Evening star., 1923-09-19
OIL PRICES LIKELY
TO REMAIN WEAK
Flush Production Soon to
Face Winter Drop in De-
mand for Gasoline.
BY j. C. ROYLE.

Special Dispatch to The Star.
NEW YORK, September 19.-The
peak of the tremendous flush oil
production in the three new southern
California fields seems to be mate
rializing. 1t was forecast that this
peak would be reached some time
this month anl daily production for
last week fell off 1000 barrels, the
total for all the California fields
dropping S63 900 barrels.
All three of the great southern
California gusher fields. Long Beach.
Huntington Beach and Santa Fe
Springs, which have been helping
to swell the California production
from about 100000 to almost 900
600 barrels a day since the first of
this year. showed declines,
Enormous Gains In Year.
In the last twelve months produc-
ton actually jumped from $4,000
to $4,000 barrels a day. further
indication that n decline in produc-
tion is in progress is that the big
tankers plying out Of San Pedro
through the Panama canal to At
lantic ana gulf ports are bidding
against each other for CargoeS. A
few months ago. oil cargo space was
at a premium. OIL shipments last
week to the Atlantic coast We're 1o7,-
600 barrels day, whereas month
ago these daily shipments ranged
from 100000 to 100000 barrels.
Drop of Little Benefit.
In spite of the falling off in the
California production the situation of
the country as a whole seems to have
benefited only slightly. The Powell field
in Texas has increased in production at
such a rate that it mas become men
ace ITO the situation Just as has Cali
ba of he Powell
has already mounted to heights which
were never equaled by the MeXia field
even at its high mark. Last week the
Powell output reached daily average
of 16S.0 900 barrels a day and more der
riclls are dotting the landscape in that
section as fast as they can be erected.
This has practically nullitied the drop
of 10000 barrels Il day recorded in
Oklahoma, which has brought the out
put of that state down to a little less
than 100000 barrels
Powell Field Increasing.
Experts OF large oil companies freely
predict that the Powell field will shortly
reach 100000 barrels a day So tits
evident tia California situation is not
the only disturbing factor.
Flush production cannot. last for
ever, but little encouragement is
seen in the fact that officials of the
Midwest Refining Company, believing
that the Salt Creek field in the
more than two years as flowing
district are laying plans for a s1O.-
100000 hydro electric project that will
furnish power enough to pump one
we'll on every acre of the field. The
first step will be the erection of a
reservoir six miles north of the field
which will serve to develop power
for all drilling and pumping ma
chinery and light the entire district.
Slump I'm Gasoline Demand.
IF
gasoline will begin to decline to the
end of the winter while production
shows no signs of a similar trend.
Prices are weak and there is no i'm
mediate prospect for Improvement.
Even where oil has been stored or
where production has been shut in,
this prospective volume of petroleum
has hung like a cloud over the mar
ket for it is of impending danger In
event of any rise in prices or general
Improvement of conditions.
During the first six months of this
year crude production outran con-
sumption by about 100000 barrels.
Since that time the pipe line and tank
farm stocks have increased tre-
mendously and are estimated to rep
resent over five months supply. In
addition, the stocks of crude held at
refineries are very heavy. Stocks of
gasoline on hand also are very heavy,
but to counterbalance this consump-
tion this year has been at the high
est rate ever known. Nevertheless, it
seems assured that production and
consumption will not approach each
other for some time to come.
Effects Of Pressmen's Strike.
Many merchants and business men
said today that the curtailment of the
New York daily newspapers caused
by the pressmen'S strike had exer-
cised a depressing effect on business
in some lines. They did not attribute
this entirely to the loss of sales i'm
petus caused by lack of the custom
airy volume of advertising, but said
the fact that news in general did not
become public so readily as usual
was decided factor