Stabilizing Influences

Some two years ago the Petroleum Division of the A.I.M.E. organized aspecial study of unit operation. That method of handling oil pools had beenurged as the remedy that would save the United States petroleum industry fromthe crisis that even then loomed as more than a small cloud on the horizon.Today it is only one of several remedies vigorously advocated. Proration, regulation of imports, unit operation, constructive marketing andinterstate compacts all have their earnest proponents, but the advocates ofeach have been disposed to look with indifference on the other respectiveproposals, with the result that none has had united support. Meanwhile theindustry has drifted rapidly toward a serious crisis, the imminence of which initself may bring the solution. The gravity of the situation tends to forcestudy of the merits of proposals that a short time previously were brushedaside as impractical; and to the surprise of most of us we now find merit wherepreviously we thought none existed. Irrespective of what might have been the result had any single proposal beingadopted years ago, it is now apparent that under present conditions no one ofthe remedies-unit operation, proration, regulation of imports or constructivemarketing-standing alone would be of much benefit. On the other hand, it isbecoming evident that a well balanced program comprising all four of theseremedies might save the United States petroleum industry; also that some suchcomprehensive program might be necessary to save it. It is even becoming evident that the despised interstate compact might be anappropriate type of machinery in which to group and coordinate all theseremedies. We have progressed beyond the belief that either the industry or thegovernment working alone can correct the situation, and have arrived at themore healthy realization that the task will require most sympatheticcooperation between government and industry, backed by an equally sympatheticpublic understanding.