, 1921-09-22
BETTER OUTLOOK FOR OIL

BETTER OUTLOOK FOR OIL
Renewed activities in the Lost
Soldier field especially at Kasoming
camps, and the reported sale of
100000 barrels of oil by the Bair
Co. lends strength to the general be-
lief that crude oil prices are about
to be advanced. In a number OF in
stances it seems that premiums are
now being paid certain producers;
high grade oils like the Lost Soldier
and Ferris fields particularly being
IN demsnd.
In the face Of great hugh and cry
by the many Standard interests in
Wyoming shout under consump-
tom, small shareholders in Standard
s~ubsidiaraes and all Independent
operators canot understand why oil
10. going to pot when such concerns
as the Midwest are now drilling nifty
and aleo starting new work In sev-
eral other fields in Wyoming. II
there In no future for oil and It's by
products why has the Standard built
new tankage for hundreds of thou
sand barrels OF oil. taken W every
refinery in Wyoming with possibly
one exception, authorized millions
for expenditure in the construction
of new gas and oil lines and other
wise pyramiding every play. About
one mor urn OF the cards and the
Standard will lubricatingly own the
entire state. The public as we'll as
Independent interests refuse to be
influenced by pessimistic propa-
ganda.
Tolbert r.. ingram, in the last
issue of the Wyoming Oil News, saws
that IL an advance in the posted pr'cn
of crude in some Of. II rot all. the
Wyoming and Montana fields is an.
nounced within the mex thirty DAYS
1t will moi. come as a surprise to
those who have followed the trend
of recent events. Conditions have
reached the point where 1t IL harder
to hold down prices than to let them
go up and It ia only a question OF
time until the pressure is relieved.
Tho crude market in this district
was harder hit in the matter of
price reductions than In any other
oil field in the country and 1t may
logically be expected to be the first
to show signs of recovery, These
signs r now so apparent that all
doubts about the future are being
swept away. z
Conditions in which prices are too
low to move the products are not
confined to the oil industry. We.
have seen this Illustrated IN the
farming regions where produce has
been fed to hogs because the market
price would not Justify its removal
to the trade centers. Something
similar is taking place In the oil
felds. One operator cut down his
production from around 5000 bar
rels q day to a little more fhaR
1000 barrels because It refused to.
sell crude from a field which It con-
Itrolled for so cents a barrel. A re-
hnery operating on crude from that
held was actually cramped for crude
on which to y Another large
operator In Salt. Greek has announc-,
ed that It will not sell n more
crude at 50 cents a barrel, These
are mentioned to illustrate a cor
.dition. ~
The principal purchasing agencies
in Wyoming have tankags completed
or nearing completion capable of
storing mors than 5000. zoe barrels
Of crude. Government figures show
that they are less than one-third full.
IT Ia true that these agencies can
quickly fill these tanks from their
own wells. but there is no need for
that as long us they can store the
oil in the ground and not be both
cred bv offset wells. II is evident
that this tankage was erected for the
purpose Of storing oil purchased in
the open market. If that oil Is not
available. then the expenditures for
this tankage have failed to serve
A. H{~ .H t. h4n0~n - -
parent that the only way this OIL can
be purchased is to offer higher
prices than those now prevailing in
order to persuade the owners to sell.
DR.. Balm Of the Bureau OF Mines.
pointed out in an interview in Dem
|'vef this week that normally con-
sumption is running ahead OF pro-
|duction and that the xcess run into
storage in recent months was a tenn
porary condition. Other authorities
have prophesied that a SHORTAGE
greater than any experienced In the
past is just ahead. The conclusion
to be reached Is that when prices DE-
go up again they Will go up to sta
and that barring a return to unusua
conditions there will be no moro
slumps for many years to come
With a period of great prosperity
ahead and with empty tankaEe wal
ing to receive crude. 1t is hard to b.
(lieve that the big purchasing agen
cies will fail to take advantage OF tn
present opportunity. II they can
get this crude at 50 cents a barre
they will pay 75 cents or II 80
whatever will b naeessary to brfn
Eit into their tAnk6.
H A p-"aty">al OF pessimisijc
Eanda has been circalated IN r"ce-
months. We have believed much
~ was insviried. .!a.. Il
shrewd 3~fnvsstors Ii, che sacaritie
LOT oil conADanies 80 the trend 4
events and 'Aj1tiAet HeinS s1iaye bee !
tFegistsred IN; loeal ianMse during u
Fast two wsskss yast ~ stat;.
sesnt IN sdysess as2resssd eoad'