The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1917-01-03

pany in Wyoming and Kansas, the eN.
tension of the charter of the Standard
OIL OF Kansas to allow It to hold pro
ducng properties and own pipe lines
is strong indication that the center
of the oil business has moved west
ward and that refneries recognize
the importance of crude supply to
protect, their investment
While the majority of the pipe line
systems have delivered an increased
amount OF oil over 1915 the eastern
group do not look as attractive for
the future as the western lines. which
originate their oil and get both the
field earnings and largest single haul.
Illinois Pipe Line will be the gather.
ing line in Wyoming and Montana
while the eastern lines face a declin.
ing field earning, and eventually their
earnings will be largely from trunk
line or through business. Cumberland
Pipe Line while having a new lease Of
life and increased business, will be
forced to reinvest large amount Of
money in new additions to plant and
current prices discounts the present
developments in sight.
The refining companies have had a
very prosperous year with low priced
lcrude in their favor. Those who Sc.
cured stocks of crude on the decline
have an excellent prospect for large
earnings in 1917 as from the present
outlook they will all be busy if they
can secure sufficient oil to supply
their capacities.
Producing companies SHOULD have
large earnings in 1917 as crude prices
will probably range higher than at
any time during the past 20 years,
Those companies that have both pro.
duction and refining viii also enjoy
large earnings.
More oil companies of all kinds
were organized during 1916 than at
any time in the past l5 years. A mum
ber were formed with ample capital
energetic management, and business
organization, which have not only paid
handsome dividends, but have largely
increased their plants and business.
/ AZ this writing, with no fields In
sight that promise large production
with the exception of Wyoming ant
Montana, and they are Handicapped
by lack of pipe line connection east
and Mexico which suffers from in
sufficient water transportation. witt
the consumption exceeding present
production, and stocks on hand beml
drawn on to supply the demand, Il
looks as If 1917 would see the highest
prices for crude that have been pait
R in years, and oil securities will be af
fected upwards. Mexican oil may hay,
some restraining influence on crude
prices If transportation can be Sc
cured, as the light gravity oils o
Mexico will produce products equal tC
the products of many of the light OH
of the United States. the smaller re
ceivable percentages of Mexican
crude being overcome by the larger
wells, the smaller production expense
and the lasting qualities OF the wells
This fact is recognized by many oI
the large refining companies Of this
country who have, during the past
year, enlarged their Mexican holding,
at prices that would have seemed fab
ulous not many years ago.
The reports from the eastern battle
front of Europe indicates that IN,
damage to the wells in the Galiciar
and Rumanian fields will necessitatC
the practical redrilling Of those ant
before production can be brought back
to normal. This will mean that fol
at least two years after the war the
Russian fields will eb the only seriou.
competitors to American crude neal
The European markets.
=-H