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Mr. BALL. The amount of energy supplied in the United States from 1935 to 1946 by coal increased 36 percent and by oil and gas increased 96 percent.

Mr. KILDAY. What part did hydroelectric power play in that picture?

Mr. BALL. Hydroelectric power increased, but it is a comparatively minor factor.

Mr. COLE. What is the ratio between oil and gas?

Mr. BALL. I haven't that broken down, but oil is the preponderant fuel.

Mr. COLE. By a substantial amount.

Mr. BALL. By a very substantial amount, yes.

I have table 2 which I will introduce in the record, which shows this growth in United States sources of energy through the years from 1935 to 1946.

(The table is as follows:)

TABLE 2.-United States sources of energy (in trillions of B. t. u.)

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There has been a marked increase in the consumption of all fuels since the year before we went into the war, that is, from 1941 to 1947, but it has not been a uniform increase for all the fuels. Consumption of coal has increased nearly 10 percent. Consumption of petroleum products has increased 33 percent. Consumption of gas has increased approximately 60 percent.

The 33-percent increase for petroleum products has not been uniform for all products, and this has its significance because it shows the change in types of petroleum consumption.

Mr. BROOKS. May I ask you a question there, sir?

Mr. BALL. Surely, Mr. Brooks.

Mr. BROOKS. You stated that the percentage of energy furnished by petroleum had increased 96 percent. Did you include in there the percentage of energy furnished by natural gas?

Mr. BALL. Yes.

Mr. BROOKS. That is in there?

Mr. BALL. That is oil and gas.
Mr. BROOKS. Oil and gas?

Mr. BALL. Yes.

I may say, in response to an earlier question, that the amount of energy furnished by water power from 1935 to 1946 increased 70.5 percent but the percentage of total energy furnished by water power is small.

Coal furnished in 1946, for example, 15,500 trillion British thermal units, 16,000 trillion was furnished by oil and gas, and 1,374 trillion was furnished by water power.

Mr. COLE. Mr. Ball, would you explain the difference in your figures? You said that the use of oil and gas for energy increased by ninety-odd percent, and then later on you said the increased consumption of oil was 33 percent. Now, what is the difference between consumptionMr. BALL. They are two different years.

Mr. COLE. Two different years?

Mr. BALL. The increase of 96 percent was from 1935 through 1946. The increase of 33 percent was from 1941, the year before we went into the war, through 1947. They are for different periods. And, of course, the factor also enters that the 96-percent figure includes natural gas while the 33-percent figure is for petroleum products only; that is, liquid products only.

Mr. JOHNSON of California. Could I ask you a question there? Mr. BALL. Yes.

Mr. JOHNSON of California. Out in our country they use a lot of gas and some oil to generate steam to turn over generators and make electricity out of it. In your figure there of the energy produced by petroleum products that is included, I presume?

Mr. BALL. That is included. Electrical energy manufactured by the use of petroleum products as fuel is included in the energy furnished by petroleum products.

Now, as I was saying, the increased use of petroleum products has not been uniform for all products, as is shown by the following figures: From 1941 to 1947 consumption of motor fuel has increased 15 percent; consumption of kerosene has increased 46 percent; consumption of distillate fuels-those are the lighter fuels; the heating oils, the Diesel oils, and the jet-propulsion fuels has increased 68 percent; consumption of residuals or heavy fuels-those are the fuels that are used for burning under boilers and for ships' bunkers and other industrial uses-has increased 34 percent. The consumption of other products, which include lubricants, has increased 43 percent. It is not hard to see why there have been these increases. I might mention a few of the factors in this increased consumption.

Passenger-car registrations in 1947 are up more than a million from registrations in 1941. This is an increase of only 32 percent, but traffic on rural roads and city streets in October was up 13.7 percent, with only a little more than a million more cars on the road. Those cars are being driven farther and more often so that traffic is up, as I say. 13.7 percent. There are 1,633.000 more trucks on the road than there were in 1941, which is an increase of 33.6 percent. There are 38.600 more busses on the road than there were in 1941, an increase of 13.5 percent. There are 1,000,000 more tractors on farms-were at the end of 1946-than there were in 1941. Agricultural-gasoline consumption was double in 1946 what it was in 1941. I haven't the figures for 1947 as yet. Aviation-gasoline consumption in 1946 was double that of 1941.

