The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-09-29
Crude Advance Expected;
Operators Cautioned as to
Renewed Drilling Activity

Ardmore oil men are expectant of
a rise in the quotation of midcon.
tinent crude TO follow close on the
heels Of the rise effective in the
fields Of north and central Texas last
Wednesday. Chief reason for the
expected increase is attributed TO the
fact that heretofore the Prairie Pipe
Line Company has never raised the
price OF oil in one territory without
raising the price of the crude in other
areas in proportion. The fact that
the Prairie met the Texas company
advance Wednesday in the Texas
fields is therefore believed as indi
ent area. However, the delay which
has occurred in announcement Of mid
continent rise Is no doubt due to the
fact that the Prairie, one OF the
largest purchasers of crude in the
mid.conunent territory .s at the
present time storing more than SO. 900
barrels daily. denoting that quantity
as the surplus over the demand they
have FOR 1t from the eastern refiners
10 whom they sell il. Thus it also ap.
pears very evident that the rise may
not come in hasty manner
Prominent oil men Of Ardmore who
have been keeping in close touch
with the situation. are not over
enthusiastic concerning proposed
rise AT this time. They do not en-
tertain any feeling OF pessimism. but
nave the future OF the industry at
heart and are viewing the situation
with reference to the results which
an Increase at this time may bring.
The entire proposition resolves itself
into the manner In which the oil
fraternity In general will greet the
rise when II arrives, should IL arrive
proper light, hat is. as natural
result Of curtailment OF production
in the past. and which Is to be fol.
lowed by further advances in price
hrcause Of continued curtailment. all
will be- wcll and good But should
tho operators become over-enthuSiastic
because of the rise. and gain an er.
roneous impression that further rises
will result and that the time II ripe
Dor continuation OF drilling activity,
the result will then be disastrous. For
! with the pipe lines now storing an
exceedingly large portion of their runs.
| renewed drilling activity will tend to
greatly increase production and tho
result Will lead 10 but one recourse
/ ON the part of tho purchasing com.
| panies and that will be- proratng o;
/ runs. which ls usually followed by n
/ decrease In price. and the situation
/ may bee mo worse than ever. During
| the past two months the decrease In
/ production IN the mld.continent field
| ha. become noticeable to an apprcci
| able extent. Oklahoma production
/ during August Tell OFF i0.GO5 barrels
/ Indications are that with u continued
] ruriniimprt of production. the figures
for September will show q greater
increase. But still there IN a great
overproducticn as far as consumptlo,
is concerned and Il will reduir,
some time yet before the situation Is
relieved to the extent where opera
tion may bo resumed In the manner
In which they were carried on In tn,
DAYS Of $3.50 oil. The time for re
sumption Of activities will be sgnalle,
when the pipe line companies are ~
qulted to draw on the oil which thel
have IN storage to supply refiner1
demands, but until that time, tn
proper stage for increased drlllinl
operations will not be prepared
Every producer is anxious FOR
rise In the price n crude. but eS
treme caution is advised against u
msions as regards renewed drilling
With conservatism committed
composed NJ very capable men. Il
supervising operations In the Hewitt
district. there Is little to he feared II
the local area. but the greatest dana
or lies IN other fields Of the mid
continent aira wher 10 restriction
are In effect
Electricity. says the 4. =. geologi
cal survey. saves the nation abou
al 0O0 GOO tons ~ cnnl a year