Foreign Production

PRODUCING operations abroad during 1940 were shrouded in the fog of war. Little, if any, concrete information is available, and the data that issue from the belligerent countries are too frequently distorted for military purposes, for the volume of supply of gasoline and fuel oil has become an important strategic secret. Despite this lack of information signs indicate the spread of a slow paralysis which is gripping producing operations in foreign countries. Only in the Caribbean area are developments proceeding normally and even there the destruction of the Western European market is being seriously felt. This creeping paralysis is being brought about partly by the serious shortage of materials so necessary for drilling and other producing operations such as steel, machinery, and the like-together with a scarcity of that prime munition of war-money. Markets too have been curtailed by the operation of exchange control as all exchange is needed to support war efforts. As a result, gasoline is tightly rationed in all belligerent countries. The growing casualties in shipping are fast restricting the water-borne trade in petroleum, but have had a local stimulating effect in some areas where the risk is less or where water-borne transport can be efficiently used as for instance Trinidad and Egypt. The type of product needed for war effort, particularly the great demand for aviation gasoline, has changed the schedules of .refinery operations. As a result of all these influences the world oil picture outside the United States- has vastly changed during the year.