The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-08-19
Ou Market limitations.
Storage Increment
Gaining Ground

Harry II Smith, who is acting tl
secretary for tho Shutdown ana
storage committee or which " NJ.
Doan is chairman. ~ receiving a
heavy mail from points all over the
Mid-COntlnent field from producers
stating their entire approval ~ mo
resolutions pa cod nt the recent
meeting. OF the large number of
letters received to date not one has
failed 20 express spirit or cooper
alton, The expression "Will start no
wells during shutdown period Is
contained IN nearly every letter re-
colved. while others go further and
state that they will bulld tanks 70
taka care OF ut least portion OF
their current production. Numerous
injuries are also coming In ~ to
where and on what terms storage
tanks can bo obtained. Smith rs
able 10 refer these inquiries TO sew
eral tank companies who are In POSI-
tlon TO supply the demand and arc
offering 10 do 40 upon very liberal
terms which include deferrment Of
payment for tho tank for year or
until the stored oil IN sold.
In addition TO tho private storage
being erected and ordered, aevei al
independent reflncrs have indicated
their willingness to store oil tor n
nominal charge. At the meeting or
the committee TO be held Monday
m ming it is expected that this sub
ject Will he, fully developed and o
Rurvey made OF available tnnkago OF
tho mld-continent field.
The storage program gives every
evidence OF spreading throughout
the four states OF Kansas. Oklahoma,
Texas and Louisiana. This togeth-
er with tho ourtailment OF drilling
and the slump In Mexican produc-
tlon is bound to have a pronounced
effect before spring. A number OF
operators are having difficulty in
getting pipeline connections for wells
recently completed. This too will
tend to discourage the starting OF
unnecessary wells or drilling same
into the sand.
Local producers are at lose to
understand why, In view OF the COM
plant from purchasing companies
concerning the volume of produc-
tion, tho largo companies interested
in Wyoming and particularly In the
Tea Pot dome should proceed to
drlll that area, when every one, in
Guiding themselves. admit there Is
overproduction. A government
which has been 80 llbetal In grant
1nti concessions on government
lands in the mountain regions should.
II is believed, exercise n restraining
hand TO postpone tho development
OF those prolific areas. the oil from
which Is not needed now but may
be essential TO the nations welfare
in the future. However much re-
cent, events may seem TO disprove
the contention. " is nevertheless true
that oil In an exhaustible commodity
and should only be produced and
marketed as needed. While there Ia
no necessity for the government as
suming control OF tho details of tho
operation OF the oil business, II
could very wisely make plans to re-
strai~ drilling on its reserves and
store oil In times OF temporary
overproduction.
For the immediate present, how
ever, Il is up 10 the individual pro-
ducer "a save the situation and the
sponsibility for further depression
together with the credit for any i'm
provement In the situation must he
placed at his door and Il 10 incum.
bent TO demonstrate during these
hot August days whether no will hC
an independent" oil producer In fact
or only in name.