The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1948-02-05
Foilure Of Oil Industry To
Expdnd Production Leads
To Nationwide Shortages

gency fuel program--including a
60-day cutback in gasoline produc-
tion-was launched by the oil in
dustry last week following a pro-
mise by Attorney General Tom
Clark that the industry would be
granted immunity from the anti
trust laws in connection with the
ALLEGATION of supplies. At the same
time, Interior Secretary julius
Krug recommended to Congress a
50 billion synthetic oil production
program to meet future needs.
The shortage, caused by failure
of the industry to expand and
meet increased consumption needs,
has reached the point where fuel
oil rationing will probably be nee
essary next winter and gasoline
rationing put in effect this coming
summer. Over 100000 new oil
burners were installed thruout the
nation in 1947, bringing oil con-
sumption up 1890 and the increased
number of cars on the road has
brought gasoline consumption up
500.
Many homes and some offices
have gone unheated for a week
now in localities where oil supplies
have run out and the Maritime
Commission reports that shipping
has been interrupted in Norfolk,
Baltimore and some Florida ports
where no ship fuel is available.
IN The Navy has refused to make
,Tankers available for transporting
oil for civilian use but has agreed
to lend oil to the states which need
it most provided it is paid back
barrel-for-barrel by June 30.
The program of the Natl Petro-
leum Council includes, besides the
60-day gasoline cutback, a CORES
ponding increase in fuel oil produc-
tion, seven-day work week for
employees loading and unloading
petroleum supplies, and the pooling
of supplies and transportation fac
ilities. A special committee investi-
eating the fuel shortage suggested
that the administration ask COVER
nors of all the states to reduce
highway speed limits to 35 miles
per hour, as was done during the
war. The committee also proposed
establishment of a joint congress-
ional committee to make national
fuel policy.
A bill introduced by Sen. Styles
Bridges (R., N. H.) to put an en-
barge on shipping petroleum pro-
duets overseas is receiving strong
opposition from the administration
William C. Foster, former under
secretary of Commerce, testified
before the House Interstate & For
eign Commerce Committee that
IAN outright embargo would be a
calamity to western European re-
covery and might have political
n consequences that would be grave
1vo this country" Interior Dept fig
ures show that our oil exports are
low, the total for December equal
ling only half of one days domestic
production. Most of the oil called
for in the Marshall plan would
come from the middle east.
The 50 billion synthetic program
proposed by Secretary Krug would
increase U. S. oil output by 2,O00,-
900 barrels a day-40% over our
present output. The plan is to pro-
duce oil from coal and oil shale.
1t will take from five to 10 years
to effect and require 100000 /
tons of steel. Krug pointed out that
the creation Of a synthetic oil in
dustry is too big and too long job |
to be undertaken under emergency
or war conditions. "If industry and
government wait for purely com
petitive factors to develop synthe-
tic fuels" he said, "it will be a long
time before they become CONNER
cially practical"
The plans under consideration .
call for either federal subsidy of I
private industry or government
construction of plants to be run
by private industry.