Then we come to one of the most striking factors. Shipments of residential oil-heating units to dealers in the first 9 months of 1947 were 915,975, which is two and a half times as many as during the

same period of 1946. There is a multiplication of two and a half times in a year. Those are central-heating units, oil furnaces

Mr. KILDAY. Right there, Mr. Ball, of course there was a reason for that. When we look for the reason, it is the instability of the supply of coal and the constant threat of strikes, is it not?

Mr. BALL. I said before another committee of the House that John L. Lewis had been the best salesman the oil business ever had.

Mr. KILDAY. And a great disservice to the miners. He is going to eventually eliminate their industry. It is perfectly ridiculous for people in the State of Massachusetts to use oil burners when they are so far from the supply of oil.

Mr. BALL. There are, of course, other contributing factors.
Mr. KILDAY. Yes, I realize that.

Mr. BALL. Mr. Lewis doesn't get all the credit.

Mr. SHORT. Accumulating shortages during the war, wouldn't you say?

Mr. BALL. Uncertainties in coal supply during the war. And, then, people have more money to spend, which means they are raising their standard of living and, therefore, they turn to the more convenient fuel.

Mr. KILDAY. A thermostat instead of a shovel.

Mr. BALL. A thermostat instead of a shovel; yes.

Mr. SHORT. It is cleaner and easier.

Mr. BALL. Cleaner and easier. Then, in addition to that, the price factor for quite a number of years has been in favor of oil. Really, oil has been the cheaper fuel in many parts of the United States. That price relationship no longer holds. In New York City, for instance, fuel oil is selling today at about the equivalent value of $23 bituminous coal. So at present the price relationship favors the use of coal, rather than oil.

Now those units that I was speaking about are residential central oil heaters. They use on the average about 1,800 gallons a year each. But there has been a more striking increase in the number of space heaters-oil stoves that heat one room or two. Shipments to dealers in 1947 were more than 1,200,000 oil stoves. You have a great many of those in New England.

Mr. BROOKS. Are you including gas stoves in those figures?

Mr. BALL. No; these are oil burners-the kerosene-burning individual oil stove. Those use about 600 gallons a year.

Then, Diesel oil purchases by the railroads in the first half of 1947 were up 42 percent from the first half of 1946. And, as you probably know, 92 percent of all the new locomotives on order are Diesels. new Diesel is hitting the rails on an average of once a week or 10 days.

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Fuel oil used in generating electricity by utilities in the first half of 1947 was up 46 percent above that in the first half of 1946.

Mr. SHORT. Mr. Ball, about how much oil is consumed by a Diesel locomotive on a run, say, from Washington to St. Louis or Chicago, when we get on the B. & O. for instance?

Mr. BALL. I don't know, Mr. Chairman. I haven't a figure on that.

Mr. KILDAY. It is very considerable, though.

Mr. BALL. It runs into considerable volume.

Mr. SHORT. An astonishing amount, I should think. It would be interesting to know.

Mr. BALL. Yes; they eat fuel, naturally, considering the energy they are supplying.

Mr. JOHNSON of California. Mr. Ball, the Western Pacific is turning to the use of Diesels exclusively. It has a program to eliminate every coal-burning engine. Now, is that the program of other railroads also?

Mr. BALL. That is the program of many railroads. The coal-carrying eastern railroads have been more reluctant to go to complete dieselization than some of the western railroads. And some of the coalcarrying western railroads have, too. But I notice that the Union Pacific has announced that it is going mainly to Diesels, and, as you know, the Union Pacific is a great coal-carrying railroad and a coalproducing railroad.

Mr. KILDAY. Of course, the C. & O. is the greatest coal-carrying railroad. Do they use coal locomotives or Diesel?

Mr. BALL. I think that they have some Diesels in operation.

Mr. KILDAY. And despite the fact that their principal business is carrying coal.

