Oil Fuel.

Press, Volume L, Issue 14978, 27 May 1914, Page 8

Oil Fuel.

In view of Mr Churchill's statement on the subject of oil fuel last year, the British Government's decision to help the Anglo-Persian Oil Company with capital should cause no surprise. Mr Churchill gave a long and clear exposition of the Admiralty's needs and policy as regards oil fuel. He referred to the growing number of ships, ranging from destroyers to battle-cruisers, wholly dependent on oil. the advantages of the fuel, and the need for a steady and reliable supply. The. Admiralty hitherto had let contracts for oil from time to time in the usual way, but their requirements had grown so large and tho supply was of such vita] importance, that they had to adopt other measures to protect themselves against a possible shortage and against trade combinations. Mr Churchill divided the Admiralty policy into two parts, interim and ultimate. The interim polEcy was to make contracts to secure a steady supply at reasonable prices for four years ahead. The ultimate policy was that the Admiralty should become the independent owner and producer of its own supplies—that is to say, it shouH own. or control oil wells, deal in. crude oil, ai*<J refine the raw material. Iti's in accordance with this policy that tho Government is assisting the Anglo-Persian Company. The substitution of oil for coal in so many warships involves some very careful planning if the Navy is not to run tho' risk of finding itself short of motive power in an emergency. Coal is at the Admiralty's back door; while oil has to be transported long distances over the sea-, and tho largest supplies are in,foreign countries. International and private competition, the operations of trusts, and the danger of capture have to be provided against. Mr Churchill laid down the following comprehensive principles as governing the allocation of contracts for supplies. .Firstly a wide geographical distribution, to avoid undue reliance on any one source; secondly, the encouragement of independent competitive j sources of supply;' thirdly, the drawing of ou\as far as possible from source-} under British control or "influence, and along those sea routes that aro most easily protected. There was some comment not long ago at Home on the fact that a number of destroyers had been laid up, for no other apparent reason, than that oil supplies were short. If this was the reason, the shortage was probably due to the trouble in Mexico, which is precisely one of those interferences with supplies agaenst which the Admiralty has } ' to guard. If such a step i 5 necessitated again, the public will begin to look aekanco at the Admiralty's oil policy.. But if Mr Churchill's per- ; formance is as satiafactoiy as his pro- • .raises there need bo no apprehension, i