University of Virginia Library

Energy Crisis

Oil Blight Spreads To Charlottesville

By JOHN EPPS

The Charlottesville area
may at the end of this month,
experience some of the fuel oil
shortage that has plagued the
entire country this winter.

B.W. Southall, Product and
Industrial Regulation Division
Director for the Department of
Agriculture, said yesterday one
Charlottesville oil dealer has
reported that he expects a
shortage by the end of
February.

The results of a study of the
Charlottesville area have not
been fully received since they
have only obtained the one
report of shortage.

"I can't say that
Charlottesville is without
trouble," Mr. Southall said. At
this time "we know of no
shortage but one."

Other areas in the state also
report shortages, some critical.
The Tidewater area is the
hardest hit of any in the state
Mr. Southall said the Office of

Economic Preparedness (OEP)
has made a study of that area
to determine whether the
situation warrants a declaration
of disaster by President Nixon.
The OEP decided, however,
that it did not.

This decision closed off any
hopes that the U.S. Navy Base
at Norfolk would open its
stock of kerosene to the
public. They can only do so in
the case of disaster.

The shortage in Tidewater
occurred because the Crown
Company depleted its supply
according to Mr. Southall. The
Crown Company receives its
stocks from the Continental
Oil Company, who recently
suffered a breakdown of one of
its refineries.

To Effect Richmond

Richmond also will be hit
by the fuel blight. "We have
some kerosene shortages in
Richmond without much
prospect of relief," Mr.
Southall said.

Mr. Southall's office has
been conducting surveys of the
problem throughout the state
and the results for the
Richmond area have not been
fully tabulated.

The basic reason for the fuel
shortage, according to
American Petroleum Institute
President Frank N. Ikard "is
that this country's demand for
energy-oil and natural gas being
the most important – is
soaring, while discovery and
development of reserves, such
as on the North Slope of
Alaska and the Cuter
Continental Shelf, are being
hampered."

Weather Aids Drain

"However," he continued,
"there are more immediate
reasons for the problems." A
wet autumn and an early, icy
winter "created an early drain
on supplies of heating oil and
natural gas."

"The fuel situation
developed into the classic
'domino' situation – hit one
and the others fall down," Mr.
Ikard said. "In the case of fuel,
the first to be 'hit' was natural
gas."

Mr. Ikard said another
reason for the short supply of
heating oils is that the demand
for gasoline exceeded
expectations last summer. In
order to keep up with demand,
refineries boosted production
and this delayed a buildup of
heating oil inventories.

The current problems are
minor compared with what
could happen unless the
government formulates
comprehensive and coherent
energy policies, Mr. Ikard
added.