The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-12-07

wells being drilled aud completed
ana this Information given TO the
public monthly | made this sug-
Ecstion TO the secretary and counsel
of the National Petroleum Institute
during the summer OF 1920 ana he
ngreed with me that tho data should
be gathered and disseminated TO the
public. but he was or the opinion
mat governmental agencies should
not he called on but that the data
should be gathered by the Petroleum
institute. You have had a year Of
the atatig,ios handed out by the
Petroleum institute. what do you
think pf them7 The Petroleum
Institute has become the statistical
clearing house for the buyers OF
crude oil, ana for the producer 20
continue TO rely on the Petroleum
Institute figures on production and
storage of crude oil would he like
the sheep relying on the butcher
Tor advice as 70 whether to fattcu
up or got thin. Last fall and winter
tho Petroleum Institute fed us on
/ fairy tales about the worlds short
age OF crude and kept 'us boys
running the drill and getting further
In debt right up 20 the minute when
Jim O'Ncil sounded taps for our
funeral
Oklahoma has corporation
commission which has power TO
gather tho statistical data Ia this
state and ! am sure would bc glad
10 do go II this association made the
request OF them. Oklahoma
produces halt OF tho light oil
produced IN the Mid-Contlncnt and
"a good system ~ gathering stalls
tics put into effect In this state
would be long step In the direction
II determining when and how much
drilling should be done IN order that
the supply OF oil might be con-
7erved. ] am going 10 suggest tha,
The Okmulgeo District association
appoint committee to formulate
and present n petition to tho com
mission requesting that they inagu-
rate this service.
Lot us now discuss tho market
situation OF yesterday and today
The price OF crude oil IN the Mid
Continent was marked down from
$50 to 81 per barrel on June ~
and . by the Prairie OIL e. Gas Co
Tho reduction to 81 per barrel rep.
resented an extreme decline from
S3.50 per barrel where tho price
stood when the first cut was made
on the twcnty-fourth of JANUARY
price when compared with the cost
.of development and operation wa
he lowest posted price in the Mid
Continent since the days OF Glenn
pool, ana coming as It did brought
ruin aud destruction with H. on
september 30 the price was marked
up from 81 10 Sl.25 and on Oc-
tober 3 from $l25 to &i.50 and on
November from $3.50 to 81 per
barrel. What were the main and
contributing causes which led to the
rapid decline from $3.50 to 81 and
the equally rapid increase from 81
TO 81 per barrel? Mr.. Teagle, Prcsi-
dent of the Standard on COMPANY
.of New Jersey. while in Tulsa re.
Gently. expressed the following view,
which taken from the press Is as
follows:
"I attribute the late increase In
the price OF Continent and other
domestic grades OF crude oil 10 an
increase In demand and n decline
In the output OF the Mexican fields
mfr. Teagle. further elucidating
hts views on tho price situation.
made the following statement:
Eighty per cent OF the Mexican
oil imported into the United states
completes with coal rather than with
and therefore, tho percentage OF
competition OF that oil with our own
crude is slight. We're II not for the
fact that II were possible to pro-
duco Mexican oil and import II a.
Atlantic ports at price which II
can compete with coal, many fuel oil
Users would have 10 use coal. This
Is due TO the fact that IL is impos-
sihle for Mid-Conunent refiners TO
manufacture and ship fuel oil 20
eastern territory at n price that
would compete with coal prices
'In declaring that the decrease
of production in Mexico was not the
main cause for an increase in the
nrice Of oil In the Mid Continent
field, Mr.. Tcagle is presenting an
other one of his ingenious but in
defenslhle arguments against
protective tariff on oil. II Is now n
matter OF common knowledge that
the now famous letter OF President
Harding TO Chairman Fordney OF
ths ways and means committee re-
duestinE that congress place oil on
the free list was the direct result OF
the persuasive arguments OF the
president OF the Standard OIL com.
pany, and Mr.. TeagTe always loves
TO talk about main and contribut-
ing causea for price Increase but,
Ike all other buyers Of raw ma
terial, he is always reticent about
discussing and giving out reasons
for tho decline In prices.
''The problem which congress
must consider In dealing with the
matter OF whether the oil producer
g to be protected ls not what pro-
duccd the increase in price, but
congress must inquire and ascertain
II possible what was tho main
cause which produced the collapse
In the price OF crude oil In the early
part OF this year. The history OF
the collapse has been written and
while the suicides, business failures
the naked facts are matters OF rec
ord. standing ou; In bold rellet
and bankruptcies resulting from the
sheer downward sink without warn
Ing plunge in prices will ever re-
main indelibly stamped upon the
memory OF the oil producer as n
solemn warning that what happened
In the oil industry in the spring OF
1921 may again occur unless our
government takes some steps to pro-
tect the industry against the recur-
renee OF such catastrophe.
II congress il TO be guided I'm it,
decision as to whether imported oil
Is TO be taxed or whether u Is to be
put on the free list. by those who
are interested solely as buyers OF
crude OH at the senboard in this
country and importers Of oil from
abroad. It goes without saying that