Coll 30/216 'Development of oil supplies in the Middle East.' [‎54r] (108/131)

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(THIS DOCUMENT IS THE PROPERTY OP HIS BRITANNIC IvAJESTY'S GOVERNIENT)
SECR E T
0,C,3 t (U3) 83
1ST NOVEivIBER. 19U5
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vVAR CABINET
OIL CONTROL BO/iRD
DEVELOPMENT OF OIL SUPPLIES IN THE MIDDLE EAST
Memorandum Ly the Ministry of Fuel and Power.
(Petroleum Division)
Recent discussions in Washington on the requirements for
oil during the next two years, have caused the U.S authorities
to reach the conclusion that steps should he taken* to increase
development work with the ohpect of making larger supplies of
oil available. Measures which had been taken to regulate the
output of oil in U.3. oilfields have been removed and the
industry has been asked to produce to the maximum. A year or
so ago the demand for steel was such that it became necessary
to scrutinise very closely demands for equipment for oilfield
development and it was decided to curtail exploitation work in
some of the South American countries, particularly, Venezuela,
Columbia and Peru, and also in Trinidad. In the light of
recent changes this policy has been revised and oil companies
working in these countries are being pressed to expand their
programmes*
2* At a recent meeting in Washington of the Foreign
Petroleum Committee the view was expressed that when the plans
now formulated were in full operation, oilfields in the
Western hemisphere would be working to capacity*
the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. area might make a larger contribution to
the needs Df the war in the Pacific area. During the past
few months arrangements were made with the concurrence of the
U.S. authorities to increase shipments from the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
into the Mediterranean area and this demand is likely to ^grow*
It will also be necessary as occupied territory in Europe
is freed, to furnish the minimum needs of those territories
for oil supplies, thus creating a further demand.
i+* The opening of the Mediterranean will facilitate the
movement of oil supplies from Eastern areas to the West, and
in order to secure a proper balance of production of > ^ -
refined products it may be necessary tj bring crude oil from
Haifa to tms country.