WORLD FACES OIL SHORTAGE

Chronicle (Levin), 7 August 1947, Page 5

WORLD FACES OIL SHORTAGE

(N.Z.P.A.-

- Reuter ,

Copyright)

Iieceived Wednesday. 7 p.m. LOXDOX, August 6. Tlie world oil deuuiud has been rising lately at the rate of 8 per cent. anuuai ly conipared with an average of 5 to n per cent. in nornial years before the war, states the Petroleum Informatioj. Bureau, which adds that world requirements this year are expeeted tc. reach the staggering total of 3,079,000, 000 barrela or over 242,000,000 nion than in 1940. There is little hope of a lessening in the insistence of this demand in tlu foreseeable future but, on the contrars, everytliing points to the probability that the pace will quicken still further. In many countries there is a large pent up demand for petroleum products which had not been able to mahe itseli felt either because of the inability oi those countries to pay for their imports or for lack of motor . veliicles or both, In addition to these "normal" re quirements there is a widespread con version from coal to oil whieh is bound to give an added impetus to the expan sion of the demand. "Save for a severe trade slump in America or widespread economic dislo cation everywhere, ' ' says the Bureau, "There is nothing yet in sight to check this irresistible expansion. " It adds: "A very tight supply situa tion is not a mere prospect but t reality which has been crmerging witl dramatic speed and is now upon us. While plans and projeets for inereasing the world 's oil ontput are in course of inaturing and execution, there is bound to develop shortcomings anc. squeezes. As the voluntary rationing scheuie recently introdueed by thc large oil refineries in the American midwest shows, eonsuming countrie: everywhere will need'to husband theii supplies with the greatest care. li may not be possible to avoid hardship: altogether while the stringeucy lasts liut there is hope that all really essen tial needs will be met. "