The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-04
.O|L INDUSTRY IS.
NOT AFFECTED
BY SCANDAL
Sinclair and Dohsny interests
Only Control 3 Per Cent
Of Industry.
ny w. 8. COUSINS.
(Copyrighk, 1924. ~ Cosmopolitan
Nawln AAevaoA

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News 9sevico.)
NEW YORK. April l.--Alarmista
attempting 20 point out that the
American oil industry 10 today RaclnR
''the most serious problem IN itN
history" are repeating q truinm that
was a. applicable 10 the OIL situation
last year and the year before and
probably win be equally true next
year. The oil industry n ALWAYS
facing its greatest problem, accord.
ing to leaders Of the industry, and
the solution Of one series OF prob
lens 10 but the Introduction 20 the
next.
Equally Illusory are repeated pre-
dictions ot much higher prices Tor
gasoline and crude oil before the
present seasons end, a. prices are
determined by facts which cannot be
foreseen. Wild guesseS as to prUba-
bly, excess OF domestic consumption
over production do not stop at less
than 2.0O0,0 barrels daily, the
equivalent Of the nations total con.
sumption today.
In considering oil supplies and
consumption. It IL customary to
reckon the markets available
sources of supplies, regardless Of
origin. Outside of Mexican imports,
foreign oil brought into this country
is negligible. Mexican oil consti.
tutes about SS per cent OF the ''ifn.
port oil'' entering American con.
sumption and most OF sources Of
supply are controlled by capital.
For ell practical purposes. Therefore.
Mexican crude can be put In the
same column as American oil.
Geological survey complications
for February, the latest available.
corroborAted by the American Pc
troleuEn Institute, give total prodOo>
tl0n Tor February domestic and ina
port) at 2,110,4SS barrels Of crude
oil daily and consumption Including
expurts) at 2,0o1,8Da barrels daily.
Adhering to strictly American fig.
ures. we find total production dur
ing February 1,SD7,4SS barrels daily
and consumption 2,094,76e barrels.
an excess OF 1875 barrels, ana Il
IL on this showing Alarlnists are
their last stand.
The big problem, according to en-
perts lies in the necessity Of find.
IIIk HGW 6OuACCG vi VAA w COuAlkGE~
balance certain depletion Of existing
pools and heavier demands Of con-
sumers during the coming season.
An official OF the American Pc.
troleuln Institute said today mora
validating was pow going on than
at any previous time In the In.
dustry's history; and, while results
are meager az compared with last
years unparalleled success, some
prolific sources Of crude oil are be-
ing found But unless they produce
ut q much higher rate than at
present, oil men foresee O bad
Jam" before the years end.
The most important factor in dc.
terminlng the extent Of wildcatting
ventures, ls the price Of crude OIL.
Only once IN the last decade has
oil prospecting declined below the
volume OF last October; thla was
the latter part OF 1921, when prices
descended a. abruptly a. last year.
BY this token, the enormous 40.
tivity in potential oil fields Ii likely
70 continue. irrespective Of Congress.
BonRl Oh scandal Investigations or
the expanding storage OF crude oil
by big refiners.
Minimizing the effects of the OIL
scandal, President Thomas A. O,Don.
nell, Of the American Petroleum
Institute, said recently that the
Sinclair and Dohehy interests con.
trolled only per cent Of the
American oil industry, while the
remaining 81 per cent lis, not In
Volved in the charges OF fraud at
Washington" Those who try to
connect the Teapot Dome lnveStIga.
ton with current tendencies In the
industry are apparently shooting
wide Of the mark, according to Mr..
O'Donnell.
oil men who have discussed these
problems with the writer are not
favorable to further advances In
gasoline prices or other oil prod.
ucts. They win be- better pleased,
they say, with q steady how OF
business In ell directions, at uni.
form and stable prices, and win
oppose changes as iIiimioal to their
interests, 40 we'll ~ those Of the