The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-10-13
OIL INDUSTRY IS
GROWING BY LEAPS
NEW WELLS DRILLED IN DAILY
IN MONTANA, MOSTLY ONLY
IN TWO FIELDS
Some Interesting Facts Concerning
History of Oil Production in Amer.
lea are Given by r. L. WEIGH, Sec.
rotary of the American Petroleum
Institute.

Considerably less than three years
ago, Montana had no producing oil
wells. Today this state boasts about
IFS producing wells, mostly in the
Cat Creek and Kevin-sunburst fields.
New wells are being drilled in almost
daily and oil production promises
within the next five years to become
another giant industry in the Treas
ure state. In view of this fact the
people of Montana are becoming in
creasingly interested in the national
and world oil conditions, which az
feet local oil interests.
The highly competitive character
of the oil industry is nowhere better
illustrated, according to R. L. WEIGH.
secretary of the American Petroleum
Institute, than in the recent declines
in prices of crude petroleum and its
products, which have been due solely
to the fact that more oil was being
produced and imported than this
country was consuming and export
ing.
ut has been largely due to the
fundamental uncertainties of the
business. to the fluctuations Of de-
mand and supply" WEIGH said, that
people unacquainted with the indus
try have been led to attribute the
frequent and rapid price movements
to causes other than the violence Of
the changes in the situation itself.
I'm other words, the public Is &C.
customed to think of the oil industry
in the light OF conditions prevailing
in 1906; that Is, in terms of large
interests and bygone days.
Since 1906, however. the tremen-
dous increase in the demand for oil
caused by the development OF the in
ternal combustion engine, has entire
ly changed the character Of the in
dustry and its remarkable growth has
engendered the keenest kind Of COM
petition. Oil production has been
diffused into thousands of hands and
even the largest interests have had
to share in the ups and downs of pro-
duction and prices.
Neither the oil itself nor the rate
at which 1t shall be brought forth
can be in the control of any single
interest or group Of interests.
OIL Output Shows Big Gain
During the two and a half years
from January. 1920. to June, 1929.
the United States and Mexico pro-
duced s00.0O0.00O barrels of crude
petroleum. This was only "a per
cent less than the total quantity pro-
duced nthis country during the ~
years intervening between the drill
ing Of the first oil we'll in 1859 and
1906, the year in which the con.
sumption of petroleum and it's pro-
ducts began to show a marked in
crease.
In 1906 the domestic production OF
crude oil was only 127.000,OO0 bar
rels. The industry existed to fill the
demands for few million barrels OF
kerosene and lubricating oil. Case.
line was q by-product. Only about
100000 barrels Of It were pro.
duced.
Today, the refineries Of the United
States could refine in so days the On.
tire 1905 domestic production OF
crude oil. Gasoline, which Is now the
chief commercial product of crude, d
being produced at the rate Of 49,.
100000 barrels . year.
First Well Drilled in 1850
The first oil we'll in this country
was brought In s. years ago by Col
Edwin L. Drake. near Titusville, Pa
It was only 50 feet deep. but It mark.