Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-03-25
OIL PRODUCTION.
Problem of What to Do With Output
Causing Serious Thought.

Tampico, Mex, March 2i.-The re-
markable large oil production that is
in sight in the different fields being de-
veloped in Mexico, particularly in the
Tanpico territory is already causing
serious thought as to the question of
what shall be done with the output.
This problem does not affect concerns
which have-great agSregatiQns of cap
ltal with which to build refineries, pipe
lines and other facilities for carrying
on q general utilization and distribu-
ton OF the products SO much as it does
the smaller operators who are limited
in their financial resources and market
ing facilities. Ii is admitted on all sides
in Mexico that this country cannot be
gin to consume all of the oil that the
different fields will soon be producing
In fact, it is stated by oil men who are
in close touch with the situation th2t
if all the wells which have already been
bored and are now capped We're to be
turned loose the output of oil would he
far in excess of the market demands
of all of Mexico at this time. And yet
tn" oil development in this country has
only just begun. Unless a foreign mar
industry in this country cannot assume
the great proportions warranted by the
native supply, it is claimed.
1t is in order that q foreign market
may be opened for the crude oil Of
Mexico that the producers in this
country, practically all of whom are
Americans ard Britishers, are agitating
Il removal of the Countervailing duty
on that product in both Mexico and the
United States. Mexico has nothing to
lose by Il removal of the tariff on crude
oils, or on refined oils for that matter
it is claimed, and little real harm would
result to the material welfare of the
oil interests in the United States from
the Mexican competitor which would
result from putting oil on the free list
The statement is made that many Of
the larger independent oil producers of
tie United States, particularly of the
Texas and Oklahoma fields, have en-
tered the Mexico fields and that it
would he helping Americans more than
anybody else for the United States
market to be thrown open to them. In
proof of this statement it is cited that
the Texas Company, which is controlled
y 1ohii W. tclto anu Is one OIL lDe
largest indepe ndent oil producers and
Tefiners in. the Texas and Oklahoma
fields, has acquired extensive oil land
holdings in Mexico which it is Develop
ing. The j. NJ. Guffey Petroleum Com
pany, another large independent pro-
Queer and rehnor, has also entered the
Mexico territory. Many of the indie
pendent oil producers of Kansas, Okla
homa, Texas, California, Pennsylvania
and llllnois-Indiana fields have OBJ
tanned leases upon thousands of acres
OF oil land in the Tampico territory
ard are preparing to develop their
holdings on q large scale The Mexi-
can Petroleum Company which is said
20 have the largest developed oil prop
erty III Mexico at this time, although
many Of their wells are capped, is an i.
other American concern In fact, Am
orleans are already practically in posi-
ton to control the oil industry OF Mex
leo at this time, although the British