East Oregonian : E.O. (Pendleton, OR) 1888-current, 1920-03-12
.TAMp|CO COULD SUPPLY
OIL FOR WHOLE WORLD
BY RALPH HI TURNER

F., Omitted Press Staff Correspondent
TAMPIcO, Feb. 8. (By Mail. oil
men believe today that 1920 may wit
ness the greatest activity in the MeXI-
can petroleum industry. They agree
also that the oil development of Mex
leo Is still In Its infancy.
Before peering into the future how
ever 1t is well to get "a picture of the
present. For only by comprehending
the immensely OF the Mexican oil
game" today can person give
! credence to the staggering possibilities
of the future.
IT must be explained, before citing
production figures. that in Mexico a
distinction always is drawn between
actual and potential production.
The potential production of wells in
the Tampico field Is so great that only
a comparatively small part of the oil
is pumped from the wells There are
two principal reasons for this. First,
transportation and terminal facilities
are insufficient to handle the full out
put; second, it Is deemed unwise to
pump the wells to their full capacity.
for that hastens the encroachment of
salt water, factor which already has
biggest producers
Potential Output Big
On the first of this year the daily
potential production of the Tampico
territory was estimated at 1,77O,0 900
barrels. This figure included the out
put of the two principal fields of the
northern district, Panuco and Topila.
and of the south country" where
nfndtIafin,, M Ia, haa uiogt he uyal1c in thai
field averaging a daily potential pro-
ductlon of $4,000 b1rrels. or the to-
tai estimate, however, not more than
35 per cent OF the oil is actually be-
ing produced.
A better idea of actual production
may be gained from export figures
In January sixteen oil companies
exported s,061,2S9 barrels of petro-
lcum from the Tampico district, an In
crease over previous months. The
Hausteca Petroleum Company. found
cd by r. L Doheny of Los Angeles, re-
corded the largest exports, the stand
ard Oil Company Of New Jersey was
second and Ell Aguila, representing
British capital, was third.
During 1919 the production of pc
troleum in Mexico totalled 80, 402.055
DdITeIS, dcCOTulHB to Itoi &c SiNiNo''N'
petroleum statistician whose figures
are generally accepted as "official' by
the oil companies.
42 Per Cent Gain
Exports of crude oil and refinery
products from the three ports of Tam
pico, Tuvpam and Port Lobos totalled
so 6 80. 900 barrels in the same year.
But there is the significant fact: this
was an increase of AZ per cent over
1918. OF the total exports, the United
States took nearly 57,000.0O0 barrels
South America, with six and one
half million barrels and Great Britain.
with something over two million bar
rels. were next in line.
Not only do these figures give con-
crete evidence of the size of the Mexi-
can oil industry, but they indicate that
the United States not only is the lead
| ing producer of Mexican oil, but also
| is the principal purchaser Unlike
other oil producing countries. the in
ternal consumption of crude oil and re-
fined products in Mexico is very low;
consequently, the bulk of production
ic transported to tidewater and ship
ped to foreign ports.
The quantity of Mexican oil produc-
ton, however, must be viewed in light
Of the fact that she probably has
drilled fewer wells, and proved less
territory than, any other great oil
producing region. Oil men in Tampi-
60 declare today that potentially Mex
leo is able to supply the petroleum de-
mands of the whole world.
The basis of that prophecy, and the
n, ,overnent toward its realization con-
tain ;he future of Mexico's oil indus
try. And it is future oil supply that
the world is struggling for today.