Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-12-24
u. 5. Oil Production
Needs Stimulation,
0'Mahoney Declares
Senator Explains Bill
Awaiting Signature in
Rudio Forum TuIk

Americas urgent need for more
oil was described last night by Sem
ator O'Mahoney, Democrat, of
Wyoming in an address to the Ma
tional Radio Forum, arranged by
The Star and broadcast over WMAL
and the Blue Network.
Senator O'Mahoney sponsored a
bill, passed during the closing hours
of the Seventy-seventh Congress and
now awaiting the Presidents sigma
ture, to stimulate the discovery of
new sources of petroleum on public
lands.
1.-THE bill was needed" he eX-
planned, because new supplies Of
oil are needed and because in the
public land States there still are
possibilities of new discoveries, pro-
vided only that men are encouraged
and permitted to search for new
deposits
Supply Insufficient.
The need for new oil, Senator
OMahoney emphasized, lis so i'm
perative that unless new supplies
are made available we stand in grave
danger of not having enough petro-
leum with which to fight the war"
he added.
THE present supplies definitely
are not sufficient and we have not
as yet taken adequate precautions
for the crisis that is now upon us.
The fact that, as war measure,
gasoline last week was denied to
all except the most essential civil
ian uses in II Eastern States and
the District of Columbia is proof
enough of the desperate nature of
the crisis. We have been trying to
meet war needs by rationing civilian
uses. We have been trying to meet
the demands of the military forces
by diverting supplies from the
civilian economy. Until the passage
of this bill, no substantial effort
was made to bring in new reserves.
New reserves are what are most
needed because we are confronted
by military demands which are
almost beyond Imagination"
U. S. Supplies Allies.
Speaking of the perfectly re-
markable job of mobilizing our re-
sources which has been accom-
plished," Senator OMahoney de-
clared I'VE now have more and
larger airplanes in actual combat
than was deemed possible a year
ago" He added:
But these planes and tanks are
burning up oil in an amount which
was scarcely within our contempla-
ton six or eight months ago And
We are delivering much oil to the
South Pacific. 1t comes from our
supplies and it is being sent to a por-
ton of the globe which is itself rich
in petroleum, the supplies of which,
however, unfortunately have fallen
into the hands of the japanese"
He pointed out that United States
deposits of petroleum have become
practically the only sure and certain
source from which the United Ma
tons may draw their essential sup
plies of OIL
High Octane Gas Needed.
THE demand" he said, lis so
great and is growing so rapidly that
failure on the part of the Govern
ment, the oil industry and the peo-
pie to prepare Immediately can only
result in disaster. American pro-
duction of crude petroleum is now
running at the rate of something
more than 100000 barrels every
day. This was sufficient in the days
before the war to take care of all
industrial and civilian needs. but
it is totally inadequate to fuel the
tanks and planes that must carry
the war to Toxic and Berlin"
The compleXity of the problem is
further enhanced" Senator OMa-
honey said, 'by the fact that these
sir armadas need for their efficient
operation a type of high-octane
gasoline which is only now coming
into manufacture in quantity and
which is extraordinarily expensive
In terms of crude petroleum. Scarcely
10 per cent of a barrel of oil, as
It comes out of the ground, can
finally be manufactured into the
sort of gasoline that is needed to
supply our air armadas."
Provides Lower Royalty.
His bill. he pointed out, provides
q lower royalty to the Government
for new discoveries of oil on public
lands.
Under the present law, lessees Of
Government oil lands pay the United
States royalty which ranges from
1872 to 80 per cent, according to the
amount and value of production.
Under the new law. any lessee who
brings in new oil field or who, on
an old lease. brings in new deposit
of oil, will be rewarded by being re-
quired to pay not more than 1872
per cent for a period of 10 years
after the discovery" Senator
OMahoney said
Il would be the last person to pre-
dict that the passage of this bill will
solve the petroleum problem. 1t will
not. Even though there may be a
large supply of undiscovered petrol
cum in the public land States, the