Evening star., 1921-04-22
Grave Dangers Seen in Dry
ing Up of Tampico and
Tuxpan Wells.
CHIEF PLAN is TO POOL
ALL AMERICAN INTERESTS
Promotion of South American
Projects Costing Billions Would
Require Government Backing.
ny DAVID LAWRENCE.


a careful investigation of the oil sup
ply of the world. has come to the con-
clusion that for its own safety as wen
as the future of the American oil IN
dustry new oil-bearing territory must
be acquired in the western neml-
sphere.
Whether the plan shall be govern
ment purchase of oil rights IN otner
countries or cooperation between tne
American government and the OIL IN
terests as whole has not yet been
decided. but certain facts. more or
less startling in their sienihcance'
have come to the surface which sho"
why prompt action will be necessary
TO safeguard the national interest
In the first place, the American gov
ernment has been informed that the
Mexican oil supply is running dry.
Estimates range from eighteen months
10 three years as to the time "hen
Mexico's production will have van
er than those already developed shall
be found. When it is considered that
the oil fields of the United States fur
nish approximately "A per cent OF the
world production and Mexico has
about 20 per cent of the remainder, II
will be observed that the oil fields Of
the United States and Mexico combined
have been supporting the world with
fuel oil. SHOULD the Mexican supply
suddenly be subtracted, it is obvious
what a serious situation would result.
especially with the many uses which
oil serves ia the American Navy
Well. Drying Every Few Days.
The United States Shipping Board has
investigated the question and has found
that the Tuxpan and Tampico regions
contain many wells which are running
dry every few days. 1t is declared that
there are other areas farther south in
Mexico which will produce Oil. but no
body is very eager under present condi-
tons 10 do any promotion work there
4ny more than elsewhere in this hemi-
sphere until it is certain that the United
states government viii stand esesGs
american interests. There is crack
in the earth's surface running north and
south through the two American conti-
Iients. and the experts say Oil may De
found :iong this line il development is
begun on a large scale.
The American government wants
that development started at once, for
The danger of 4 shortage in a couple
of years due to the dryness Of the
Eexican field means that the prob
lem ID not theoretical, but immedi-
ate. If the American government
simply said to American interests
that it is a national duty to get oil
for the use of the American people
and to safeguard the Navy. that alone
would not solve the problem. The
competition between American in
terests is one factor. of course, but
a greater factor is the way the oil
interests of European countries have
sought an entering wedge in South
American countries.
The United States has never asked
for preferential treatment in Central
and South America, though her posi-
tion as the champion of the repub-
lies to the south of US has merited
such a request. What the United
States may shortly ask for. however.
is that for the safety of the Americas
the oil supply of this hemisphere shall
be devoted to the uses of the nations
Of the two continents along lines
that Will be mutually beneficial
The plan most talked of is one that
would eliminate friction among
American oil men and bring about a
combination or pool Of all American
companies Behind such a corpora
ton the United States government
might put its influence very much as
il did in the Chinese consortium,
when it required American banking
interests to get together before gov
ernmental support would be extended
Colombian Treaty Some Help.
The ratification Of the Colombian
treaty has paved the way for develop
ment of new oil fields in Colombia,
and that much at least has been gain
ed. but the condition of the Mexican
fields is such that one substitute
alone may not be sufficient, and the
idea seems to be to explore for oil
through the entire northern region OF
South America and down the ives,
coast along the Andes. The projec,
would involve billions of dollars, and
the American oil group would not be
justified in undertaking il without a
definite understanding as to the ex-
tent 10 which the United States gov
ernment would stand behind il all
The Washington government is in
position to negotiate with the gov.
ernments OF the Central and South
American countries, because the en-
tire direction of the Harding foreign
policy seems to be turned toward op-
portunities south of the Rio Grande.
But diplomacy isn't alone involved
When one well in Mexico began pro-
ducing $4,000 barrels the first day and
went dry in the next tweDty-fou
hours on account of salt water. and
another well came in with g. 900 bar
reis only to go dry in forty-eigh,
hours. some idea of the uncertainties
OF the situation may be gathered
President Harding has discussed thu
situation with various members of hi,
cabinet, and the consensus seems I,
be that the government here mus
get back Of the entire project of de
velopng new oil fields and lend il,
influence toward the ACQUISITION n
oiI-bearing areas by American inter
ests in countries other than Mexico
Indeed, the dash for oil in the Meso
potamian and Persian fields is an in
dicatiOn that Mexico can no longer b,
depended upon either by the British
or AMERICANS as permanent sourc