The Bridgeport times and evening farmer., 1921-12-20

Chicago, Dec. 19-There is plenty of petroleum and always will be, but America must be willing to 'tpay the price" of preparedness unless she wants to lose her position of petroleum supremacy. declared H. F. Sinclair, chairman of the board of the Sin the annual dinner of the American Petroleum Institute held here.
 "Petro!eunn prices in 1921 on an average have been too low,'' Sinclair age much higher in 1922 and may average higher than ever before in the history of petroleum. I am com sde1t that petroleTn prices must there will be periods of depressi9a., but in the long run petroleum will command prices which more nearly reflect it's service value. The day is coming when American fields win not De the largest producers and when American refiners who have not forti- fled themselves in foreign fields will be forced to take a minor place in the refining industry of the world.
 Unless America is willing now to pay the price of preparedness, she will lose her position of petroleum supremacy, and the nationals of other countries will force her to pay through the nose-'
 "In order to keep pace with the demand We have drilled in the last years no less than a quarter million wells This includes almost seventy thousand .gassers' and dry holes.
 26,O00 New Wells Yearly.
 'In the last six years we have been drilling an average of about 26,000 new wells each year, of which about
 "To drill and equip an oil well to- day, considering the country as whole, costs on an average about sev- enteen thousand dollars.
 "But America must have oil If she cannot get it from her own fields she must get it from foreign fields. If she cannot buy it from her own citi- zenS she must buy from foreigners.
 'tAs is generally known, Mexico is the second largest producer of pe- troreITnn.< In Mexico, as in the Unit ed States, American oil men have been and still are the leaders in petroleum l.6eVelopment.
 I ''MeNco last year produced twen- | ty-thrse and a half per cen of the worlds total production of petroleum. If Mexico drops out, what will be the effect on the petroleum situation? 1 What will be the effect upon the | United States? Can you cut off | quarter or a fifth of the worlds pro- duction without placing a strain upon the petroleum market of the United | States?
 "A large part of the Mexican pro- | duction comes to this country. Sup pose that source of supply were shut off Some will point to our large stocks of crude oil in storage. But do you realize that the total quantity 
 country is only about four months supply?
 ''Remember this: Tn oil we have Hedther a feast or a famine We i have been having a feast With 1 four months supply on hand, are we well fortified agains possible fam inc?
 First. we must have greater coop eration between oil company manag- CTS and employees, with steadily inn proving efficiency in operation.
 Second, we must say to the Ameri- can public: American oil men do n ot seek success by cutting the other fellows hroat.'
 Third. American oil companies must work together in obtaining f1rmer footho1d in foreign fields: they must follow policy of mutual helpfulness in developing foreign sources of supply; they must take eff fective means of assuring to their own country an daequate share of the worlds supply not merely for few years, but for all time.
 Fourth, the American government must back up the oil men of America in every legitimate effort to bring about this lasting assurance. ana,
 Fifth, the American people must realize that this cooperative effort on the part of their government, of oil corporations and of oil men is vital to their security and prosperity.
 'I can say truthfully that spirit of cooperation is permeating the American petroleum industry more thoroughly than anyone would have believed possible before the war.
 ''As an independent. I am happy to say it is my opinion that the leaders of the Standard Oil Company do not want to freeze out the independents and that neither Standard Oil nor the big independents want to oust the smaller independents.
 NO American worthy of the name, whether an oil man or not. would en- courage international irritation. It is because I am keen1y aware of the