CAUSES OF PRESENT OIL SHORTAGE

Chronicle (Levin), 2 September 1947, Page 3

CAUSES OF PRESENT OIL SHORTAGE

Press Association )

(Per

AU oOpt. 1. The oil industry ,is now reeeiving the full impact of the ever increasing postwar demand. To the surprise of almost everyone there has not been any sigiuficant drop in the demand for oil products since the cessation of war activities and in fact the consumption is increasing every where at a rate substantially greater than it was before the war, said Mr. Richard Martin, general manager in New Z6aland of the Vacuuin Oil Company Pty. Ltd., when he arriVed on;the I'or't Lihe's luotbl- ship. Phrt" Huon after a business trip to America. Ile was accompanied by Mrs. Martin. The world shortage of petroleum products is very apparent in United States and Canada, he said. "There is no actual coupon system of rationing, but producing companies are at present uuable to meet the demand and-distribu-tors have to apportion supplies." • The fuel oil position was particularly bad and because the quantity used for domestic heating was so great, the market was looking at the possible demand this winter with apprehension, said Mr. Martin. He said "that oue large oil company was running a series of advertisoments in Canada warning the people against investing in oil burning cquipment. ' ' The reasons for the shortage are the abnormal post-war demand and the fact that industry has uot been able to reinstate many of the war-dovaslated relineries, ' 1 said Mr. Martin. "The supply problems, however, are not due to any shortage of provcd reserves of crude oil. A recent authoritative survey of the world 's tolal oil polcutiai shows that the reserves are niore than adequate to meet the total demand tor the next generation without taking into account he practical possibilities of substitute fuels. The shortage of labour and materials, plus the instability oi governnients in certain areas, will probablv cause the present world situation to continue at least th rough 1918. The lack of steel and manppwer are liolding back urgently needed driliing and reiinerv .extensions and sonie time must olapse before these restraiing faetor3 can be overcome. "