The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1917-07-28

lea, POSSIBLY in Alaska, would be ready
for development
There are, however some obstacles
which stand in the way of speeding up
present-day production of crude oil. The
government at Washington itself may
be found to reflect one of these OBJ
stacles. 1t has not in the past permit
tel development Of the vast oil proper
ties which it owns in California. One
of the largest oil producers in the United
States said this morning that the gov
ernment's attitude toward Oil properties
which it controls was even worse than
its dog-in-the-manger attitude toward
the coal deposits in Alaska.
Then, again, the securing of leases for
working Of oil properties in Oklahoma,
especially those which are owned by the
Indians involves a great deal of red
tape and this explains the somewhat
slow development of these oil properties
THE QUESTION OF LABOR
Another obstacle which has occasioned
considerable enlba ssment to the oil
producers is caused by the relation OF
skilled labor to this production. In some
respects the prospecting for oil and the
drilling entail expert labor fully equal
to that which is necessary for the sue
NO9Sl IA lllLliHS VI BOlu. silver ana cop
per The details which relate to this
labor are too technical to set forth so
that they may be easily understood by
the public. But 1t has been found es-
pecially Of late, difficult to secure an
adequate supply Of labor of this kind
In addition to this embarrassment there
are increased cost of production, Of drill
ing wells and of other incidental factors
which inevitably tend to curtail produc-
ton.
All of the oil producers of the United
States are contemplating improvements
in refining and a remarkable expansion
of the industry whereby valuable by
products are obtained. For instance
by January l, Mr.. Sinclair will have
completed for his company a plant in
which new method of refining will be
adopted by means of which the largest
percentage of by-products ever produced
will be turned out. Chemists in their
laboratories, men of science and Of re-
search are now greatly occupied with
study whereby they can discover new
processes for the recovery of by-prod-
ucts heretofore regarded as unobtain-
able.
It is much easier to bring into one
combination or single unit various cor
porations whose business is the produc-
ton of crude oil than 1t Is to get the
men who are competent to prospect and
locate good oil properties. Expert skill
Of this kind involves years of work and
also great deal of money
One reason why Mr.. Bedford speak
ing in his capacity not as an oil pro-
Queer, but as one of those who are CO.
operating with the government in the
council. of defense, has found 1t neces-
sary to speak of rapid diminution of
the supply of crude oil, Is the fact that
the demand for various uses of oil has
increased enormously within the past
10 or 10 years.
There appears to be some concern lest
the government at Washington make
mistake when it fixes the price at which
oil is to be sold 1t may not fix any
price, leaving that to be determined by
the law of supply and demand But if
by governmental authority the price Is
fixed at such low figure that there will
b. no inducement to locate and drill
wells then, presumably, the entire sup
ply now on hand and the years pro
duction will be exhausted within the
next u months.