The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1922-02-22
Indications Point To
Steady improvement
Petroleum Industry

The strengthening of the gasoline
market which is becoming more ap-
parent daily Is attributed TO more
active buying brought about due TO
dismissal in the minds of the pur
chasers of possibility of the midcon
tinent crude quotation taking cut
following the recent slash In the
Pennsylvania price, according to l..
H. Prltchard of Oklahoma City, and
one of the best posted men on petro-
leum conditions in the mid-continent
field. Mr. Pritchard expressed the
opinion that buyers are waiting believ'
ing a mid-continent cut was due,
will continue 10 grow stronger and
that the spring demand will strengthen
it and the demand for other refinery
products in a manner which will per
init the reopening of many Of the re-
fineries in the mid.contlnent area
which have been forced to shut down
during the past few months
Speaking of the status OF the crude
quotation, Mr. Pritchard does not be-
lieve that cut is coming, and neither
does he think an advance will occur
in the near future. In his opinion,
the price will remain steady for at
least six months, during which time
steady Improvement Will occur in
general conditions, which, although 1t
may not be very noticeable. will be
in marked form at the end OF the six
month period. Times of deflation are
over, and resumption OF normal con-
ditions and steps for Improvement are
now under way. Indications in the
markets and situations of industries
other than petroleum, demonstrate this
Improvement. All markets are appar-
emily getting better. as is also the
foreign exchange with reference to
the English Sterling. Oil is bound
TO follow.
There Is no cause for an advance in
the price Of crude at the present time
due to overproduction. But there Is
not too great an overproduction TO
cause decrease in quotation. Accord
ing to Mr.. Pritchards figures, the
surplus supply now on hand will cover
period OF las days, and when the
spring demand arrives, uniformity
in consumption and production should
be rapidly accomplished. Incidentally,
states Mr. Pritchard, there appeared
to be no reason for the last advances
which occurred in the midcontinent
crudes other than desire on the
part of the big interests TO aid the
independents. Ii will be remembered
that at the time. the independent pro.
ducers were operating under hard
circumstances and Were fighting hard
to remain aflat. The advances at
that time were an absolute necessity
in many cases to relieve the situa.
ton. 1T is TO the advantage OF the
bigger interests" says Mr.. Pritchard,
ito protect the independent Us far as
his operations are concerned, for the
Independent is in many instances the
forerunner in exploration for new
pools and IL Is more profitable in
many cases 10 the large concerns TO
purchase oil produced by the inde-
pendent. than by operating them
selves"
Further emphasis OF the belief that
cut will not occur in the mid-con'
tinent quotation is brought by the fact
that during the present quotation. the
purchasing concerns bought all the
crude they could possibly obtain, and
were eagerly soliciting and competing
with each other for the output or the
independent and other producers. Had
cut been contemplated. IL Is hardly
likely that these buyers would I'LL
their storage with the crude at u
higher figure.
At the time of the last advances,
II is also believed that they were oc.
casioned by the strong pressure which
the independents were bringing 10
bear on Congress In an effort 10 have
an import tax measure passed on
Mexican petroleum-s measure which
the big interests did not desire to have
passed.
The threatened coal strike should
also have big bearing on the petro'
leum industry which is bound 10 he
called upon TO fill the demand OF users
Of coal should the strike occur. the
situation depending entirely on abil
ity OF the mine operators 10 run THEFT
plants with non.union labor. Figures
reveal that there is now only tive
weeks supply OF coal on the surface.
Six months from now should show
vast Improvement in general petroleum
conditions according 10 present indica
tons. and boom should be on which
is likely TO be the greatest In the his
tory OF the industry.
In expressing his opinion on Ia,
general situation. MIR. Pritehard call,
attention 10 the fact that "a man may
express All opinion on what ough
TO occur, but what really will occul
Is = different matter and depends
entirely Oh the old y O."