The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-08-13

tion. and we are willing to forego
on our part the profit TO be made
from buying oil at the present low
price and storing 1t Tor higher
prices to come, II by doing no we
can help 10 stabilize the industry
and because Ia our opinion tho pres
ent price offered for crude In the
Continent is Ear below its actual
value and the cost OF producing H.
"Our action In this matter will
also help to relieve the burden of
the large purchasers OF crude who
have hccn buying aud storing for n
long time at higher prices until they
are about at the end OF their stor.
age capacity
"ln considering how we could best
offer our help to thd producera dur
Ing this emergency we discussed
many plans and finally decided upon
the old plan with which the produc-
cra are an fnmlllar-that OF storing
in pipe line which plan, we be-
licvH is stlll in use by some OF the
eastern pipe lines and large pur-
chasing agencies.
Wherever we can do 80 without
unreasonable cost. we viii connect
our pipelines with the producers
lease and gather and transport his
crude through our line TO our tanks
where the oil will be stored for his
benefit until higher prices. without
out any outlay on his part at this
tins for this service. when he sells
his OIL we viii ask him 10 pay the
cost OF gathering and transportation
and Insurance and a storage charge
OF 2 cents per barrel per month,
This storage charge viii reimburse
us for the cost OF our land and tanks
and Interest on our investment
THE advantages offered by us 10
the producer are many, but may he
summarized
we furnish him storage facill-
ties Immediately.
we save him present outlay
for storage which might be n finan-
cial burden.
m tho storage room needed by
him IL small, we win furnish II nt
less ultimate cost To- him than he
can provide It himself,
we carry insurance on his crude
for him for less than no can carry II
himself
We Will issue a certificate TO him
each month for the amount OF crude
we have run for him into our stor-
age, and he can use thcHc cortifi-
borrow money to meet his operat-
Ing cost, II his banks will not lend
on these storage certificates. we will
try and arrange a loan for him on
them through our banks.
I'VE hope that In offering our
storage facilities to the producers.
they will not be encouraged to drill
any but the most nece ssary wells,
such ms offsets to producing wells
and wells necessary to hold down
leases. and we hope they will not
produce from present wells more oil
than is absolutely necessary to pro-
duce from them to protect their in
tcrest. We advise an entire suspen-
sion OF drilling wherever possible
and a cutting down OF production
wherever agreements can be made
to do so with adjoining property
owners.
I'VE are sorry that our pipelines
serve only small section OF Okla
homa. and that we cannot offer our
facilities more generally to the pro-
duclng industry, but wherever we
can help, we are willing TO do so.
and help smaller members OF tho
producing industry during tn s
period OF depression.
1T IL generally understood that
the production OF oil in the district
served by our lines In about 10 per
cent in excess of the market de-
mand. We are prepared to take 10
per cent OF the total production OF
this district during the period OF
| congestion, III necessary"