Evening star., 1930-06-25
GAIN IN GASOLINE
SALESIS RECORDED
Summer Time Brings In
creased Use of Fuel by
U. S. Motorists.
BY BENNETT WOLFE,
Associated Press Etaf Writer

TULSA, Okla, June 25.-Arrival of
the good old Summertime" has brought
the oil industry q boon 1t would have
welcomed weeks ago.
Hot weather means increased gasoline
consumption as American motorists re-
Spond to the beckon Of the open road
presenting a picture of q nation on
wheels that is especially cheering to the
refining branch of the industry.
The effect Of excessive gasoline stocks,
while felt first by refineries, has ex-
tended through the entire industry, and
the assurance of greater gasoline con-
sumption during the latter half of the
year is being pointed to as Offering the
industry an opportunity for planning
| operations so that it will not enter 1881
overstocked. Demand for gasoline dur
| ing the last six months of each year
always exceeds that during the first
half.
Warns Against Big Output.
Reviewing the first half of 1880 in the
oil industry, E. B. Reeser, president OF
the American Petroleum Institute
sounded a warning note against accu-
mutation of stocks.
1.-The additions to stocks over the past
three years." he said, have been so per-
sistent that many producers, I fear
have become so accustomed to 1t that
they will take 1t as a matter OF course
and believe purchasing companies will
continue to add to the accu 'ulation."
A study of statistics covering the t1rst
half of the year should help the indus
| try In deciding upon its action during
the second half, the institute head as
serted.
He estimated the curtailment move
ment was responsible for saving the In
dustry $l,0O0,000 day in the crude oil
| market.
Science is blamed partly for the
surplus gasoline stocks which have
prevailed this year. Greater efficiency
| in the manufacture of motor fuel has
| increased the production of gasoline per
barrel of crude oil. Within few years
time the yield has been boosted from 40
per cent to nearly AZ per cent.
Another factor contributing to the
same situation and likewise one in which
science has had big part is the pro-
duction of more and more gasoline from
| other raw materials than crude oil
| Cheap cracking stock and natural gaso-
line are two sources which, statistics in
dicate, will account for sufficient Inc
crease in gasoline production to equal
| the years improvement In demand.
Natural gasoline formerly was a waste
| product.
Anti-KnOck Gasoline.
A further complication has been in
jected by a steadily increasing demand
for Premium, or anti-knock gasoline,
produced by the cracking process. This
development tends to create a problem
In disposal of the straight run gaso-
line.
The Federal Oil Conservation Board
has pointed out that the only market
for crude oil--refined products-iS being
diminished by encroachments of crack
ing stock and natural gasoline. In the
same connection are mentioned the re-
markable strides made by natural gas
in competition with fuel OIL
Figures of the United States Bureau
of Mines show the demand for gasoline
In the first four months of the year
totaled 139,904.000 barrels, an increase
OF 15,688,000 barrels over the corre-
spending period of 1929. A gain of 1913
per cent in domestic demand and 233
per cent in exports accounted for the
increase. The gain exceeded general
expectations and recent estimates in
dicate the rate of increase has not
been maintained since May /.
The supply for the same four months
totaled ISL, ,207,0 900 barrels, of which
77,686,000 barrels was in straight run
gasoline refined from crude oil, 1884,
600 barrels in cracked gasoline refined
from fuel oil and gas oil and the re-
mainder in natural gasoline, a small
quantity Of benzol and 4,720,0O0 bar
relS OF imports.