PRODUCTION GONE MAD

Rotorua Morning Post, Volume 2, Issue 586, 18 July 1933, Page 2

PRODUCTION GONE MAD

CHAOTIC STATE OF OIL INDUSTRY IN U.SA. Despite all efforts, domestic and constitutional, to pro-rate output of oil from the American wells, the estimated production is around 3,000,000 barrels of crude oil daily. This is the highest output in the history of the United States oil industry, and about 700,000 barrels daily in Cxcess of requirements. In 12 months this means approximately 250,000,000 barrels of crude oil, and as 42 gallons go to. the barr.el, it is not diifficult to vsualise the problem the oil industry of U.S.A. (with its invested capital of 240 million pounds) is up against. NatuTally ruthless competxtion is rife, and the chaotic conditions existent in the oil industry of America virtually precludes any stability in the near future. Even the directors of the American Pietroleum Institute are unahle to agree on a policy that will provide the necessary regulation of production. One of the stumbling bloeks to eco- [ nomic regulation appears to be the consensus of opinion among the leading legal authorities of U.S.A. that Congrtess has no constitutional authority to undertalce the control of production from oil wells. So the flood of oil goes on, and repercussions in the form of cheap petrol are feft through'out the world. iOverpfodUction now threatens . to wreck the world's oil industry, just as Jt did the ' rublber growing industry, which has been in a parlous coridition during tibft lasEfew years.. - —