The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, FEBRUARY 1, 1928. PETROLEUM INDUSTRY.

Hokitika Guardian, 1 February 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, FEBRUARY 1, 1928. PETROLEUM INDUSTRY.

Thk petroleum industry cl the United States, with the largest steaks ever accumulated, as a result ol ovci-pin-duction of crude oil ami low prices, continues to face a serious situation. Oil in storage Juts increased 11. J per cent, during the last year. Taking the storage situation as a whole, covering the crude oil and mined products stocks, there was in storage iu the United States at the end of September of 72,643,000 barrels, with an approximate current market value of £700.000.000. Stocks in storage at the end of the corresponding period ol last year totalled 514.814,000 barrels. Grave as the overproduction situation is conceded to be, many leaders the industry are not without optimism that the conditions now existing will he relieved il the present trend ol a declining production is maintained. These factors in the trade hold to the probability that the consumption of all products will continue to increase, thus easing up the situation. Tt is noticeable that the supplies of gasoline at the end of September, the latest figures obtainable at this time, ate considerably smaller in quality than at this time last year, in spite of the fact that the demand is actually greater than at the same time last year. The total gasoline stocks at the end ol September totalled 29,738,000 barrels, compared with 35,257,000 barrels in the same period of 1926. At the end of last year gasoline in storage reached the high total of 39,023,000 barrels. Trade factors come to the conclusion that the petroleum industry has been able to adopt a conservative policy with regard to the production of gasoline. so as not to accumulate excessive quantities of oil in stuck, which involves high cost of storage, large evaporation losses, and other carrying charges. After a short decline in the prices of crude oil in the earlier part of the year and a less drastic fall in the leading petroleum products, temporary stability has been reached. Recent changes in crude prices have not been significant.