PETROLEUM. 67 



no critical dearth of the latter, as they, or at least gasoline, must be 

 turned out in quantity to support a growing production of fuel oil. 

 This is why there was plenty of motor fuel at the time when there 

 was a shortage of fuel oil. This also explains why it was unwise at 

 the outset to cut down on the use of unessential automobiles as a 

 measure of petroleum conservation; that action would merely have 

 destroyed a market for gasoline, which supports the price-structure 

 of petroleum, without being able to materially increase the bulk of 

 the fuel oil turned out. With increasing stress, however, it be- 

 came necessary to pare down on gasoline consumption, but only as an 

 accompaniment to a similar procedure for fuel oil. 



The stimulation of domestic petroleum production to the utmost 

 degree, the alleviation of labor difficulties and shortage of materials 

 affecting oil-drilling, and the solving of shipping problems concern- 

 ing coastwise and Mexico-to-United States movements of oil, are all 

 matters of the greatest importance, which are receiving the active at- 

 tention of the Government. It is not the function of this paper, 

 which is concerned with a general economic study of the resource, to 

 treat of these matters or presume even to suggest wherein the solu- 

 tion of the current problems lies. The war situation is here touched 

 upon only in the belief that it illustrates unmistakably the unsound- 

 ness of the loose way in which the resource has been drawn upon, and 

 points to the necessity for measures, not merely of alleviation, but of 

 reconstruction in regard to the exploitation of the resource. 



THE PROBLEM. 



Sufficient, perhaps, has been set forth to indicate that the petro- 

 leum industry is not a separate activity to be dispensed with if neces- 

 sity arises, but that its products are essential to the vital needs of the 

 Nation. Indeed, it would scarcely be too much to say that the whole 

 future of civilization depends upon a continued supply of motor 

 fuel and lubricating oil, while the oil by-products potentiality holds 

 out the prospect of presenting to the world, through the energies of 

 this country, a gift even greater than kerosene has been. It would 

 appear to follow, therefore, that these affairs should not be ham- 

 pered or curtailed, if in any way the resource or its equivalent may be 

 made to carry the responsibility well into the future. It is a matter 

 of universal concern, then, to inquire if the impending exhaustion 

 of the resource may be circumvented by modern scientific and tech- 

 nical knowledge ; and if so, to ascertain the best procedure whereby 

 this constructive force, as yet not fully used in this country, may be 

 brought into effective action. 



Granted that curtailment of activities fundamentally dependent 

 upon petroleum is undesirable,^ we may pass in review the means 



* This does not apply unqualifiedly to fuel oil used for steam-raising purposes, as 

 shown on page 61. 



