Petroleum Economics - The Crude Oil Supply

The year 1928 has recently.passed from the picture and it is at this time that the various divisions of the oil industry are giving thought to plans for the present year. The outstanding characteristic of the industry in 1928 was the successful curtailment of oil production to the market's needs. It has been thought advisable to look ahead and endeavor to anticipate the oil demand for the coming year, and thus determine the volume of oil that can be safely produced without causing major additions to surface stocks. The year has been one of smaller additions to stocks than in 1927, a record demand for oil products, and a further developed spirit of cooperation among oil producers, as well as various other achievements. It is well to pause and take stock of ourselves. Present Status of Crude Oil Supply and Demand The total daily new supply of oil is at this time1 about 2,960,000 bbl. per day, made up of 2,585,000 bbl. domestic crude production, 125,000 bbl. casinghead gasoline, and 250,000 bbl. of imports. With the present low consumption, due to the falling off in the winter season demand, it is estimated that about 150,000 bbl. a day are now being run to storage, and that the first three months in 1929 will see large-sized additions to storage. Consumption plus exports of oil have increased at a regular rate from year to year, and although oil production in 1928 passed the 1,000,000,-000 bbl. mark for the second time in the history of the United States, with a production of 25,000,000 bbl. more than in 1927, only 30,000,000 bbl. were added to storage during 1928. This is compared to an addition of 65,500,000 bbl. in 1927.