Evening star., 1932-08-27
OIL TRADE HOLDS
STRONG POSITION
Industry May Lead Way to
Return of National
Prosperity.
BY the Associated Press.

BY the Associated Press.
TULSA, Okla. August 27.-The oil
industry. regarded by its leaders as
definitely emerging from the economic
wilderness Of the last three years, finds
itself looked to as marshal Of the busi-
ness worlds quest for new prosperity.
The indutrys progress in stabiliztng
its operations is told in q statistical
story by Clarel B. Mapes. technologist
of the Midcontinent Oil and Gas Asso-
citation.
Analysing operating statistics Of the
petroleum industry for the first hall OF
the year. Mapes reported today
Despite the severe economic situa-
tions which continue TO confront the
nation and its industries, the oil in
dustry has suffered only small re-
duction in the total volume OF its con-
sumner demand and still retains its
promising and relatively stable eco
nomic position"
Extent Of Demand.
An analysis showing the demand ior
all petroleums In the IL months ended
June 80, totaled 1000, ,827 900 barrels,
or a decline of only 464 per cent from
that in the preceding l2-month PERIOD
| led Mapes to observe:
"Thus, when it is realized that many
other industries have seen a loss OF
! 10 to SO per cent in their consumer
demand. it can readily be seen tne
oil industry has been particularly ior-
tunate!'
In a recent message to the industry
Amos L. Beatty, president OF the Amer
| ican Petroleum Institute, cited figures
| indicating the oil business was enjoy
| ing a demand only is per cent less
| than 1t had in 1929.
THE volume we have" Beatty said,
"is sufficient to produce fair profts-
even in these times-if operations are
conducted on a rational basis.
What would the steel industry give
| to have a demand equal to 85 per cent
| of that which it enjoyed in 1923? Wnat
would the railroads of the country give
to have back 85 per cent OF their tra1nc
! and revenues for 1929? How happy
would be any other major industry OF
the country with IS per cent OF 1879
volume?"
Mapes reported that rational operat-
ing policies on the part OF producers
materially assisted in correcting further
the burdensome inventory which the In
dustry has been carrying for several
wears. He pointed out that decrease
of 5,OsO,0 900 barrels in bove-ground
stocks of petroleum was accomplished
! during the first half Of 1882 by curtail-
ment Of domestic production TO 1880 1858
barrels daily, averaged over the period,
or 678 per cent below the production
for the same period Of 1881.
Key to Future.
With the season Of leSSened gaso-
line consumption approaching, Mapes
warned that motor fuel stock levels held
the key to the industry's future.
Summarizing the statistics OF the
industry for the past few months" he
stated, there appears only one possible
serious and far-reaching difficulty. But
It is the one which controls profits and
can defeat or insure the economic sta
bility of the industry. Stocks of motor
fuel must be kept to the recommended
levels regardless Of the demand which
arises.
THE demand has not decreased more
than expected, and conditions may be
said to be optimistic, but. regardless Of
these facts, the level Of motor fuel
stocks is the one single economic guide
for the entire petroleum industry"
Bureau Of Mines figures show stocks
Of all motor fuels totaled SO, ,2S6, 900
barrels on June 30, or 100000 barrels
in excess OF the level recommended by
the Economics Advisory Committee of
the Federal Oil Conservation Board.