The Birmingham age-herald., 1921-06-15
J. s. IS MAKING
 ADMINISTRATION
 MEXICAN O|L AREA
,a .,,a;sca WY -auIe to Make Public information in Hands of Government, Hughes
 Informs Porter
By Associated Press

' Hughes informed Chairman Porter of the House foreign affairs committee today that the government had un- dertaken no official investigation of the condition of Mexican oil fields and that it was not advisable to make public such information as it now possessed. which might imply our official guarantee"
 Responding to a request by reso- lution for report dealing especially with declining production and its causes, Mir. Hughes transmitted let ter from Secretary Fall. declaring that interior department information was not of the authoritative nature requisite to the formation 'of 8 re- question so critical as that of the prospective output of oil in Mexico.
 Although the state department was unable to inform the House regarding the number of wells which had gone dry. Rear Admiral Benson, as chair man of the shipping board, forward V expert declaring that in the 10 square miles producing area, 63 of the l04 wells had ceased to produce, and that salt water was rapidly filling those now in operation. Mir. Phelan stated that mot new oil structure" had been discovered in Mexico since 1916, "and the proven territory is In fact going into salt water.
 Fields Rapidly Drained
 Tt Is generally reported that some of the important fields that swelled Mexico's output in 1920" Secretary Fall wrote, "are being rapidly drained of their oil, although reports differ widely regarding the extent of the de- pletion. Mexico contains oil reserves that have been conservatively esti- mated by this department at 4,5oo,- i000.0 900 barrels, but the present issue relates to Mexico's ability to maintain her production from this reserve at the rates established in 1920 in re- sponse to market demand. Public con cern naturally springs from the lack of unquestionable information re- garding the results from drilling done and in progress and the development of new fields of the type that yield the present production"
 MT. Phelan reported that the most serious fact offered Mexican situa- ton is that British owned companies. the largest producers and sellers, con- trol some of the best developed ter ritory." and that they were 'corre- spending to the Mexican political de- mands to the detriment of Ameri- cans"
 That the proven oil fields of Mex leo within a reasonable period IS cer~ tain to go into salt water Is a deinon$ strated fact" he added, ''and this may come sooner than expected"
 Offered nt SS Cents
 Referring to the decline Tn price of Mexican crude petroluem at United Kingdom ports. MT. Phelan said oil was being offered In the fields at 35 cents a barrel and that this was due to the activity of competing com panies to drain the proven fields
 Now straws are being inserted into the pool which can only con tain a certain amount of oil, he said. land the day of total depletion may come at any minute"
 Secretary Hughes, in referring to the various estimates of recoverable oil in the Tamptco-T -Tuxpam fields, "the accuracy of which tho depart ment could not guarantees" said:
 Tt appears with respect to the subject mentioned. this department does not possess information which 1t would seem advisable to transmit or make public in any way which might imply an official guarantee.
 You will realize. I am sure. that 1t has not been possible for the dip lomatic and consular officers in Mex ico to undertake the kind of inves- tieation which is essential prelimin- ary to an accurate and well balanced estimate of the situation. The reports on the subject which have not been published by the bureau of foreign and domestic commerce and which contain information already circulat- ed in the press are few in number and are of such nature that IL would not seem compatible with the public interest to give them general dissemination"
 The Phelan report which urged oii development in Mexico by the Ameri- can government, discussed the tihiu producing area and added:
 "Stripped of all speculation, Mexi- co and the United States to a large extent as well, Is depending upon an oil field less than 40 square miles. half of which is developed. field from which more than 400,000.o0O bar rels had been taken up to June l. 1921. As to the amount still left Tn this field, technologists and geolo- gists disagree and judging from pre- vious estimates, prognostications are useless at this time
 In table on the Panucc-Topila. the Chinampa- -Amaetlan, zacamixtie' Cerra-Azul and Alamo-Moling fields inc Phelan report declared that oi potential production of 2,675.o0o bar rels. the output up to NoVeNber last. had decreased 6o0.ooo barreis' and that on June 1 last, the decrease