The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-12-20

Statistics Do Not
Agree

tn, oil Weekly, which carries an
estimate Of the daily average pro-
ductIon reports that December 10.
the total for the United States was
i877465 barrels or decline OF
gl55 barrels from the week
previous
The American Petroleum inst.
iu,e estimates show an increase on
December 10, of 27,690 barrels over
TIE week previous. and this would
appear TO be a little too much
spread or difference 10 suit the
average oil man who depends upon
statistics for his information.
Neither of the authorities gives tho
present daily average in Mexico. al
though Il would appear easy to got
this Information, at either Houston
or in New York, as both towns are
headquarters, I'm way, for every
body that is operating in Mexico.
There is, however. very large ex-
port movement reported from Mexi-
co, but the chances are this oil has
been in storage and is being moved
out 90 avoid an increase in TARIFF,
either in Mexico or in the United
States. The one would be an in
crease in the export duty. and tho
other an increase in the import
duty.
It has been denied in some quar-
ters that the decline in Mexican
production was responsible for the
abrupt raise in price at this end
when oil advanced a dollar a barrel
almost over night, but 1t has been
said, and this Is inside dope" that
had the fact been published, ana it
pH
crude jumped up over night from
10 cents a barrel to GO cents, 1t
would have caused widespread ruin
among the companies operating I'm
Mexico. The news was not withheld
as a stockmarket proposition, but
on the contrary, II was withheld
for a very much more important
reason, and that was that the banks
who had been loaning money TO
Mexican operators would have
called their loans, and then n large
sized panic would have resulted.
This can readily be understood
II oklahoma were substituted for
Mexico, and It is easy to see what
would happen IL II were reported
that seven -eighths Of the wells IN
Oklahoma had gone into water over
night. There would be widespread
panic around this neck of the
woods and no mistake. This Is all
hereby given as being the probable
excuse that the American Petroleum
institute would offer, were It to
make any sort OF statement as to
what had happened in Mexico. Now
the fact is that there are several
pools in the United States that
might go into water any time. and
II is a safe bet that the fact would
be heralded far an divide. 1t IS
only a short time since the small
showing of water in the Homer field
came near causing a panic in Wall
sreet, and It was published in big
box-car letters IN all the morning
papers in New York. And yet, the
liable producing districts in the
country.
The one thing that would cause
more trouble in financial circles
than any other that could be men
toned, would be a cut in the price
OF Mid Continent crude. 1t woud
have a disastrous effect, not so much
IN the stock market as i'm the real
financial circles, and among bank
ers with worldwide connections.
and would doubtless also give the
FEDERAL banking board a severe case
OF chills. There are too many rea-
sons why oil should advance, and
these reasons are well understood
6y the financieTs of the country who
Know that II is necessary TO have
on hand a supply of oil in storage
that would meet the require ments
which are rapidly growing. for at
least year. These same financiers
are also well aware of the fact that
the oil business is in strong hands,
ana that no cut in price at this
ume could possibly be tolerated.
mere is once in q while a writer
on some oil magazine or publea-
u,on, who Is so desirous of showing
mas sweet" disposition, that he
absolutely cannot help predicting
ulsaster, any more than the writers
VINO pretend to he newspaper men,