The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1920-09-18
OIL INDUSTRY in
MEXICO PROMISING
Country May Become the Oil
Reservoir of the Western
Continent.

become the oil reservoir Of the West
ern Hemisphere, the department of
commerce declared this week in q re-
view Of the petroleum industry in the
Southern republic. With increased
consumption in the United States
likely to exhaust producing fields in
this country within 20 or Is years,
Mexico, the statement said, offers the
most encouragement to the American
oil industry, both for present produc-
tion and geographical situations.
Exhaustion of 40 per cent of the pro-
ducing fields of the United States, the
departments review stated, has caus-
ed Mexico to take second place in Oil
production, although about II per cent
of the potential capacity of Mexican
wells is being produced.
OH experts from Mexico during the
first six months of 1920 totaled Co.
100000 barrels, an increase of 70 per
cent over the previous year At this
rate total exports for the year are ex-
peCted. according to the department,
to reach 135,00O,0OO barrels
Development of Mexican oil fields is
only in its infancy, the review states,
adding that Of the as1,2S0 miles of
territory believed to contain oil de-
posits, not more than 500 are being
exploited. Curtailment of the pro-
duction Is ascribed by the department
to lack Of transportation and storage
facilities and to unsettled political
conditions.
OF the $35Q,OO0,000 estimated to be
invested in the Mexican industry, in
Guiding $50,OOO,OO0 in tankers, about
70 per cent represents American CAPT
tai, the review says. About 81 per
cent is British and Dutch capital and
3 per cent Mexican and other inter
ests. Twenty-seVen companies are
producing oil in Mexico, seventeen of
which are American owned, five Span
ish-Mexican, three Dutch and two Brit
ish.
The United States received II per
cent Of the oil exported during the
first six months of 1920.
Washington - The United States
government has communicated to the
new Mexican regime a protest against
the continuation of the confiscatory
policy put into effect against Ameri
can oil interests by the Carranza gov.
eminent. The protest, which was
communicated through George Sum-
merlin, charge of the American en-
bassy at Mexico City, is understood to
be vigorous in tone.
First steps toward the lodging of
the protest were taken sometime ago
by the state department, which acted
in secret. That these steps had been
taken and that the protest had prob.
ably been lodged with the Mexican
authorities was admitted at the de-
partment Tuesday after reports Of it
had come from Mexico City and from
unofficial sources here. At the state
department Tuesday there was an ap
parent attempt to minimize the i'm.
portance of the protest. Officials
sought to create the impression that
1t was merely informal and that no
answer to it was necessary. They
said it was only verbal.
From other reliable sources, how
ever, it was learned that this gov
eminent had taken decided stand
on the Mexican oil question and that
its protest was so framed as to leave
the inference at least that oil Ques-
ton would play large part in de-
termining whether American recogni-
ton would be extended to the new
Mexican government.
The communication was understood
to have pointed out that the govern.
ment had repeatedly protested against
the Carranza oil policy and to have let
it be understood that this was still
our attitude particularly as concerned
the theory prevailing in Mexico that
sdbsoil on American oil lands in Mex
leo belongs not to the land holder,
but to the state. This theory was part
of the Carranza plan to nationaliSe oil
lands.