A Foreign Oil Supply for the United States

Twelve years ago, the Director of the United States Geological Surveyaddressed to the Secretary of the Interior a letter calling attention to thegovernment's need for liquid fuel for naval use and pointing out that the rateof increase in demand was more rapid than the increase in production. Thisletter, in a way, inaugurated the policy of public oil-land withdrawals, whichwas well founded in its primary purpose of protecting the oil industry andhighly desirable in its immediate effect of checking the over-development ofthat day in California. Unfortunately, however, through delays in legislation, this policy may be regarded now as having outlived both its intent and itsusefulness. In 1908, the country's production of oil was 178,500,000 bbl., andthere was a surplus above consumption of more than 20,000,000 bbl. available togo into storage. In 1918, 10 years later, the oil wells of the United Statesyielded 356,000,000 bbl. - nearly twice the yield of 1908 - but to meet thedemands of the increased consumption more than 24,000,000 bbl. had to be drawnfrom storage. Nor is this all of the brief comparison. In 1918, our excess of imports overexports of crude petroleum was nearly 33,000,000 bbl. whereas in 1908 weexported 3,500,000 bbl., which was net, as we had not begun to import Mexicanoil. In this period, the annual fuel-oil consumption of the railroads alone hasincreased from 16,871,000 to 36,714,000 bbl.; the annual gasoline productionfrom 540,000,000 gal. to 3,500,000,000 gal. This record may be taken not onlyas justifying the earlier appeal for Federal action, but as warrantingdeliberate attention to the oil problem of today. Need of Future Supply The position of the United States in regard to oil can best be characterized asprecarious. Using more than one-third of a billion barrels a year, we aredrawing not only from the underground pools but also from storage, and both ofthese supplies are limited. AIME 065–13