Production Speeded Up and Organized on War Basis

SPEED-UP of production of crude oil and its products, accompanied by rising prices and the organization of the industry on a war basis, featured the economic aspects of petroleum in 1941. Early in the year American tankers were urgently requested by the British to replace losses and offset slower transit under convoy. Some forty American owned tankers were first assigned to Britain and an additional forty-odd ships were transferred during the summer. This threatened to reduce our transportation facilities from Gulf ports to the Eastern seaboard below requirements, especially should sinkings have increased and the British needed more ships. Co-ordinator Ickes began preparations for restricting gasoline consumption in the Eastern district and plans were formulated for the construction of an emergency trunk pipe line from Texas to New York and Philadelphia refining centers, and for a gigantic tanker-building program. Sales of new oil-heating units in the East practically ceased. The companies were urged to transport as much oil as possible by tank car and by October 140,000 barrels of oil per day were reaching the East Coast district by rail, sufficient to meet 8 per cent of total requirements. But British sinkings from July through October decreased 63 per cent compared with the four months ended June 30, Britain began the return of tankers, the construction plans were dropped, and the threatened shortage was thus averted.