The Washington times., 1922-01-08
Oil Shortage Menace
ToU.S. Shipping Trade,
Declares WOOdhOuse
by HENRY wOODHOUSE.
Author Of 1.-The Struggle for the
Worlds Oil Resources" and
Notable Textbooks on Inter-
national LAW Military

Notable Textbooks on Inter-
national Law, Military
and Naval Questions
and Aviation.
How seriously the United States
Merchant Marine is Handicapped by
shortage Of fuel is told by the
United States Shipping Board in Its
fifth annual report, just issued.
covering the year ending June 30,
1921.
This report is significant and
should receive the serious attention
of the country at large. whose vel.
fare depends on having plenty Of oil
to keep going the oil-burning ships
Of the navy and merchant marine;
to keep running nine million regis
tered automobiles and other motor
transports; to keep operating the
national industrial and farm ma
chinery, and to keep burning the
electric lights Of about ten million
homes and factories. To do this
requires more oil than the United
States Is producing.
In reading this report It is well
to bear in mind that the annual
amount of oil required by the
United States Merchant Marine
In normal times is 100000 bar
rels of AZ gallons each-or about
one twelfth of the total oil produc-
ton Of the United States In 1921,
the star year in production, being
greater than past years.
The Boards Report.
The Shipping Boards report reads
In part:
"In times of normal operation
the consumption of fuel oil by
Shipping Board vessels amounts
to approximately 100000 bar
rels per year, and on this basis
contracts were made for fuel oil
in 1920.
"These contracts were made I'M
der the greatest difficulty, owing
to the very serious shortage Of fuel
oil then existing. Three separate
public invitations for bids, all OF
which were given wide publicity,
resulted I'm closing only one con-
tract covering requirement at Phiia-
delpbia and one for q small guam
tity of oil at Mexican ports.
"In the meantime, Board vessels
were being delayed mt practically
every port In the world on account
Of inability to secure fuel oil, ssnd
In June, 1920, approximately 100
vessels were delayed ut Atlantic
coast ports alone, for this reason.
I'm an Effort to correct this sit
uation, personal appeals were made
to the executives Of the principal
American oil companies to bid on
the Board requirements Of fuel oil.
Contracts for these requirements
for one year at Atlantic and Gulf
ports were closed at prices 20 to
so per cent below the then prevail
ing market.
on Fuel Ships Delayed.
"Of greater importance than the
low prices. however, was the as
surance which these contracts gave
of an adequate supply. as the re-
quirements at most of the ports
were SO large that they could not
be secured on the open market on
short notice.
"All efforts Of the Shipping
Board to contract for its require
ments Of fuel oil on the Pacific
coast were unsuccessful, and en-
deavors to purchase the necessary
supply on the open market were
attended with difficulty and ships
were frequently delayed.
ION July l. 1920, the following
fuel oil bunker stations were in
operation: St. Thomas. Manila. Hon.
olulu, st. Georges, Rio de Janeiro,
Bizerta, Shanghai, Brest.
During the fiscal year contracts
were made with various oil COM
panies to receive, store and redeliver
fuel oil for Shipping Board account,
and additional Shipping Board sta
tons were established.
These stations were kept sup
piled with fuel oil by Shipping Board
tank steamers. They may be liter
ally described as the backbone Of the
oil-burning fleet. Without them
the fleet would, to a great extent,
be at the mercy Of foreign oil COM
panies.
THE effect Of the establishment
Of the station at Manila is a striking
case. This station was opened for
business in June, 1920. At that time
fuel oil was selling ut all points In
the Orient at $50 to SOS gold per