Untrammeled Political System Helps Growth Of American Oil Industry

Chronicle (Levin), 17 June 1949, Page 4

Untrammeled Political System Helps Growth Of American Oil Industry

Thfe American political \ system, untrammeled* with Government control and giving free play to private enterprise, had assisted the oil- industry in the Unit'ed States to make the remarkable growth. it had. x ' This statement was made by Mr. A. H. Thomas, New Zealapd personnel manager ,for the Vacuum Oil Company, Ltd., in a review of the world oil situation which he gave at the Levin Rotary Club's luncheon this week. Earlier in the year Mr. Thomas visited the Unite'd States.

Outlining the extenfc of ' the American oil industry, Mr. Thomas said that of the 45 billion dollar industrial undertakings in the Unitea States, five were oil plants. The Baton Rouge Plant alone employed 9000 „workers of whom * 1800 were negroes. The Baytown Plant, with a production of • 10,000,000 ' gallons daily, covered an^area of 2600 acres and had a staff of 6700. The oil industry dominated the economy of the country, he added. During the war • 20 and 24-inch pipe lines had been built from the Texas refineries to Philade1phia and New York to convey oil for shipment to the troops in the Middle East. They were now being used to carry petro'eum gas, which Was used for heating and driving machinery. Four Supply Scources. Today there were four main sources -of supply or possible supply in the world, proceeded Mr. Thomas. The larger proportion of America's production came from Texas, Oklahoma and. Venezuela, the two first named contributing 60 per cent. -Borneo and Sumatra were being developed. The Middle East countries, Arabia, Iran and Iraq, were the 'third source of supp7y and there the political position would always be most delicate because of the close proximity of Russia. The fo"urth area was the yet undeveloped frozen wastes of Europa- and Alaska. Enlarging his remarks on the Middle East countries, Mr. Thomas said that America was pouring a vast amount of money into Arabia with the object of deve^pi'ng its oil resources, and during the* "next two or three vears it was , estimated that £100,000,000 would' he spent there. Some critics asked why the oil companies should take control of countries like Arabia, said the

speaker, and the answer lay in the benefits which the people of these countries had received. Up to reeent times the Arabs had lived as nomads, but on the ini'tiative of the .American and British oil companies vast improvements had been made in the country's amenities and standard of living. Harbours, schoo's,. roads, houses, aerodromes . and irrigation schemes had been provided, all the result of the inerest of the oil companies. Tremendous Stresses. The tanker fieets of the world numbered 2000 and they had overcome the transportation difficulties which existed after the war. Though he. had thought at one time tha.t the f tanker shortage would' create a problem, today no less than 70 of these vesSe^ were laid up in the United Sta'tes. 'The industry* was subjected to tremendous stresses and pressures, declared Mr. Thomas. Ih 1948 it had been' called upon to supply aviation gasoline for the Allied air * lift to Ber'in and up to .the end of that year 84,000,000 gallons had been used. It had also been asked to lay up_ stocks totalling 400,000,000 _ gallons ih various prbducts. "Concluding, Mr. Thomas said: "America is a big friend'y country and wants to help us. We in New Zealand must trade with her for our own salvation." Mr. H. Black introduced the speaker and at the conclusion of his address he was thanked, on behalf of members, by Mr. J. E. Fullarton. To Buy Concrete Power Poles. The Horov/henua -Electric Power Board intends investing in 1000 concrete poles costing in the vicinity of £6000. This is estimated as a two -year requirement and will ensure an adequate suoply jn view of the shortage of hardwood poles. A djeoisionj to qrder th]e poTes was made at Wednesday's meeting of 'the board.