The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1918-07-29
THE REFINERS' VIEWPOINT
Communicated

IftE REf lNEN We WI Wv
(Communicated)
The independent refineries have
had desperate time getting enough
Healdton crude to supply their re
hneries because most Of the pro
duction in the Healdton field is now
owned by the large companies who
have pipe lines into the field. II
their fight 10 get sufficient supply
OF crude oil TO run their rehneries
the little independents have beer
running the premium higher ant
higher until it is now thirty cents
the price fixed by the government
and will not stand another raise. The
little producer is the man who has
profited. Naturally, the big pipe line
interests would put the independent
rehneries out of business, then they
would get all the oil at the postet
price of Sl.45 per barrel, and the in
dependent producer would lose his
premium of thirty cents per barrel
The independent rehneries now
located in Ardmore came here upon
the insistent promise OF the inde-
pendent producers that they would
give the little rehneries their oil "at
the same price they could get from
the other fellow When the ind
pendent reiineries we're compltd and
went around and approached the in
dependent producer to contract for
his oil, the independent producer i'll
many instances said he was sorry,
but that he was tied up with the big
pipe line companies.
The city of Ardmore promised to
sell the rehneries water at a reason
able price, and now they have been
notified by the city authorities to
look out for their own water sup
ply. Another thing that should be
taken into consideration is the diff
fcrentia in freight rates. 1t costs
the Ardmore rehneries lot OF
money on every car of refined prod
ucts they ship out.
The local refiners have read with
much interest what has been said
about the increase OF the premium
on Healdton crude oil. The posted
price of Healdton crude oil has in
creased almost one hundred per
cent since the independent refneries
in Ardmor have commenced buying
oil, and the premium has increased
10 thirty cents above the posted
price. No one disputes the fact that
these small rehneries have material
" assisted in this increase in price.
Healdton crude costs the indie
pendent retinerics in Ardmore right
at $500 per barrel. The Sis paid
for the oil in the field, together with
pipe line charges, shrinkage and
gathering charges in the field, max
ing up that price, and with the small
amount of gasoline content. they
do not realize more than S2.25 per
Darrell gross for all OF the refined
products from said oil. Only the
large amount OF oil handled permits
them to do business on this small
margin OF profit.
All reports, including that of the
government, show the gasoline con-
tent to range from eight per cent
to ten percent in Healdton crude.
The fuel oil, which comprises sew
enty-hve per cent Of the output OF
the rehneries, now sells from .25
TO Sl.65 per barrel, which is much
less than the cost of the crude, so
it does not taken an expert to figure
where the local independent refn-
cries will be if the price of the pre-
MUM Of Healdton crude is raised.
1t seems that some of the inde-
pendent producers OF the Healdton
field want an increase in premiums.
II they succeed in raising the price
10 be paid by the little independent
refineries on HNldton crude to the
point that will put the independent
rcfneries out OF business, then all
OF their oil will go back TO the big
line companies that will pay the
posted market price OF Sl.+5 per
barrel.
May Kill the Goose.
The refneries strongly maintain
that if the premium on Healdton
crude is raised. they cannot compete
with the Standard companies that
are getting the oil at the post mar
ket price of Sl.45. They contend
that the producers who are asking
for a premium higher than thirty
cents, which was recommended by
the government, are standing in
their own light. and they may kill
the goose that laid the golden egg"
II higher premiums and lack OF
water cause the independent rehn-
cries of Ardmore to shut down, the
persons causing this, may suffer
some losses also. as they are inter-
ested in the growth of Ardmore,
and surely crushing this industry
would injure Ardmore.
Practically all OF the output OF