The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1922-09-21

such signs are to be found. There is
possibility, he believes, that it may come
in a too hasty manner, due to the un-
settled conditions Of affairs, and if so
may suffer a brief setback after signs
of improvement are noticed. but this
will eventually be offset by readjust-
ment for the better which is bound to
occur.
May Grade Crude
The petroleum industry in particular
is on route 10 a very busy future. It's
present unstable condition will gradu-
ally be changed into one which will be
on a flrmer basis. Mr.. Mayhall believes
| that the coming year will mark an al
tered condition in oil circles which may
revolutionize the industry. and in which
the bigger companies will take the di-
recting hand. Two vital factors which
will be given serious discussion in the
refining and producing branches of the
| business, he expects. will be the pur-
chase Of crude oil by grading, and a
readjustment relative to the various
processes used in refineries. The pres
ent status of the crude oil purchasing
market, which shows the payment by
some OF 'emiums over the posted price
and which Is causing many of the buy
ers to lose the cream OF production
because they are not paying the prem
ium, viii bring hasty action on the
purchase-hy-grading plan particularly
throughout the mid.continent field The
big buyers have been discussing the
question for the past several years, but
according to reports, have not been very
anxious to put such "A plan into effect.
Authoritative sources have il that
when the last cut of % cents in the
crude quotation was being discussed by
the price makers. the qpestion of grad
ing was also taken into consideration.
but no agreement could be arrived at. so
II was set aside. However, since that
time, 1t has been brought up and plac-
ed into debate by the officials of the
larger concerns and now it is believed
its adoption due to the discrimination
brought about by the action Of premium
payers.
1t is not believed tha: such a plan
will create greater expenditure 10 those
who post the price inasmuch an the av,
erage OF the prices which will be paid for
the various grades. is not expected will
be greater than that derived by the old
method Of posting one figure on mid
continent crude. However 1t will act as
a protective measure against those who
are now preventing the procuring OF
the higher grade oil by the payment OF
the bonus. In Mr.. Mayhals opinion. The
price on the higher grades under &
grading plan will be high enough L
prevent any additional sum to be paiC
for the crude. Protection in this matter
may be further secured by a possibl,
basing Of tank wagon price on crude oi
quotation in q manner which viii max,
it prohibitive for others than those whit
post the price 10 pay more for IN,
crude. Cnconfirmed reports have II tha
d In order TO operate its transportation
lines IN a profitable manner, the bigger
buyers must deliver TO their eastern
market oil which tests at least 80 gray
ity. Under the grading plan it is prob
able that connections will not be mad,
to producing properties unless the ope
rator is willing to give the buyer al
his production rather than switchin,
his higher gravity oil to those who OF
fer premiums
Refinery Processes
Relative TO the matters OF refinery
processes Mr.. Mayhall states that ther,
Is al the present time conglomera
ton Of processes which have been pat
ented by individuals resultant OF whicl
the retlners are being greatly hindered
due To- fear that no matter what meth
ods they employ IN refining the crud
which they run. they will become en-
! tangled in legal difficulties which vii
force them into huge expenditures =
, number Of such cases are now In IN
courts iu various parts OF the country
and involve several OF the larger CON
panlcs. The principle refinerlos OF IN
United States are expected 20 sponsor
movement which win either can for al
annuimont of the many patents am
permit rciueiles 10 operate in a name
most cNpcdieut 10 them. OF else brini
about "a rcadjus;mont which Will uc
S quaint them with the facts as they ar
. relative 20 the processes on which the
: Will be expected To- pay royalties Q
! which they will be permitted TO us
without au oyerhanglng legal tangl,
The time is at hand says Nj May
s hall when refiners must perfect meth
0 vds which viii enable them TO turn Int
a commercial product every drop i
o ever, barrel VI crude which they run
o There must not be any waste. The it
crease in the consumption VI potroleur
b, products which Is close az hand is caus
!, Tor CONSERVATION. and where it w,
s come from boo the future &C. the big ouer
lion. 10 cannot be wasted
Reserve Necessity
. Doc thi- connection Mr Mnvhall cell
S attention Go The fact that "a. Near fuiui
. VIII mark sn elimination of the eNprc
y sion that crude oll iu storage IL d rea,
d uu for market depression. 49, l. hein
oppressed at this time. Lut instead. o
|u storage vNili he rsfprr.d Ia ~ . p.,.