As compared with 1937, the year 1938 was generally disappointing for the oil industry as the consumption of all oils declined, and prices and earnings fell off. About the only bright spots in the 1938 statistics for the United States were a small increase in the domestic demand for motor fuel and some improvement in the overall stock position.
Although 1939 inherited some of the drawbacks of 1938, the general situation was on Dec. 1, 1939, in much better shape than it was a year ago. Crude oil stocks were near minimum levels and crude oil prices east of California have risen considerably since the 15-day shut-down the latter half of August. The estimated production of crude oil in the United States in 1939 is about 1,260,000,000 barrels, which is 4 per cent above 1938. The output for the world in 1939 is estimated at about 2,050,000,000 barrels, also a gain of 4 per cent. The most important gain outside of the United States in 1939 was in Venezuela, but this was not sufficient for that country to exceed Russia, the second largest producer, and where production has also increased. The most important loss in any nation in 1939 was in Rumania.
Refiners in the United States continue to overrun; but a comparatively tight crude-oil situation, brought about largely by state regulation, and continued gains in gasoline demand (about 5 per cent) and in fuel-oil demand (10-15 per cent) should prevent an over-accumulation in stocks of all oils. The war has not yet produced marked gains in world movements, as the demand for fighting units has been largely taken from stocks or offset by reduced civil consumption. See also ARABIA; IRAQ; GEOLOGY.
Oil Controversy with Mexico.
See MEXICO.
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