OIL FOR GERMANY

Wairarapa Times-Age, 13 November 1940, Page 2

OIL FOR GERMANY

THE RUMANIAN OUTPUT INSUFFICIENT IN QUALITY AND QUANTITY. INDUSTRY IN POOR SHAPE. (By Telegraph—Press Association—Copyright) LONDON, November 11. Discussing the difficulties Germany is likely to meet in exploiting the Rumanian oilfields, a correspondent who has lately been in Rumania, in an article in “The Times,” says that the Rumanian product is insufficient in quality and in quantity for German needs.

Quite apart from the earthquake damage, the industry has been declining as a result of a short-sighted ultranationalist policy expressing itself in legislation aimed against the companies owning the largest oilfields, which are financed by foreign capital. Foreign companies in June produced approximately 13,300 metric tons of the Rumanian daily output of 16,500 metric tons. Later the two largest indigenous companies produced only 1200 metric tons. A reduction in the number of foreign executives on the oilfields caused indiscipline, and a decline in proficiency, and a lack of skilled control. •

The revenue from the industry has declined correspondingly with production, which had fallen from 8,700,000 metric tons in 1936, to a probable total of 5,700,000 this year. Only two new oil fields had been discovered since 1934, and it was doubtful whether Germany could exploit the existing fields because of the paucity of Rumanian and German oil engineers.

The blockade prevents the importation of American equipment. There are fewer than 20 modern drilling outfits suitable for drilling to 10,000 feet, which is the depth of the most active oilfields. Therefore, unless the Central European industry produces successful imitations of American machinery, a steady decline is likely to damage existing wells and jeopardise the discovery of new ones. Lastly,, Rumanian oil is much inferior to American.

“The Times” says that Germany requires more than 15,000,000 tons of oil annually for home and service needs, of which Russia cannot provide more than 1,000,000 tons. Hydrogenation might furnish another 4,000,000 tons. Now that the Germans must support their Italian ally, the Rumanian increment to their oil supply becomes less impressive.