The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-05-21
SUPPLY SHRINKS,
FIELD IN EUROPE
MORE IN DEMAND


CONTINUED FROM PACE ONE.
the Immensely rich tolds OF southern
/ ltussI1 ana tho CauCgusus had great
/ ~ decreased at the very time when
/ world consumption was Increasing
/ All these elements have combined
To stimulate OIL competition aud to
bring national oil policies 10 the fore
front In International affairs. The
result Is that the possibility of the
rooponing of Russian oil deposits 10
/ Foreign corporations at once reused
/ The lvclicst interest throughout tho
world.
Russia'- on Fields.
/ The producing oil fields in Euro
pcan Russia lie almost exclusively
along the northern and northeastern
coast Of tho Black sea and between
/ the Black sea and the Caspian and
/ TO the cast OF II are other less do
/ Ivoloped but potentially rich oil de-
posts. The geology of Russia as "a
whole Is not known In sufficient de-
| tail to enable clear prophecy as TO
other fields. but even In the better
known regions there are stili consid-
| cradle areas which have not been
fully explored for oil and for which
concessions had not been secured
prior 10 1917. In spite OF these linz
| itations, European Russia before the
war produced over 10 per cent OF
the worlds total production OF pc.
troleum. This proportion, which was
maintained until 1915, fell rapidly
following the establishment OF soviet
rule TO f,4b per cent in 1919. The
actunl reduction in production be-
tween 1916 and 1921 averaged over
gh 4
the oil exports of Baku fell from
l1IOOO,OO0 poods Ga pood equals 36
pounds) In 1915 TO 69,000,O0O pools
iu 1921. only I'm the Gro2ny dis
trlct, whore there Is "a large amount
of surface oil, was production sue
cessiully maintained at nearly the
normal figure. In any case, there
has undoubtedly been IA deterlora-
ton of plants and material, for
practically no new machinery has
beon installed. For over 10 months
the pipeline between Baku and the
Black sea port of Batum was shut
down and II was only reopened in
March, 1924. on the whole, there,
fore the effect OF soviet nationaiiza-
ton OF the oil fields has been bad
from tho point OF view OF produc-
ton, though Oil has in general Jared
| much better than have other prod :
ucts OF Russia.
Nevertheless when an English
company purchased last year some
oil from Russia II was quite possi-
bic that this company was in reality
buying oil from it's own wells in
Russia, which had been seized by
the soviet government in 1913. This
aspect OF the matter raises at once
the exact issue which has stimu-
nf hn t,,
the negotiations at Genoa. Although
there was n considerable amount of
Russian money invested in oil before
the war. the investments OF foreign
capital were also very large. These
were both by purchase OF stocks and
bonds In Russian companies and by
direct concessions granted to foreign
corporations prior TO 1917. Both
types of investment have, OF course,
suffered the same treatment at the
hands OF the soviet authorities. A
desperate attempt was made by the
British in 1920 TO secure control of
the Baku district. The expedition,
which made its way across Persian
territory from the borders of Meso-
potamia, was finally defeated and the
last direct chance to rescue foreign
oil properties in RUSSIA failed
This reckless venture might indeed
be called an "oil expedition" 1t was
evidence of the importance attached
by the British petroleum interests
and by the British government 10
the property involved.
American Interests.
Up TO the outbreak Of the first rev.
olution In 1917, 40 per cent of Rus
sian production was controlled by
British and Dutch interests, repre-
sented largely in the Royal Dutch
smell syndicate. the Bib -Eibat OIL
company and their subsidiaries.
Other foreign interests represented
were French, Belgian, Italian, and
tprlor To the war) German. The
SWedes, in particular, were early in
Nestors In the rich Baku district.
ana In 1875 Nobel brothers began
their highly prosperous and we'll
planned oil organization. Only
through quiet negotiation for pur-
chase OF Nobel stock in 1920 did
the Standard OIL show interest in
the productive side of Russian oil.
Otherwise, such American invest
ment as existed in Russian oil filds
was In 1917 entirely devoted to sup
ply and marketing, For this reason
the United States has no very large
interest in old claims to Russian oil
fields. American concern is rather
with reference TO the future and with
regard to the effect which new con-
0