PETROLEUM SUPPLIES

Dominion, Volume 14, Issue 45, 17 November 1920, Page 7

PETROLEUM SUPPLIES

« AMERICAN PRODUCTION INCREASING FRANCO-BRITISH AGREEMENTS Tho question of the. adequacy of' the'■ available supplies of crude petroleum, lias been agitating the oil interests. throußhont the world for somo tnm-ln tlria (says tlio Bulletin •«! tho British Department" of Overseas Trade) it is interesting to read that, jn spite of. tho pessimistic reports that have found currency in tho X'.S.A. regarding , the ability of her oil-producing fields to satisfy tho homo requirements in oil. the production of crude, oil in America has new reached figures which far surpass all previous .records. If tlio same success continues to attend oil fields operations as nttei)ded ithem during tho first half of 1920, the total crude oil production of the U.S.! for 1920 will exceed 400 million barrels, or approximately-60 million tons. In all America's _ oil producing States it appears that increased production is being facilitated by .tho high prices prevailing for oil. and,tlio success attending deeper drilling. All' this is to tlie good as adding to the available supply of oil on a market where tlio • demand is far from satisfied by the world-wide developments that have been affected by BritisK" and other interests. . It is of interest to record that a formal agreement has been reached between the Governments of France and Great Britain for .cordial co-operation and reciprocity in those countries where the oil interests >of ,tho two nations can he lise.fully united". Moreover, a definite ar- . rangement has been concluded regarding ' the participation of France in' the output of the Mesopotamia)! oilfields and • the British Government has undertaken to grant to the French Government, or its nominee, 23 per cent, of the not output of crude oil at current market rates which His Majesty's Government may secure from tho-Mesopolamian oilfields in the event of their being developed by Government action;eor in the event of a private petroleum company bciu used to develop tho fields, the British Government will place at the disposal of tlio > Frcncji Government a share of 25 per cent, in such company. France agrees to the construction of two separate pipe lines, etc.. from Mesopotamia and Persia through French mandated territories, while J.he British Government agrees to support arrangements by wjiich tlio French Government may provide for oil to be piped to the Persian Gulf. Material support is also arranged for in respect of the oil enterprises of French and British Nationals in Russia, and for the acquisition l>y French ami British' Nationals of oil interests of former enemy subjects or bodies iu Rumania, eto.