The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-04-29

Nih-N 'Hilhtul lelu nave luunu ll n'f- 7
assary To- begin the erection OF new
tanks. Looking for a moment at the
known existing conditions and assum
ing that the demand may OF revive is
rapidly as the optimists anticipate, WIKI
will he the effect upon the Independent
producer if the large purchasers Of oil.
having filled their available tanks, finI
i necessary to go To the expense of
1Hil ling new tanks? II would undoubt-
edly cause further Generalization in the
marketing situation and more accI-
mutation of oil in temporary private
storage with the consequent waste as
defined by the laws of Oklahomi
Wells May he abandoned
II would not be for the best interests
of the country nor Of the producer for
anything To happen which would cause
further demoralization because it would
mean the abandonment # a large num-
Der of oller oil wells which are sill
capable of producing. in the aggregate
. large amount of oil but which cannot
be operated profitably under present
conditions. Operating costs on numer-
Gus leases in Oklahoma where the pro-
ductiOn has settled To one or two bar
rels per well per day now range from
$1.Sl per barrel to $3.50 per barrel. thus
a daily loss. Unless conditions
improve these wells will be abandoned
If there is continued overprcduction
another and larger class Of wells will
have to be abandoned. In other words
the outlook for prosperity IN ,
the oil producing business may look
rosy for a period of "A few years hence
the fact remains that what we are large
ly Interested in and what the lives Of
some of us depend upon in the immc-
diite future. BY an immediate shut
down movement the immediate future
can possibly be taken care Of. But If
some Of the operators get restless un.
der the restraint and violate the plan
OF the committee on Conservation ana
Cancellation, others will feel justified in
doing so and the result will be gener-
al breakdown in the conservation plan.
These remarks are not intended to
convey the idea that there has been
any breakdown in the administration of |
the plan. for there has not been to date.
| am only emphasizing the necessity of
keeping 1t up until conditions clearly |
indicate that ii can be dispensed with.
If those producers who are in the fav- T
ored spots should disregard the plan and |
create a further overproduction they |
might suffer consequence similar to /
what occurred in Gushing days when /
the operator of the small well in othc" /
localities went to the corporation COM
mission with complaint which resulted /
in the state taking a hand Therefore, I
for the good of the whole industry we
should and doubtless will cooperate
Misleading Reports
Another word might be said relative |
to articles recently appearing in the 10.
cal papers coming from field correspon.
dents. | notice one which said that gen
Cral activities i'm the western Usage are
to he resumed about April 1 and that |
drilling is being renewed around Bur- |
hank ana that the Carter Oil Co.. is |
running full force and so forth. The |
facts are that the operators in Burbank |
and Hickman pools met the other day
with the committee ON conservation and |
field lease by lease. agreeing with the |
committees on what wells should ana
what wells should not be drilled under !
the plan. Necessary offsets ami wells
to prevent heavy drainage were agreed
upon and sanctioned. On the other hand
the operators with one accord agreed
to and did suspend operations on other
wells which could not be approved un-
der the plan. The Carter Oil Companv
has reduced its drilling program in this
field from / strings of tools to anN
would probably. be running 25 or 80 if
the conservation plan was not in ef
feet and being enforced. Any new
wells being started by them or by other
operators have been passed upon by the
committee and are considered permis- |
sible under the plan.
| am extremely anxious that the oil
industry make quick recovery from
the present depression and | offer tn.
foregoing statements and explanations
in the hope that they may assist in Civ.
ing the operators the right view Of
the situation. 1t may also be of inter.
est to the producers TO know that the |
association is now accommodating figures |
on the cost of production in the Mid |
Continent field so that it will be ready |
TO present them TO any committee Of |
congress which may investigate thu |
question Of tariff on Mexican crude. |
II made a diligcnt effort to assemble |
reliable facts and data with reference |
to Mexico. but the reports have varied |
To such an extent as to give the impress |
sion that none of the information was |
reliable, My own view is that the most |
efficacious method of getting at the real |
facts would consist Of an effort by us |
to got together the cost figures and all /
pertinent information with reference /
to the industry in our own country and |
present them when called upon. Then /
with its power of subpoena can /
call in those interested in Mexican pro |
ducton and obtain from them the renl |
cost figures and facts relative to Mexi. |
can production. When congress has al, |
of these facts before 1t, 1t can form |
an intelligent conclusion and embody |
the same in appropriate legislation. The |
ways and means committee will nd |
doubt consider this question at the ap- |
preaching session of congress.
In conclusion, want to make Il cloat
that this statement is by me personally, |
represents my own personal views and |
Is not to be charged TO the Mid-Conti. !
nent oil and Gas Association because It |
has not been submitted to nor passed |
upon by any committee of the assocla-
tion.
NOTICE