The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1921-08-25
MEXICAN OIL DEVELOPMENT

MEXICAN OIL DE NELOHmEN
/ Washington, Aug. pa Especial Cor
respondence) u. S. Commercial At
tache, Carlton Jackson, now in Mex
leo, recently submitted some interest
ing figures taken from the records of
the Mexican Secretary of Hacienda,
showing the total production of
petroleum in Mexico, by years, from
1901 to 1920, inclusive, with the pro-
duction for 1921, up to May, added.
These figures are enlightening as
showing the prodigious development
in petroleum production which has
been brought about, not by the Mex
leans themselves, who would probably
have squatted on their heels over
oceans of oil for the next millennium,
but by American and British capital
lists who had the courage to go in
there and do that for the country and
the world at large which the Mexicans
seem utterly incapable of doing for
themselves.
Beginning with a production in
1901 of 1O,345 barrels, Mexican
petroleum production rises rapidly to
ZOOS, 900 barrels in 1907, to 12,5OO,-
900 in 1911 and to 26,OOO,OOO in
1914 In 1915 war demands for oil
gave a boost to production in Mexico,
and despite the obstacles which that
country sought to throw in the way
of the allied cause by discouraging
the oil producers, production in that
year reached 100000 barrels; in
1915, 4O,545,OO barrels; 1917, So
100000 barrels; 1918, 64,OOO,OOO,
and in 1919, 100000 barrels.
Last year the production shot up to
1913, 5OO,OOO barrels, and for the first
five months of the current year it
totaled nearly 87,OOO,OOO barrels, or
at the rate of over 211,OOO,OOO bar
rels for the year.
About 80 per cent of the import of
petroleum into the United States
comes from Mexico. From that coun-
try in 1920 we imported over 1885,
100000 barrels of crude oil, which
amounted to about 65 per cent of that
years Mexican production. In 1919
our imports amounted to about 60
per cent of the production for that
year, and in 1918, to about 60 per
cent. During the fiscal year ended
June 30, last, we imported 1873, $780,
900 barrels of oil from Mexico, or
probably about rs per cent of the
production for the twelve months
period ended that date. Mexico is
now imposing handicap of 25 cents
barrel through the medium of an
export tax, so that on that basis we
are charged a toll of something like
100000 annually. According to
latest advices American activities
ceased shortly after Obregon's ex-
port tax decree became effective. the
explanation being taht a falling
market coupled with this tax made
expectation of oil at a profit impos-
sible.
But, worse than this tax, American
capital having done so much to deyel-
op this industry in Mexico, having
placed the business on a large and
profitable vasis, the Mexican Govern
ment steps in with proposal for con-
fiscation and refuses to make any
agreement to the contrary as a basis
for the recognition of that Govern
ment by the United States. Until
some such agreement is reached it is
hardly probable that the Harding Ad-
ministration, pledged as it is to safe
guard the lives and property of Amer
leans doing business in foreign coun-
tries, will have anything to do with
Mexico as a recognized member of
the sisterhood of nations. And until
the United States recognizes Mexico,
she may rest assured that the other
nations will not.