Evening star., 1940-04-21

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legislation to bring the industry within
the compact was sharply fought over at
the last election, with President Roose-
welt, Secretary Ickes and other New Deal
ers plumping for State law. While the
oil companies indorse the compact idea,
they oppose a, State law, on the assump-
ton apparently that they can do the Job
without governmental interference.
Without these two big producing States
the interstate compact and the "Hot
Oil" Act are of little value. This Is
the argument of Mr.. Ickes and the con-
servationists who are backing the bill for
Federal regulation introduced by Repre-
sentative Cole, Democrat, of Maryland.
Under the terms of this measure, on which
hearings were held for many months,
the Department of the Interior would
act in an advisory capacity to regulate
oil production. But the Government
would also have authority to step in and
compel abandonment of wasteful prac-
tices when individuals failed to heed
advice.
Reserves a Defense Problem.
The chief argument of the conserva-
tionists is the menacing depletion of
American oil reserves, a threat which
touches not only all of industry and
finance, but, more vitality, .the question
of national defense. The Natural Re-
sources Committee under Secretary Ickes
in the Department of the Interior ap-
pointed a special group to make a survey
of the energy resources of the Nation. In
a report issued last year these experts
declared that there was only 12-year
known supply of petroleum in the United
States at the present rate of production.
1t is just here, OF course, that the ques-
ton of foreign holdings comes in. Since
1918 the scramble for oil reserves in
various parts of the world has been
intensified. The major oil combines,
backed by their respective governments,
have been engaged in bitter warfare all
over the globe for the stuff that makes
the wheels turn. The British have long
realized that the power of empire de-
pends on oil. For that reason the gov
ernment created the Anglo-Persian COM
pany and gave almost unlimited backing
to Royal Dutch Shell
BY far the largest American holding
is in Venezuela, where Standard and
Gulf have enormous oil reserves, their
combined resources and production being
greater than Dutch Shells. The oil dis
coveries have given Venezuela a vast
temporary wealth
New Colombian Field.
An important new field in Colombia
is in process of development. This is
the Barco concession in which major
production is just starting Standard
subsidiary has lesser holding in Peru.
Similarly in Argentina there is a Stand
ard field which is comparatively small,
supplying only about fourth of Argen-
tina's own domestic needs. The gov
ernment of Bolivia Cancelled out Amer
lcan oil contracts to the consterna-
ton OF Oil executives, who saw in this
the shadow of appropriation even though
the amount of money involved was very
small.
1t is in Mexico that oil politics in re-
cent years have been hottest. The ex-
preparation Of American and British
properties on March 18, 1898, precipitated
bitter warfare that is not yet ended
How much use the Republicans will make
of the Mexican oil issue can only be sur
missed. They may make political capital
of the long, drawn-out failure to reach
settlement, of other surface symptoms
OF trouble. 1t is safe bet that they will
not press any investigation which would
show all that is back of the Mexican
maneuvering.
One Phase of the Whole.
In the larger view, all this is merely
one phase of world oil politics. Dis
counting romantic and biased accounts,
it remains true that much of the history
around the effort to recover the great
oil resources of Baku that were national
lied after the Russian revolution of 1917
Such powerful men as Deterding never
gave up the hope that the wealth of the
Caucasus Mountains would some day be
restored to private hands.
Under ordinary circumstances the be-
-the-scenes maneuvers Of the oil
powers are difficult to discern. With
wartime censorship all knowledge is
blacked out What part oil diplomacy
played in the outbreak of the present
war will be known, If 1t is known at all,
only long after peace has come. And
that peace may determine where con-
troll of oil reserves, and therefore where
world power, shall lie.