The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-07-21
OH NintkNi nnninILnns.
The Situation is n Puzzle and
An Old Timers Are at Sea

The situation, as IL stands 10 q
veritablc puzzle, especially to tho
man who has been In the game long
enough TO call himself real o..
man and Is rapidly gottins worse
In respect 20 the real reason Tor
the cut In price ana above all, the
oil purchasing concerns are just ~
much afraid that some of tho oil VIII
get away as they ever were In the
history Of the game.
The chances are that II T. were 10
he over again there would be 40 cut
In price, "A this same cut has led
80 a Tremendous selling campaign on
tho part Of refincrs who have heard
the threat OF another cut TO Sl25
"A barrel and are not proposing to
get caught again. The result is the
Texas company, an honOrcd member
OF tho Big Five, Is now offering a
premium tor 3S gravity oil In OKLA
homa and In the Lyons pool in par
tlctllar, where the Independents have
n line and have advanced tho price
at Currie. Texas, which Ia the source
OF supply for the Independent refln-
ers In Texas.
II was the Texas company whi IN
started the boom In prices by boost
barrel last year, which price has ic-
mained In effect ever since, but
which IL not a handicap to tho inde-
pendent refiners In Texas. for the
reason that they are blessed with
better freight rates to the Atlantic
seaboard and to the great section ot
country known as the southeastern
part OF the United states That IA
TO say II does not stop the .ndepon-
dent reflner. although II Is a hanii-
cap which he ia only able To over
come by careful financing nni by
reason OF the rates to New Orleans
and to tho eastern seaboard as afore-
said.
The question is being asked; Docs
this boost in price. on the part OF
the Texas company mean a return
TO s2 oil or at least for oil OF 3s
gravity or better7 The reflners, of
course, located in Oklahoma, with
freight rates all against them and
competing against pipelines in all
the territory open 10 them. cannot
stand the gaff. First they were told
by the powers that he that gasoline
was going sky high and then had
TO sell their stuff at pawnbro'ters
prices. They are holding up the
price most remarkably well under
for something new every day ~
the week which will put them all
out of business and leave the cntire
country TO the mercy of the pipe
lines.
The ticker brings tho information
that the price OF bunker oil at all
Atlantic ports has bcon advanced
by the Mexican Petroleum company
TO $3.50 barrel, which is Joke.
as usual. when the Mexican Pefro-
leum hands out something In the
way OF publicity. because the Sinclair
people and tho rest OF the rcfiners
at Houston have been selling fuel oil
at $40 for a long time, and arc.
in consequence. paying 25 cents pre-
MUM for Gulf coast crude for re-
filming purposes.
To sum up. The fact that the
Texas company has posted price
OF s125 for MeNla crude is an
other tnka hccanse ihare has been n
contract on Mexia which began
shortly after the Texas company cut
loose from that field and left II on
tirely without a market. The stand
ard of Indianan and Sinclair, to-
gether with the Prairie, have vfry
large sized contract for Mexia crude,
which is yet to he filled at $3.50 a
barrel and there Is q wonderful lot
OF empty storage waiting for same
SO far as the situation here goes,
the independent oil men are now
figuring that II Is better 10 take a
cut OF 25 cents from the pipelines
and get 25 cents premium from the
independent reflners than 10 walt for
tho Standard OF Indiana and Sinclair
to announce that the situation de-
mands another 25 cents cut In price.
They know that Mexico IL "hlown
up sucker" and that all the hot air
which Is handed out from New York
will not change this situation In tho
least. They know that reflners have
fuel oil to sell. right Mt home that
Il better fuel oil than is produced
In Mexico. unless the latter Is light
ened up with Ruff coast or some oth-
or kind OF crude and the price today
Is only SIS to 90 cents per barrel
All the threats and intimldations
and Misrepresentation Of the Mexl-
can situation are not having the Of
feet desired by the purchasing com
Germs, but on the contrary, are maxi
Ing some lifelong enemies FOR Tho
nipelines and with the result that
~. IpdananAaut rafiunr Ga lpunflsad