1939: Gas And Gas Appliance Industries

Natural.

The decline in industrial activity in 1938 was reflected in the consumption of natural gas in the United States, which fell off from 2,403,041,000,000 cu. ft. in 1937 to 2,294,097,000,000 cu. ft. in 1938. All of the major classes of consumption except field use were lower in 1938 than in 1937, the largest decline being in 'other' industrial use, such as at steel mills and glass plants.

Comparatively little data are available on natural gas for 1939 but preliminary figures indicate gains over 1938 of nearly 10 per cent in domestic and commercial consumption, of 10 per cent or more in industrial consumption, of 5 or 6 per cent in carbon-black manufacture, and of possibly 5 per cent in field use. The net gain should be about 6 per cent, which would place the total for 1939 somewhat ahead of that for 1937.

In recent years the average field price of natural gas has moved toward 5 cents per thousand, the average value at points of consumption toward 22 cents per M. There is no reason to believe that the averages for 1939 fell much below these levels.

In the period 1928-32 many long-distance natural gas lines were laid, but since then most of the pipeline activity has comprised the construction of branch lines and extensions. Imports of natural gas into the United States are negligible and exports have been greatly reduced in recent years. Production outside the United States is not important, comprising only about 5 per cent of the world total. See also CONSERVATION.

Manufactured Gas.

Total sales of manufactured gas to consumers were virtually the same in 1938 as in 1937 but in 1939 there was a gain in consumption of 3 or 4 per cent over 1938 to a total of about 362,000,000,000 cu. ft. This gain was due to increases in house heating (space heating) and industrial use, which outweighed a small decline in domestic consumption, including chiefly cooking and water heating. The gain in house-heating consumption, about 399 per cent in 19 years, probably reflects the outstanding development of the industry in the last decade.

Domestic consumption, from which about 70 per cent of the total revenue is derived, has lost but little ground in the last four years but during the depression period (1931-34) the decline was rapid. Industrial and commercial consumption will show a material gain in 1939 and the total will undoubtedly surpass the 1937 peak.

The revenue from sales of manufactured gas to consumers in 1939 will amount to about $368,000,000 or 17 per cent below the 1930 peak. The price range for manufactured gas is much less than for natural gas but the average is much higher — about 22 cents per M. for natural gas in 1939, compared with about $1.02 per M. for manufactured gas, which has hardly more than half as many B. T. U. per unit of volume.

According to the American Gas Association, the source of these data, the manufactured-gas industry has about 68,000 employees, which serve about 48,000,000 people through 91,000 miles of main.