Arizona republican., 1921-06-16
Mexico Oil Report Characterized As
 Bear Propaganda
[RepubIican A. F. Leased Wire]


 NEW YORK, June 15-Statements that production in the Mexican oil fields was declining, embodied in a report by J. A. Phelan. shipping board expert, made public yesterday, were characterized as bear propaganda' in a statement today by H. G. Wylie, vice president and general manager of the Pan American Petroleum and Transport company and the Mexican Petroleum company.
 .sThe secretary of state" the state ment said, showed his good judg- ment in refusing to have his depart ment investigate or made report on the possibilities of the Mexican oil fields. as such business is not usually considered within the purview of the state department, and request for such a report from the state depart ment, I think, is unprecedented"
 MT. Wylie asserted that the report of Mir. Phelan was mot entitled to any serious consideration, because MT. Phelan is not geologist, neither is he an oil expert"
 ] "As understand it." he added, The was sent to Mexico to report to the shipping board on the availability of a supply of fuel oil. It is to be un- derstood that when an employe of a shipping company or other commer- cial concern is sent on such an CT rand that he is not expected to make a scientific report as to the area or the field and possible contents there of. Such thing is beyond the grasp of the inexperienced. It must be done either by geologists or by those V vho have made the finding of oil and pro- duction of same their life-ioug busi- ness and who have been successful. "Mr. Phelan intimates that the pro- ducing area is 40 square miles, Tliis is quite misleading, as he no doubt estimates the Chinampa- Naranjor -Zacamiztle district to be 40 square miles, However. 1t must l be remembered that south of this field there is far greater area oi absolutely proven oil territory whlcf l has scarcely been touch. the probable oil area being many times larger. | Mr. Wylie quoted George Otos | Smith. director of the United States geological survey, as placing the tota proved area of Mexico at 10000 square miles and the estimated tota oil reserves of the discovered field al 1 four and a half billion barrels "Mr. Phelan is quoted as saying that the proven oil fields of Mexico within a reasonable period are certasr | to 20 into salt water is a demon | strated fact This statement canno be contradicted. because of the quail flying expression "a reasonable per | iod.' and that is the meat of tn
 whole question under consideration What is a reasonable period Georg l Otis Smith estimates this at nor than one generation. The most con servative idea that have heard fror
 those capable to judge Is from 30 |
 50 years
 MT. Wy1ie declared Mir. Phelan'
 statement that new straws are be
 ing inserted into the pool which ca
 only contain a certain amount of oi
 and the day of total depletion ma
 come at any minute" cannot be con
 sidered anything other than "bea
 propaganda.'
 .Even if the fields were only wha
 Mir. Phelan would have one believ 40 square miles-how could the en
 come so momentarily. The though E is ridiculous and only worthy of con sideration where it is used for bea propaganda, as I have suggested" MT. Wylie asserted that no wei safely within the limits of the O
 field, had gone to salt water withot
 that area having produced an amour l 1 of oil greater than the most opt r mistic had reason to expect Tn q wells reported as being oil in tf morning and water at night nevs were oil fields, but holes drilled o Y the edge or outside of the oil terr e tory"