HC Deb 28 January 1957 vol 563 cc117-9W
103. Mr. Lewis

asked the Paymaster-General what approaches he has received from representatives of oil interests in Texas; and whether he will publish in HANSARD the communications he has received and his reply thereto.

Mr. Maudling

None, but the hon. Member may have in mind a message recently addressed to Sir Anthony Eden by the President of the Texas Independent Producers and Royalty Owners Association, the text of which is given below, together with a Press statement issued on 9th January dealing with the points raised in it.

Following is the text of the message: Published reports that Texas oil independents have sought to deny oil to fill true demand here or abroad are ridiculous. They are based either on lack of information or desire to shift blame for oil rationing, higher consumer prices and automobile unemployment in Europe from where it belongs. We are insistent that export markets be filled with increased production only as necessary to supplement shipments from excessive stocks here, particularly gasoline. Press and public should have explanation of efforts by your Government and major companies to reject United States gasoline as evidenced by recent arbitrary hikes in import duties. There are readily available some 50 cargoes of TT2 gasoline which, even at present tanker costs, can be delivered at your ports at about 25 per cent. of prices being charged consumers in your country. Crude price increases here are overdue on production cost basis and unrelated to conservation efforts to end pipeline proration, connect over 8,000 Texas wells without pipeline outlets, and to assure rateable buying. We seek only to protect domestic industry against sales on a basis which will destroy independents ability to fill the gap left when unreliable foreign sources are cut off.

The following Press statement was issued on 9th January: Her Majesty's Government are grateful for any suggestion which may lead to greater supplies of oil for the United Kingdom and Europe generally but the recent telegram to the Prime Minister from Mr. A. E. Herrmann, the President of the Texas Independent Producers and Royalty Owners Association, indicates that the nature of our problem may not be fully appreciated. Fuel oil is the greatest need because without it industry would be slowed down and grave damage would be done to our economy. Fuel oil however is in very short supply and little of it can be bought today in the world markets. It is vital therefore that we bring in the maximum quantity of crude oil from which we can produce the fuel oil in our own refineries. But we are also short of tankers and to use any more of them for the transport of gasoline (motor spirit) than is absolutely necessary would be to deprive ourselves of the even more sorely needed crude. Thus, for both reasons—shortage of fuel oil and shortage of tankers—we cannot afford to jeopardise production and employment by importing more than minimum quantities of gasoline.