Great Falls tribune., 1921-12-22
THE OIL BUSINESS

THE first boom of oil develop
1 ment in Montana is over. A
good many mushroom organizations
which sprang up in night like
Jonah's gourd, have wiltcd and de-
cayed. AS rule these had no capi-
tai back of them and no real inten-
ton of putting down a we'll on
leased land. They were organized
principally to sell stock to the un-
wary in the general excitement
caused by the finding of oil in Mon
tana. But aside from these CEN
Germs a good many oil companies
have been doing development work
in Montana. Some have struck oil
or gas in spaying quantities, some
are still drilling with good hope of
doing so, and some have abandoned
the work, either because they found
no oil where it was expected, or
because they ran out of funds to
continue the work. 1t costs lot
of money to put down deep oil
we'll, as many people have found to
their surprise and distress. But a
great deal of money has been put
into legitimate oil development in
Montana in the past year and with
results by no means discouraging.
In some cases such investments
have already brought rich rewards,
though for the most part such re-
wards are still in the future if they
materialize at all. Yet, there are
a great many persons in Montana
who are interested in oil develop
ment who have no direct financial
interest in it. For that reason, we
quote from the Wall Street Journal
recent article that reviews the
oil situation from the standpoint
Of the market, feeling sure that it
will be Of general interest. 1t says:
with new records in production
and consumption established this
year, the petroleum industry looks
forward to 1922 with confidence.
Although special developments may
tend to bring about change, lead
ers in the industry hope for a
greater degree of stability in prices.
This can be assured, they believe,
by increased production and stocks.
"Oil men in touch with other in
dustries realize that the petroleum
industry is not developed to stage
where consumption requirements,
bsed on industrial and commercial
capacity of the country, can be
taken care Of. One-fourth of the
country's crude oil production in
1921, approximately 475,o00,000 bar
rels, will 60 to supply gasoline for
motor vehicles. This leaves 357,-
100000 barrels to take care Of all
other requirements, chiefly lubri'
eating oil, kerosene and fuel oil
American fields are relieved by the
use of Mexican fuel oil, production
of which will probably be about
475,oo0,0oO barrels this year.
"America's production of 475,000,-
900 barrels a year does not seem SO
large when it is considered that
900 Of Mexico's production is con-
sumed as fuel oil for shipping and
industrial purposes alone.
"Crude oil from the fields Of the
United States can be depended or
to yield a sufficient amount of gas.
oline, kerosene and lubricants fol-
years. Mexico supplies much Of the
fuel oil, and will continue to do SO
but even Mexico's output will have
to be supplemented by production
from fields in other countries, II
fuel consumption continues to in.
crease.
Fuel OIL produced from Amer
7 ican crude is much too small in
. amount to supply even our own re-
: quirements. Present annual fuel
oil requirements of the United
States, including exports, are abou,
, 2O0,o00,0O0 barrels year, O. which
: Mexico supplies 500 and the Unit
: ed States 500. Without Mexican
, production, the United States woule
have to increase crude output 800,
: 900 barrels day to supply fuel OF
t and other products, tpo. = Actua
t consumption Of refined oil products