Stabilization - Petroleum Stabilization in 1932

Superficial observation of the petroleum stabilization movement in 1932 is disappointing. Threatened overproduction persisted; waste continued; proration was violated; gasoline taxes were evaded; and, as a consequence, chaos threatened the industry as the year drew to a close. However, comparison of the movement in 1932 with its beginning a few years ago, and analyses of those influences that promote its growth as well as those which retard it, disclose some reasons for encouragement. Stabilization, as we see it, is not merely a mechanical engineering problem. It involves social engineering. By which we do not mean it is possible, or even desirable, to change the nature of men, but rather that it is possible to set up procedure that will avoid causing them to clash. It comprehends consideration of physical objects that is clearly within the field of the engineer, but it considers them only in relation to their distribution, utilization and control in harmony with philosophies that motivate men and shape current conceptions of right and wrong, or of justice and injustice if those terms be deemed more acceptable. Stabilization cannot be effected without utilizing the knowledge of the engineer, but neither can it be effected without utilizing more than comes within his traditional field of activity. In discussing the problem herein we shall endeavor to treat it briefly from that consolidated viewpoint. Rapid fluctuations in supply have characterized the oil industry from its beginning; yet only within the past ten years has an understanding begun to develop regarding the extent of waste—the degree of dissipation of natural resources—that attends the operation of the industry under the practices and laws which control it in the United States. The extent and regrettable consequences of those wastes, their underlying causes and the ease with which they could be prevented are not yet generally understood even within the industry. Producing TomoRRow' s Oil Today The interests detrimentally affected by these economic evils are vastly greater than the mere welfare of the oil industry. The problem involves the nation's supply of gasoline and other petroleum products at