The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-08-20

Phillips Petroleum Shuts
Dorm Drilling and Builds
Tanks

DOttH bittttHU Uftu bHitu6
Tanks
THE oil situation, a. ] see II. Ia In
anything but a bad condition. and 10
only remains for those who are able
financially or otherwise 10 tax" adj
vantage Of H." said j.. NJ. Sands OF
the Phillips Petroleum company.
Eartlesville, who was In Tulsa the
latter part OF the week.
There is no doubt now but what
practically all Of the largo pools ia
Mexico except three have gone al
most entirely 10 salt water, and OF
these three only ono ig not In u semi
exhausted state, 20 that we viii, be-
ginning this month. SEQ a big de-
crease In shipment from Mexico.
which Will continue TO become
smaller NJ we pass through tho
winter. As everyone knows. the
amount Of oil going into storage In
the United states has on the average
been less than what has bceu I'm
ported from Mexico during the lAet
two years. and az most OF the big
pools In the United States which have
been brought In during the last year
are now on the decline and Mexican
production is declining 80 rapidly.
there In no reason to think that oil
Will not be coming out OF storage
when heavy consumption next year
starts TO draw on u supply. What
ever may have been the causes-and
there are aeveral-for the decline in
the price OF oil. II In safe to assume
that until at least there IL an as
suranee that oil will stop going into
storage In such huge volumes. we
VIII not have an Increase in the price
OF oil.
However, the outlook II very
promising when the whole situation
Is reviewed II the producers, par
ticularly in Oklahoma, can be per-
suaded 90 completely shutdown and
do all that they possibly FAN to tore
whatever oil IL produced. Phillips
Petroleum company Is doing all that
u a in this direction. Before the
first cut In the price. It was inter-
ested In actively drilling about one
hundred wells. This number has al
ready been cut dowo To less than
seventy-fivc and theF feduvtlon will
be continued Just ~ far as 1t pos
Eibly can be.
with respect to tankage, Phillips
Petroleum company with It's partners
IL now liz the process OF actually
erecting 2,250,000 of barrels In -four
different farms; one being In Kansas.
n In Burbank. Okla, one near
Slick. Okla, and one In the III
Dorado. Ark, district. w consider
this Just n start and will continue to
put up tankage, well In advance OF
u needs. so that we may be able
20 take care OF all OF our production
that IL moi actually contracted q
companies who would he embnr-
rassed II disconnected from Il. We
do not under any circumstances con
template using the good offices of
the id-Contlnent oil & Gas Assn.
TO help us take care of this oil. the
company's financial condition being
such that IL will have no trouble
whatever In carrying u any storage
program which 1t may deem neces-
sary. We feel that all companies
who are able to do this should do so
as ! n that way the Mid-Contlnent OF
a. Gas Assn. VIII be able to extend
its help more to companies which
are In need OF such benefit.
when you consider that a larg,
amount OF oil now stored in the MID
Continent field has been stored n
", we are safe In assuming that tn,
pipeline companies are not going Il
deplete their storage to any exten.
until the price Of oil has at leas
reached the $3.50 mark. | feel
therefore. safe in predicting that b!
the time oil starts to come out o
storage In the Mid-Continent field n
quantities, the price to producer
will be at least $3.50, with the prob
ability, as has always been the cas'
on previous occasions, that Il will <,
considerably beyond this. depending
on the amount of withdrawal an
condition of production.
"In looking over the situation n
a whole /, therefore, feel that tn.
outlook OF the oil business Is brlgh
for those who are able to take nd
vantage OF the many situation
which arise during a period OF shor
depression in this business, nm,
which car be turned to great ad
vantage later on, and II altogethC
depends upon the producers Of tn
Mid-Contlnent field how long the
care TO prolong the present 10,
priced oil.
"1f there Ia a complete shutdow
OF all drilling and a large proportio
OF the production stored by tho pro
ducers, there is no reason why III
price OF oil should not start to al
vance this winter and continue TO d
NO until the industry again * maxim.
It's just profits In all departments,