San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-09-30
PR0DUCERS0F
. CRUDE O|[FEEL
WORST IS OVER
Price Structure on Firm
Basis and Output Show
ing a Slump.
PROBATION TO END
Magnolia Offers to Buy at
a Dollar or Store 50
Per Cent.
PROBATION TO END

structure back on a sound basis again,
and prospects that the process Of read
justment has run its course, the pres
emit outlook in the Mid-Continent oil
fields is much brighter. The producer
has a much better feeling now as COM
pared with several weeks ago and
much of the unnecessary pessimism
has been done away with.
The California situation lends en-
phasis to the belief that the coming
year will prove one OF price staDiiiza-
ton with good demand for all petrol
cum products, and recent reports from
the new North Texas field, Powell,
are that this field is losing much OF
its menacing aspects which has char
; acterized its performance heretofore.
Both the Tonkawa and Burbank pools,
the spots of over-production in Okla
bona, continue to register daily de-
clines.
PROBATION Nearing End.
s, Aside from the production reports,
I, other factors have been injected into
the Mid Continent Oil situation which
Eire attracting much attention. The
\ ',.cision of the Magnolia Petroleum
y 6mpany to give its customers IN
Texas the option as to the amount
of and the price of their oil indicates
that the end of proration is near at
hand. The Magnolia's announcement
that the company would purchase al
the production at flat price OF 81
or 50 per cent at the posted schedule
and the remaining 30 per cent to be
stored, is taken that more oil is to find
It's way to a market and the crude
stocks will be materially lowered in
'.e fields which that company serves.
There is much conjecture as to
whether the Magnolia will extend its
offer to Oklahoma and Kansas pro-
ducers and as to how the other COM
panies will react to the procedure.
For q certainty there are many pro,
ducers who would be willing to sell all
their production at fixed price,
though that price be below the mar
Hket, than to accept higher price Tor
" portion of it and have the remain
ing portion tied up in storage or else
Ne disposed of at bargain prices.
Files New Tariff.
Another interesting feature OF the
lation for the week was the action
etbe Prairie or and Gas company,
largest Mid-Continent crude buyer, IN
filing with the Interstate Commerce
/. Commission q revised tariff, which in
effect. eliminates the differential IN
.cipe-line rates between Oklahoma,
4 kansas and Texas field points. Here
tofore the rate of crude handled by
nipe lines from North Texas fields
was about 80 cents higher than Okla
boma and Kansas. The three states
will 70 on the same basis after Octo-
\ Der 1, il the amended tariff is made
y effective.
Much talk is heard in the Mid Cont
ent of the abolition of proration OF
ms altogether and the larger COM
Ianies say that this seems to be the
ext logical movement. No changes
we're made in the price OF crude during
the week.
Production on Decline.
The loss in daily average production
sustained by the new Powell-Corsicana
field during the week as result OF
the gas pressure going off several days
60, together with further losses in
edaily recovery from Oklahoma and
fornia, brought the total daily pro-
ton of United States fields for the
week down to 2.265.0S3 barrels as
compared with 2,301 ,S25 barrels for
the prior seven days.
In Oklahoma the Burbank and Ton
kawa fields both recorded further
losses In output and this state has now
reached the low mark Of All ,40S bar
rels as compared with more than a
half million several months ago.
Further declines are looked for in the
n1State.
Following predictions that the peak
of production had been reached in the
flush fields of California, this state
has shown steady downward ten
dency in crude output for three weeks.
Dropping from around $4,000 barrels
of three weeks ago, the states daily
average recovery of crude oil for the
past seven days was less than S4S,-
600 barrels.
Flush production from new wells
in the Powell field has been
unable to offset the decline resulting
from the cessation of a large number
of wells from flowing. Operators in
the new field are preparing to put
their wells on the pump and while new
extensions and flush wells will help
bold up the daily output for sometime
vet. il Is believed that the field has
past its peak and is now on the down.
ward grade.
Little of interest has developed in
the fields Of the Texas Gulf Coast and
only a small amount of field WORK is
being recorded from the fields. There
is some talk of a possible reduction
10 the price of crude but the concen-
sus of opinion is that the market
structure in this section will not suf-
fer as a result of the readjustments
in other sections.
During the week. the fields in tn.
coastal region reported seven compile
lions, all of which were producers.
At Big Hill, the Houston Oil COM
pany's No. 5 Pipkin, is making 40
barrels.
The Gulf Production company's No.
s Harrison Mt Hull made 100 barrel
we'll Mt 2520 feet. In the same field.
the No. SO Dolbear well OF the Re
public Production company is good
for 200 barrels at 24J0 feet. The same
company's No. 20 Dolbear is flowing
! 1000 barrels of pipe line oil ut 2910
feet No. II Dolbear is so barrel
producer at 249O feet. In the same
field the Mecom oil company's No.
Mecom is making 1000 barrels at 29S5