Statement by the President Upon Issuing Order Setting Aside Submerged Lands of the Continental Shelf as a Naval Petroleum Reserve.

I HAVE today issued an Executive order setting aside the submerged lands of the Continental Shelf as a naval petroleum reserve, to be administered by the Secretary of the Navy. The great oil and gas deposits in these lands will be conserved and utilized in order to promote the security of the Nation. This is an important step in the interest of the national defense.

The tremendous importance of oil to the Government of the United States in these times is difficult to overestimate.

The latest statistics indicate that, during the year 1952, the domestic consumption of petroleum products in the United States averaged about 7.3 million barrels per day. A large part of that daily consumption of petroleum products was attributable to agencies of the Federal Government, particularly the three military departments of the Army, the Navy, and the Air Force.

The domestic production of petroleum during the year 1952, according to the latest statistics, averaged about 6.8 million barrels per day. It will be seen, therefore, that the production of petroleum in the United States during 1952 fell far short of meeting the consumption of petroleum products. This deficit is expected to grow larger year by year.

In view of the great demand for oil by the Government for defense purposes, it is of the utmost importance that the vast oil deposits in the Continental Shelf, which are assets of all the people of the United States, be conserved and utilized for the national security.

At the present time, there are a total of 22 known oil fields in the Continental Shelf adjacent to the coasts of California, Louisiana, and Texas. These known fields contain estimated proven reserves aggregating approximately 492 million barrels of oil.

Moreover, it has been estimated, on the basis of available scientific data, that the Continental Shelf adjacent to the coasts of these three States actually contains a grand total of about 15 billion barrels of oil.

In order that these great reservoirs of oil, which belong to all the people of the United States and are of such crucial importance from the standpoint of the national security, may be preserved for the Nation, I have set them aside as a naval petroleum reserve.

The Executive order does not require the shutdown of any existing production of oil from submerged lands of the Continental Shelf. Special provisions have been inserted in the order to permit the continuation of this existing production.

It has been, and still is, my firm conviction that it would be the height of folly for the United States to give away the vast quantities of oil contained in the Continental Shelf, and then buy back this same oil at stiff prices for use by the Army, the Navy and the Air Force in the defense of the Nation.