Coll 30/216 'Development of oil supplies in the Middle East.' [‎55r] (110/131)

the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. where oil concessions are held, hut .where
commercial production has not so far been achieved,
6 * There are indications that World refinery capacity is
being stretched beyond what it can stand for any prolonged
period, and already projects are in hand for increasing capacity
of the refineries at Haifa, Bahrein and Abadan# Additional
supplies of crude oil will be needed to take up the new
capacity#
•7 Discussions have taken place with the companies concerned
in the Middle East, and details are given in the Annex, of
three proposals which are designed to make available the
additional supplies of crude oil to fit in with the new demands
for refined petroleum products# These schemes are 01 a
major character, involving considerable quantities of steel
and oilfield equix^ment. It will oe necessary to discuss them
with the U.3. authorities with the object of securing the
necessary high priority to enable the work to be undertaken#
ft It is not likely to be possible to complete these schemes
in a shorter period than from eighteen months to two years and
it may be that before the expiry of that period war demands an
certain parts of the world may have been reduced. They are,
however, in lino with other schemes which the j.o. authoriti
are pressing in the Western hemisphere and they represent the
minimum which is likely to be required m order to cover the
growing needs of the Far Eastern war which may well extend
beyond the end of 1945. In Saudi Araoia, where the oil
concession is hold to the extent of 100 per cent by ah.S. oil
company, arrangements arc being maou to develop fui ..
production of crude oil and it is understood uhat a refinery
is to be built to refine the new production from thio are..
9# Although the schemes will need to_be discussed with U,S.
Departments concerned,a good deal of the material can be made
available from this country, and in order that delivery of
some of this material may be secured at the earliest possible
date, it is necessary to secure a pproval ^in orinci-nle to the .
schemes, so that work may be proceeded vital#
■in In the view of the Petroleum Division the schemes are
soundly conceived and it is considered that the Oil Control
■Roard would be justified in supporting them* They are _
accordingly submitted to the Board for approval in principle.
Offices of the War Cabinet,
S. W# i • ,
1ST NOVEMBER, 1943.
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