The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-04-17

/ 1000 feet deep: n r. equipped with.
| We win say 100 feet nf 5-S inch
/ casing. thoro is string ~ tubing.
string of sucker rods ana working
/ barrel inside. ana equipped with q
/ jack fpr pumping n. Ia addition tu
/ this. there Is charged to this well itB
| pruportlouatc share Of an surface
/ lines on the lease, the rod linF Ffrou
| mo pumping jnok TO the power
| plant. nlHo there IN charged 90 10 Its
| prupurtiouHto share ~ the power
| plant ana tauk1Eo. This material.
! FOR illustration, is used in pumping
/ % well which is producing one barrel
! Of oil per day, junk value Of this
! well Wp viii CouHrryntivtly pgilmnt'
nt $4,000 We VIII sry there are SIX
wells on the tense. tho luhso. there
! fore, would be making EiK bar.
| r,ls per day. at tl.15 "a barrel. rhiH
would be at the rate Of SJl5 per
| month Tho salary % the pumpo
who runs thi4 lease would be. Wo
viii nay about $40 "a month. the
/ cost ~ pulling rods ON tho w,ll1 ana
| changing cups would run ON an
average Of $50 a. month EXpcnHc
| OF foreman. who would visit thiH
lc1i~ from time to time. would be-
charged up ut $50 u month. iuci.
dental repairs lubric1tiuR oil. haul
! ing compcnsation Insurance, may be-
estimated at $50 pcr month, which
, would hc vary low.
These estimates will bc conceded
! by all To lac worry low cost of opgr-
alton, ana my books win reflect a
very much higher cost ~ operation.
| but even CouccdlnR that the lease
could be operated Tor a total cost
| pf 1895 per month, ~ would leave
/ "a o. A. IA
would not be suffiCicnt TO tako care
OF the depreciation on the material
| let alone earn interest on the junk
Valuo OF the material. therefore, the
only reason that would warrant inc
! maintenance OF thousands of wells
In this country Ia the hope Of "a bet
| ter price. No ono knows hotter than
the big pipe llne companies the de-
| pcndcnco OF this nation upon tho
| hundreds OF thousands ot small
| wells, and no one knows better than
the pipe line companies how closely
linked is the life and existence OF
those wells with the price obtained
for their output. No ono knows bot
ter than Mr.. Benson of tho Tidal
| oil company. which company has
many many small wells, and |
| would venture the assertion thnt
| the Tidal oil company has hundreds
| ~ leases upon ita books today which
| do not reflect profit on their in
ycstmont at Sl75 per barrel.
once these wells are abandoned.
water viii be let into the sands, and
the fields destroyed, and untold mil
| lions OF values will be lost to tho
people of this nation,
| Congress may listcn 10 the gam
| blcrs in the oil business, who desire
to rush about from one country TO
| another, seeking the big wells who
| desire To dump the product into this
country; hut if they abandon these
| old fields In tho United states Ia tho
fate OF Mexico, Colombia, Venezuela
and the balance OF south America
they Will have cause to regret II.
There are eight corporations which
export from Mexico so per cent 90
tho oil exported from that country
| into the United States. II is but
natural that these companies would
| be opposed to a tariff on Mexican
crude They do not want To pay the
| tax The question is ns To whether
or not congress, I'm searching for
some place from which>to derive the
revenue To run this government. de-
sircs To mako of this group OF cor
porations n favored class and allow
them To operate In this country tax
free or whether they will make this
oil no shipped into tho United states
bear its Just proportion OF taxes.
Mr. Fitzpatrick OF tha Prairie on
& Gas Co. has stated in mis- rc-nnrks
To you that tho producer OF the mid
continent field ought To he patriotic
and allow thcae Industries To import
this oil into the United States free
OF tax so that the navy and shipping
board could get Il cheap. DO any OF
YOU believe that these eight COM
panics would sell it TO the govern
ment any cheaper by reason of get -
ting II tax free than they would II
they paid tax They may be- relied
upon To get all the traffic will bear
from the navy, The fact is that this
same group OF eight companies buy
about 80 per cent OF the crude oil
produced I'm this country. and what
they desire To do Is to play both ends
against the middle, using the McNi-
can crude To hammer the prices in
this country. II * not their sincere
wish TO give the government oil az
a Bargain.
Admiral Henson OF the shipping
| board made recent statement that
the navy required $1,000, 600 barrels
Of oil in 1919: that II required 30,
600, 600 barrels In 1890, and that In
1921 40,000,00O barrels would DO
needed
A tariff OF 81 barrel on Mcxi-
can crude imported into this country
during 1921 would pay the entire
cost OF this fuel bill. even though
they consumed A0,000,O00 barrels,
and tho government could pay $3.50
a barrel for H. Fuel oil Ia selling at
the refincrics I'm the mld-continent
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