Mr. BALL. I meant at the start, Mr. Chairman, to introduce Mr. Carroll D. Fentress, who is my special assistant, Mr. Fentress is of the opinion that the C. & O. has a number of oil-burning locomotives, in which they burn oil under boilers.

Mr. JOHNSON of California. Isn't it also a fact, Mr. Ball, that in addition to the savings in fuel you have roundhouse savings and other collateral expenses that can be eliminated by using Diesels, so that in the over-all picture the Diesel is likely to force the coal burners off the road?

Mr. BALL. I think so unless improved methods of burning coal in locomotives are perfected. And there is a great deal of work being done on that at the present time, I may say. The coal-burning locomotive cannot compete with the Diesel either in cost of operation or in efficiency.

Mr. BROOKS. Then you transmit petroleum by pipe line and it is used to carry coal by rail.

Mr. BALL. I think perhaps some of the rest of you may have had this experience, of attending hearings of the Federal Power Commission, or some congressional committee, in which the coal companies and the railroads were opposing the building of oil or natural gas lines on the ground that the coal industry is basic to the economy of the United States, which it is, and that the transportation of coal is basic to the existence of the railroads, which it very largely is, and then have them faced by the fact that the railroads, themselves, are ordering 90 percent Diesel locomotives as against less than 10 percent of coalburning locomotives.

One other factor, although a minor factor, in the increased consumption is military demand. As Secretary Forrestal told you yesterday, it is less than 5 percent of total demand, but, nevertheless it is 10 times what it was in 1937 and three times what it was in 1941, for very good reasons; as, of course, you all know.

Mr. COLE. What are the military uses for oil consumption in the last year which would justify a jump of a thousand percent?

Mr. BALL. Their total requirements for the fiscal year 1948 for all petroleum products are 117,981,900 barrels. Does that answer your question, Mr. Cole?

Mr. COLE. No.

Mr. SHORT. No.

Mr. COLE. Not exactly.

Mr. BALL. You wanted to know the type of uses.

Mr. COLE. Yes.

Mr. SHORT. Faster and bigger planes, for one thing.

Mr. COLE. We have fewer ships in operation in 1947 than we had in 1946, I assume.

Mr. BALL. I wonder if you got the years that I gave correctly. Military demand is 10 times what it was in 1937.

Mr. COLE. I see.

Mr. BALL. And three times what it was in 1941.

Mr. KILDAY. In those days we had a total authorization of planes of about 2,100.

Mr. BALL. Something like that. Today, you see, you have a greatly increased air fleet and all ships are operated by oil and all land equipment is operated by oil. Secretary Forrestal pointed out to you yesterday that an army no longer marches on its stomach. An army marches and an air force flies and a navy sails on petroleum products. So far I have been talking about demand.

Mr. SHORT. And the soldiers ride on wheels, rather than march. Mr. BALL, Yes; even the infantry gets transported.

Mr. JOHNSON of California. Has the road-building industry taken more oil in the last few years?

Mr. BALL. Yes; there has been an increase-I haven't the figuresin the amount of oil used for road-surfacing purposes. As I say, I haven't the figures, but there has been a material increase since the war. As you know, road maintenance and new road construction were both heavily curtailed during the war. The States and the Federal Government are trying to catch up somewhat on that delayed program of road maintenance and construction.

Mr. JOHNSON of California. What I mean is, has the black-top pavement increased over the cement? That is what I had in mind. Mr. BALL. I don't know the relative increases of those two. There is a great deal of cement slab pavement being laid for the heavier duty roads, but there is also a great deal of black top being laid for the roads that don't carry quite such heavy duties.

Mr. KILDAY. And in the South, where the climate is warmer, the black top is more satisfactory, perhaps.

Mr. BALL. Well, I have been told by road engineers-I am not one myself that on a seasoned grade, a grade that has been there long enough to settle thoroughly, under very heavy traffic the cement slab stands up better; that the ideal road, but, of course, the most expensive road, is a cement slab with a black top.

Now turning to the supply side of the picture. We have been talking about demand to date. Our production has gone up to meet these increased demands, and it has gone up to points that we didn't think possible a few years ago, even in the midst of the war.

I will insert table 3 showing oil production in the United States from 1934 through 1947, but there are four figures that I would pick

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