The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-10-11
REFINERY PREMIUMS
HAVE CAUSED SLIDING
SCALE FOR CRUDE OIL
Government Tax Has Retarded
Sales of Oil Properties
During Depression.

When the oil situation was in NOR,
or less of depressing condition.
states w. l., Larkin, of Tulsa, 9TH,
members of the fraternity at Tulst
We're running in low, but when the
market commenced 10 rise they
threw her from low right into high
and skipped second" A local ell
man nearby informed Mr.. Iarkin that
! the members of the Ardmore fratern.
hy never were in low, although for
a brief period they held her in sec.
ond.
Mr.. Larkin is here on a business Wis
1t. He is well known in this city,
having resided here for period Of
IA months prior to July 1920, at which
time he took up his residence at
Tulsa. He is now in charge of the
Baker-Strawn interests. Mr.. IArkin has
been keeping in very close touch with
the oil industry and is perhaps as
well versed in the game as any other
oil man in the country. He has been
engaged in II for the past 35 wears,
and is now as active as ever.
Speaking Of the rapid manner in
which oil commenced TO rise, Mr.. Lar.
kin states that the situation appears
to be as peculiar as il has appeared
TO all others who have attempted TO
lind the reason therefor. He Is OF the
opinion that it might be due to Of.
forts on the part Of the purchasing
companies TO overcome the feeling
which might exist among the inde.
pendent oil men when Investigations
Of various allegations against the
large interests, with particular refer
ence 10 their activities in tying up
the money market when oil commenc.
ed dropping, are in full sway.
Premiums Cause Sliding Scale?
As regards the action of the Cult
Company in quoting price on crude
according 10 gravity. Mr.. Iarkin |
states that the topic OF purchase OF
crude on n sliding scale is creating |
great deal Of interest among the Tul. |
sa oil men. One OF the reasons which |
may prompt other purchasers to
follow the action of the Gulf Company, |
he says, may be their efforts 10 oh.
tain oil Of high gravity Heretofore
the smaller independent refiners have |
been paying high premiums TO the |
producers for high gravity oil and as
a result the pipe line companies have
found 1t rather difficult to obtain.
with quotations varying according to
gravity, there may be a move on the
part OF the pipe lines TO enable them
to meet the high price paid by the
Independent refiners, without being
forced to pay an equal amount for
crudes of lower gravity.
The Nyanza refinery at okmulgee Is
reported as having paid three pre-
mums for crudes when oil was $3.50
and more. the additional amounts
paid being %, 30 and IS cents. ac,
cording 10 gravity. When oil was n
dollar the same firm was paying
premium OF 20 cents for the best
crude, Several rcflneries at Musko-
gee were paying premiums e5. 3j and
40 cent premiums. During the high
price OF crude, the Cosdcn people at
were paying 80 cent
premium. II is also brought to light
that even In the Carter county fields
local reflners have been paying pre-
Mr.. farkin, also states that there Is
, possibility that sliding scale NAV
be- established for the purpose Of
giving operators an incentive to drill
deep Tor oil of high gravity. lie
states that with an equal price fcr
bills Of various grades, producers may
figure that since they will bc offer.
I'd as high a price for oil Tor which
they will not have to drill deep, they
ought not 10 30 10 the deeper sands.
when such development involves ad.
1iuonal expense. He points out thnt
In the "swamps" southwest Of Ok.
mulgee, n dozen deep wells drilled.
with production. cf high gravity oil.
produced an initial production at their
best of from 10 to i25 barrels. Off
sets 10 a isj barrel producer came
In for 20 or SO barrels In other
POOLS 81 the state. high gravity oil
has been found at depths averaging
1000 feet, with production that was
not very large.
Why Properties Were not Sold
That the government income tax
has caused an entirely new phase ON
he situation as regards sale OF oil
properties during the past period Of
depression is the belief Of Mr.. Lar.