NOTES ON THE WAR NEWS

Evening Post, Volume CXXX, Issue 86, 8 October 1940, Page 8

NOTES ON THE WAR NEWS

QUEST FOR OIL

GERMANY'S NEW MOVE

RUMANIAN FIELDS

Germany has long cast covetous eyes at the rich Rumanian" oilfields, and the news', today that German motorised units have established themselves in the fields will come as no great surprise, especially in view of Rumania's recent complete capi* tulation to Axis influence. Since her normal sources of supply were cut off, Germany has been endeavouring to keep her army and air force moving mainly with synthetic fuel—it has been said that about 77 per cent, of all her requirements have been met in this way—but there are two obvious disadvantages—the high cost of manufacture and the vulnerability of plants to attack by the Royal Air Force. ■

Before the war Germany obtained nearly 90 per cent, of her imported oil from sources now partly or completely cut off by the Allied contraband control—chiefly Venezuela, the Dutch East Indies, and the United States of America., Rumania and Russia supplied a little, over 10 per cent, of th« German imports.

The partition of Poland gave Gsrmany one of the Galician oilfields at Jaslo, but the richer oil districts, "vt Drohobycz, Kolomea, and Stanislov went to Russia, although later Germany was given access to wells in Soviet-occupied .Poland. : Texas of Europe. Rumania has been described, as the Texas of Europe. The most important oil wells are in the region north of Bucharest, at Ploebti. Bacau, and Bezeu. The normal export route Is by pipe-line to the Black Sea, and most of the oil sent to Germany in peacetime (a quarter of the total export) was shipped from Constanza to North Sea ports. • The Danube provides aa alternative route, but this is uncertain during the winter months. Rumanian and American experts have expressed the view in recent years that the supplies of oil in Rumania are giving out, and there is some evidence to support this. For instance, the output in 1938 was 6,600,000 tons; compared with the peak figure of 8.700,000 tons in 1936. The Germans, on .the other hand,, do .not believe that the wells are. drying up. They blame other than natural factors for the decline in output, and since the war began, and for some months earlier, they have shown a grsat anxiety to extract whatever oil they can from Rumania. Many Companies. Among the companies operating- in Rumania many are subsidiaries of ..large international petroleum organisations, such as the" Royal Dutch Company, the Socony-Vacuum Oil Company, and the Standard Oil Company of New. Jersey. Following are the companies operating, together with their 1938 output in metric tons: —Astra Romana (Dutch-British), 1.453.992; Steaua Romana (British-French-Rumanian). 738.----090; Concordia (French-Belgian-Ruman-ian), 864,021; Unites (British), 672,510; Romano-Americana (American), 901.----494; Creditui Minier (Rumanian). 380,205; Colombia (French),, 338,476; Prahova (Italian), 334,518; I.R.D.P. (French-Rumanian), 167,392; Petrelul Romanese (French-Rumanian), 110,804; Foraky Romaneasea (Belgian), 57,106; Dacia Starnaphtha (French), 58,616; Redeventa (Rumanian-French), 28,552'; Petrolifera Romana (Rumanian), 45.----107; other companies, 403.117. Output Decreasing. As has been pointed out earlier., Rumanian production of .oil has shown a tendency to decrease in, recent years. The peak year, as has been stated, was 1936, when production totalled 8 701,000 tons. In 1937 the output was 7450.000 tons, in 1938' 6,600,000 tons, and in 1939 6,100,000 tons. It has been estimated that .this . year R««Wi}£ total output will be less than 4,000,000 tons. On this basis, if German and British claims were met there would - only remain 800.000 tons; not sufficient to" maintain Rumanian trade with the Balkans, Italy, and other countries based on the exchange of Rumanian oil for other, products . , Before the war Germany built up large reserves of oil. Figures .published earlier this year by the Rpyal Institute of International Affairs show that as early as 1936 there must have beW considerable storage. Consumption in that year was calculated at 4 560,000 tons, of which home production supplied 42 per cent. ■ leavmg 2 700,000 tons to be imported for immediate use, but the actual imports in that year were 4.218.000 tons. - It* 1938 imports rose to 4,967,000 tons, ; and. home production had been considerably increased, especially by synthesis. The Royal Institute of International Affairs expressed the view that as much as six or seven million tons of imported petroleum may havejbeea stored in Germany between 1936 ani the middle of 1939., . , German Resources. Since then Hitler has been using ;uj> oil at a tremendous rate. Even during the stalemate on the Western Front, before the invasion of the..Lowlands Germany was said to be using 400,000 tons a month. Now it is. estimated that the Germans are tapping their resources at the rate of .approximately 800 000 tons a month. As against this, of course, there is the production of synthetic oil. Manufacturing plants m the Reich use two processes for obtaining fuel from coal and from coal »as and recently it was estimated that, with all units in operation, the production of synthetic oil in Germany would reach about 714,000,000 gallons a year. But continuous raids by the Royal Air Force must have caused that estimate to be revised. Moreover, the high cost of- production must have placed a tremendous strain on the, German economy. . By permitting Hitler to occupy her oilfields, Rumania has taken another step—and a long one—towards complete subservience to Germany. Antonescu. has lost no time in carrying out his pledge that his country would walk hand in hand with the Axis.