Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-11-14
An Oil Famine May Lose the War

long shut down. and make possible second
airy recovery operations In many fields where
the oil is needed.
"As an illustration Of the Importance that
petroleum products have in war, we have the
evidence that two-thirds of all Of the entire
tonnage consumed in expeditionary forces,
including their transportation and protec-
ton, IS petroleum.
With the restrictions which are now
going into effect on the unessential uses of
petroleum products, all oil consumed be-
comes an essential war product and can
not be considered in the category OF any
other product consumed by the public that
might be a contributing factor toward gen.
eral initiation. Initiation has already taken
place in every other commodity except oil,
whose price is three-fourths that of 1926, the
fixed standard year for commodities
TT rs ILLOGICAL AND AS SILLY TO
PLACE A BLANKET PRICE ON OIL BE
LOW THE COST OF PRODUCTION,
WHICH WILL INEVITABLY CAUSE A DE-
FTCIENCY IN THIS PRODUCT AND MAY
CAUSE Us TO LOSE THE WAR, AS TT
WOULD BE TO SAY THAT WE WILL NOT
PAY DIFFERENT PRICE FOR TUNG-
STEM, EVEN THOUGH WE CANNOT FUR
NISH OUR TROOPS WITH ARMS WITH
OUT IT'S USE.
"Oil is more surely a war product, and a
more important one than steel. guns. arma-
ment or explosives. and we do not restrict
their production by price.
WE ARE CERTAINLY HEADED To-
WARD DISASTER, MIR. PRESIDENT, IF
WE CANNOT MAKE PROVISION AT THIS
TIME, FOR AN INCREASED SUPPLY OF
NEARBY PETROLEUM
THE time lapse between the search for
petroleum and its use where needed, is at
last two years.
'n we knew that one-fourth Of our iron
furnaces or steel mills would be out of COM
mission within two years, and it took two
years to build others, we would certainly
do something about it, and do it now.
ut is not sound administrative policy
to have the direction of production, refining,
and transportation of petroleum products in
the hands of one bureau, and the regula-
ton of the price, which is the sole means
Of assuring us Of these necessary products,
in the hands of another bureau, which has
neither the experience, nor the personnel,
nor the responsibility for the production,
amount of production Of this product
through price control
Whoever is responsible for the production
Of petroleum products, and therefore re-
sponsible for our ability to win or lose the
war, should have the authority to set the
prices
"The changes In products made neces-
sary by the demand for aviation gasoline,
taluol, fuel oil, and coke have so utterly
changed the output Of refineries, each diff
ferently, that failure TO take cognizance of
changed conditions, win cause involuntary
shut-downs in a large portion OF these
plants, and cause utter disruption Of our
war effort Changes in prices must be
dictated by the same authority who is re-
sponsible for this production. The same
truth holds for crude oil.
Mr.. President am not saying this IN
the name of justice to this industry. I am
looking at this solely to help us win the
war, and even If it were necessary to sacri-
flee this or any industry. or any group of
individuals to successfully prosecute the
war, you would have my backing.
@I know Of no other way to assure our
selves Of these vital products except to re-
munerate the producers at least for their
cost.
1.-THE policy Of our Government toward
petroleum must have two viewpoints.
First, as much the most important single
product necessary to winning the war. Oh
must be furnished to our armed forces, and
our war industries, according to their needs,
irrespective OF individual inequalities, ire
spective Of cost, and largely, irrespective of
strict conservation.
Secondly. our policy should be, from
postwar viewpoint, wherein individual in
justices are eliminated, where the public
shall receive ample supplies of petroleum
porducts at a reasonable cost and that our
proven reserves are built back up to at
least 20 years supply.
"These two policies might seem to be
wholly contradictory, but they need not be
so. In fact, if a short-sighted war view is
taken, drilling discouraged, prices held be
low the cost Of production, and conserva-
ton forgotten, such a policy viii sabotage
its own purpose; we win be short Of oil for
our armed forces and lose the war.
'1dr President. this Is an oil war"
Ion. William p. Cole by