The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1922-08-03
CONTINENT CRUDE
CHEAPER THAN MEXICO

Inc last 26-cent cut in the price Of
mid-continent and north Texas crude.
which was announced by the Prairie
ripe Line Company Wednesday, and
met by the Sinclair Crude Oil Purchas.
ing Company, Is attributed by many Of
The members OF the local fraternity to
the railroad strike. resultant of which
movement Of tank cars is very slow and
Is hindering the delivery of refined PRO.
ducts to available markets, within reas.
enable time. Conditions as they exist at
Inc present time appear to be such as
place Mexican imports in the back.
ground as far as their menacing factor
ts concerned. although they nave been
regarded as the biggest thorn in the
side Of the American producer in the
past. Reports of the Mexican fields
as they have been coming in during
the past few days, lead to the phase
OF the situation which places the blame
Tor the latest reduction in oil on the
lack or proper means of transportation
for refined products.
A report from Tampico published in
The edition Of July / of the Wall Street
journal. states that every we'll in the
Toteco pool. Mexico's greatest produc.
ing area. is now showing emulsion Of
salt water. The production of this pool
has dropped from 100000 barrels in
February, to III 900 barrels at the pres.
ent writing.
That there is a market available for
American crude at this time is evidenc
ed by further information as contained
in the Journal Eastern seaboard re.
liners. who in\the last few years have
been relying to an increasing extent on
Mexican crude oil supplies, are now
confronted with the problem of replac.
ing the loss OF Mexican output, but
their DIFFICULTY, for time at least, has
been lessened by the reduction in price
OF mid-continent crude oil and the cut
OF I'm per cent effective July 26 in
pipe line rates from the mid.continent
field to the Atlantic coast.
Light grade Mexican crude oil is
quoted at $3.50 (. o. b. tanker, Tampico.
! plus taxes now amounting to 90 cents
barrel. 1t costs about 35 cents a
barrel to bring oil to refiners at north
Atlantic points, such as Bayonne or
Philadelphia. This makes a total cost
at refinery Of S2.07 a barrel
There is little light grade Mexican
Oil available, as most Of 1t Is sold under
contract or refined by the companies
producing it. Mexican Petroleum, which
In the last few years was large seller
or Mexican crude. is not selling any,
refining all its own production at its
own plants. Previously 1t bought oil
at favorable prices from producers who
had no pipe line or refinery or way OF
marketing ii, and turned it over to
other companies, notably Standard Oil
OF New Jersey.
Some refiners still have the benefit
OF low-priced contracts such as Mexi.
can Seaboard's 3l.10 contract. but il
can be generally stated that oil coming
out of Mexico will command a higher
price"
With the quotation now at SI.95 for
OIL In the nld-cOntinent field, and pipe
line charge Of 10 81 cents barrel,
paid BY the refiner, from Kansas and
northern Oklahoma, the Standard Oil
reflners at Bayonne, Philadelphia, and
New York are getting high grade Am.
erican crude at S2.0l barrel, which
Is 5A cents barrel less than the cost
OF the Mexican crude. Thus IL il very
evident that American storage should
be drawn on without further delay and
VIII continue to be drawn on inasmuch
rs the Mexican oil is going to salt water
} and rapidly declining.
The reduction in crude oil in the mid.
continent and the cut in pipe line
ratesh, previously s7h cents barrel,
are distinctly to the advantage OF the
eastern Standard OIL companies. and
both reductions come when supply OF
Mexican oil is decreasing and price
advancing.