The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-07-24

Tor crude oil to replace the decline
iu Mexican production.
Consumption Greatest IN History oi
Industry.
Tho consumption ut gasoline and
tho consumption OF luhricatlng oils
nrc tho highest iu the history " the
Industry This year will mark the
hugh peak OF consumption of gaso-
line. II can easily bee predicted that
the consumption OF 1879 viii he at
least 20 per cont greater than II was
lu 1891 In support " this I quote
iu" following from recent state
mont made by D.. j. bullock OF the
standard OH company ot Indiana,
20 man who has always had u long
Vision into tho future 0f the oil
business,
"Thc market is good aud strong.
ana the demand for refined gtuffs.
and gasoline Ia particular is
greater than II has ever been hc-
fore. Ideal tourists weather,
brought ON 10y tho general hot
wayr in nll pnrts ~ tho country,
has hcou fhc great factor ln bring
Ing this about
"Our figures ON the conump.
tion OF gasoline show that Mt the
lAlN wv AAi IlNNN hlNI|IA. IIh A1lA uN|
IS, there win be no gasoline loft 10
supply tho market in tho Mid
Continent tield. Gasoline consump-
tiou Is already appalling num-
Dor Of gallons higher than gaso.
line production. There will not be
tank carload left tho Mid-Cou-
tincnt rcfincrs. for they never
have and never will he able 10 sup
ply their own demands for gaso-
line
Tho Mld-Conlinont roflncra will
not he able, inslde Of ak weeks.
to nll orders for their own share
~ tho Country's consumption,
Tho demand for gasoline IL un-
prcccdented, and this hespcAks
wonderful era ut prosperity FOR
the entire oil industry. Rs we'll as
for the country In general"
Summing up this review OF III,
Industry, there seems To have beer
every reason IN tho world why IN,
program mapped out In October and
carried through tho winter ant
spring OF this year should not hav,
been carried little further and th'
price OF crude oil maintained a
5000,
What was tho reason for tn,
"About-fac and the cut in th'
prtco or crude. accompanied ms &
is and has been by cuts I'm tho pric,
of refined products? do no
think, as some do, that II was merely
for tho purpose OF "Rypping" tn,
oil producer out Of so many cent
a barrel for their oil. do no
think the standard group na
whole would be compensated 10
the losses they win sustain In cut
ting refined prices. though thos
cuts would be small, by the profit
they would gain In the small amour
Of oil they would he able to Htor
at reduced prices. IL must he KEEP
In mind by every producer tina
every purchasing agency IN loade,
with high-priced oil In storage al
ready. Every barrel OF oil which
they have In storage In tho MID
Continent represents an average cos
Of perhaps $3.50 per barrel whel
the price paid the producer plus IN,
evaporation loss, interest on invest
mont. and insurance are considered
A great deal OF this oil was store,
In 1920 at $3.50, and every montl
this oil In carried. additional charge
must be added to II. For them (,
mako a profit on this oil. they mus
turn II for better than $3.50, there
fore, nt some stage In the oil gam
they must get this price back {
50 or 1850, or book stupendou
| losses.
Tho cut. coming ms n did in IN
| midst OF tho gasoline season, wa
! Illogical and tho only eNplanatio
! for II IL that somebody got col
! feet and they were carrying som
! lame ducks who did not want {
go any further with the progra m
lf II iB not the desire OF the Stand
ard OIL group 10 shortly begin q
draw upon stocks. then they shoul,
hasten 10 re-cstablish the price o
crude oil at n figure which vii
make II profitable for tho industr.
to carry on development cam
pnign.
WIN the Public Benefit by the Cut
The price-msking committee =
30 Broadway are either camouflng
Ing, or they are Just plain damn
fools II they attempt to Justify {
cut in tho price OF -Continen
crude by an all-nrOund cut Ia re
fined products ana fuel oil IN th'
United states, Certainly. they know
that tho recent events IN Mexlc,
have caused prices. TO advance oi
Mexican crude. You can't hav,
drop OF 100000 barrels per da,
In Mexican crude without an nd
vance in the price OF that commodi
ity and advances IN Mexican crud,
win he quickly reflected in tn,
prices OF Gulf Coast crude.
Tho Standard oil company ha
lowered the price OF oil throughou
rels per day. 90 cents per barrel
VIII they now lower tho price o
bunker fuel TO their government b'
80 cents nor barrel? No. thel
raised IL 20 cents per barrel stimuli
lanncnalv mllth The nnt Of n rnntl