PETROL AND RUBBER

Waikato Times, Volume 125, Issue 20912, 18 September 1939, Page 12

PETROL AND RUBBER

ADJUNCTS OF NATIONAL LIFE IMPORTANCE IN WAR TIME RUSSIA’S STRONG POSITION People in all parts of the civilised world are becoming aware of the vital importance of petrol to the very existence of a nation. Yet there is danger in oil. So desperately valuable is it to civilisation to-day and so fiercely pursued that almost any steps will be taken to ensure supplies. Recent diplomatic developments in Europe have behind them, no doubt, the vital necessity of making provision for adequate petrol supplies, upon which the very existence of a nation depends in war, as in peace.

Happenings in Europe focus attention on petroL One of Germany’s problems is to ensure a continuity of supplies of motor fuel for her land and air forces. Outside of her production of synthetic petrol from coal, said to be about 30,000 barrels (42 gallons) daily, Germany, apart from her reserve stock stored away in underground facilities, is dependent on obtaining supplies from Rumania and Russia, with whom she has trade treaties embracing petroL Russia’s Strong Positloa Supplies from the former country will probably be cut off, leaving Russia as the determining factor in providing liquid fuel for Germany’s huge requirements. This important fact probably has a considerable bearing on the recently announced Trade Treaty between Germany and Russia, for the Soviet, it is believed, could supply all the petrol that Germany or Italy or both would need. The present oil production of the Soviet is believed to be about 200,000,000 barrels a year, and it is reported that she has at least 100,000,000 barrels in storage, although there are no official figures to substantiate this statement. Russia's foreign sales of petrol have declined steadily since 1932, when the Soviet sold 6,000,000 tons In the export market. In 1937, Russia produced 8,400,000 tons of oil. So far as oil Is concerned,‘Russia is in an advantageous position to supply Germany and Italy. A study of the map shows that it would be almost impossible for Great Britain or France or both to create a situation where either Germany or Italy could not obtain oil from Russia if the Soviet were willing to sell. Italy already has a Trade Treaty with Russia by which she is permitted to buy an indefinite amount of oil from the U.S.SJR. during the life of the agreement. These oil agreements lend significance to the latest political negotiations between Germany and the Soviet. It is of interest to mention that France has an agreement with* Rumania whereby that country sells her 8.500,000 barrels of petrol and 1,000,000 barrels of kerosene annual.y. France also has the largest reserve stock of petrol in Europe, totalling over 22,000,000 barrels. Synthetic Rubber Another essential commodity to Germany and Italy is crude rubber, says the Dunlop Bulletin. In 1993, the former used some 87,00) tons and Italy 25,000. At the 1936 Motor Show :n Berlin, Herr Hitler, pointing to tyr-.s made with “Buna” (synthetic rubber made* from lime, coke, salt and water) said —“Germany is now independent of foreign natural rubber.” However,

as mentioned, Germany is still a large buyer of crude rubber, and only recently, bought extensively in the London market. “Buna” costs about 2s Od lb as compared with natural crude rubber at around Sd lb. Russia is reported to be a large producer of synthetic rubber, known as “Sox-precn,” but little is known as to her actual output, but the fact remains that, in 1938, the Soviet bought 30,000 tons of crude rubber. There is liltle doubt that, in the European war, petrol and rubber are eventually going to be potent factors. Fortunately, Britain and France are well safeguarded as regards ample supplies of both of these vital commodities.