The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-09-26
en Mnrh.t ,lnnlntinns.
Statement Of ShutdOUR and
Storage Committee


BY MURRAY M DOAN. Chairman.
Adviccs TO this COMMITTEES are to
the effect that the production Of
crude oil IN the Mld-Continent field
ia still decreasing hut not nH rapidly
as it should. Mexican production
Is declining az the ratio heretofore
predicted, there being % difference
between the light oil production Of
that country today ana what II was
a few months ago Of some four hun
drod thousand harrNls per day Tho
nature of the production I'm Mexico
ana continued encronChmcut of salt
water means that This production
win continue 20 decline very rap
ldly Imports from Moxico into the
United States iu August were ap-
proXimafcly two million barrels Less
than ln July and we believe that am
other decline OF two million barrels
or more viii occur In September.
A. this rate the importBtiOns OF
light oil from Mexico VIII have
reached the neglible status by the
first or tho year. Mexican oil has
been the principal competitor Of
Mid Continent oil for the past two
ycarH ana has caused much of the
latter TO go to storage The re-
movai OF that competition can have
hut one effect, and that IL a good
cffcct upon the marketing conditions
In the Mid Continent field
Rut there Is % proviso which the
Mid-Coutlncnt producer must not
overlook and II is this. production
In the United States contiuuo8 high
end domestic pipeline and tank
farm stocks increased even during
August. the month Of highest CON
sumption n the producers persist
In drilling wells and flooding the .
market with domestic crude, thus |
creating surplus which viii offset |
the decline I'm Mexico, they cannot |
hope for any improvement in con-
ditionF.
by their lmpotuoslty and agnrlco
they will have forfeited tho one
grand opportunity to bring about mn
equilibrium between supply and de-
m1ud
Attention Is called to tho fact
thar stocks OF gasoline arc higher
than they have ever hccu before at
this time OF year ana that we are
going into the winter season when
production exceeds consumption uf
this commodity Persistence In un-
necessary drilling will, therefore
constitute an economic crime for
the three principal reasons; That
n deplotcs the oil resources Of the
country unnecessarily. domoralzes
an industry that should he pros
porous and causes all Of tho pro-
ducers so realize less than value OF
their oil.
The wyoming producers recently
held sorics OF meetings nnd on
September 20 resolved TO shut down
until next May.
Tho reports 10 this committee in
dicatc that Mid-Continent producers
are curtailIug their operations 90
some extent, there being a gradual
decrease In the number OF wells
drilling and there was decrease
in the production last week of Ap-
proNlmntoly four thousand harrels
per day In the Mld-Coutluent field
hut if All Of the producers would
cooperate IN this movement whole
hcartcdly the volume of operations
ana OF production would both show
II Ereutcr decrease than they do.
Lot us rcitcratc, Mr.. Producer,
that this is your golden opportunity !
to store your oil either in tho ground /
cr Ia tanks on top of the ground
that economic factors now at work |
with slight assistance from the army |
NJ producers Of tho Mid-Continent |
;icld win bring about equilibrium /
by sprinE. Continuous curtailment |
of operations win have that cumu- /
latlvc effect which We have men |
toned hut which win become more +,
ana moro apparent from now on.
A. YOUR committee, we have at
tempted nothing compulsory but
arc acting merely I'm an advisory
capacity. our advice f. TO shut
down and store OH ana thus show
that YOU are business men OF good
Judgment as well ns public spirited
citizens possessed of keen sense
OF your obligation to conserve the
natural resources Of the southwest
until demand justlfes increased PRO
duCtion.