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The U.S. oil industry thought a year ago that its long-gushing boom was trickling out. In its hell-far-leather expansion, the industry had overtaken all demand and for the first time since World War II found itself producing more oil than it could sell. State commissions, which set the legal flow of oil from wells in the five big producing states, cut back the allowable production, to prevent a bigger glut.

But the industry had underestimated the growth of the U.S. economy and the resurgence of the business boom. By last week, demand for oil had soared until the industry was producing at a rate of about 5,450,000 barrels a day, almost as much as the alltime peak in November 1948. Consumption of gas for automobiles was up 10% over last summer; oil burners were being installed at a rate 45% above last July. Last week Texas' State Railroad Commission upped the daily allowable rate of crude production to 2.5 million barrels, an increase of some 700,000 barrels over a year ago.

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