San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-11
CALF ORN|A IS
/. B|GFACTOR IN
|. OIL SITUATION
Producers Temporarily
Abandon Hopes for
Price Boosts.
ANOTHER BIG GUSHER
Burton Well at Smackover
Reported Making 49,
900 Barrels.
Houston, Tex. March 1o.-Develop,

Houston, Tex, March 10.-Develop-
ments in the oil industry of the United
States the last two weeks have not been
along the usual trend. Only in the
last few days, or ten days at the
outside, has the industry awoke to
the fact that California has come into
her own-and is now very much a
part and parcel of the balance of the
United States with reference TO oil.
Over a period of several weeks,
posted prices of crude oils east of Cal
ifornia were boosted every few days
until it loked as if it would be-
come a habit, very pleasing TO the
producers but hard on the refiners.
But the situation changed almost
over night. Crude increases stopped
with a sharp thud. 1t was learned
that o California crude of high gaso-
line content could be unloaded at
New York at about $2.75 a barrel
with oil of similar gravity selling
at the well in the Mid-Continent at
S1.S5 to $500 with a long haul and
several charges yet to be counted.
JOY for Refiner.
This placed an entirely new aspect
on the matter and posted prices
have been stationary for more than
two weeks. Now students of the oil
business claim that there will not be
another raise until California produc-
ton declines and they go further and
product a cut in the price if Cali
| fornia continues to mount the next
two months on par with the last two
months.
This situation is not TO the liking
of the producer but is music TO the
ears of the refiners who have not
been able to boost their refined prices
| in keeping with the crude increases.
The paying of premiums in Oklahoma
is not so brisk by any means at this
time and the same applies to North
Texas. Prices in Louisiana and
Arkansas are stationary with little
chance for an increase. Refined prod
ucts are moving in a sluggish manner
and refineries have large stocks Of gas
oline waiting for the expected big
spring and summer demand. But their
storage is limited and they must move
something or curtail operations.
The California situation has drawn
attention from field work over the
country. With the price situation sta
bilized all eyes would have been tarn-
ed to the extension of the liyhc crude
area at Smackover in Arkansas. As
it is now, little excitement has been
! created. s |
Well Running Wild.
The Burtoa Syndicate test to the
north Of the proven light crude area
at Smackover' on tests has prom
Used to be a 35,G00-barrel well IL per-
mitted to ran. Latest information
from Smackover is that the Burton
well broke come tons Thursday npd
is running wild. making be.!,er than
80, 900 barrels of % gravity oil. Re-
ports Thursday said the Simms Oil
Company had completed a well max
ing $4,000 barrels of 20 gravity Gil.
II this report is correct. il is tie high
est gravity producer at Suackoyer and
places Smackoyer very much OH the
map.
Developments in other states tie
asst week have not been ot startling
nature and most o. the fields are still
in the grip Of real winter.
Mexican production continues TO de-
cline with indications that it will Re
months before il is restored. if at all.
1t will take new fields to do this and
the looked for feds are hald to find.