois l!eld,
whose production has regularly been
falling off in recent years.
Depression in the petroleum IN
dustry does, however, limit to some
extent the drilling of wells in known
fields, and TO an even greater degree
the exploration Of new territory. Since
production is sustained only by drill
ing an increasing number Of wells III
any given field, and since new terri
tory must be opened up to compensate
for exhaustion Of old fields, q decline
in drilling is after time followed by
falling off in production. Conversely,
a period of prosperity brings IN.
creased production after a delay OF
months.
Thus, while the increasing produc-
ton in the first part of 1921 was
probably result CT the prosperity III
1919 and the first part Of 1920, there
is likely to be period of declining
output ahead which viii reflect the de-
preston of the first part of 1921. ne
number of new Gil wells completed ieii
off from about $50 in January, l92l,
to about 1852 in October, the latter zig
ure being the smallest in the last il'e
years. November returns, however,