Middle East Oil and World Markets

WHEN the pipe lines from the Middle East to the Mediterranean are completed, the Middle East supplies will relieve the strain on Western Hemisphere petroleum resources, part of which are now shipped for Eastern Hemisphere use. A sketch of the world petroleum situation as it appears today and in the immediate future will help in understanding the future place of Middle East oil supplies. Anticipated 1951 world demand is slightly under four billion barrels. To meet this requirement, crude output and refinery runs throughout the world (including Russia) must be increased about two million barrels per day above the average of 1947. This increment, together with pipe lines, tankers, and other facilities, will require in excess of ten billion dollars of new capital in the next four years. We are, therefore, looking forward to the greatest expansion program in the history of the industry.