The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-04-01
The SdiuotiOn of the
American oil Endustru
by WALTER NJ. DUNIIAM


Continued from yesiordayD
That foreign capital was not
deferred from entering Mexico for
oil development by the pessimlstir
report of G. willard Hayes is shown
I'm report ON the Mclxcani oil fields
prepared by Il. de Golyer tnow chief
gcologist FOR the lei Agu!la company
formerly 5. Pearson a SOM ln 1912.
which was published by the United
states geological survey bulletin.
'Production of Petroleum in lgl2,",
pages ia, 1l5, 11G and III. in
which the writer states that at the
end of the year G9l3) there were
approximately 80 Companics or
ganized for operation In the Mexican
field. Fifty-tive OF these companies
were American, ~ Mexican and 10
British. The various companies rep
resented an approximate investment
or $l75, 100000 Omitted States cur
roncy) distributed with regard to
capital investment as follows:
American $Q750O,O0O, British S75,-
100000 andNS2,5o0,0O0 Mexican.
The Menace.
In the eight years ending 1920
there was produced in Mexico "A to-
tai OF iS9,S53,655 barrels OF
crude petroleum. OF this enormous
"a'i'HtAN "h'f - ftNoA bdtttlA were
produced I'm the last four years.
During this period 3OO.6G1.g5O bar
relS of this output was admitted into
the United States free ana umre-
stricted Of any payments whatso-
over, to compete with oil produced
IN this country that supports wage
earners whose number equal tho
population Of many nations OF the
earth, and that contribute to the ma
ional government, the state and the
various countries In which this oil
Is produced a sum Of money that
runs into figures that amaze by
their ma gnitudc.
The importation OF Mexican crude
and refined oil has increased dur
ing the last four years at a rate
that renders calculation on "A per-
centnge basis worthless as the fig
uros are so large as 10 be but little
understood except by the oil pro-
ducers whose crude has been re-
duced by 100 per cent in price per
barrel Importation to the United
states has more than kept pace with
the tremendous output in the last
four years, whlc his danger signal
true barometer OF what can be
expected in the future, which augers
yet lower prices per barrel for do
mestlc crude oil. OFT the total
quantity of Mexican crude and re-
fined that entered the United
states In the last eight years. 22G.
S95,224 barrels were imported in
the last four years. The menace
grows and multiplies, assuming n
most sinister aspect, which is re-
Elected in the present demoralized
condition OF the oil industry in this
| country.
Importation OF MeMcan crude and
refined oil into the United states
In 1920 more than doubled the 1uan-
tity imported in 1919 and 1873 per
cent over the quantity imported in
lSlS. Tho 1920 figures, as reported
by the United States geological sur
vey, aggregated 106,175,OOO barrels
During tho last six months Of 1920
the importation amounted to e.
10000 barrels, or l4.534373 barrels
in excess Of the total imports in 1919
and exceeded the imports Of the
first six months Of 1920 by 2s.l57.-
GOO barrels, or over - per cent.
The importation during the last
three months Of 1920 reached the
enormous total OF 37.957,0O0 barrels,
compared with 17737,0O0 barrels
imported during the first three
months OF the year, an increase Of
EV'S3O,oOO barrels or 11S per cent
increase. November 1920 importa-
tions were the largest during any
month since shipments OF Mexican
oil we're made TO the United States,
aggregating 13.750,000 barrels, a
daily average OF 45s,333 barrels. In
November importations were main
tained for i2 months. the total
would reach 100000 barrels
equal 70 the total crude oil produc-
ton OF the United States during any
one year to and including the year
1907, period Of 40 years. Tho
importation in January, 1921
reached 13.l93,00O barrels. com
pared with 6,294,0O0 barrels in Jan
uary, 1920, an increase Of 11O per
cent. Mldconunent oil producers
who have suffered a loss Of 100 per
cent per barrel in the market quo
tation for their crude product. sit
up and take notice. During the
four months ending January 1921
the importation Of Mexican crude oil
and refined oil increased 22l.OOo
barrels n day or ll5 per cent in
crease, compared with the importa-
tion during the four months ending
April 1920, 5I15O,00O barrels, a.
against 23,923,000 barrels.
CTo be Contlnued)
DE-.