The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-09-25
Crude oil Market Continues
10 Cause Speculation

d. men generally are discussing
tb, uIoblblC crude oil price action
wb.n they feel sure will be taken
shortly by prairie and Sinclair COM
panips as result of the differential
md bv the Gulf, Cosdcn, Texas
nr3 other purchasing companies
yb.rsbv these latter companies pay
OK cents above the posted price for
ali ug 3s gravity or above. The ru-
MO. that the Prairie and Sinclair
! ooutganies will make three grades Is
yai1cr generally accepted, but 1t is
almost universally agreed that such
an arrangement would cause very
gonpraI dissatisfaction, especially
among operators of settled wells
and would practically defeat the pur-
rose OF the shutdown movement.
Flush oil IL known TO show higher
gravity than settled oil, and the
nlaclng of a premium on high grav-
Nv or flush, oil would mean an in
ren,iyc to drill for new produo-
lion in the high grade pools. large
nroduclng Some of the butcher sand
ou when Il is flush comes very close
10 az gravity. Wilcox and Deaner
sand oils come within the premium
class. as high as as cents barrel
above the posted price being paid
bv some Of the independents for the
latter oil. As high as s1.25 a bar
re- premium is being paid for Gar
IA and Tonkawa crudcs, while some
, ~ chasers are paying so cents above
I tte posted quotation for ingalls,
crude, Usage oils are commanding
a prcmlum Of 10 to so cents n bar
rel Peru sand oil In the 14-S terri
tory brings more than the market
price. A premium is even being
a T.. nf hn oil In
" territory because of its Dearness
10 the refinery that is paying the
extra price.
losing out on High Grades.
Prairie and Sinclair. because they
have adhered strictly to the plan OF
paving only one price for all crude,
have not been obtaining much high
grade crude. BY meeting the price
paId by competing purchasers they
would not get producers TO switch
connections. If they paid n larger
premium than the % cents the other
purchasers unquestionably would
meet II Immediately, therby again
defeating any plan to get producers
to change over TO the Prairie and
Sinclair As n matter of fact their
only chance of breaking into the
high grade oil would be through con-
necting with new wells, for IL Is gem
orally recognized that, all matters of
price being equal. Prairie and Sin
clair would get their share OF oil
from new competitions.
The situation as outlined Is suffi-
GENTLY confusing, without thinking
Of the dissatisfaction and unsatis-
factory angles that would arise II
three prices were put into effect.
Should oil OF 37.5 gravity command
a price OF 25 or so cents less than
2S gravity crude, the producer of the
375 gravity would not feel very
kindly toward the plan. Then, too
there would be a temptation on the
part Of the producer Of the lower
gravity oil to curry favor with the
gauger. As a matter of fact there is
not difference of so cents, or even
25 cents, in the refining values or
oils with a difference OF only one
degree in gravity.
Il has been suggested that II the
situation warrants the making OF
more than two grades of oil, the
purchasing companies had best go
the limit and grade II all this way
from top to bottom as they do In
California, making Il possible for
the producer of SO gravity oil TO OBJ
tain very close to the 3S price and
so on up or down. 1t Is believed that
this or any other differential plan
would prove sufficiently disgusting
10 the large purchasers that they
would he very glad TO get back In
few months to the only plan that
ever has proved satisfactory in the
Oklahoma kansas high grade fields
None price all the way through.
ftlhat is the way Prairie and Sinclair
want H. and II they are forced into
lghe differential against their wishes
w might be well for them to go the
, bmit and let all the purchasing
fsencies get 1t out of their respec-
s&ye systems.