un imports <~uf DOCK Mandatory quotas replace voluntary plan; finished products, asphalt, and fuel oil also under control

I M P O R T S of oil and petroleum products have been put under strict quota con­trol by Presidential order. The new mandatory program replaces a volun­tary import restriction program in effect Since iiiiCi- i iyO i (v>Ccii.^\, Λ Ι Ι ^ . ι .̂ , IC/-J< , page 4 4 ) .

Why was the voluntary program junked? Says President Eisenhower, "The actions of some in refusing to comply with the request of the Gov­ernment require me to make our pres­ent voluntary system mandatory."

The new program limits imports of crude oil, unfinished oil, finished prod­ucts, asphalt, and residual oil used for fuel. Under the voluntary plan, only-crude oil and unfinished oil were con­trolled. Controls on crude and un­finished oils are now in effect; controls on finished products go into effect April 1.

Detailed quotas have not yet been worked out but imports will probably7

be cut 15 to 20rA below present levels. The interior Depar tment will issue

import licenses and handle details of t h e program, but the Office of Civil and Defense Mobilization will be re­sponsible for over-all operations.

Oil prices are expected to rise with X.1-. 1.1. . l --.- l - . . - : J : 1... L11C L i i i U i i C K ·» » i i U W C i j i i i v V U i i i i ^ v ^ i Ϊ.Γ».

B\it the new program has built-in price controls. The President orders OCDM to keep a close watch on oil prices to see whether increases that may result a r e needed to promote national security. If increases are considered unwar­ranted, indications are that import quotas will b e boosted to force domes­t ic prices down.

t τ colored t© Fit. East of the Rockies (Districts 1-IV), oil production capac­i ty exceeds production. West of the Rockies (District V) , production is go-ing down; imports are needed to meet total demand. Result: Two levels of import controls will be used.

For Districts I—IV, imports oi cruae oil, unfinished oils, and finished prod­ucts will be limited to 9 r ' of the total

termine the demand at regular inter­vals and adjust quotas to suit. Im­ports of finished products will be cut back to the average level in 1957. For crude oil importers, the President di­rects Interior to avoid drastic cuts in individual quotas.

Under the new program, imports of crude and unfinished oils to this area will be limited to about 750,000 barrels a day. This is about 1 4 ' ' below the voluntary allocation of 873,000 barrels *i d-w, imports of finished rn'oduets will be held to about 60,000 barrels a day—a drastic cut below current levels. In the fourth quarter of last year, im­ports of finished products averaged about 300,000 barrels a day.

For District V. imports will be per­mitted to make up the difference be­tween production and total demand in the area. Quotas for crude and un­finished oils will be set a t about 186,000 barrels a day; the quota under the voluntary program was 221,000 barrels daily. Imports of finished products will be held to the 1957 level—about 9000 barrels a day.

Most oil producers a re withholding . i- . ,„·ΐ~Γΐ * . U ^ „ , V, ->^,«- » , > U . » * f K o o r * _

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tual quotas will be. However , indica­tions are diat the price control aspects of the program will draw criticism.

3 0 C & E N M A R C H 2 3, 1 9 5 9

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ί955=100 (1.2 million bbls./day) 1955=100 (57,000 wells)

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