Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-11-06
Oil From East of Suez'

Western Europe has grave economic
reason to be waiting anxiously for reSo-
luton of the Middle East crisis. For the
industrial machine of the free nations
of Europe has become increasingly de-
pendent in the past decade on Middle
East OIL Daily import needs In Britain
and the free continent amount to about
rs million barrels. approximately mil
lion of this total has been coming from
the Middle East, more than half of it by
way of the Suez Canal While storage
supplies vary somewhat by country, au-
thorities here estimate that most of free
Europe's oil-conSuming civilian industry
would be critically hurt If daily imports
were interrupted for as much as three
weeks.
Almost a week of normal traffic
through the canal already has been lost
with no assurance as to when British
French forces may be able to complete
capture of the waterway or clear it of
one ship already sunk in such way as to
obstruct passage. In addition, one pipeline
system moving Iraq petroleum to Medi-
terranean ports already has been cut by
Arab saboteurS and the rest of the net
work from Iraq and Saudi Arabia across
Jordan and Syria is highly vulnerable.
Even if fighting is ended soon, these lines
may be difficult to protect and the canal,
although sea-level waterway without
intricate locks, could be further OBJ
structed by Egyptian engineers before a
forced withdrawal. Tight policing of the
canals nearly 100 miles of length would
be both diff1cult and essential after
allied occupation.
When the Suez crisis arose last sum-
mer, American and West European oil
experts worked out possible requirements
for part of the Arab Middle East supply.
Even that plan, however, depended
largely upon continued production in the
fields of Iran, Iraq and the Persian Gulf
area with reliance for transport upon the
pipelines and increased tanker shipments
around South Africa. While Iran, nom
Arab State, might step up its Western
controlled production, the safety Of other
major producing fields in the area is not
assured. Shipment from the Persian
Gulf to Europe, around Africa, requires
IA days more than the SueZ Canal route
and strains heavily the supply of avail
able tankerS. Port facilities on the gulf
also have serious limitations.
Europe's alternative reliance, OBJ
viously, is on the western Hemisphere.
The United States has been importing
$4,000 barrels daily from the Middle
East by tanker and preliminary planning
had been to divert this to European mar
kets. 1t had been estimated, also, that
our own production for export to Europe
could be stepped up quickly by 100000
barrels daily and considerably more than
that for longtime need. European users
already are reported making inquiries in
Venezuela for additional supplies from
that oil-wealthy country but, in the near
term at least, there may be greater DIM
Guilty finding tankers and financing pur-
chase of dollar oil" than in finding the
oil itself. In addition, more extensive
and continued diversion Of oil from the
Western Hemisphere could impinge upon
our own daily needs.
There are, of course, military impli-
cations IS we'll as economic ones,in this
West European requirement. Britain and
France, engaged in hostilities will need
increased quantities Of military oils
available only from overseas. The fact
that the Soviet Union and its satellites
are believed producing enough for their
own military. as well as economic, needs
makes free Europe's situation even more
demanding. II Is clear that the crisis in
the Middle East has implications Of a
dangerously threatening kind.