it came part of the way by pipe line or barge it would be much less than that. Mr. RABAUT. Would any of it at all cost just 1 cent a gallon more? Mr. MARSHALL. Not to any substantial extent. Mr. RABAUT. So that there would be some subsidy on every bit of it, then? Mr. MARSHALL. Yes, practically speaking. Mr. DAVIES. Part of the movement is an expensive movement as against tanker movement, and the tankers were released by the oil people for war purposes. The tankers all went to war. We had to get the oil in here somehow, and we brought it in overland by this very expensive means. Mr. RABAUT. I am not criticizing you at all; I know it was a necessity. The only point I am talking about is the fact that it was somewhat subsidized because it was subsidized as we brought out here, and because we are talking continually here in Congress about subsidies. Mr. DAVIES. Yes. Mr. RABAUT. And the subsidy in this particular case went to a certain area that was affected, and it had to be helped. I admit there had to be help. Mr. TABER. How much of that gasoline that is transported with the subsidy is used for ordinary pleasure driving, would you figure, or driving of convenience rather than necessity? Mr. WILKINSON. About 15 percent goes to A coupons. Mr. DAVIES. Yes, I believe the A coupons would measure it all right. Mr. TABER. Would you not think that sort of driving ought to be subsidized by the Government? (Discussion off the record.) The CHAIRMAN. Mr. Wigglesworth. Mr. WIGGLESWORTH. Reverting to this 1,700,000 barrels a day; that is mostly refined oil, is it not? Mr. DAVIES. No; that is total petroleum. Mr. WIGGLESWORTH. Crude oil? Mr. DAVIES. That is right. Crude oil is included. We have to move in practically all of the crude to the east coast that is refined on the east coast. There is something like 800,000 barrels a day of crude oil run in the refineries on the east coast, and almost all of that has to be brought in. At this time most of it is coming in overland, either through the 24-inch pipe line or by tank car or barge. AMOUNT AVAILABLE FOR CIVILIAN USE IN DISTRICT NO. 1 DEPENDENT ON ARMED FORCE DEMANDS Mr. WIGGLESWORTH. The amount of that 1,700,000 barrels that may be available for civilian use is dependent on the demand of the armed forces, which you cannot predict at the moment? Mr. DAVIES. That is correct. Mr. WIGGLESWORTH. Is it your judgment, in the light of the best guess that you can make of that demand, that we are, from a civilian standpoint, not justified in proceeding with any more pipe-line construction? Mr. DAVIES. Yes. I do not think we could justify another ripe line. The bottleneck is more today the product itself, the availability of the oil itself, rather than the transportation to move it. Mr. WIGGLESWORTH. The transportation problem you were faced with a year or two ago has been successfully met? Mr. DAVIES. With the completion of the 20-inch line I would say reasonably so as applied to the east coast. We have transportation problems elsewhere in the country that have not been successfully met, Mr. Chairman. SINKING OF WELLS Mr. POWERS. If I am correct in this statement I want it to stay in the record, but if I am incorrect, strike it out. I was a little confused during some of this testimony this morning about these oil wells that you mentioned, the number of new wells that you were sinking per year. I understood from your testimony that we were sinking before the war approximately 32,000 a year? Mr. DAVIES. That is correct. Mr. POWERS. And that last year we were sinking about 19,000 per year? Mr. DAVIES. Correct. Mr. POWERS. And that this year your goal will be 24,000, but if you reach 22,000 you will be doing well? Mr. DAVIES. Yes. Mr. POWERS. Well, I was confused by some of the other testimony. Mr. DAVIES. That is correct; those are the facts; yes, sir. OIL IN FLORIDA Mr. POWERS. What is this Florida oil situation? Are you getting any oil out of Florida? Have any new wells been discovered in Florida? Mr. DAVIES. A discovery well has been brought in in Florida, but it is brand new, and Florida is making no oil contribution as yet. But this discovery well has been brought in, and certain geological work that has been done in Florida does suggest that the area may later be a productive one. Perhaps it may become an important area, but it is new. Mr. POWERS. You mean that you have just discovered oil in that locality and there is no volume to it? Mr. DAVIES. No; I mean one well has been sunk and has produced oil in commercial quantities; it appears that oil is there. Mr. POWERS. What is the production of that well; have you any idea? Mr. KNOWLTON. Sixty barrels daily now; it came in at about 80. DEFERMENT OF MEN ESSENTIAL TO OIL PRODUCTION 26 YEARS OF AGE AND UNDER Mr. POWERS. Mr. Davies, you mentioned something about these 26-year-old experts, or whatever you may care to call them, that you might have within your set-up. I think you also mentioned the fact that you would be seriously hampered if some favorable action were not had with respect to these 26-year-old and younger men. Mr. DAVIES. Yes. Mr. POWERS. How many 26-year-old men and younger do you have with your outfit? Mr. DAVIES. Thirteen hundred. Mr. MARSHALL. Not in P. A. W. Mr. POWERS. I was speaking of P. A. W. at the moment. Mr. POWERS. Yes, at the moment. Mr. DAVIES. Very few of them. I am not worried about our office in relation to that rule, although it would affect us to some degree. We are worrying about the effect on operations in the industry in running these plants. Mr. POWERS. There are about 1,300 that you consider essential to the production of oil? Mr. DAVIES. To the refining of oil. Mr. POWERS. To the refining of it? Mr. DAVIES. Yes, particularly to the refining of oil. Mr. POWERS. What type of work do these fellows do, these 26year-olds? Mr. DAVIES. I will ask Mr. Brown to answer that. Mr. BROWN. The 1,300 he is talking about are young college graduates. Some of them are products of the speeded-up training that has occurred in the colleges since the war, by which they secure engineering training and are out of school before they are 21. They are men employed in the research laboratories and the more technical phases of refining operations. Of course we have had a revolution in refining technology in the past few years. This is hinted at by the fact that we are going to make 10 times what we did before of something that very few people knew how to make before the war-aviation gasoline. These technical men are necessary, because they are about the only men we have who have studied and can operate some of the new processes such as the hydrofluoric acid alkylation process, the isomerization processes, the catalytic cracking processes, and so forth. These are men who can run a slide rule, and run the equipment, and who know when a catalyst has to be changed, and so forth. They are not replaceable because there are very few people who know those new arts. A very considerable portion of the people who do know them is embraced in this number of young men. Mr. POWERS. These boys know those arts when they come out of college at 21, do they? Mr. BROWN. They are tooled up with science when they come out, and thus have the basic learning which enables them to learn the processes quickly. Mr. POWERS. Is it your opinion that unless these boys of 26 and under are deferred that it will seriously hamper the industry? Mr. BROWN. Yes, sir. Mr. POWERS. That is your honest opinion? Mr. BROWN. That is my honest opinion. Mr. POWERS. Thank you. Mr. BROWN. It affects different companies differently, of course. Mr. POWERS. All right, thank you. SUMMARY OF ESTIMATED INCREASE FOR 1945 The CHAIRMAN. Mr. Davies, you are asking here for a $480,000 1 This item appears in the deficiency bill, H. R. 4346, the War Overtime Pay Act not having become a |