San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-28
FIGHT AMONG
OIL COMPANIES
MAY CONTINUE
Generally Believed Gasoline
War Will Last Through
Winter.
CHEAPER CRUDE DUE?
Reduction in Mid-continent
Oils Thought Not
Unlikely.
CHEAPER CRUDE DUE?

Events within the industry the last
two weeks but strengthen the opin-
ion already expressed that crude oil
in Oklahoma and Kansas is due for
another slash. The action of the
Standard Oil company, of California,
in marking down West Coast oils TO
new low levels has precipitated such
an opinion while the procedure adopt
ed by a number of Independent buy
ers in the Mid-Continent in refusing
to meet the Prairie Oil and Gas
company's posted price for the higher
gravity oils does not make for stab
ilized market.
Then there is the course followed
BY the Humble Oil and Refining COM
pany, Texas Company, and Magnolia
Petroleum company in establishing a
new low price for all grades of North
and Central West Texas fields and
doing away with proration. The
step made by these companies have
affected Oklahoma and Kansas crude
purchasers, only in that the independ-
ent buyers have been the first to
make their plans accordingly.
High Gravity Cheap.
There is no escaping the fact that
IL Mid-Continent crude is to continue
to find q market in northern and
eastern refining territories. there must
be another downward revision in
order to lessen the spread now exist
ing between California and Mid
continent crudes. The latest cut on
the West Coast makes the high
gravity oil in that section the cheap
est in the world.
Counting in a pipe line and tank
err loading charge of around 10 cents
q barrel, and charter rate of about
20 cents a barrel from California
ports to eastern refining centers,
West Coast crude can be laid down
in the Atlantic Seaboard territory for
approximately S1.61 a barrel. Com
pared to this, Mid-Continent crude
of like gravity at $1.30 a barrel can
fields for less than $40 to 500
which allows for a pipe line and
handling cost of around 30 cents a
barrel.
Coupled with this condition. just
as producers in the MidContinent
were beginning to see rift in the
clouds. the squirt in Powell produc-
tion in Central Texas comes as a
hamper. However, the output of
crude in both Oklahoma and Kansas
continues downward with Burbank
and Tonkawa registering lomes, due
partly during the past week to heavy
rains and floods.
Crude Output Declines.
As q whole Oklahoma is getting
back to the 100000 barrel daily level.
For the first time since June, 1872,
the daily average recovery OF crude
bill in Oklahoma last week dropped
below the 100000 barrel mark. The
heavy rains which have prevailed
throughout the section for the last ten
lays, made going heavy in the fields
Ind was largely responsible for the
kharp drop in daily output.
IL the opinion of some, who see in
he recent widespread gasoline reduc-
lion instituted by the Gulf Refining
company in the "a states the COM
bany markets in, the beginning OF a
motor fuel price war this winter, is
kaken as an indication then this win
er is not going to see very much
IL a change for the better in the crude
market except that considerable stor-
Ege oil likely will find its way to
market 70 make room for crude to be
purchased next spring. :,
The recovery OF crude OIL TOT hIl
United States fields during the last
week was 2,271,731 barrels, accord,
no TO figures compiled by the Oil
Weekly. which represents an increase
II more than 100000 barrels over
he preceding week. California con-
inues to register declines, while Kan
las and Oklahoma also show SHARP
urns downward. In the Mountain
States district, production during the
even days just ended again climbed
back to its former high position OF
round 100000 barrels day after
having dropped to below $4,000 bar
[els last week as a result of floods
nd storms.