Evening star., 1941-01-01
More New Peaks Seen
For Oil Industry
In Coming Year
Due to National
Defense Steps, Demand
Should Increase
By c. O. WILSON,

EdltOr, Inc OH ana Gas JOALAd4.
After establishing new peaks in
most phases of its operations in l94O
the petroleum industry in the United
States is assured further expansion
in 1941. During the year just clos
ing, gains in domestic demands for
most refinery products ranged from
2 to 10 per cent. Due to war de-
velopments. exports of all products
and crude oil decreased in 1910 but
these losses were not as large as the
domestic gains so that producers,
reflners, pipeliners and marketers
had their largest year in regard to
volume.
The domestic and foreign de-
mands for all oils in the United
States in 1910 totaled approximately
1850 100000 barrels. a gain Of 30
100000 barrels over the previous
year and 30 per cent greater than
in 1929. Sales of gasoline in 1910,
when the final figures are available
will total approximately $4,000, 900
barrels. an increase Of Is 100000 bar
rels over 1899 despite a decrease of
approximately 21,0000O0 barrels in
export shipments.
Heavy Demand Forecast.
The large gain in domestic gasO-
line consumption is largely re-
Election of the substantial increase
in sales of motor vehicles during
the year. With record registra-
ton of cars at the close of the year
and the expectation that new car
sales in 1941 will be approximately
| the same as in 1910, economists OF
the industry and the Government
expect another large gain in do
mestic gasoline consumption this
year. The predicted gains for 194l
range from 30,000,000 to $4,000, ,0OO
/ barrels.
While gasoline continues to be the
industrys principal product, more
attention is being paid to other
products. For several years the per-
/ centage gains in demand for prod
ucts classcd as gas oil and distillate
/ have been greater than those OF
gasoline. 1t is expected that the
/ sales of these products IN 194l vii
total approximately 200000,000 bar
rels. They are consumed princl'
pally as fuel in homes and buildings
and as fuel for Diesel engines.
/ Markets for kerosene continue t
| expand rapidly with 1910 sales total
/ ing approximately 100000 barrels
The increased industrial activity
brought about in part by the defense
program has been a stimulatOr TO,
fuel oils, with the 1910 demand
exceeding 350O00.00O barrels.
War Changes Markets.
The increase in imports of petro
leum into the United States wa
partially brought about by the los
of European markets to South Amer
ican countries. Unable to max
their normal shipments to European
countries. the South American pro
ducers and reflners-principally il
Venezuela-increaSed their ship
mnnts to the United States.
Despite the substantial increas
in domestic and total gasoline de
mands, reflners in the United State
overproduced the product over
large part of 1910, accumulatinl
excess stocks which overhung th'
market throughout the year. A
the close Of the year prices OF
gasoline in most markets were th'
lowest in several years. Market
for kerosene and all grades of fuel OF
were more favorable Crude OF
markets. with the exception OF TIT
Pennsylvania grade area. were gen
orally steady throungout the year.