The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1915-07-19

jected such IA figure which carried
with It half Of the refining profits
In addition. This did mol appeal to
him, Inasmuch ~ he had no means ~
determining fairly just whit the cost
Of refining was, and was therefore not
In u position TO know what the rrfiu
ing profits might be-
Already an Advance
The idea Is That the price Of crude
Is stlffcuing. aud that there has al
been m advance, though not In the
posted price. Which brings up anoth
or phase II the same matter Some
~ the best posted men In the prodnc
INK end ~ the business profess TO be-
licNe that the Influence NJ the posted
price. 80 long maintained by the
Prnirle on a Gas company, X 10 no
longer be- felt that the selling Of oil,
In the Mid Continent field, Is 10 be-
come the .nmc sort NJ II barter us It
Inns long been In the Texas Coastal
plane country. uud I'm California
On the Control Basis
That is to say, II win be- on n con.
tract basis, the contract 10 be- nrgo-
tinted In n personal deal The const
country Of TeNus has never known
whit If was 10 have Il staple oil price.
One property might be- disposlng NJ lts
oh at 90 cents "A barrel white another
property along side might be- deliver.
Ing II nt % cents. A new producing
Interest would be- under the necessity
u negotiating a market, on which
neither O0-cent property or the Decent
property necessarily had any iuflu.
enCr whatever.
No Pipe Line Purchasers
There II no longer Il pipe, line pur
chaser IN Oklahoma. The supreme
court decision ended that arrange
ment. The purchasers are all produc
Ing concerns now or small refining
concerns, these latter with their needs
and mcutls very limited, 80 FAR aS the
production " the entire field goes.
II IL said the Prairie finds Itself In
need Of the OH. In the first plArc II
has better than jO,OOOOOO barrels In
storage from which 10 draw. In the
next It X producing approximately ~
600 barrels a day. and has the same
opportunity 10 increase IT, production
! either ship It's oil Ia market by pipe
line. or II may store In the field. II
the production Of the Prairie Is nOt
sufficient to meet It's needs, and II II
does not care 10 draw on storage, then
II car and no doubt will set about In
crenSiug It's production either by drill
ing additional wells W seeking con.
tracts with other producers AT such
n price M can be- agreed Oh. II dos
not follow. however, that II will post
nm increased price until that is q mat
ter of absolute necessity.
Drilling In Paden
The decision " the company to drill
In It's Padcn well, and exploit that
field shows that more oh ran be
handled. This fact Is further demon
strnted by It's activity In drilling other
sections n the field.
Gushing X down. down. The division
superintendent Of one ~ the largest
Interests buying oil there Is resp0nsi
bile for the statement that last week
the daily production " the pool was
not In excess NJ 10000 barrels. There
IL more than a modlcum Of substan-
tiating evidence. Sensational ~ the
statement Is. II Is the approximate
truth, and unless there Is n large
number ~ new wells within the next
fortnight Gushing Is going 10 look
like n busted bubble compared with
those times when II was dominating
the hleh.grnde OH market Of the world
with a production close to 100000 bar
rels.
There Is Empty Tankage
II can he stated rs Il fact that there
" considerable empty tankage In the
oklahoma flplds-nt the various tank
firms. THIS argues several things nj
once. Amongst others this: That the
necessity Of filing II tariff to all points
" delivery restraints the purchasers
from filling this tankage. A hypO.
thcticnl cuse; Suppose the Prairie
on 4 Gas company, for instance, which
IL one " the heaviest purchasers ~
| crude IN the entire field has available
storage at Caney, CopAn and Ramona
tank farms for Il million barrels II oil
The Prairie on 4 Gas company has
no transporting facilities these are
owned and controlled 10y the Prairie
Pipe Line company, which Il u com
m%on-carrier transportation system. In
those days when there was but one
Prnirle-when the purchase, storage
and production was all under one head,
this empty tankage was instantly
available TO the producer, and the oil
bought at Gushing Or Ramona or the
shallow field, was transported to
where the room was and was there
stored.
Now the Prairie OH \ Gas company
must take It's turn IN the line. II or
ders are being filled to the capacity
Of the line, then the Prairie can not
get It's oil to available storage even "
point of destination il u delivery point
with tariff rating, But II there is no
delivery point shown for the place
where the available storage Is, and II
there Is no tariff for that point, then
the storage Is Of no use To the pro.
ducen In the field.
Applies TO All
This hypothetical case applies with
equal force to every other marketer In
the field. II IL these new conditions
In the marketing Of oil that renders II
unwise to attempt to forecast Just
what the future holds. Producers may
be receiving n dollar a barrel fol their
oil ~ u matter OF fact while the
quoted market remains stationary.
Through II all runs n bright beam
OF light: The apparent supply h dl.
m%inishlng, while the Investments by
mn rkatara has tFnmanunnsl, lnpraaaad