The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-02-19
The Oklahoma Oil Situation.

Legislature el Oklahoma
Respected sirs ss..Ses ,'s ..st es.ss. s
The unfortunate business conditions prevailing in the Mdcon-
tncnt field ask that you patiently nargc yourselves with
the situation
Ii forming bill to specifically deal with the marketing Of pc
troeum there dangers and difficulties 70 meet Such problems
arc worked ont by long expensive experiments the MdCon
field problems q unusual nature have entered into the caua
ton Among have been the obstructive policy oi the Wash
uuon Authorities the great the Eastern ports and
feners All possible Inducements should have been made to have
developed transportation Of oil 10 the Gulf ports and to have
cincries built there
Permit Us to make brief statement Of difficulties that
confront Oklahoma oldom
We ask our consideration Of the dcporabe conditions would
exist Oklahoma il the combined capacity Of all railroads
operated night and day and for sos days IN c year could only trans
wheat Under that condition. would not seek the cooperation OF
capital and all Of the citizens Of this commonwealth and make united
effort TO secure increased transportation iacliiesf
We would not stop to ask whether we get Gould Hartman
Hill SYSTEM all would be welcome because per cent Of
surplus crop could not be marketed and this would dcnorae
prices and great expense the storage Insurance rnagc and
loss Of interest that portion Of The crop that could not be taken
the markets
Great aggeeations Of capital have built storeouses (ans) that
contain 100000 barrels Of oil that they have been unable pipe
away from the field and in addition 70 that the surplus daily capacity
Of our wells Is upwards OF 10000 barrels
the MdConnent field could have furnished its proportion Of
oil exported from the United States during 1908 would have sent
abroad barrels but the mistaken policy OF making rules
and regulations born Of cxpeece and into operation by the
Secretary o The Interior has forced g have our oil pumped 1900
miles ports instead Of 500 miles reach the uu ports
which largely reduced alike the amount taken for export and the
price paid for the product.
In the interest of he aiotees for example the Governments
policy good judgment should have been Of unrng effort
ec the oil from t Indian lands into the markets the world
Of this policy has been ranous alike 70 the land owner and
the white citizens Of this State
Ii pumping our oil East past the Illinois field find that this
pumping expense thus far 27 barrel they sell their OIL
like grade 27c barrel than the highest price paid here
they receiving for their 3S963ooo barrels Of oil
sold in 1908 than like sold for in this That the dil
ference between 4Ic and 6Sc per barrel
The average distance Of piping all export oil from Illinois and
Eastern fields to dcwae greater than pumped from the Mid
Continent field to the Gulf
The State Of Oklahoma Is today poorer BY S4ooooooo than
would have been if all in authority had united with the producers
had been open this trade And the commerce 70 the Southwest BY
way Of the Gulf has also suffered great loss
The production Of the Mid Continent field 2ooooo barrels
for 1000 482z5ooo for 1908 This increase should
have been accompanied by corresponding increase pipeline
". Two Gulf lines have been built but nasnuch they did not be
general purchasers OF oil but have been 80 largely and mostly
for purpose OF transporting their oil from their wells and the
wells owned BY those with whom they associated they have not
given the relief that sought
The Prairie Oil Gas Co. upon whom be obliged
depend and apparently must depend for market and The only buyer
Of oil Al market price Of 4fc only been permitted small
and short lines under circumstances with which You familiar dur
ing the past three years while the production in That ne has increased
1900 barrels daily
the Gulf producers have urged them and the Interior Dc
parne have these lines built but We asked or loaf and got
The Secretary OF Interior continued to ubSrue pipeline lay
ing until The climax in 1906 when The regulations made prae-
ically prohibiiyc
ANY permit granted heretofore under these regulations shall
be subject to changes Or amendments q to These regulations
hereafter made BY the Secretary OF the Interior"
The Secretary also made an express eoAdaoa that he shall
satisfied that any the provisions Of these regulations amendments
thereof established or ecng
lated after days notice the d such pipelines
he shall have authority ufHar suspend cancel reoke such
pipeline"
We all that investments amounting 10 millions OF dol
lars upon stability security of property How many railroads
would have been built in the Indian Territory # they could have been
con6scaied upon days notice. Pipelines necessary the
Oil producer the railroads 10 the farmer When railroads violate
the law they may be punished not cxterminated Why not apply t
rules to pipclncs2
The principal buyer Of oil has had many 70 fully equE
themselves handle successfully oil exports and has most enegea
sought out markets in every foreign country that might induced
OIL The exports Of oil and The products Of oil during W
had reached the figures Of about S3ooooo worth for etefy
hour during the entire year.
We sell OUR oil to the manufacturers and exporters that arc
prepared this commonwealth AT present must sell to those
who the market buy and then make the conditions
attractive others may equip themselves handle product
We do plead the o the buyers but are here e plead he
cause Of the prodcers, which i also your cause
Such disproporonate increase Of production without
spending increase transportation has forced conditions that are a
more disastrous than any given the matter
full consideration. imagine.
The history o the oil business has bern Of continuous and
uuendng eor behalf Of the producers unlimited aud
icttered pipeline privileges