Evening star., 1949-02-04
By Hermon F. Schoden

Oll QealefS VINO were ripping DOL-
toms out of barrels this time last
year looking for enough fuel oil to
keep Washington homes warm are
now witnessing the surprise about
face of surplus stocks going begging.
In years time the petroleum
industry, through an immense effort
on it's own, and through unforeseen
developments such as comparatively
mild weather, has come back from a
period of critical shortage to a
plentitude that is even more ex-
asperating to dealers who now eye
brimful tanks.
1t is all rather puzzling to the
layman, who observed the grim bat
tie to keep Washington industries
and homes supplied through an ice
packed Potomac last January and
February and recall a warning that
this winter also might prove tough.
One Washington retailer of Is
years experience surveyed his drop
of from 20 to rs per cent from last
years business and said his fate is
typical of the industry as whole.
Two Main Factors.
Boiled down, the surplus here may
be laid to two factors: % Intensified
production and expansion by the
petroleum industry and (2) alb
normally warm weather.
D. r. Beane, vice president of
Griffith Consumers Co., who has
been watching the retail oil business
here since its infancy, regards this
as probably the least happy of all
winters for oil dealers, with the
possible exception of 1941-42 ane
1882.
With an unlimited replacement
supply in sight, business has suf
fered from the generally warm sea-
son. In addition to losses in sales
dealers are obliged to keep on hane
extra truck crews in case things
pick up. In Mr. Beane's case, only
half of IS truck crews have beer
actively engaged.
On larger scale James " Brown
secretary-treasurer of the National
Petroleum Council, points to the in
dustry's all-put production effort
as one Of the prime reasons for the
surplus.
s5,0O0,00O, 900 Expansion.
Stepping into high gear after
throwing off war restrictions, the
industry has engineered q $5,OOO,-
100000 expansion program during
the last two years. One result was
a prodigious upswing in oil produc-
ton.
Mr.. Browns figures showed
roughly a 100000 barrel monthly
production increase for 1948 over
that of l947, or about 9 per cent.
The industry was in position to
avert last winters pinch, but the
elements played a prank, spilline
the roughest weather in the Western
areas, where natural gas and coal
are used more than oil. The East
on the contrary, has been balmy in
contrast with last years freezer.
At last check, the industry's kero-
sene stockpile nationally measured
100000 gallons, compared with
10000 900 at this time last year: and
the kind of oil used in home fur
naces gagged reserve of $4,000, ,00O
gallons, compared with last year s
100000.
Prices Trimmed.
The consequences have not yet
shown up materially at the pro-
duction level, but the possibility
looms that workers may have to be
laid off. The high supply and low
demand also has shown up in price
slashes at the wholesale level, anc
drop Of 81 per barrel, or 20 pei
cent, in Pennsylvania crude oil ir
the last six weeks.
One of the few happy people di.
rectly connected with the situation
is j. Thomas Kennedy, director o1
weights, measures and markets, who
headed the Fuel Oil Co-ordinating
Committee during last winters
scramble for oil.
Besieged by hundreds of calls by
cold home-owners, Mr.. Kennedy s
committee ladled out more than
100000 gallons of emergency oil
last January and February.
Today Mr.. Kennedys committee is
still standing by, but he doesn't
know why. They haven't had q
distress call all season.