Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-19
BY EARL H. voss

If the Suez Canal imbroglio re-
suits in shutoff OF oil to Western
Europe, the United States and
Canada would bear the brunt of
the job of replacing it. That much
is already clear from preliminary
government studies of the conse-
quences of possible Middle East
oil cutoff.
But where the West European
nations would get the dollars to
pay for the large quantities Of
American "black gold" is not so
clear.
Government officials now believe
that a dollar shortage might be
more of a bottleneck in replacing
Western Europe's oil supply than
either the western hemisphere pro-
duction capacity or the supply Of
tankers.
According to Administration esti-
mates tankers carry some is mil
lion barrels of oil through the Suez
Canal daily. About ID million
barrels of this is bound for
Western Europe Including the
United Kingdom. The other 300,-
900 barrels are brought to the
United States.
Another 100000 barrels q day
flows through Middle East pipe
lines to the eastern shores of the
Mediterranean. Tankers take some
100000 barrels of that to Western
Europe. If Egypt were to close the
Suez to oil traffic, the West would
have to face the likelihood that
other Arab countries would see to it
that the pipeline flow also was
shut off.
80 Per Cent Of Need
In other words, Western Europe
now imports 100000 barrels Of
Middle East oil daily. That amounts
to 80 per cent of Western Europe's
needs.
How much of this possible
shortage could the Western Hemis-
phere cover?
About three-fourths, according
to administration estimates. The
United States. whose daily output
is 10 million barrels, could step up
its production and other small
producers in the Gulf area and
the Caribbean could between them
make another IL to 13 million
barrels a day available.
Canada, which has more capacity
(roughly 100000 barrels daily than
market 100000 barrels), could
probably make about 100000 bar
rels more available.
That makes a total of Is to IL
million barrels, as against a short
age of roughly Q million barrels a
day. And since Western Europe's
total consumption is about 2.5 mil
lion barrels day, this means the
area would have to reduce con-
sumption markedly. Industrializa-
ton programs might be curtailed
and private users would be incon-
venienced but Western Europe
would not face complete disaster.
A special Middle East Emergency
Committee was set up under the
Department of Interior last week.
to pool the resources of Is United
States companies with foreign op-
erationS in case the emergency
actually arises.
The Is companies are: Arabian
American Oil Co., Caltex Oil Prod.
ucts Co.. Creole Petroleum Corp,
Getty Oil Co., Gulf Oil Corp, Sim
clair Oil Corp, Socony Mobil Oil
Co., Inc, Standard Oil Co. of Cali
fornia. Standard Oil Co. IN. j.,
Standard-Vacuum Oil Co., Superior
Oil Co.. Texas Co. and the Venezue-
Ian Petroleum Co.
Make Pooling Arrangement
They are to pool their terminal.
storage and transportation facili-
ties, exchange crude oil, and adjust
overseas production and refining
to changed conditions.
These Is American companies
would also work closely with Ca.
madam producers. This has been
facilitated by ng-standing agree
ment on corporation between Cam
ada and the United States in times
of emergency.
This agreement provides that