The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1922-09-17
ICOntinued Shutdown
Will Bring Results
Rapid Mexican Decline VIII
Affect Rapid Improve
ment in Petroleum In
dustry.

Developments in the petroleum indus
try during the past week with particu-
lar reference TO the figures of national
production and consumption, and the
decline in Mexican output bear a most
encouraging Indication for the future.
This is not false optimism, but actual
facts, and Is worthy of very close atten-
ton. That conditions look bright is very
apparent, but as is generally known,
there has not been any big publicity
given TO an analysis of the statistics,
due to the fear entertained in the mind
of those who are aware of the facts,
that a revelation might lead to unde-
sired renewed drilling and thus ruin
the big possibilities. However it is
not believed that such will occur at this
| time. inasmuch as past experiences have
demonstrated TO the operators the wis
dom of shutdown policy and the ruin
Gus effect of too quickly revived drill
ing campaign. The curtailment of ac-
tivity will not be lifted until such
decision is reached by the producers as
whole.
Latest figures on the situauon have
revealed that consumption OF petrol
cum in the territory east OF the Rocky
Mountains is more than 100000 barrels
daily In excess of production. There 1s
no oil coming to the eastern areas from
territory west of the Rockies and thus
it is readily seen that storage here is
being drawn upon and will continue to
be drawn upon. Pipe line figures have
verified the fact that storage oil is be-
ing taken. With conditions such as
these, it would be expected that a rise
in crude oil quotation should have al
ready occurred. But the cruX OF the
situation is now centered on Mexican
imports and fortunately Mexican i'm
ports are dropping at a very rapid rate
and will continue TO do so until it is
believed that Mexico will not be a fac
tor in the American market. With the
elimination of Mexican imports, the
mid-continent fields will be called upon
TO supply the difference which will ex-
ist between consumption and produc'
tion, and the price is bound to rise. Dur
ing the first two weeks in September,
Mexican imports averaged 100000 bar
rels daily, which shows 10000 barrels
in excess of the variation east of the
Rockies in production and consumption
The rapid rate of decline in the i'm
ports is seen in comparison Of figures
During June, they were 100000 barrels
July $4,000 barrels, August 3l0,O bar
rels first two weeks in September 230
900 barrels. All the fields of Mexico
are now producing about 100000 barrels
daily, of which about 100000 barrels
is shipped to Cuba. South America and
Europe. and so, 900 barrels are used
in Mexico. This leaves approximate!
200 900 barrels which goes to the Unit
ed States, and with the Mexican crude
going down the toboggan at its hurry
up rate, II will not be long before Its
Significance here will be negligible
, quantity.
The effect Of the shutdown, coupled
with the decline in iportation. shoult
be noticeable within the next 80 days
II the operators stand pat on their cur
tailment measures, a rise in price should
be forthcoming before the end of the
year, and by next spring a high mari
may be reached in quotation
1t Is a known fact that during tn
, past few weeks, representatives of tn
larger companies who have been usini
Mexican crude, have been in Ardmor
and other points in Oklahoma and Tex
as oil districts, looking for crude iron
I the gulf coast and mid-continent field
>. to replace the Mexican product. One o
b. these companies, which operates a bi
n refinery on the Atlantic coast, is read
n to close a contract for 10000 barrel
;. daily The eastern refiners plan t
ship the crude from this territory b
tankers up the coast, inasmuch as the
c would thus be enabled 10 make use c
% tankers which have been tranDportin
!. oil from Mexico. II is reported that NOR
. than 100000, 900 is tied up in thes
y ships. There is a possibility that II III
~ companies are unable to obtain cruo
.. I'm the mid.continent they will send the
!. tankers to the California fields. Furth'
q evidence of the zeal with which II
Ia eastern refiners are after the mid-coni
4 nent oil is displayed by the fact that II
Gulf Coast production, which is low
In gravity than Healdton. is bringir
much higher figure than Healdte
production. Accessibility of the Gu
Coast fields by water route is the re
,op for itS hefter ouotution