Evening star., 1926-05-24
OIL MEN SQUEEZE
OLD FAILING BASINS
No. New Big Field in Sight.
Gasoline Consumption Near
High for All Time.
BY j. c. ROYLE.

special DlSpllcf 10 Inc StdT
NEW YORK, May 24-Gasoline
consumption is rapidly working to-
ward it's high point for all time. The
amount used this month is certain to
run well toward S75, ,000,0 900 gallons.
The advances in the prices of both
crude oil and gasoline made in the
last week, therefore, have meant mil
lions in additional gross revenue TO
the oil companies. Prices seem
likely to be fairly stable, for petro-
leum now is in a stronger technical
position than for three years.
Aggregate stocks of both crude and
refined are still high. but they are
lower than a year ago when COM
pared with the rate of consumption.
The higher prices are tending toward
the stimulation of production but out
put of crude, although running close
TO 2,0000 900 barrels a week. is slightly
less than at this time last year. The
increased output due to higher prices,
oil men feel, will be absorbed by the
increase in consumption as warmer
weather arrives ana the tourist sea
son reaches its peak.
No New Big Fields.
The significant feature of the stu
alton is that no new huge producing
field is in sight. Flush production,
such as disorganized prices when the
southern California fields first were
tapped. is not now Il factor to be reck-
oned with. There is. of course,
possibility that such a field will be
opened by wildcat drilling. But for
the time production is being kept
up by squeezing the old oil basins.
The Tidewater Associated Oil Co.,
for example. is reviving oil wells by
of IAnnSEI-
vania production in one group of old
wells has been increased S6S per cent
since January | by this means.
Around Bradford. Pa. use of air and
water pressure has put wells which
have been producing for so years
again on a paying basis. Similar re-
suits have been obtained in Ohio, and
Tidewater now has 10 compressed air
plants in the Oklahoma field.
Experiments now are in progress
with the use of thermite. the eX-
plosive used in dynamiting ice gorges
last Winter, for cleaning out old wells
and starting the flow again. This
explosive generates terrific heat, and
it is hoped that raising of the tenn
perature will facilitate the flow of
petroleum through the sand.
Production in Venezuela and Co
tons are being pushed and the open
ing of pipe lines will give impetus to
shipments to this and other countries.
But for the time being the amount
of South American oil which is avail
able for the United States is relative
~ small. Shipping is still difficult for
some companies. owing to the limited
capacity of the shalloWdra tankerS
they must use in some localities.
Production in Mexico.
1t is estimated that the amount
available for this country at the mo-
ment from South America is little
more than 1000. 900 barrels q month.
Considerable South American gaso-
line is being sold in the countries pro
ducing it.
Mexican production has not attained
its former volume. and is not likely
to do so until conditions in that
country are more satisfactory to pro-
ducerS. Deeper Sa ndS are being eX-
plored in California and the south
western fields, and the results are
compensating for the decrease in pro-
duction of the shallower wells.
Amarillo. Tex. is becoming a center
for oil men. many Of whom feel the
field to the north of that place is des-
tined to become big producer. The
Indications are that the field mayteX-
tend over some 10 counties. Oil inter
ests also are investigating the oil pos
sibilities of the lower peninsula of
Michigan.
But unless unexpected sources of
new production are discovered, prices
for petroleum and it's products seem
likely to be fairly well maintained and
stable for months to come.