New-York tribune., 1919-07-21
Critical Stage
Reached in Texas
Oil Development
Lack of Facilities for Hand
ling Output May Result
in Long Shutdown; Drop
in Market for Leases

AUSTIN, Tex, July 19.--What may
the development of the crude oil in
dustry in the Central West Texas fields
has now been reached True to the pre-
dictions and warnings that were made
and sounded several weeks ago by the
Magnolia Petroleum Company and
other conservative and large operators,
the wild rush of drilling wells has re-
suited in an over production in the
Burkburett and. Dcsdemona fields,
with indications that a similar condi-
tion will be brought about at Ranger,
German and other pools within the
next few weeks.
AS a consequence of there being an
available output Of probably $4,000 bar
rels day in excess Of pipe line and
rail transportation facilities a slump
regarded as an inevitable contingency
the effect of the over production has
already brought losses to lease specu-
lators. The drop in the market value
of oil lease rights to land in the pro-
ducing territory came suddenly and en-
tlrely unexpectedly, so far as the own
ers OF the same were concerned. The
demand for leases slackened the mo-
ment it was found that there was no
outlet for new production.
The complete cessation of all drilling
operations in the Burkburnett and out
lying pools for q period Of thirty to
sixty days, by order Of the State Rail
road Commi ssion, is one of the rene
dies that is now being seriously con-
sdered AT the present rate Of con-
structing new pipe lines and connecting
up the wells the problem Of taking care
of the production may be solved within
the next two months, provided the ex-
tensivc drilling campaign that is un-
der way and planned eases up immcdi-
ately. Additional steel storage tanks
are also being erected as rapidly as
the material can be hauled in by the
railroads and laid upon the ground
Figures have been compiled which
show that during the first six months
Of this year, ended June 80, the total
production of light crude petroleum in
Texas was 23,4O0,000 barrels, valued
at $50, ,651 900. In view of the fact
that all of this product was refined it
yielded much more than it's value as
crude. The total production of the
different fields for the six months
period was as follows: Ranger and
other fields of Eastland County, 9,621,
115 barrels; Burkburnett, S,640.11O
barrels; Corsicana, 105,975; Electra,
2,133645 Iowa Park. 1920; Holiday,
3294o; Petrolia. 151, $50; Stephens
County, 1,505,470; Desdcmona district,
84O,910; Moran, 27,525; Strawn, 74985;
Brownwood, 113, 1926; Thrall. 17,305,
and scellaneous, including some
production from Coleman, Young and
other counties, 9O,16 barrels.
AS soon as additional pipe lines are
built into the Desdemona field several
wells that are now close to the sand
or capped will be turned loose. The
Humble Oil and Gas Company, the
Prairie OIL and Gas Company and the
Gulf Pipe Line Company will have
their lines finished into the field in a
'short time and will bo able to add
about 900 barrels to the daily guam
tity transported. At present the Mag
nolia Petroleum Company has the Des-
demona field to itself so far as
handling the product by pipe line is
concerned. Just at the time when the
transporting and storage of oil is so
critical Warren Wagner brought in a
we'll of 10000 barrels daily production
on the tract owned by Mrs. Bobbie
Terry. This we'll promises to run to
waste unless provision can be made
for storing the oil in earthen reser-
vors. 1t is said to be the largest
producer so far brought in at Des-
tlemOna,