The Winslow mail., 1925-08-28
FUTURE SUPPLY OF
OIL IS GUARANTEED
I'm UNITED STATES

the future security OF INo country
in peace or war, so far as the sup
ply of petroleum products is con-
cerned, will find material reassur-
ance in a report which has just
been published by a committee OF
eleven members of the board of di-
rectors of the American Petroleum
Institute The report indicates
that there is no cause for alarm.
Late in 1924 President Coolidge
appointed the federal oil conserva-
ton board, consisting of four mem
bers of his cabinet, to make a
study of the future supply of petro-
leum in the United States. In CON
sequence of the presidents action,
the board of directors of the Amer
lean Petroleum Institute appointed
a committee to make report on the
future supply of and demand for
petroleum The committee. enlist
ing the cooperation Of experts in
oil and of numerous authorities
outside the industry, conducted an
investigation which has taken six
months to complete. The report
probably is the most thorough
study of the oil industry that has
ever been made.
Predictions of failure of the
American supply of oil have been
made almost from the beginning of
the oil industry. All have proved
fallacious. When the production OF
oil fields has dropped off, the oil
industry has found new fields.
Oil is a hidden resource. With
out actual drilling there is no way
of telling where it lies nor how
much of it there is. 1t must be
sought and discovered There are,
however, sound facts on which to
base an estimate of how much oil
existing fields will yield through
present methods of pumping and
flowing. The report fixes the fig
ure at 5,300,000,000 barrels And
the estimate is made that after
present fields cease to produce
there will remain in the ground,
unrecoverable by pumping or flow
ing, $4,000. 100000 barrels of oil, a
large portion of which may be re-
covered through new. but known,
methods, such as flooding with
water, the use of air or gas pres
sure to force the oil out, or min
ing. Altogether this comprises a
considerable quantity of oil "in
sight" But the major reserves of
the nation lie in an area of more
than 1,000,000,000 unexplored acres
of land in the United States which
are geOlogically favorable to the
presence of OIL Here new fields
are to be discovered. Then there
are imports, particularly from
South America, which will relieve
the strain on the American re-
serves. And when, if ever, the sup
ply of petroleum fails. the nation
has huge deposits of oil shale, coall
and lignites, from all of which liq-
uid fuel and lubricants can be OBJ |
tanned in such vast quantities as to
present an aspect of unlimited sup
ply, which will be drawn upon as
the price of products justifies de-
velopment.
The report draws particular at
tention to two impending develop
ments of very great Importance.
One is the extension within the in
dustry of Cracking crude oil, q |
process which increases the yield |
of the all-important gasoline The
other is a change in motor con-
struction which, roughly speaking,
will double the mileage of the auto
mobile per gallon of gasoline
Herein is true conservation.
Altogether, the findings of the
committee are reassuring. There
may be passing periods of shortage
of petroleum. but there is no dan
ger in the situation. The commit
tees conclusions follow:
l. There is no imminent danger
of the exhaustion of the petroleum
reserves of the United States.
2. It is reasonable to assume that
a sufficient. supply of oil will bel
available for national defense and
for essential, uses in the United.I
States beyond the time when sei-.I
ence will limit the demand by de-
veloping more efficient use of, or
substitutes for oil, or will displace
its use as a source of power by
harnessing a natural energy.
8. Current supply and demand
can not stay in balance, since the
amount of both supply and demand
are constantly changing. General
ly current supply will exceed or
be less than current demand, Great
ing surplus or shortage; either
condition will be reflected in price,
but price will in time correct either
condition.
4. Petroleum recoverable by pres
ent methods of flowing and pump
ing from existing wells and acre
age thus proven consists of $780,
100000 barrels of crude OIL
5. 1t is estimated that after
pumping and flowing there will re-
main in the area now producing
and proved 26,O0O,OOO,00 barrels of
crude oil, considerable portion of
which can be recovered by i'm
proved and known processes, such
as flooding with water, the intro
ductiOn of air and gas pressure
and mining, when price justifies.
6. Improved methods of deep
drilling below oil sands now pro-
ducing will disclose in many areas