San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-08-12
MORE CHEERFUL
FEELING n OW
CROPPING D j 7.
Declining Production
Leads Oil Men to Be-
lieve Crisis Is Past.
SEE SECOND FACTOR
Action of Refiners in
Stocks Considered En-
couraging.

A more optimistic feeling as to the
trend of production in the Mid-Con-
tinent light oil area during the re-
mainder of the year is beginning to
crop out, according to Information
gathered by The Oil Weekly. This
feeling while not approaching a posi-
tive belief, is shared in by those who
have within the last month or six
weeks kept close check on develop
ments, not only in the Mid Continent
but on the West Coast as well, where
over-production is seen as its worst.
Two significant factors that already
are exerting a bearing on present
conditions undoubtedly to this recent
reaction in the state of mind OF the
producer and refiner alike. Oklahoma
crude production, including the aver
age daily recovery from both Tonkawa
and Burbank, is continuing its down
ward tendencies. The last weeks daily
average for Oklahoma, was better than
5000 barrels lower than that reported
for the previous week. Coupled with
this slump in output is the encourage
ment offered by field activity which
at the present Lme gives no indication
of a change IL the present downward
trend.
Refiners Draw On Stocks.
The other factor, which is not a
| small one by any means, is that in
| some quarters refiners are beginning
| to draw of stocks to fill orders for
refined products. These refiners are,
for the most part, large interests and
| have reduced or virtually suspended
their gasoline output for the present.
On the other hand, however, refined
prices continue to sag.
With one exception, the crude mar
kct continued steady throughout the
last week. In Louisiana, the Stan
dard Oil Company again placed oil
purchasing on grading instead of &
gravity basis, which may mean a ma
terial reduction i'll practically all
grades of crude in that state. =
With more than 20.O00-borrel
decline in the average daily recovery
of oil from the Mid-Continent fields
for the last week and subsequent
losses from all other sections, the
daily output for the United States
took a decided jump during the seven
day period. According to figures COM
piled by The Oil Weekly, the coup
| try's daily recovery for the week was
| 2,25J. 305 barrels as compared with
2.2S9,705 barrels for the previous re-
view period.
Texas Fields Responsible.
Responsible for a large part Of the
decline registered for the week, the
new Corsicana-Powell field in Central
Vest Texas, has started on the back
ward journey after having attained
daily average production in excess
of 100000 barrels day. The best
the field could do during the last week
was to maintain a figure around ST.
900 barrels. Further encroachment Of
water has caused wells in the new
field to show sudden declines in the
flush output and in many instances
wells have been shut in as result
| of this trouble. Late competitions
further substantiate the belief that the
main part of the field would be found
to the southwest of the discovery well
and this section of the field is now
bearing the brunt of the burden from
production standpoint. Practically
all wells on the north side of the field
have either been forced on the pump
or have quit flowing altogether.
A recent survey of the field shows
that more than half of the oil produc-
ed is owned by the Humble Oil <
Refining Company and the Humph-
rcys Oil Company. showing the major
output of the district is under the con-
troll of the large operating companies.
In Arkansas, where some interest
continues in the Smackovcr field, lit
tie change was noticeable the last
week. At Smackover late reports
show that new wells in this prolific
field are not showing their former
high flush production. and the com
pletion record for the last week shows
that in spite of the fact that greater
number of wells were completed. 4
much smaller initial production was
reported.
Further curtailment in the fields
east of the Mississippi marked the
only development of interest from
these old districts for the week.
|