The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-08-04
Purchasing Agencies Can
AUert Government Control
In CO-ODerdtiOn

FROM New York and Washington
/ comes the report that tho senate
committee investigating the oil busi-
| ness, may recommend that the gov
| urumcut take over the oil business az
well as the coal business 10 Will
. thus be seen that things are getting
/ into "a real nice mesa, and that only
/ the coolest judgment ana the most
/ remarkable show OF common sense
/ can avert n calamity and purchasing
agents can cooperate In the shut
down movement II they arc so mind
l ed
The oi1 producer in oklahoma Is
/ paying the fiddler. II the oil com
/ panlos nra afraid OF La Toilette and
/ his committee and oil writer's claim
: that this s what has caused the
B trouble and the big reductions In
/ the price or crude and refined prod
ucts, one thing liz certain and that
/ is. oklahoma aud Kansas arc being
made the goat even Texas getting
/ better prices for crpde than this
state or Kansas.
The New York boys are feeling
ps complaccnt as n cat licking cream
/ of ita whiskers. az the following
[ from the wall Street Journal Will
show:
Eastern Seaboard rcfiners. who In
/ the last fow years had been relying
/ TO an increasing extent on Mexican
crude oil supplies, are now con-
| frontcd with the problem of replac-
| ing tho loss OF Mexican output, but
/ their difficulty. for time at lcnst,
/ has been lcssened by the reduction
OF soc n barrel In Mld-Contlnent
crude oil and the cut OF 12 IL per
cent effective July 20 IN pipeline
rates from the Mid-Continent field
TO tho Atlantic coast.
"Light grade Mexican crude oil Is
quoted at gl,b0 T. o. b. tanker, Tam
/ pico. plus taxes now amounting to
/ 29c barrel n costs about 35c a
/ barrel TO bring oil To refiners at
Bayonne or philadelphia. This
makes a total cost at refinery OF
| $2.07 n barrel.
There is little light grade Mexican
/ oil available, as most OF II is sold
under contract or refined by the
companies producing It. Mexican
| Petroleum. which In the last few
yenrs was large seller OF Mexican
crude, Is not selling any, refining all
| its production at it's own planta Pre-
/ viously IL bought oil at favorable
prices from producers who had no
| pipeline or refinery or way OF mar
lioting II and turned 1t over TO other
companies. notably Standard OIL OF
New Jersey.
"A small amount OF oil is being
produced In the old Amatlan valley
by various companies and individ-
uals, but most OF II IL contracted
for.
''some reflners stlll have tho bene-
flt OF low priced contracts such a;
Mexican seaboard's ti.l0 contract
but II can be generally stated thai
oil coming out OF Mexico Will com
mand a higher price.
with $3.50 oil in the Mid-Conti'
nent and pipeline charge of 10 3-4C
n barrel, paid by the refiner, from
Kansas and northern Oklahoma, the
standard OH refineries Mt Bayonne
Philadelphia, and New York are
getting high grade American crude
at sage ga a barrel, Reduction II
crude oil In the Continent ant
tho cut I'm pipeline rates. previously
81 lac n barrel, are distinctly u
the advantage OF the eastern stand
ard oil companies, and both reduc
tlous come when supply OF Mexican
oil Is decreasing and price advanc
ing.
Most OF the capacity of the Stan
, dard OH refincrles built at Atlanti
scaboard points In the last few year
was designed to refine the ligh
Mexican crude. which runs abou
lS.2 gravity. These companies hav
become increasingly dependent o.
imported oil for supplies. They In
clude standard of New Jersey, Tide
i, water and Atlantic Seaboard. Stan
, dard oil OF New Jersey In hy far 1
: the easiest position respecting othe
: foreign supplies. but will prohabl
. need year to get oil out OF Il
. Colombia and Venezuela propertio
into tankers 30 that 1t can
/, brought TO Bayonne."