Evening star., 1925-01-24
OIL MEN DECLARE
CORNER|S IS TURNED
Higher Prices in Face of Huge
Output Are Considered
Very Encouraging.
BY j. e.. ROfLE.
Special Dispatch to The star.

special Dispatch to The star.
NEW YORK, January 24-Oil men
professed to see their industry com
mencing to emerge slowly from
eclipse today This feeling has been
fostered by the tightening of the
shadows which possibilities Of heavy
production from the California and
Wortham fields have cast on the sit
uation, the increased demand for
gasoline and the prospective reduc-
tion in storage stocks.
The Improved trend has been re-
fected in advances in the prices of
crude oil and gasoline in various sec
tiens of the country which took place
despite the fact that Countrywide
production for the week of January
II ran we'll over 2.000, 600 barrels
Experts in the Texas fields declare
the falling Off in the production of
the Wortham field has been due part
ly TO bad weather and a labor short
age which has interfeFed with drIlI-
ing. But they admit that the capa-
bilities and extent of the field have
now been pretty well defined and
that the peak OF production there
seems 10 have been reached or passed.
California Fields Flooded.
This is also true Of the California
fields, which flooded the country with
oil for months and which were re
sponsfble to a large extent for the
depressed condition of the industry
Nevertheless, California oil com
pSnies now have approximately
100000 more barrels or oil and 1876
0oo.O00 more gallons of gasoline on
hand than was in storage at this time
last year. There has been an in
creased consumption of naptha dis
tillates, however, and only 13,l14, 40
barrels OF these products are held.
The total storage of crude in Cali
fornia 81 $4,000, 900 barrels. and OF
gasoline 4S0.214,375 gallons.
The drop in California production
has been due to a terrific slump in
the output of the famous Santa Fe
Springs, Long Beach and Huntington
Beach fields, attributed to over-drill-
ing. The new fields found or pros
pected in the last l2 months have not
replaced this flush production. There
now exists in this country no field
which threatens production above
ordinary, and II such field were dis
covered il would be three months or
more before II could menace the
technical position OF the industry.
Larger selling Area Needed.
California hopes to find an outlet
for some of its surplus oil in South
America. and the first of new fleet
of tankerx which Will run between
Los Angeles and Buenos Aires. financed
by British and Argentine capital, has
just been launched.
The Texas Co. has just bought a
number OF properties in Archer
County. Tex. from the Panhandle Re
hninE Co. and the Con solidated OIL Co.
for Sl.50e.00O. and the Phillips Pc
trolesm Co. has acquired heavy in
terests in the Humble Oil and Rein
ing Co. properties in stephens County.
Oil men regard these deals con-
crete evidence of the improved trend.
Consumption BY Alrplanes.
The oil industry not only is counting &
on incres sed automobile production to
use UP large part of the excess gaso-
line stocks. but is taking cognizance Of
the development and increased popu :
larity of airplane travel. William b.
Stout. airplane manufacturer and auto
mobile engineer. declares Detroit has
entered the aircraft industry in earnest
and with a policy involving standarizs :
tion OF q suitable type Of plane which
ca be produced on quantity basis and
sold at uantity basis price.