The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-01-01
In the Oil Fields


CONTINUED FROM PRECEDING PACE
position to buy on an extensive and
eNpandinBs scale. Conservatism will
certainly prevail. Finally looking
at tho price side Of the question. tlS
/ trend Of petroleum. Mid Continent.
Texas and Pennsylvania, could not
hold up against the excessive sup
ply and during the first quarter OF
this year broke materially. For
example, Pennsylvania crude re-
acted from 500 IN January, 1921,
to u low level of $2,25 IN August
Since that time prices have Gd
Naucod approximately 100 per cent.
but as previously intimatcd, stocks
have advanced radically now 80 per
cent more than at the low point
last year. Tho recovery has stimu-
/ lated new drillings and this fact
viii Inevitably have direct effect
upon the situation. The advance In
petroleum has been entirely adverse
to the statistical and fundamental
position. which I feel has been due
10 q large extent to manipulation. |
/ question whether petroleum can
/ hold its present level. There 10 u
marked possibility of a price reac-
.
/ less there In drastic curtailmcnt
I Ia production, a feature that seems
/ improbable at this time. The prin-
/ cipal by-products such as gasoline,
kerosene, lubricants, etc, are also I'm
the same category as crude pctro-
leum and should be regarded ac-
cordiugly.
/ do not gee how tho securities Of
the producing companies can escape
/ this same rcadjustmcnt From a
/ high average price OF 700, reached
in 1920, the stocks Of the oil COM
| panieB came down to around 400.
and are now up to about 52j. AT
the present time they are less than
half way back TO the i913-14 aver
age level OF 800. ! can sec no
reason fCr any broad upward move
mcnt In oil stocks until they have
been more thoroughly rcadiustcd.
The general business OF tho coun-
try nt large is reflected In me Bah
son chart index, maintains It's high
point for the year gained last week,
General business now stands II per
cent below normal.--St. Louis Globe
Democrat,
can Publication and Radio Rights strictly
Resorved.D
Editor "Times Table Talk The
this mdrning December 20, pub
fishes what Is perhaps the most dan
gerous piece OF insldious business
propaganda that has ever been pub
ishcd. refer to the article by
Roger Babson on the outlook for oil
II this article succeeds In accom-
pllshng It's evident purpose, which Is
, to keep the public from furnishing
the funds for nCwD>oll development,
] al IN
next year. Now | don't blame Bah
son, or the interests that melted thts
letter for writing Il, but the public
Will later on blame the prets II the
press does not better inform them oi
. the facts today.
. | am enclosing statement taker
! from the United States government
/. reports which shows the history o.
. the foil business in the United State
y for the last l2 years am als'
u sending you part OF statemen
. made by the government ON the oi
= industry for the first 10 mon as q
this year, itemized by months. l an
/. also sending you a statement or IN
Z worlds production Of oil for tn
4 years 1919 and 1929. | think II !
: only fair to the public that you pub
I lish these figures alongside OF BaO
! sons statement.
What he says about our presen
q. stock of oil being bigger than eve
:, before in our history Is correct, bu
= he does not tell the public that TN
q big stock ls only 33 Is per cent o
y q years turnover, aud he does no
(. tell the public that while we have II
u ,tock few million barrels more 10
y day than we had before, we ar
2 consuming hundreds Of millions bar
+ x ral.s more today than we did before
= lilo talks only about productio
= and does not mention consumption
!. The facts are that In the first
months Of this year, uotwithstandin
the business depression, this coun
q. try has consumed 100000 BARRE
" more crude oil than It has produced
or nealy II per cent bigger conSumt
/. ton than there Is production,
Z What he says about Mexico Is ais
y true. There IL plenty OF oil In MeN
Il leo and plenty of II being eNporte
q from Mexico; but he does not te
:" the public that the oil that IL bein
produced In Mexico IL mostly heaV
oil, and that the light oil of MeNic'
which IL really the only oil that er
ss' ters into competition with Mid-Cor
ltinent and Pennsylvania fields.
developed on q very narrw strip
n territory, ana that this strip hs
nd within the past few months turne
,ss almost entirely into salt water
Sc lie starts out his article by sayir
that the petroleum industry hi
been one OF the last to respond
se the contracting economic circle.
, will challenge Mr., Bahson to poi
- out n single article of commerce {
a which the price of raw matoria
:. dropped In the proportion of s3.'
per barrel to 500 per barrel Th
- reduction was made in the face
the smallest percentage OF stocl
>,o on hand TO annual consumption tn
this country has ever known.
op my opinion 1t was made largely
that tho standard Oil and 9TH