17 D. THE GERMAN PETROLEUM POSITION 1. To ensure an adequate petroleum supply in case of a major war has been a prime objective of Germany policy since 1933. Between 1933 and 1939 the following types of action were pursued: (a) Large stocks were accumulated from abroad. (b)The domestic output of crude oil was sharply increased. (c)Large plant facilities were provided for the manufacture of synthetic petroleum products. (d)Less essential uses were curtailed. 2. The acquisition through conquest of the prime oil producing areas of Europe has probably constituted a net accretion to Germany's petroleum supply, although that accretion was limited by the simultaneous acquisition of responsibility for satisfying the minimum petroleum needs of Italy and the occupied areas. Quantitative appraisals are subject to a wide margin of error, but the situation in the year between the end of the campaign in the West and the beginning of the campaign in Russia appears to have been roughly as follows: (a) With the completion of the Western campaign in 1940 and with the Continent-wide application of stringent economies, it would appear that the relation between consumption and production was such as to permit at least a balance, at a level of 14-16 million tons annually, and probably some accretion to military stocks. (b) This relatively secure situation, however, depended not only upon widespread use of substitute fuels and stringent economies but also upon the fact that the German armies were not used actively and on a large scale in the year following June 1940. (c) Within the rough equilibrium or surplus that appears to have existeel, there may have been shortages of particular products, notably Diesel fuel and lubricants; and some surplus, under existing economics, of certain types of gasoline. Some observers hold, however, that there is almost complete flexibility as regards the proportion of particular products available to Germany, provided the total basic petroleum supplies are adequate. |