Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-06-15
ONLY Al WELLS
PR0DUC|NG0UT
OF 104, CLAIM
Salt Water Rapidly Fill
ing Those Producing,
Says Board Expert.
No New Structures Dis
covered Since 1916,
Porter Is Advised.

Washington, June 14.-(By the AS
sociated Press s.)-Secretary Hughes
informed Chairman Porter of the house
foreign affairs committee Tuesday
that the government had undertaken
no official investigation Of the condi-
ton of Mexican oil fields and that it
was not advisable to make public such
Information as it now possessed,
(which might imply an official guar
antee"
Responding to a request by resolu-
ton for report dealing especially
with declining production and its
causes, Mr.. Hughes transmitted a let
ter from Secretary Fall, declaring that
the interior departments information
was not of the authoritative nature
requisite to the formation ''of a re-
port to congress and to the public on
question SO critical as that of the
prospective output of oil in Mexico" :"
63 Cease Output.
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, forwarded
a report by J. A. Phelan, board ex-
pert, declaring that in the 40 square
mile producing area 63 Of the 1O4
wells had ceased to produce and that
salt water was rapidly filling those
now in operation. Mr.. 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"
1T 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,-
100000 barrels, but the present issue
relates to Mexico's ability to maintain
her production from this reserve at
the rate established in 1920 in re-
sponse to market demand Public /
concern naturally springs from the
lack of unquestionable information re-
garding the results from drilling done
and in progress and the developmen /
of new fields of the types that yield
present production
British Hurt Americans.
Mr.. Phelan reported that "the most |
serious factor in the Mexican situation |
is that British owned companies, the |
largest producers and sellers, control
some of the best developed territory"
and that they were corresponding to
the Mexican political demands to the
detriment of Americans"
THAT the proven oil fields of Mex
leo within reasonable period are
certain to 60 into salt water is
demonstrated fact" he added, "and
this may come sooner than expected"
Referring to the decline in price of
Mexican crude petroleum at United
Kingdom ports, Mr.. Phelan said oil was
being offered in the fields at IS cents
q barrel and that this was due to the
activity of connecting companies to
drain the proven fields
Secretary Hughes, in referring to
the various estimates of recoverable
OIL in the Tampico- -Tuxpam fields,
the accuracy of which the depart
ment could not guarantee said:
You will realize, I am sure, that it
has not been possible for the diplo-
matte and consular offices in Mexico
20 undertake the kind of investiga-
lion which is an essential preliminary .
% an accurate and we'll balanced esti.
nate of the situation" !,