OIL: 100% Boost in 100-Octane

Climaxing a long huddle with oilmen, Petroleum Coordinator Ickes last week announced that the industry had agreed to double refining capacity for aviation gasoline, in order to forestall a shortage.

In 1935 100-octane (100% antiknock) fuel was a $30-a-gallon laboratory freak; now it runs about 13,000,000 barrels annually. The industry has steadily added to reserve stocks, last fortnight had 7,772,000 barrels socked away, highest ever, and 40% above a year ago. Yet a shortage loomed. Chief reason: the huge, unexpected demands of the U.S.S.R.. which has little high-octane refining capacity of its own. Already the Russians have bought thousands of barrels of U.S. aviation gas, may soon want thousands more.

Three other reasons for the pinch: 1) British underestimates of their own needs, now running two or three times earlier estimates; 2) growing Chinese requirements; 3) increased use by U.S. air forces.

Standard Oil (N.J.) President William S. Farish suggested a doubling of capacity last December. It will be harder now. Of 435 U.S. oil-refining plants only 15 now make aviation fuel. But even the 15 will have trouble getting steel and machinery. If started tomorrow, a high-octane cracking plant could not produce before August 1942.