Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-09-29
OIL OPERATORS
ARE ADVISED TO
REDUCE OUTPUT

oil expOrt trade has renewed the sIIlh.
.geney IN the crude petroleum markes
70 some extent, the situation in the
6elds Il far from being satisfactory,
for the big refining and marketing
concerns are still struggling with an
nnwielaIy production, which threatens
~ tax storage capacity to the limit,
saws the San Francisco Chronicle. The
efforts TO bring about q general cur
tailment of production and develop
u,ent work In the California fields have
not been uniformly successful, accord
inc 10 reports, and operators In all
districts are still being advised to heed
the appeals OF the Standard and other
eompanies to reduce their production
a. far as possible, so that the general
good Of the industry will be served.
In accordance with its recently de-
clared policy Of eurtailment, the Inde-
pendent Producers Agency has taken
another and more effective step toward
checking the production Of fuel oil
among its members. The executive
eemmittee has announced that during
: the month Of September runs OF OIL
from member companies of the agency
shall not exceed 80. per cent Of the
amount received in August. This or
7 abf will OF course force many opera
TORS TO reduce their output, and some
may even be obliged TO shut down en-
tirely.
This move is not surprising, for the
s AGENCY has been enforcing its appeal
for cnrtaiiment, as far as its members
were concerned, by refusing TO take
their surplus production. The cut OF
so per cent IN the deliveries was prob
ably decided upon at the instigation Of
the Union Oil Company, which warned
its stockholders in report issued q
few weeks ago that operations for the
balance Of the present year would
probably be more or less seriously in
terfered with, particularly as regards
Examinations Of fuel oil. Both the
Union and STANDARD companies are
manning TO resume fuei OIL exporta
tions on the former large scale as fast
As the purchasing markets develop.
This win probably take some time
for. as already stated in these columns,
the fuel requirements Of South Ameri-
can and other countries formerly sup
pliea from here have been reduced to
Far below the normal, owing to the de-
preston in commodity markets caused
BY the European war.
Agency IN Lfmelight.
The announcement that only % per
cent Of the amount Of oil taken from
members In August would be received
during the present month was not the
only event which attracted attention to
the Affairs of the Independent produ.
eers agency recently. Member conpa,
MES received Al cents barrel for theitl
oil sold during the month Of July, an
advance OF 2 cents barrel over the
returns for June and the highest price
received in more than two years. Sales
IN July amounted to 50 per cent OF the
oil delivered during the month.
& II is not expected that the August
price viii reach the July level, for il
Is certain that the sales were smaller
last month, or the order TO reduce
daily runs would not have been sent
out. The obvious decrease in sales
demonstrates that marketing condi-
fions were affected by other things be-
sides the presence Of hostile warshlps
81 tie Pacific.
IA has been stated that surplus funds
amounting to the sum of 5000 ,QQ0 will
S. distributed among the meTl0ers Of
~. AGENCY shortly. This money repre-
.|1.. "a accumulation over and above
I.n.tscs during 1913. The distribu-
|..I nav have been decided upon at
~. time to Offset the loss entailed by
81. decreased demand for fuel oil,
which Is all that the agency handles.
.... It.l-t1,4,k;nr ~ IA IL made will be