Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-05-27
Refinery
| BottIeneck
DANGEROUS.
By John G. Henry

1OnSSsV0S. Il
By John c. Henry
Most serious of the potentials in
today's threat to Middle East oil
and its continued availability to
the n-Communist world is the
bottleneck Of refining capacity.
In round figures, the free world
lis consuming approximately II
million barrels of processed oils
daily. With the expansion Of de-
Tense industries this figure is edg-
ing upward. and an outbreak Of
world war would mean further
Eacceleration of the demand.
OF this requirement. refining
capacity in the troubled Middle
East provides about $4,000 bar
Irels a day. Abadan, owned by the
Iharassed Anglo-Iranian Oil Co.,
lis the largest refining unit in the
world, with a capacity close to
$4,000 barrels per cent of the
world needs. AS of today. Abadan
lis operating at capacity after a
partial shutdown several weeks
ago when the Iranian nationali-
cation crisis began to build up.
An immediate reflection Of Aba
dams Importance was found in
New York almost within hours Of
the plants closing, when a normal
I"spot market" supply of refined
oil products of some Z million bar
rels was dried up by quickly
arranged contractual commit
mentS.
If the present British ranian
impasse should cut off the Abadan
supply again. for more than a brief
period. there would be no quick
replacement elsewhere. And if
the Iranian trouble should spread
to other areas in the Middle East,
the problem would only be intensi-
fled. Aside from Abadan. princi-
pal refining plants in that part OF
the world are the American-con-
trolled one at Bahrein Island, with
a daily capacity of 1875. 900 barrels,
and another American one at Ras
Tanura. Saudi Arabia, with a
capacity of 10000 barrels. De-
spite the rather lightly regarded
i Iranian claims that Bahrein is
properly part of Iran, both OF
these plants are considered secure
from the present naturalization
fever.
Pressure on Iraq
Iraq, where negotiations are
currently under way between the
government and the Iraq Petrole-
UNI Co.-American. British. French
and Dutch owned has ne
Imajor refining facilities. There
lis, however. pressure for rationali-
cation of the rich producing fields
Other Middle East refining facili.
ties account for 10000 barrels
daily from Egypt. 10000 from Ku-
wait and 5000 from Lebanon. A
plant at Haifa, Israel, not includ-
led in arriving at the $40, 000-bar.
rels-a-day production figure, has
Ia capacity of $4,000 barrels. But
this one has been almost entirely
closed down since the flow OIL
!; crude oil from neighboring Arat
states was cut off during the Pal
estine war.
Against this Middle East pro-
duction, the United States has 9
total refining capacity of $3.50. 00t
, barrels daily. Approximately
, 550. 900 of this productive poten.
tial is considered obsolete. or i.
& otherwise out Of present service
Actual production today is about
ga million barrels. Expansion o,
facilities, here or elsewhere. is 6
costly and long-term proposition
IA modern refinery of substantial
size requires two to three years fol
| construction and considerable
/ quantities of hard-to find steel.
: The major such project nov
, under way is at Fawley, England
, where ESQ Petroleum Co.. {
/ subsidiary Of Standard Oil O.
New Jersey, is investing more thar
500 million in a plant scheduled
, to begin production next October
c Construction was started in July
, I1949. on a 450-acre site. with com.
pletion scheduled by January
/ 1852. The pressure of world events
. resulted in speeding the work tt
permit initial production next au.
, tumn. When finally completed
the new plant will have a capacit.
of nearly 100000 barrels daily. I
7 has been planned that crude OF
. requirements will come almost en-
tirely from the Middle East.
Three other important refiner.
projects also are under way il
; England. all scheduled for oper'
: alton within another Is months
Two. being built by the Shell com
: pany. will have a total capacit.
sIequal to the Fawley plant. while .
third and smaller one is beinl
constructed by the American
: Vacuum Oh Co. At the pres
ent time, facilities IN thu