STRUGGLE FOR OIL

Bay of Plenty Beacon, Volume 5, Issue 15, 11 February 1942, Page 6

STRUGGLE FOR OIL

REASONS BEHIND NAZI STRATEGY

ESTIMATES OF AVAR SUPPLIES

The desperate conflict, almost concealed from the public eye, which lias been, and is, going on for oil, Is one of the most j/hteresting and important asides of the war. It explains much of German strategy, writes "F.M." in the New Zealand Financial Times. Nations at war base their efforts on gaining oil at all costs. Germanv started its war against Russia for oil, organised a revolt in Iraq and a diplomatic war in Iran and Turkey for the same material. The production of oil has grown considerably in past years. In 1913 the whole production of oil was 54000,000 tons, in 1920 it grow to 99,000,000, and in 1.929 it was 285,000,000. The U.S.A., with 171,000.000 tons .yearly (60,8 per cent of the world production), is in the lead Following it are Venezuela, with roughly 30,500,000 tons (10 per cent of the world production); Russia 30000,000 tons (10 per cent); Iran 10,000,000 tons (3.7 per cent); Dutch East Indies 8,000,000 tons (3.2 per cent); Mexico and Rumania, each 6,000,000 tons (each country 2 per cent of the world production); Iraq 4,000,000 tons (1.4 per cent): Columbia, Trinidad and Argentine, each 3.000,000 tons (each country "1.1 per cent of the world production); Peru 2.000,000 tons; Burma, Bahrein Islands, Canada and British Borneo 1,000,000 tons each; Egypt. Arabia, Japan, Poland, Ecuador and Albania produce under 500,000 tons each. Germany produces 600,000 tons of natural gasoline, too. Europe's Needs Europe requires in a peace-time year 26,500.000 tons of oil. Germany's war-time oil requirements have been estimated at about 12,000,000 tons a year. United States oil experts believe that all Axis Powers need about 35.000,000 tons « year to run the war. Germany produces 2,000,000 tons of synthetic oil and 500,000 tons of natural oil. Rumania produces' 6.,000.000 tons. Poland and Albania together 1,000,000 tons: another 5,000,000 tons can be got by running the blockade, by synthetic production, and by raising production. Germany and her Allies can get hold of 15.000.000 tons n year. That means—after the Russian way is closed—they are short of about 20,000,000 tons a year. The oil reserves of Germany have been estimated at about 6,000,00!) tons. Together with the oil reserves of- the other European countries it will be near to 12,000,000 tons. By December Germany will have I used her oil reserves. Knowing this fact. Germany founded in March, 19-11, an oil firm. The Continental Oil A.G., which shows her intention of taking an aotivc part in the fight.for oil supremacy. New Nazi Company

The German Continental Oil Company was founded Avith the help of the Government. The share capital is £4,000,000, but it will be increased to £6,000,000. The chairman of this company is the German Minister of Economics, Dr Walter Funk, i who, besides a high salary, gets a big packet of shares from the company. The board of directors consists half of representatives of the. Government and the National Socialist Party and half of representatives of German industry. j The Nazi officials Avho sit on the board of -directors do not forget to vote themselves handsome salaries, which they draw in addition to the Government or party salaries. Among the capitalist half of the board are represented the big banks, the chemical trust. T. G. Fa'rben. the German Oil Company, the Hermann Goering "Works, the Siemens A.G. and man}* others. The first business of Hie new company was undertaken in Rumania. Before the subjugation of Rumania the three Rumanian oil firms worked with German capital. Since Rumania joined the German partnership the Germans took control ; .l the ! whole Rumanian production, uiui a • law Ava- pa>-cd by tlu- Rumanian | Govt nmieiiL i \gali.Miig the control. ! In ,u oil \va.-> piv.iiiceo in the Near Fas! (irao. I'r.iii. J-.gypt. liahr.Mii T.s!;,n<( [rind Arabia). The Continental Oil | Company roup] only yn;:ke profits ■ when it c-'iijl-ii gel ho'd .>■' {he oii wri!- in tlie .Year Fasl. The military act'on b\ ]>r'i;ii!: in ihe affair-: of I raff and Tran w'M talo care lhaf 'his new enfi-rprise will nol elos-' with a profit.

Election This Year The opinion that there -would be nil election this year if the war situation permitted it, as the Government would be unlikely to seek any further extensions of the life of the present Parliament, was expressed by Mr S. G. Holland. Leader of the Opposition, in a speech at Te Kauvvhata in support of Mr A. S. Sutherland, National candidate in the Hauraki by-election.