WORLD RACE FOR OIL

Dominion, Volume 14, Issue 26, 26 October 1920, Page 10

WORLD RACE FOR OIL

9 BRITISH ENTERPRISE IN MESOPOTAMIA. Sir John Cadman,. tho Oil Controller, described to a representative of tho London "Daily Mail" how the signius oi tlie Turkish Peace Treaty will affect tho world struggle for oil. In reply to the criticism from certain quarters in the United States that Great Britain is using the fruits of tlie war to monopolise tho world's supply, Sir John points out that private companies before tho war'hud already entered into negotiations witii Turkey for concessions in Mesopotamia. "There is at the moment a world shortage of oil," said Sir John. "There is also a growing demand for petroleum products, out of all pro|x>rtion to the increase in the production of oil. The demand is outgrowing tho supply. \ "Why is the demand so' great! 1 We have come into a new We liavo entered an ajfo of rapid transport. Everyone wants to move more quickly. We iiave an increasing number of motorcars, aeroplanes, motor omnibuses, motor-launches, anil machines which are oil consumers. Tliero is a tendency to use oil in ships instead of coal. Before the war the output of the world's oil fields was 00 million tons a yoar. To-day it is-70 million tons. This increase is by no means in keeping with the increase in demand. "Why, people may ask, is tho oil supply not increasing, more rapidly? - This is'again duo to the war, which -brought about lack of material, stultified research, and, in the casa of. Rumania, Galicia, and Russia, meant destruction of big sources of supply. The industrj was beating time. It was no good even attempting to obtain more oil, as there was 110 means of transporting it. Tho result is that tho nation which

wants oil pays a higher price to obtain it. So with the individual. The British position is this. Being a progressive race, wo are naturally anxious to secure a. supply of oil for the future. The markets from which we are at present supplied are mainly in the west— chielly America. "There is now an incentive to enterprise, and British companies are endeavouring to secure oil concessions in various parts of - the world. AH this is being done by private enterprise, with no Government help. Tho prospective shortage was indicated before the war, and British companies were then attempting to secure concessions —mid, in fact, had obtained concessions— from Turkey in Mesopotamia. But owinjj to the instability of the area which was governed by Turkey littlo or 110 progress was made. "\Ve now come to tho full meaning of the treaty just signed. It means at once a 'stable Government and set-

lied conditions, which will allow a rapid development of the country's resources, including oil resources. Our methods of colonisation have in the post always been followed by a stimulation of the people. over which we held a mandate or protectorate. Wfe have never bled countries for our own In taking a mandate for Mesopotamia wo shall raise its people to better conditions. The oil industry will bo developed by Mesopotamia for the benefit of Mesopotamia. It must also be remembered that Turkey, as I have already stated, granted concessions before the war. These concessions were to British subjects in Mesopotamia and United States subjects in Palestine. It is unlikely that these concessions will bo renounced or torn

up. ."France is to have her share in the development According: to ourjigreenient with her she is to participate in a company when it is formed, and for tli i« participatioi she lias agreed to a settlement of boundaries which will tend'to unite Arab interests. '(This re-

fers to Prance's agreement to give up Mosul.) ' ''France has also agreed to use lier mandate for Syria to enable oil from Mesopotamia lo bo transhipped to the Mediterranean."