OIL: Summer Shortage

The oil shortage began to pinch the Midwest last week. The major companies announced that they would have to ration dealers. Standard Oil Co. (Indiana) was first; in twelve central states it reduced gasoline deliveries 15%. Shell Oil, Phillips Petroleum and Socony-Vacuum quickly followed.

For the rest of the summer, at least, the Midwest will have no more gasoline than in 1946—and consumption is up about 15%. The Midwest felt the pinch first because the railroads, swamped by the bumper wheat crop, could not haul enough tank cars. The East Coast, supplied by tanker, is luckier.

Current U.S. consumption is 5,346,000 bbl....