The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1926-08-26
REPORTS
EXCESS OF OIL
IN KEVIN AREA
U. S. GeoIosist Describes Conditions
in Field as Unfortunate"


Washington, Aug. 22.--Present con
ditions in the Kevin-Sunburst filed
are described as unfortunate by
George Otis Smith, director of the
L. S. geological survey, in letter
to Secretary Work, made pubic at ths
department today.
Director Smith has recently return
ed to Washington after a five weeks
trip through the west. On the trip
he made a personal inspection ana
; study of many of the western oil
areas, including the Kevin-Sunburst
field.
Mr. Smith wrote as follows about
the Montana field.
Oil Prices Low
"The Kevin-Sunburst oil fields. in
northern Montana, is unfortunate in
its present activity The operators
are finding oil at a time when it is
not needed My drive over the field
showed new rigs being built and
wells being brought in although oil
of this high grade is here selling at
$105. The economic law of supply
and demand as now enforced in Mon
tana does not give the oil operator
even a new dollar for an old, nor is
there any assurance that in the flu
ture when oil is needed the supply
will be at all adequate.
Montana from it's geographic po
sition, with long hauls to other mar
kets, must depend upon its own
market to furnish the chief demand.
At present Montana's refinery capac-
ity is only q 900 barrels day but
this one oil field is producing about
$4,000 barrels a day and Montana's
own consumptive demand is esti-
mated at only about $4,000 barrels
day. Storage presents the only rem
edy for this disparity between supply
and demand, and storage is expen-
sive The outlook, therefore, is not
such as to warrant putting down
more wells, and yet the competitive
drive is on and new wells are being
brought in, whether or no.
Facts Agreed On
cat Shelby | had the privilege of
talking with a dozen or more of the
eading operators and in the discus
IT,, t1oro ,,,oc HALL d;efarapoa of on
nion as to facts but many views as
o how to help the situation. 1t was
agreed that the production should be
but no one offered to stop
or even to stop drilling.
effort was not thought
possible, and legislation to enforce re-
ief measures was not wanted.
"The ineffectiveness of democracy
vas well exhibited and freely acknow-
edged, and yet the only hope seems
0 be in full and free discussion of
heir common trouble which may lead
0 some cooperative moves for relier.
hey all have common interest, and
o task seems more worthy OF the To-
al organization OF oil operators than
D discuss ways and means of con-
erving some of the oil that Montana
ill need so much more at some fu-
Ire time, especially because the oil
ill then he in demand and may be
expected to command a price nearer
S real value than the present rate
I $1O5.
This field is not as far advanced
5 the older fields to the south in the
loption of the best development
ractice. but an excellent spirit was
lown in a discussion of shut-off
rogram, in which the local men
1d the federal and state oil and gas
'ficfals participated. The moves
to safeguard the oil sands
ON water invasion will be taken,
ow that such program has been
lily determined upon, on both priv.
e and public lands"