Evening star., 1924-02-02
STEADY ADVANCE
r. 1N0I[ @ INDUSTRY N
Higher Prices and Decline 10
/ Output Cause Much Bet
h. ter Feeling:
BY j. C, ROYLE.

BY j. G, ROfLE. = ..s. ,
Special Dispatch TO The STAR So s.;,.9
NEW YORK, February ,2.--Repeat-
cd increases in the prices OF crude
oil and gasoline continue to be re-
ported at; frequent intervals from
various sections OF - the country.
These announcements have had an
encouraging effect on the oil indus
try, the oil regions and those indus
tries and businesses most closely al
lied with petroleum and It's products.
Nevertheless. the real betterment in
the oil industry has been produced,
not by OH oil boom but by. the fact
that there is no oil boom existing At
present and none Is in immediate
prospect. "a
Glad Boems Arc Over.
The oil industry has run out OF
booms and Is rejoicing accordingly.
The output of crude has decreased as
steadily as prices have advanced.
At present Il daily rate Is some
where around 100000 barrels
as against peak of 2,225,o00 barrels
oil in 1923, as estimated by govern
ment officials, totals around 735,o0o.-
600 barrels Consumption in this
country, inclusive of exports, amount
ed TO 100000, 00o barrels. Ihis na was
an increase Of 26.7 per cent above con-
sumption of 1922. Mexico sent US
about SO,000.0GO barrels last year.
If consumption this year continues
to Increase at. the same rate as IN
1923. and there seems no reason why
ii should not, about 100000 bar
rels of oil VIII be required in 1924:
At the present rate of output, total
domestic production would be ssU;s
an amount equal to that Of last year
there would be available 770.000.000
barrels to supply a 000,00O-barrel
demand.
Reasons for Price Boosts.
Those facts offer an exploration
for the increase In oil and gasoline
prices. A check against an overly
extensive advance in market quota
tons, however. Is found in the tact
that there now is in storage enough
oil to meet requirements for SIX
months. So -, 'f' -.
At this time year ego the daily
output of crude was ts74s,e00 barrels,
a little over per cent below what 1t
is now. II that rate had been main.
tained. the drop in oil prices would
scarcely have occurred. but toil booms
disrupted the industry. The flush
production of the three great Calffor-
mia districts. Hunting gton Beach. Long
Beach and Sante Fe Springs. placed
b food of oil on the market. This
was augmented by the discoveries III
Production in those districts now
is falling off. Wells that once spout
ed derrick high are going upon the
pump. This drop In the California
fields has been marked. The Cor
sicana- Powell pool is far below peak
output MeXia is running along at
a fairly constant rate. AS is the re-
naming central Texas area Gulf
coast production and the Arkapsas-
Louisiana districts. in which Smack
ovS- is located. are falling off in OUT
put, although there was tritiing in
crease in Louisiana and Arkansas
this week.
Output Might Increase.
Increases might possibly come from
shut-in production in California out
side the so-called Los Angeles pools
Montana and Wyoming have possi-
hiiities of greater output ana the
Oklahoma flow might be augmented.
But. in general. there is at present
no indication of an immediate flush
production which would disturb
vitality the general rate.
1t is doubtful, In view OF develop
ments at Washington, the naval reserve
lands in California and Wyoming will
be extensively exploited this year How
ever, new operations nave peen greatly
stimulated. and drilling In improved
territory can be counted on to pro-
ceed on an extensive scale.
Consequently, oil producers are be-
ginning to feel that they are sitting
pretty" and will continue to. do SO un-
I'll another boom sends them scurry-
ing again for tankage facilities. There
are Is per cent more gasoline driven
vehicles in operation today than a year
ago, and more are being turned out at
IL tremendous rate. This increase is
counted on quickly to eat up. surplus
gas. ..---'-.'"~ -s.- - -
stu Higher Prices Hinted. .
Word has gone out to contract
holaers on the Pacific coast that Cal
ifornia fuel oil wilt be advanced from
sl.S3 to $3.50 a barrel to- contract
holders within ninety days. This
price covers delivery. Contracts held
by Industrial concerns with the five
large California producing companies
IN most instances are subject to can
collation. after ninety days notice,
some such contracts already have
been Cancelled In the Pacific north
west. with the statement added that
40 new contracts would be entered
into for the time being. .. = .
Ask Your Banker =
How much real value stands back