The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-04-01
Nations Supply Already at
Low Ebb and Going at
Dizzy Pace.
NEW POLICY is SEEN
Conservation Program May
Be World Wide in Scope,
Say Experts.
BY WILLIAM PHILIP sIMMs


WASHINGTON, April with
the nations oil already at pre-
cariously low ebb, and with the re-
naming supply going at dizzy
pace, President Hoover'S move to
safeguard the federal reserves is
believed to be only a first step in
the direction Of a new and far
wider policy, probably even world
wide in its scope.
AS far back as ten years ago,
Kranklin K. Lane then secretary
OF state, declared IN his annual re-
port to the President that the
present situation calls for a policy,
prompt, determined and looking
many years ahead"
What happened was something
else. Instead there followed a
decade of drift, drill, waste, graft, +
grab, devil-take-th -hindmost ex-
travagance which still further de-
pleted our admittedly limited supply.
Warming Ten Years Ago
Ten years ago DR.. George Otis
Smith, director of the United States
geological survey, urged the same
thing as Secretary Lane.
The position Of the United
States" he said, in regard to oil,
can best be characterized as precari-
Gus. Using more than a third of a
billion barrels a year, we are draw
ing not only from the underground
pools, but also from storage, and
both Of these supplies are limited.
Even if there be no further increase
in output due to increased demand.
is this not pace that will kill the
industry?-iS not our world leader
ship dn oil production more spec (
taCular than Safe?"
When Lane and Smith uttered
these warnings, production in the
United States amounted to less than
400,000,000 barrels year. Today it
is more than double that figure. It
is roughly 900,000,000 barrels a year.
Big Problem for Hoover
DR.. Smith now is chairman Of
the advisory committee of the fed
eral oil conservation board as we'll
as director Of the geological survey
1 asked him how much more min
eral oil we have left in the ground.
"Of necessity" he replied, such
estimates are speculative. Some
mention nine billion barrels. Others
double that figure. But whether
you accept what we might call the
pessimiStic, or the optimistic view
Of the situation, it makes little diff
ference when measured in terms of &
life Of a nation"
Today, therefore, President Hoo
yer has, in oil, one of his greatest
problems. Being a minded
engineer, and knowing the world
as he does, it is regarded as UNI
thinkable that he will long permi
things to drift as they have dom
in the past
Rather it is expected that tn
prompt, determined, forWard-look
ing, worldwide policy urged by Ian
years ago is at last about to be rea
Iized.
Two Possible Methods
There are two possible methods
which we can follow" says DR..
Smith. Either reserve the domestic
oil fields for American development
and thus prevent foreign acquisition
Of what is needed at home" he said,
"or encourage our capital to enter
foreign fields to assist in their de-
velopment, thus insuring an addi-
tional supply of oil for our needs.
The one method harks back to the
Chinese WALL period, while the
other expresses the open door
policy"
DR.. Smith believes the open door"
policy best suited both to us and
the world. While permitting for
eigners to enter the American field,
it would pave the way for Americans
to enter foreign fields on a basis
Of reciprocity.
The British certainly are looking
out for their future as we'll as
their present interests.
Follow Britain's Lead
Not only do the British compa-
MES rejoice in such suggestive
names as 'British-controlled OIL
fields, said Dr. Smith, "but at the
stockholders meetings the policy is
stated in plain language as provid-
ing the safeguards Of voting trust
so that no financial control can di-
vert even a single barrel of oil from
national or imperial requirements.
1T is easy to see,' DR.. Smith add
ed, that Britain's world-trade poll
icy has given oil this Imperial
recognition. And when we picture
the return Of the American flag to
the seven seas, we, too, must plan
for an oil supply available wher-
ever needed
Any nation which today aspires
to large part in world commerce
imposes upon itself an oil problem,
for the future freedom Of both Inc
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