Papers - Petroleum Economies - Controlled Gasoline Supply-the key to Oil Prosperity (With Discussion)

A glance into the immediate future of the refining industry, and a retrospective view of 1929, cannot fail to emphasize the need for effective measures of control of refinery still runs. With oil producers alert to the need for control of the crude supply, it has become more than ever necessary for refiners to complete the movement toward stabilization by concerted determination to maintain still run schedules within the limitations prescribed by the demand for gasoline. The outlook for continued growth in the demand for gasoline appears to be well sustained by a preliminary survey of requirements for 1930. In fact, it is apparent that the industry will be assured of a market for gasoline that will aggregate in volume at least 472,000,000 bbl. this year. This indicates a gain in total demand over 1929 of about 9 per cent. or about 4.6 per cent, less than the gain recorded during 1929 over 1928, which amounted to 13.6 per cent. Despite the indicated increase in gasoline demand this year, it is apparent that little, if any, more crude will be required than last year. This is shown in Table 1, presenting estimates of gasoline demand and probable crude requirements for 1930. Table 1.—Preliminary Survey of 1930 Gasoline and Crude Run Requirements Millions of Barrels Doniestic gasoline demand................................... 397 Foreign gasoline demand..................................... 75 Total indicated demand...................................... 472 Natural gasoline content..................................... 53 Net gasoline from crude...................................... 419 Imported gasoline........................................... 13 Net gasoline required from refineries.......................... 406 Indicated excess stock Dec. 31, 1929........................... 10 Maximum protluction required................................ 396" At 40 per cent. gasolitlc recovery, this represents a maximum crude converson of 990,000,000 bbl., or a daily average for the ycar 2,712,000 barrels. Year after year, the refining branch of the petroleum industry has been found guilty of running crude to stills greatly in excess of normal requirements, causing frequent periods of market depression. A review