THE STATE OF THE OIL INDUSTRY

The oil industry has grown more rapidly and more regularly in this century than almost any other major industry. Its growth continues unchecked; but lately, a growing world surplus of oil has become noticeable. This is not a new problem. There has more often than not been a surplus of oil in time of peace—in the sense that the big companies could at short notice have increased their output of crude oil substantially. What changes, partly in response to the size of the surplus, are the methods by which supply is regulated and prices are determined. This article examines the present position in the industry.