The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-03-08

This photograph shows n CON
marking printed thereon.
in this country. They tell us from
time TO time that Mexico will soon
be n thing OF tho past. This may
he true; however, nothing ls ever
true in the oil business until it hap
pens.
From tho fields that lie along
the Panico river approximately 125,-
600 barrels Of very low-Eravity crude
are being gathered daily, very salts
factory for fuel oil. From the Golden
lane which runs from the Dos
Becas well south for a distance of
45 miles. there are now being
gathered about 100000 barrels of
crude per day. $4,000 barrels OF
which come from the TuteCu-SCru-
Azul pool, ana the balance from the
few wells located on the high spots
In the old exhausted pools. Tho pro-
duction In the paniCu district can hC
increased but the low price which
that oil now commands does not en-
courage development. The wells
situated to the south I'm the old,
abandoned, exhausted fields will
ultimately 60 to water. Tho TutcUo
pool will of course some day be
exhausted, but south Of Des Bocas
along tho Golden Lane another pool
OF 14-gravity oil has recently been
discovered which will undoubtedly
yield good many million barrels
The Mexican Eagle company an
English concern, has recently dis
covered new field. the possibilities
OF which are yet unknown. ] think
the producers and rcfiners NJ this
country may look forward to tho
discovery OF great many other
pools In Mexico. II Is extremely un-
likely that there will be another
prolific producing area OF light oil
discovered in the near future such as
the Tamisopa lime formation re-
ferred TO as the Golden Lane, but
there will always be produced a
large quantity OF heavy oil.
"Turning from Mexico to other
, foreign fields, Venezuela has vast de-
poslts of low gravity crude, access
ible to the coast and preparations
are now being made to market this
as soon as 1t is needed.
: A Review OF the United States.
Let us now turn to n study Of the
crude position OF the United States
and see IL there is not a shortage Of
light oil In our own country. Dur
ing the year 1921 there was an In
crease in the consumption Of GasO-
line in the United States equal to at
least 10 per cent. The total con-
sumption OF crude oil in the United
states amounted TO Approximately
400. 900 barrels per day. therefore.
in order TO supply the demands Of
the consumer of gasoline, il was nCC-
essary to either increase the amount
OF gasoline secured from the crude,
or else refine 100000 barrels moro
a day in 1921 than was refined in
1920. Aud II we are 20 Conccdo that
: consumption OF gasoline in 1922 Will
be 10 per cent greater than con-
sumption in 1921, then In order TO
supply the demand, II will be ucCes-
sary to increase the amount of gaso-
line taken from the crude or else IL
viii be necessary to refine 10000
! barrels a day more in 1922 than was
refined I'm 1921. II Is difficult for
mo 10 see how this increase I'm the
/ consumption Of gasoline this year
can be taken care Of by increasing
, the amount OF gasoline taHon from
, the oil and, therefore, the increase
, must be taken care of to large
extent by increasing tho amount of
, oil put through the rctincrics. This
, will not be possible unless now dis
! coveries are quickly made.
Let us take the figures Of the
- OH & Gas Journal for the Mid
l Continent field and make Compari-
. son of production by months for the
r last six months of 1927 compared
| with the last six months Of 1920, q
, table OF which / have prepared for
you. This table disclOsCs a continual
. weakening I'm the crude position OF
/, the Mid-Coutinont iu SO far as light
i oil is concerned, and this ContlnuaI
= weakening Of the crude position was
entirely due 70 the low price which
: producers were receiving. which
price was entirely due to tho excess
slve importation OF heavy oils from
, Mexico.
Il desire particularly 10 call your
> attention 10 tho comparison of the
] production Of tho north Texas area
G during the months Of December.
- 1920 and December 1921, and also
? a. that Of Kansas for the same
% periOd. both Of which are among the
z greatest light OH producing areas In
q the world, North TnNOs had pro-
b duction NJ S3,1NS barrels q d1v less
. in December 1921, than II had I'm
December, 1920, and Kansas had a
n production Of lO,NOo barrels less
a while Oklahoma for the same period
! showed = gain NJ assoc barrels.
10 This loss I'm these two great li"ht
g oil producing states was not offset
J., by the production from the MrNia
n pool IN Texas for the simple reason
4 that the ga eol.no content ~ NoNl7
4 crude is not 90 be compared with
: that Of North Texas, Oklahoma and
10 Kansas,
- in closing 7 wish 10 emphasize
q the point that the problem before
q the oil Industry of the United states
p Is not one Of securing tho same
!, Iamount Of light oil in 1922 that was
n secured I'm 1921 but that Of securing
t. more, and I'm order 10 secure this
= light oil II Is necessary that tho price
a must be further raised, and the low
r er the price received for fuel OIL the
:, greater amount must hc added 10
q the price Of gasoline. II tho dispar-
" ity between the price Of fuel oil and
II the price Of gasoline continues ~
e grow. the Standard on company viii
ultimately be compelled 10 ahln-
don its present policy Of m1d.nH
l. prices on crude oil and 10 adopt the
e. gravity basis. which in nay Judgment
n would be the hardest blow yet struck
o., an, t,,st tB. ful4t4UIDuf refining lu-