Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-02
GASOLINE SUPPLY
PROBLEM IN OIL
Excessive Quantity of Fuel on
Hand Clouds Horizon
of Industry.
a. ths Associated Press.

BY the Associated Press.
TULSA, Okla, July 2.-While bene-
flied by conservation measures that
have served to alleviate the menace OF
overproduction Of crude oil the petro-
leum industry enters the second half OF
1880 with an excessive gasoline sup
ply clouding the horizon.
That was the gist Of statements to-
DAY from prominent figures in the in
dustry, while signifying pleasure over
the progress achieved toward stabiliza-
ton through cooperative reduction of
the crude oil output, they emphasized
that overproduction of gasoline had
created an acute situation requiring
immediate attention.
CogniZance was taken, however, of
recent steps to curtail production of
gasoline and hope expressed that the
last half of the year would bring a
decided improvement in the situation.
Progress in Output Curb.
Spread of the movement to curb the
output of the refined product, together
with the fact that demand is increas-
ing rather than Slackening, was cited
by E. B. ReSser, president of the Amer
lean Petroleum Institute and the Barns
dali Corporation, as indicating progress
toward restriction of operations to a
demand basis.
Writ Franklin, president of the In
dependent Petroleum Association of
America. who led the Intellectual fight
for tariff on oil imports declared that
reduction of refinery rush was more
important at present than curtailment
of production of crude oil.
William N. Davis of the Phillips
Petroleum Co., vice president of the
American Petroleum Institute described
the result 1f nil finV1 dttriy7o he
first half of the year as impressive"
but added that immediate limiting of
the gasoline supply was necessary.
Concerning the crude oil situation,
Reeser pointed out that production in
the United States at the end of June
was 100000 barrels day less than 1t
was year ago.
"If the curtailment movement were
not In effect" he said, crude prices
would be so low that the losses to the
industry probably would be $1,000 900
per day greater"
Constructive Cooperation.
Davis said the first six months of
1880 had witnessed "unexampled con-
structive cooperation in the reduction
OF petroleum with impressive results"
"a potential flood of petroleum" he
continued. has been limited to a
moderate surplus and present co-opera-
tive efforts, if successful, should effect
a slight reduction in the excessive stocks
Of crude by the end of the year.
"Refners, on the contrary. have run
too much crude, made too much
gasoline and created an acute condition
of oversupply The situation can be
corrected, but only by immediate re-
duction of domestic refining activity
and also of imports"
Franklin quoted figures which, he
said showed obviously that while the
crude oil situation was in a better
position statistically today than in Mid
summer of 1929, the refined situation
was worse"
While the producers of the United
States have restricted production, he
said, importers have increased the move
ment Of refined oils into this country.
He cited statistics showing import in
the first six months of 1880 had in
creased 5000 barrels over the i'm
ports for the same period Of last year.
Imports Are Heavy.
"If the imports for the last half of
1880 are not more than they were for
the first half" he went on, they viii
total approximately 100000 barrels
for the full year, compared with 10000
600 barrels in 1929, and 1000, 900
barrels in 1928. This is due to the
erect OF giant rennerleS on the coast
of Venezuela and indicates an increase
of 80 per cent in imports of refined
products for the year in the face of
generally known 'overrefined' situation
in the United States; and is further
evidence of the need for a tariff on
oils.
THE crude situation is somewhat
better due to the fact that the imports
are coming as refined products instead
Of as crude oil
while the present price structure of
crude oil absolutely requires that the
current supply be held at. or preferably
below, the current demand it is today
more vital that refinery runs be reduced
in order to cut heavy stocks of refined
products, especially gasoline.
THE oil industry has ample warm
ing and ample time in which to set its
house in order in preparation for new
methods of handling new production of
crude oil-the transportation of liquid
refined products by pipe line and the
introduction of hydrogenation. The in
dustry today is facing epochal changes
that in the next five years practically
will make it over and will involve ex-
penditures Of new capital that may
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