154 



National Resources Planning Board 



porlalioii, the petrolciun iiulustiy is now cooperating 

 in the development of fuels and lubricants for Diesel- 

 driven rail equipment, with which the railroad induslrj' 

 hopes to regain lost territory. 



Leaving the held of transportation, wc lind that the 

 contributions to the domestic fuel situation have placed 

 the convenience and comfort of the oil burner within the 

 reach of the average citizen. Like the rest of us, the 

 farmer is becoming increasingly dependent upon petro- 

 leimi products. Peihaps he has been benefited as much 

 by the industry's contribution to his fight against the 

 insect pests in their various forms as by its contribution 

 to his transportation facilities and the mechanization 

 of his equipment. 



Although the average automobile driver docs not 

 think of tiiis in terms of petroleum research, he knows 

 full well that his bill for fuel and lubricants has under- 

 gone a most noticeable reduction in recent years. This 

 is illustrated in figin-e 38 which shows the average retail 

 price of regular gasoline on a countrj'-widc basis from 

 1921 to 1939. Even the rapid growth of taxation, as 

 expressed by the difference between the upper and lower 

 curves, has not succeeded in camouflaging the results 

 produced in terms of decreasing cost. As a result of 

 the decreasing gasoline price it has been possible for 

 Federal and State authorities to collect increasing tax 

 revenues without increasing the cost of gasoline to the 

 consumer. For example, comparing the years 1930 

 and 1937, it will be seen that the service station price of 

 gasoline in both years was approximately the same, 

 viz, 19.8 to 19.9 cents per gallon. However, the in- 

 creases in the tax rate and in gasoline consumption 

 woidd permit tax revenues to increase from some 

 $70,000,000 in 1930 to over $1,000,000,000 in 1937. 



Considering that the refiner}' billing price for gasoline 

 has reached the low level of 5 cents per gallon — or even 



CENTS PER 



GALLON 



less * — it is unlikely that there will be an\ further 

 marked decrease in cost on a gallon basis. However, 

 further improvements in gasoline quality — when taken 

 in connection with possible improvements in engine 

 design — may well lead to an additional decrease in fuel 

 cost on a mileage basis. 



Effect on Employment 



To determine the full effect of petroleum research 

 on employment, we should have to make a careful 

 analysis of those expansions — as well as any contrac- 

 tions — in industrial activities that might be traced to 

 definite technical contributions to progi-e.ss in the petro- 

 leum field. Such a survey would have to take into 

 consideration all kinds of automotive transportation — 

 including the manufacture of automobiles, aircraft, and 

 motor-driven farm equipment, together with all con- 

 tributory industries — railroad transportation, shipping, 

 coal mining, distribution systems responsible for the 

 delivery of domestic heating oil and bottled gas in 

 rural areas, etc. As this is clearly beyond the scope 

 of the present article, we shall have to limit our dis- 

 cussion to employment in the petroleum industry itself. 



The many technical improvements cited in the earlier 

 sections have quite logically resulted in an increased 

 efficiency with respect to the manpower required in the 

 petroleum industry's production and manufacturing 

 operations. This holds true particularly for the 

 processes involved in refining of petroleum products. 

 As a result of this, the number of wage earners employed 

 in the United States in petroleum refining per million 

 barrels of crude oil run to stills has decreased from 234 

 in 1899 to 70 in 1937. However, the expanded opera- 

 tions have more than compensated for this trend, 

 so that the net result has been a greatly increased rate 

 of employment, as shown by the following figures:' 



Eslimaled United Slates refinery wage earners 



Year: Xumbtr 



1900 13,550 



1910 14,700 



1920._- 61,300 



1930__- 76,200 



1939 - 83,200 



As might be expected, there has been an enormous 

 increase in the number of technical men employed. 

 A recent survey gives the following figures for total 

 personnel engaged in petroleum research : '" 



■920 1922 1924 1926 1928 1930 1932 1934 1936 1938 1940 



T'lGURE 38. — Variations in tlie Price of Gasoline in the United 

 States, 1920-39 (based on prices in 50 cities) 



' CiuU coast prices. 



• Estimated from flpurcs pivon in f. P. Department of Commerce. Bureau of the 

 Census. Census of Manufacturers. Washincton, U. S. Government rrinlinft 

 Office. 



'• Perazich, O., and Field, P. M. Industrial research and chanKing technology. 

 Philadelphia, Pa., Work Projects .\dministralion. National Research Project, 

 Peport .Vo. M-i. 1940, pp. 4M2. 



