Evening star., 1923-07-09
new OIL GUSHERS
SEND PRICES DOWN
Many Companies Refuse to
CurtaiI 0utput-TenSion
Is Highest Since 1921.
BY j. G. R0YLE.

Special Dispatch to The Star.
NEW YORK, July 9-The oil situa =
tion in the southwest today is at its
worst tension since 1921. Storage
facilities are overfiowing. Pipe line
companies are pro-rating purchasers.
One price reduction haY followed
another at the wells. And still new
gushers are being bought in. espec-
cially in the Powell. Tex. field.
Owners have been urged to COM
plete drilling operations down to the
sand only and to refrain from com
pletion until the period Of over
production Is passed. That request
has been about as eficacious among
the smaller ind. pendent producers as
asking Kid % let his Christmas
stocking hang before the fireplace
until the Fourth Of July without
looking in i'll
Small Firms selling Ont
This situation is not causing dis
comfort or apprehension among the
larger companies. They have re-
duCed their own production and are
able to buy all the oil they need from
the independents at advantageous
prices. Some of the big companies,
according to Texas reports will start
construction of additional tankaGe
Immediately. especially in the Wich-
ita-Burke Burnett district.
These discouragiug conditions have
led some of the small producers TO
turn Il willing ear'to offers for their
properties and leases and this has
led To spirited competition for new
acreage by some of the larger con-
Germs. The RoXanna Company. a
subsidiary of the Dutch Shell has
been especially active in this buying
campaign and higher prices than ever
before are being paid by it's repre-
sentative for acreage.
Interest in the situation is height
ened by reason of the night between
the Dutch Shell and the Standard Oh
interests which has gone merrilY on
almost since the north and west
Texas fields were opened. SO far
the RoXanna Company has developed
little production in spite of activity
in Young and Jack counties
Ford and du Pont Interested.
1t is reported from Wichita that
Henry Ford and Pierre S. du Pont oi
Delaware have entered into negotIa-
tion with the Skelly Oil Company OF
Tulsa and the Phillips Petroleum
Company of Bartlesville for the pur-
chase of controlling interest In these
two big independent oil concerns
Meanwhile. drilling activity IN tht
Santa Fe Springs, Long Beach anc
Huntington Beach fields of California
continues unabated and the full tide
of oil production in that state prop
ably will not be reached until late
summer.
Consumption of gasoline continues
of tremendous proportions and IS OF
the increase. but the cut in crude OIL
prices has been reflected in only
minor degree TO consumers. Rehner'
and distributors account Tor tht
,-,,IA
prices by pointing out the increased
overhead cost
New Selling Campaign.
oil men regard the campaign tc
nush the sale of the new ethyl gas
with anything but diSmay. for ethy
pronounced etheD is simply ord1-
nary gasoline with kick in 1t. The
consists of a small quantity of ethyl
fluid which is added in proportions
of about l TO 1000.
This mixture. it is claimed, not
only increases the power to be de-
rived from gasoline, but eliminates
the distressing knock" so notice
able when cars are under hard pulls
in sand or on grades. The sclen-
fists who have been experimenting
with gas contend the knock in gas
engines is due to improper fuel con-
ditions, rather than accumulations
of carbon or overheating OF the en-
gine. They have thrown overheard
the theory that the red hot carbon
preignites the charge in the cylinder
before the piston can start down
ward and claim that the knock is
caused by high pressure gas wave,
travelling at extreme velocity. strik-
ing the side of the combustion
chamber or top of the piston.
General Motors Claims Rights.
Ethyl is n wine-colored liquid
and as ID stains the hands cannot be
used for cleaning purposes. The
General Motors Corporation holds
certain rights to the manufacture of
this fuel and claims that it is i'm
possible to initiate it without in
fringing their patents. Executives
Of the company believe that the cost
of developing and advertising this
fuel will be returned with large flu
ture profits added.
AUTOMOBILE BUSINESS