Sistersville daily oil review. [volume] (Sistersville, W. Va.) 1902-1905, 1904-09-20
WHAT STRENGTH
ENED Tit MARKET

occurred the 1st inst, when the
eastern oils were advanced three
cents a barrel and those of Kan
sas and Indian Territory two
cents a barrel. The advance was
not of special interest because OF
it's size, but from the fact that it
followed so soon after series
of cuts, and under a continuance
of the conditions which the
Standard Oil folk had been point
ing to as having been responsible
for the cuts. and which it was
implied might be expected to
cause a further decline in prices.
Nevertheless with the same condl-
tons continuing, the cutting of
prices was stopped and the mar
ket was advanced for the regions
named. Why was this the case?
Each of the regions affected pro-
duced more oil during the month
than it had the month before.
Why, then with this addition to
the "over:production' argument,
did the market turn upward IN
stead of continuing downward!
The answer is, in the first place
and as previously shown in these
columns. that the "over-produc-
tom claim has not been warrant
! ed but it could be put forward
with some consistency as long as
the oil was turned over and prom
ised to continue to be turned over
chiefly to one concern, which
! could be its own Interpreter OF
the laws of supply and demand.
: In opening the fields OF Kansas,
Indian Territory and Oklahoma
individual enterprise and capital
had been encouraged to take all
the risks and expense of finding
the oil. depending altogether up
on the Standard for marketing
or storage facilities. AS soon as
private enterprise had thus gone
ahead AID drilled about 300
! wells. none in the guSher class,
but demonstrating the possibility
Of finding moderate WILLS IN a
! LARGE area of territory, then the
screws began to be applied. Inc
"over-production' argument be,
can to be given prominence ana
! the market began to 90 down:
The producers realizing they had
made a mistake in developing
the new field without having pro
yided themselves with protection
Of any kind. woke up at tins
iuncture and began to organize
for self-defense. and to look into
the possibilities Of independent
storing. refining and marketing
either directly or in alliance with
existing interests outside the
Stndard.
Approaching that if the pro
ducers had really awakened ana
meant business. as it was evil
dent they did. it was poor policy
TO let them see so soon how much
storage. what stretches OF pipe
line. refneries, tank car lines,
barges for the Arkansas and
other rivers. the oil men could
build themselves with the equlva-
lent of the cuts made in their
product. the Standard gave the
over-productiOn argument tenn
porarv rest and advanced the
market. Moreover there was dan,
ger that the oil men Of that re,
gion and other regions in this
country. might enter into ALL
ances with foreign interests not
at all to the Standard 5 profit
In fighting these foreign interests
the Standard has been buying
large quantities of Russian oil
and has been working to get pro
duction in India. Roumania. Ga
| licia and other points abroad and
at the same time has been holding
down foreign prices. Having as
sessed the American producer IL
the meantime in the form OF
heavy cuts in crude prices, il
would also be poor policy to slim
ulate him to alliances with these
foreign rivals of the Standard, OF
to special independent activity or
his own part, by pushing up the
prices of refined products in the
domestic trade without some adj
| I - /,