The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-04-19

mighty The short cryptic message
OF the Prairie pipe Line Co. OF De-
cember l3. was to be the last. on
January "a, the Prairie OIL q Gas
| Co. TOOK up the AK and chopped
the price OF crude from $3.50 20 50.
This was quickly followed by all
other buying agencies. and was fol-
lowed by cuts in prices In all states
and all grades OF oil. The producer
was then given a breathing spell
tor day or two, but not long was
| he to be allowed any rest. on Jauu-
AIRY 81 they again fell on the pro-
| ducer with the AK for another so
| cents. on February 4 the AK again
descended for another half dollar
and on February o the bleeding and
mangled producer was scalped for
25 cents more, bringing the price
level to s1.75. The first bloody
scene of the tragedy was over.
What had become OF the prophets
who had sung 50 sweetly TO the
producers about the worlds short
age in ohP They were gone. The
men who operate the pipe lines, the
| men at tho front, were left in charge
| Of the suffering and bleeding vic
Tins OF the bad advice OF those men
who were supposed 10 know where.
OF they spoke.
/ Rctrospccting.
II may be said that the great de-
vclopment campaign carried on In
| 1920--the greatest in the history Of
the oil industry--reached It's peak
of development in August, in
which month oklahoma completed
sS2 wells. Kansas completed 33S
wells, and north Texas completed
134 wells, as against the following
| completions in March: oklahoma
552 wells. Kansas 163 wells and
| north Texas 324.
The effect OF this tremendous
drilling campaign, however, was not
rcaiizcd until November, when the
peak OF production was reached. In
| November, 1920. the states OF Kan
sas, Louisiana, Texas and Oklahoma,
not including the Gulf coast, pro-
| duced "A daily average OF 653,S5l
barrels, according to tho statistics
of the oil and Gas Journal Thus
! 1t can be seen what the price cut
| ting and forced regulation by pipe
| lines has accomplished. Under or
| dinary circumstances this would
| have already stabilized the price.
| However, for every barrel of oil
| which we leave in the ground, Mex
leo ships another in It's place. II Is
| only necessary 20 drill few more
wells in Mexico and another l00.-
| 900 barrel decline in production will
| be absorbed without any increase
| In price.
| am not one OF those who would
say that Mr.. Bedford or Mr.. Teagle
purposely or Intentionally misled the
| producer into "A drilling campaign,
the result OF which they believed
would inure to the benefit OF the
| Standard oil company and to the
| destruction of many small producers
and small refiners. This may have
been the effect Of the terrific drill
| ing campaign. pipe lines, OF course,
| were the beneficiaries. l believe
that these men listened too atten-
| lively to statisticians and geologists
| who were predicting the worlds =
| failure in the supply of oil, and they
| dealt entirely too much In the
| theoretical and not enough In the
| practical. They were deceived by
| their statisticians, failed to read the
signs OF the times, and by their pub
| lie utterances have unfortunately
led many investors In the oil In
| dustry TO complete disaster, 1t is
all well enough for statisticians and
| experts to prattle about production
4 and consumption of oil, but It is a
| dangerous thing for the great lead j.
ers OF industry TO forecast the flu
ture OF an industry which is so sus-
ceptible 10 weather changes, gem
eral conditions OF the country. and
to unknown and upeNpeted develop
ment OF large oil fields.
Oil Business Gamblers Game.
| Unfortunately, the great drilling
campaign OF 1919 and 1890, coupled
with the sudden collapse in prices,
has made of the industry merely a
gamblers game, And 1t will con-
tinue to be nothing moye nor less
than "A gam bler's game until the
federal government passes substan-
, tial rules and regulations for the de-
velopment OF the unknown pools OF
| this country, and puts tariff and
| a tax upon the oil produced in for
| eign countries and imported into
| this country. sufficient to prevent
foreign produced crude oil from be-
| ing dumped into this country in suf-
ficient quantities. to bring the mar
S0m.ns.xx.>suneaz