Evening star., 1938-02-07
CRUDE OIL STOCKS
CONTINUE TO RISE
Gasoline Storage Mounts
Also Despite Sunday Curb
in Texas.
BY j. G. DONLEY.
= afA1 nj aa ah - ~hA Atar


NEW YORK, Feb. 7.-Crude oil
stocks and gasoline in storage con-
tinue to rise, despite the fact that
Texas, which ordinarily produces about
40 per cent of the Nations daily run
Of crude oil, has been put under q
Statewide regimen Of "oil-less Sun
days"
"Oil-less," that is, from the pro-
duction viewpoint, except that. in some
cases, wells which cannot be entirely
shut down for fear of water encroach-
ment or for some other reason are
held down to a six-day production
basis spread over the full seven days.
Back in World War days, when the
shoe was on the other foot and there
was threatened shortage Of gaso-
line for war purposes, it will be re-
membered that the Nation was asked
| to cooperate in a series Of "gaso-
line-less Sundays" Except for those
having urgent need for motor trans
portation, the highways Of the coun-
try were practically deserted for a
| number of Sundays and the old horse
drawn rigs were restored to wide de-
mand wherever they were available.
Situation Is Reversed.
The shoe is now on the other foot
| to the extent that stocks of gasoline
In storage have risen to new high
levels-close to 85.000000 barrels last
week. And even with crude produce
ton sharply curtailed, stocks of petro-
leum are also rising and for the latest
week reported stood at 304 ,424 900 bar
rels. Stocks of crude are not excessive,
however by all standard of recent use.
and they are low in comparison with
| the all-time peak set in October. 1929,
at about 433, 100000 barrels. In the
early part of last year our domestic
consumption of crude was estimated
at an annual rate of l,180, 900 900 bar
rels
| Significance OF accumulated stocks
Of anything is, Of course. in relation
to the existing demand and demand
over the near-term future On that
basis gasoline stocks are rather cum
bersome right now. for the use of
automobiles has sharply declined with
the advance Of the business recession.
The major activities of the petroleum
industry are centered upon the pro-
duction of motor fuel and lubricants.
Other products have long been consid-
cred in the nature Of by-products,
which, by providing other revenues for
the petroleum industry. reduce the
cost OF gasoline and oil to motorists.
Gasoline Leads.
But those by-products came up
sharply in use during the booming
days early last year. For instance,
demand for kerosene increased more
than 10 per cent in the first 10 months
Of 1887 over the like period of 1885,
gas, oil and distillate fuels increased
more than 2l per cent, and residual
fuels gained 712 per cent
Gasoline is far and away the biggest
! money maker of the Oil industry. And
| the United States Is the world biggest
| gasoline market, for We consume over
II per cent OF the motor fuel used in
| the whole world. With some 2e, 600, 900
motor vehicles registered in the United
States at the end of 1887, of which
| 24,600, 900 were motor cars, why does
gasoline consumption f1uctuate 50
widely?
The answer is that over half our
motorists have never bought new cars,
and their operation of automobiles
hinges to great extent upon their
weekly pay envelopes Daily sales from
the millions of wayside gasoline pumps
have. therefore. become an exceedingly
sensitive barometer of general business
conditions.
| (Copyrisht, 1881