New-York tribune., 1920-01-30
Oil Prospects for
1920 Are Good.
W. C.. Teagle Says
Standard Oil President De.
clares Industry Can No
Longer Trust "Wilica,.
&ers" to Find New Wells

s-CA uSa w lltlCG .
&ers" to Find New Wells
The prospects for the oil Industry
during 1920 are good, with the excep
tion OF Mexico. "where the situation ia
chaotic" according to Walter G.
Teagle, president Of the Standard Oil
Company Of New Jersey. M. Teagle
made a statement to the press on
petroleum prospects, yesterday, apropos
Of the celebration of the fiftieth ami
versary Of the chartering Of the origi-
nal Standard Oil Company.
oil Is an essential industrs,n he
said, Essential to the everyday life
OF the civilized world. 1t is not .
product for which a demand must he
created. The demand exists, and one
Of our chief concerns is how to sunnlv
not alone the present, but the verv
large increase which The future will
require.
New uses ere continually being
FOUND for petroleum products. We
know that the percentage of growth of
the OIL industry during the last thirty
years mas averaged . 81 per cent a
year; inns may not seem q large fig
ure oy Itself, but when one applies it
70 the quantities being consumed to-
oay one realizes that it does not re-
qulre a statjstician to appreciate the
magnitude Of the problem Of supnlv
for the future. ri'-'
During the last year the United
STATES Eas produced Il little over 900.
900 barrels day of crude petroleum
q total Of 376,000,GOO barrels. accord
ing to the governments preliminary
igurcs. In addition to this, there has
Deen imported from Mexico about CO..
oOc,OO0 barrels.
Future OIL Needs
The petroleum industry in this coun-
Try, therefore, used during the last wear
tots! Of approximately 436 100000
barrels. Apply 0.54 per cent Of in
crease, and one has 37.23500O barrels
additional required during the present
year III order TO meet tho increased
demand based on the actual fgurea Of
past experience.
IF this percentage OF increase cor
tlnues and there is no reason to doubt
that 1t wlil-tnen five years from now
(ln 1929 the petroleum industry in
thls country will need approximately
600 100000 barrels, or an increase Of
z2oCo0,oo0 barrels as compared with
1919
"Ihesc figures give rise 20 o natural
query AS to whore this enormous auau-
tlty OF crude oil is to come from.
I'VE have endeavored to do our share
III providing the increased quantities
Of OH called for by the needs of in
dustry, for you may rest assured that
every man in the producing end of
the Standard OIL Company Of New Jer-
sey ls Aeen!y alive to the pressing ne
cessi.y OF largely increased output. It
is no longer safe TO trust TO q large
extent 70 the work Of 'wid-catters' in
bringing new sources into production.
This company has undertaken nycs-
tlgatlon IN fields where prospects Of
immediate return arc not sufficiently
good to induce wi d-catters,' or small
year 1919 the amount of crude OIL
brought out by our subsidiaries ana
associated companies showed an in
crease OF a little better than 100 per
cent over their production in the pre-
vious year.
SO much for 1919; how about 1920?
The prospects ere good with the ex-
ccDtlon cf Mexico. where the situation
ls chaotic.
~ tHc nv" IoIncf pCOi N LOUISIANA
the Standard OIL Company Of Loulsl-
ana has been active in acquiring 8
large acreage. II may be months be-
fore we will know just what the
Louisiana oompany's daily production
viii be, owing entirely 70 the lack OF
pipe lines and adequate storage facili-
ties. AT the present time they ere
running about $4,000 barrels day
from Homer, and have shut in. await
ing the completion Of additional pipe
lines. SIX wells, each one Of which is
estimated to have q potential produc-
tion OF from 10000 to $4,000 barrels
b day.
8 few miles from Hoaldton, a promis-
ing pool is being opened up. Both the
Carter and tumble have considerable
acreage there.
"En tAe exploration and development
Of production outside the United States
the producing department is carrying
policy CT the Standard Oil Company Is
to be interested in every producing
area, no matter in what country it is
situated provided interests can be
obtained on 8 basis chat would seora to
hold out the possibilities Of success,
and where The lives and property o.
American citizens Will be protected.
Standard Oil Abroad
"This company is not only operating
n Rumania but is also Investigating
prospective oi producing properties
elsewhere in Europe
ain South America we have oil men
and geologists working in sevcra
countries and procuring such tracts as
in their Judgment might warrant
actual Development work The Inter
NHtlOn01 Pet trOipuTN COnlNIDV in, itnH
q Standard Oh subsidiary, is arranging
Tor an increase Of 100 per cent in Its
drilling campaign, and The testing on
Of a further considerable portion OF
its large acreage in the South Amer
can field"