Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-17
BY WALTER r. McCALLUM.
A QUICK about-face by the United

n petroleum resources must De
conserved through more eX-
tensive use of coal for home heating
and industrial purposes Is seen today
as the Federal Oil Conservation Board
prepares to swing into the final stage
OF It's exhaustive inquiry inaugurated
IL months ago. Progressive accumu
lation Of replies from leaders in the
oil industry indicate that the Nation
either must turn back to coal or for
ward to hydraulic power for it's heat
and power. A picture Of rapidly d.
minishing oil reserves, dwindling to
the point Of exhaustion in decade at
the present progressive rate of con-
sumption by motor cars, industries
and homes Of America, Is drawn in
summaries Of the evidence presented
to the board and submitted to the
President a few days ago.
Like the army which marched up
the hill and then marched down again
America must make a rapid about
face If 1t is to maintain its dominating
position as a producer of petroleum.
right arm of the navies of the world
and literally the lubricant that keeps
the wheels of industry and commerce
turning in their orbits Of progress.
A Cooperative Inquiry.
The oil board appointed by the Pres
ident on December 10, 1924, has reach
ed the end Of the preliminary stages
OF It's inquiry; mot an investigation,
but cooperative inquiry" 1t is
about to embark upon the final steps
of the lengthy process of a fact finding
inquiry that eclipses in Importance any
similar undertaking in this country.
| Within a few days the outstanding
ngures in the oil industry will come to
Washington, roll up their sleeves, take
off their collars and go to the mat with
the problem at hearings lasting about
a week before the full board. Then the
board, with the full and complete pic
ture OF the situation before it, will
| gather all the facts it has unearthed
| digest the testimony and proceed to
write It's final report. This is expect
| ed not later than the last Of Febru-
| airy, but may not come along until
| March 10
| Secretary Of the Interior Work is
| chairman of the board, elected at the
hrst meeting in January, a year ago.
| his associates are Secretary of War
Davis, Secretary Of the Navy Wilbur
and Secretary of Commerce Hoover
| The creation of the board came about
as direct corollary to the Teapot
Dome investigation of two years ago
which continued in some of its more
virulent stages well past the last
Presidential election.
Must Safeguard Nation.
In appointing the board, the Presi
dent empha sized the safeguarding OF
| National security through oil conser.
walton and said that even though we
| are not today facing an under supply
of oil, the over production" from our
100000 wells itself encourages cheap
| ness, which, in turn, leads to waste
fulness and disregard of essential
| values.
"Oil, Of which our resources are lin
tied he said, sis largely taking the
place of coal, the supply of which
seems to be unlimited, but coal can
not take the place Of oil in most OF
its higher uses, on land or sea or ir
the air." In the light of later develop
ments, the Presidents pronouncemen
that developing aircraft indicates oul
National defense must be supple
mented, If not dominated, by avia
ton is interesting. He added tina
1T is even probable that the su
premacy of nations may be determined
by the possession of available petro
leum and it's products
| The picture before the oil board to
day is one of a United States dominat
ing the world in oil production
! United States whose oil industry ha.
| developed faster than the industry il
other parts of the world, and an in
dustry whose gigantic forward stride:
/ have placed this country far in the
lead as a power in that dominating
world essential-oil. For the United
States today produces about 20 pei
cent of the oil output of the world
Take the United States and Mexico of
the world map-wipe them out O.
| world production, and the great ma
tons of Europe and the Orient would
die of oil starvation. For Mosul ant
the Caucasus, Persia and southeastern
Russia do not produce more than {
| mere fraction of world production
And yet, even in the face of this tire
mendous production in America o.
about 500 900, 900 barrels, we irnpor
oil. Mexico is the foremost country
from which we obtain oil by import
Future Not So Rosy.
Even though the picture, in so far a.
the immediate present is concerned
is rosy one, for the golden flow o
heavy black petroleum continues un
diminished from the mid-continent
Louisiana, Oklahoma. California ant
even Eastern fields which have not al
| together given out, the future Is no
as happy. This follows because an,
|
hinge altogether on the possibility O
new Oil field developments. And tn,
peak of stimulation Of drilling and ex
pantlon in the industry itself ha.
passed. New fields do not come witt
F.! the spontaneity and enthusiasm tina
marked the healthy boom of two year.
ago.
| Smackover and Bartlesville hav,
faded from boom towns, the mush
room growths of early Developments
into the steady, plugging, and health,
productions of Oil towns in the full
bloom of mature property. And al
| the while California and Eastern pro
| duction diminiShes, leaving the South
west, where the millionaire Osage
buy expensive motor cars, and gilt
the lily pink and purple, to garne
the fruits of the golden flood.
The board. based on the shrewdes
guesses in the industry, will max,
two definite recommendations.
Conservation Stressed.
That a national oil conservation
policy be embarked upon at once
looking to less use of oil and large
use of coal and water power (hydrau
lie development) as primary source
of heat and power.
That, In order to protect for Govern
ment use Ito protect our oil resource
with the national security in mind
a new national policy with respect t
the Government oil reserves be I'm
mediately inaugurated by decreasing
production on public lands and oil re
serves with oil storage above and be
low ground.
The first Is the important considera
ton from the viewpoint OF the hom
user of oil who has installed an OF
burner or is considering it's installa
ton. For him it means the Govern
ment recommends that he return t
coal as a primary producer of heat il
the face of the greater convenienc