The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-12-07

fallen below the price OF sl.75 per
bnrrtl 10 can not DO produced at
profit for any less.
Let me now refer you 20 the sta
tistics OF production IN this coun
try TO see whether the price coll
lapse was caused by an over pro
duction In this country and az to
whether the seasonal decrease In d.
mand last winter would have been
taken care of by the seasonal de-
cline IN production.
accord. ng TO the oil a. Gas Jour
nal which is the most reliable source
r a.ats'ira' information available
In tho oil industry production OF
..uuC Dll-u the Mid-Cuntiuent 80
SoyombcrereJched tho high total OF
1851 barrels per day while In
March 1921 Il had dropped to 653.-
N5i barrels per day, net daily de-
cline OF $3.50 barrels during the
winter months. a sufficient amour
10 offset the natural winter season.
The heavy importations OF oil
throughout the fan and winter of
1920 and the spring of 1921. COINS
into the refineries Of the Atlantic
.cR.ogrd TN ng up their available
storage had tho effect ot damming
up the pipelines 20 the sCabOard
and neccssitating the storage ~
'arge quantities Of oil In the Mid
Continent district where u was be-
Ing produced which had the usua
effect Of forcing the price to the
bottom.
I'm answer 20 Mr.. TcHle's state
ment that so per cent ofThe OH i'm
ported into this country from Mex
leo competcs with coal rather than
with our own high grade oil. I can
n ysrfNl }. a. - a.
may be theoretically true. MeXi-
can oil should not form the basis
Of price for Continent crude.
but Mexican oil has formed the
basis OF price FOR Mid-Continent for
almost n year. Eighty per cent OF
tho crude oil coming from Mexico
INTO de United States goes directly
10 the rCfincrics where about 20 per-
cent OF II is converted into gasoline.
kerosene and distillate and the other
so per cent sold as fuel oil. The re-
duction In price Of oil from $3.50 10
800 n barrel, the latter figure be-
ing far below the cost Of production,
naturally caused decline In domes-
tic production which decline is OBJ
viously one OF the contributing
causes for tho recent price re-
cuvcry.
when II became apparent to the
oil producers OF this country that
market had to be provided for the
tremendous production OF light oil
from Mexico here in the United
States. there was nothing for the in
dustry to do but shut down the drih
and curtaI development in this
country and turn their markets over
10 Mexico until it's flood OF oil could
be consumed. In doing this and the
manner in which It was done result
ed in great hardship 10 the Industry
Of this country and was OF little BEN
eft to the public in general The
great buyers OF crude reaped har-
vest at the expense OF the producer.
the consumer and tho government.
They purchased large quantities or
oil in this country and Mexico FOR
ridiculously low prices. not in keep
ing with the price at which II was
purchased as crude and many mil
lions OF barrels they stored ana
which they will sell TO the public at
price levels from two to three times
the level upon which II was bought;
they imported untold millions or
barrels OF oil into this country with
out paying one cent TO this govern
ment in the way of taxation ana
gross production tax, while the poor
Independent producer was being
mulcted from every source for taxes
with which to run the national,
state and local governments.
ut Is to prevent the recurrence or
such a collapse as the industry has
gone through that we now seek
tariff on imported oils. We want 10
put our Idle rigs back TO work. we
want 10 give the many thousands
OF men throughout the oil fields en-
ployment, so they can feed their
families. We want TO bring happi-
nesss and prosperity TO many cities
and communities dependent upon
the oil industry.
1--WE want to remove permanently
the blIehtlhg shadow OF an over
production Of oil in some foreign
country dumped upon our markets
without warning, plunging the inde-
pendent producer into bankruptcy
and casting the laborer into poverty
and last but not least we want I"
wiring from the greedy importer ana
exporter n Just taxation to help sup
pont this government.
This is our prayer and we ap-
proach our government with an
honest purpose. sincerely believing
that what we ask is just, and that
in the end It will be most benetlciai
for the public.
"And in tho end. what II our gov
ernment should deny us this protec-
ton which we seek? can only say
10 YOU that the shadow which mas
occurrerd from Mexico ana mas
blighted thia country and has hiight-
ed the oil industry will occur again
and he who Is not prepared when II
does arrive will be sucked down INTO
the maelstrom of bankruptcy.
THE independent producer shouiu
be conservative about drilling wells
until he knows that his government
is going to protect him. or until ne
Ia certain that refinerics are draw
ing on oil field storage. Take the
Industry as a whole, stocks are no'
being drawn upon. In some spots
however, oil is being drawn from
storage. -.
I'm Mexico there was great
slump i'm production during August
which continued in September re
lieying the situation somewhat, but
production in Mexico. new thar the
rainy season Is over, Is being rapidly
augmented and wildcatting Is under
v,ay and while we have had some
relief from the depression caused by
Mexico. we know this Is only tenn
porary ami is liable 70 happen AT
any time again,
with regard 20 conditions In the