CONSERVATION THROUGH ENGINEERING. 19 



Sometime since I presented to a board of geologists, engineers, 

 and economists in this department this question : 



If in the next five years there should . develop a new demand for petroleum 

 over and above that now existing, which would amount to 100,000,000 barrels 

 a year, where could such a supply be found, and -what policy should be adopted 

 to secure it? 



The conclusions of this board may be summarized as follows : 



(1) Such an oil need could not be met from domestic sources of supply. 



(2) It could not be assured unless equal opportunities were given our 

 nationals for commercial development of foreign oils. 



(3) Assurance of this oil supply therefore inevitably entails political as 

 well as commercial competition with other nationals, as other nationals con- 

 trolling foreign sources of supply have adopted policies that discriminate 

 against, hinder, and even prevent our nationals entering foreign fields. 



(4) The encouragement of and effective assistance to our nationals in de- 

 veloping foreign fields is essential to securing the oil needed. 



(5) Commercial control by our nationals over large foreign sources of sup- 

 ply will be essential if the estimated requirements are to be assured. 



(6) It is necessary that all countries be induced to abandon or adequately 

 modify present discriminatory policies and that the interest of our nationals 

 be protected. 



(7) Some form of world- wide oil-producing, purchasing, and marketing 

 agency fostered by this Government seems essential to assure the commercial 

 control over sufficient resources to meet the competition of other nationals. 

 England has apparently adopted such a policy. 



This board proposed the following program of action : 



(1) To secure the removal of all discriminations to the end that our na- 

 tionals may enjoy in other countries all the privileges now enjoyed by other 

 nationals in ours: 



(a) By appropriate diplomatic and trade measures. 



( & ) By securing equal rights to our nationals in countries newly organized 

 as mandatories. 



(2) To encourage our nationals to acquire, develop, and market oil in for- 

 eign countries: 



(a) By assured adequate protection of^our citizens engaged in securing 

 and developing foreign oil fields. 



(&) By promotion of syndication of our nationals engaged in foreign 

 business, in order to effectually conduct oil development and dis- 

 tribution of petroleum and its products abroad. 



(3) Governmental action through special agency or board: 



(a) Through the organization of a subsidiary governmental corporation 

 with power to produce, purchase, refine, transport, store, and market 

 oil and oil products. 



(&) Through the formation of a permanent petroleum administration. 



(4) To assure to our nationals the exclusive opportunity to explore, develop, 

 and market the oil resources of the Philippine Islands, provided discriminatory 

 policies of other nations against our nationals are not abandoned or satisfac- 

 torily modified. 



I have given much thought during the past year to this problem 

 of adding to our petroleum supply, and it has seemed to me but fair 



