Complicated Adjustments Necessary in Petroleum Industry Because of War Factors

IN 1942 the outstanding characteristic of the petroleum industry was the multiplicity of war-induced distortions in virtually every segment of the business. So devastating was the success of the Nazi submarine campaign along the shores of the western Atlantic and on transoceanic routes that within six months after our entry into the war petroleum rationing was necessary in the East Coast area. The conquest of the Netherlands Indies by the Japanese three months after the opening of the war in the Pacific cut off our normal sources of rubber, and in our first year of war nationwide rationing of gasoline had to be invoked to conserve rubber-borne transportation facilities. Meanwhile the oil industry faced the imperative necessity for rapid expansion in the output of aviation gasoline and later accepted the vast responsibility for developing a new industry. synthetic rubber manufacture. Probably no other essentially peacetime industry has been forced to make so many complicated adjustments, yet its response to its wartime obligations has been nothing short of dramatic.