The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-07-25

+
should not he pcruitted To- crush
/ the many thousands ~ individuals
and small corporations producing
oil at home. and To throw out ot en-
/ ploympnt hupdreds ~ thousands of
/ mon. TO the advantage OF 10 or n
dng,n rornnratIrp. Of grCet ,anttnl
! whose or,r,,t,,s in Nirvt,, hnvc
| crca,cd no ,uffrr d,r,orniIzotI,u In
/ ma r,ur,r,, In ,bci, n,yn rr.,, nj.
tt,no,c r,nft
/ L. d. ri,tr'..t ,,,t ,,, ,n,r,, ,.o,,
scrvo onr n,,, r,tr'i,u,, ,c,o,,cs
! ,o, no a., ,i,.' - ,,. ,t,, g..
,.,io,',,,.', 80. ,'',,J'..,,, Vs. ,a,,,',
~ w., W. ~ ''",t 100 '"'
49, 80 -. S, !"
" 80 49, i' ",''' 80
~, ,','"' ''.' - w l,' ,..
,''' ~ ~" 90 1u'
/ ~" u'',r''' ''s ~ ei'u' 'i' ~ w
ll''V.', HH' ""' own -" 20 Wv
s''"''Ht "uN N1h'"t" Fhould u,
/ ,pin p'"t'y ,,''H'd INTO eNS'llho ana
.""' 'N'u'H M'N''"il p'u''' I"' GOV"
l"'hA "oou' ~ per ccu' E"Nuilu' una
. la'll' a''S az the residue ~ tu'I
NHl'lituh 'dpl'a' no" Owns anu
,phtrolS % Per cent pi IN" known
Mexican petroleum reserves, and l
suggest that this would be tho log
lcal point Tor ihc practice OF con
scfNatloh IN order 10 nave AT hand
In the hour of our uccd the ucccs-
eary supply OF fuel oil for our navy
and Tor the Development or our
merchant marine.
The total number ot producing oil
wells In the United states - ap.
proNlmaNly 2bU,VOO. The average
daily production per well is loss than
i've barrels. or this total uumbcr
! 600 wells have an average daily
production OF less than "A half a bar
rel each Tho average daily pro-
duction per well in MVNico Is ? 500
barrels. These figurcs clearly ind
cato the enormous disparity In cost
/ or production I'm the two countries
Tho United states IL now produc-
ing sufficient oil TO meet dom"otic
. and export requirements The vcrit
able flood OF this cheap foreign oil
from Mexico, averaging 10000, 600
barrels u month, which Ia being I'm -
ported duty free by these Er"at cor
tporation9, has created surpms OF
. approximately 20 per cent over the
demand, and has broken the marker
price OF domestic pctfo'eum slhc,
January more thhn 10 per cent, 10 u
point far below the cost or produc'
ton, and must shortly cause tho
abandonment OF these old SINAI
; wells. This will be a calamity from
which our country can never re-
cover, for this vast number or small
wells constitutes the settled, per fmh
nent petroleum and gasoline supply
OF tho United StatrS ana once abah
doncd they can ncNr be reclaimed
1t Is Of course, alleged by the cor
porations operating In Mexico, tha'
tho import duty wiIl greatly increase
costs to the consumer. Tho PERIOD
OF below cost pritos must In hn>
event be brief from the consumers
point of view, economic n"c'Ssit'
makes that inevitable, but II may
: well last long enough to accomplish
: the destruction or absorption OF th'
u independent domestic producers anC
refiners.
The standard OIL company viii
Its great financial resources. IL stor
ing its own domestic production dur
ing this period OF dcmoral lizatlol
which II has largely created. hut IN
o. independent oil men, who now owl
n more than two-thirds OF the dom"h
t tic production. In their fnancla
g distress must either abandon or sci
g their producing properties at frac
y ton Of their real worth.
g Thus will control OF the supply o
crude oil again become centralized
e the independent reiineries whlcJ
q have largely increased with the mum
g Der of Independent producers WI
l. disappear and the Thing which al
l., ways happens under such circuh
y stances will happen again. 'omp'
l. ution having been removed, MoNloh
Is production will doubtess dechhe,
'p.turul economic reaction WI