TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE December 6, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Estimates of the German Oil Position Summary All the available estimates indicate that Germany has been forced to dip into her oil reserves for the Russian campaign. The two up-to-date estimates, those of the British and Russians, both conclude that, as a result, Germany will be forced to restrict her military oil consumption. The British believe that the Germans will be able to do this fairly easily, whereas the Russians state that it may reduce German armored operations. 1. The Russian, British and Treasury studies all agree that up to the invasion of Russia, the axis was able to maintain its reserves intact, i.e. production was approximately equal to the restricted consumption. 2. The Russian and Treasury estimates of the German oil reserves prior to the Russian campaign are both 7,000,000 tons. The British put the figure at 5,000,000 to 5,500,000 tons. An Italian study published in August is more indefinite and says only "some millions" of stocks were on hand. 3. Both the British and Russians agree that in the Russian campaign the Germans have been forced to dip into their reserves. The British calculate the deficit to be 400,000 tons a month, the Russians, 900,000 tons. The Italian discussion does not state so flatly but it can be deduced from the consumption and production figures given that the German reserves had to be drawn on. The Treasury has not made any studies of the German oil situation during the Russian campaign and so no estimates are available. It is of interest to note that the Italian figures are much closer to the Russian data than are the English figures. The Russians believe that the Germans are consuming 2,000,000 tons of oil a month in their military campaigns. The Italians say that the consumption is 1,500,000 to 2,000,000 tons a month for military purposes alone. The British put consumption for all purposes at 1,500,000 tons. |