Evening star., 1926-04-15
OIL MAGNATEHAS
OPTIMISTIC VIEWS
Phillips Petroleum Head Sees
Bright Future for His
Industry.
BY j. C. ROYIE.
Special Dispatch to The Star.

| Special Dispatch to Tho Star.
NEW YORK, April 15.-The posi-
ton Of the petroleum industry Is i'm
proving steadily, according TO L.. K
Phillips, vice president of the Phillips
| Petroleum Co. He declares the sit
| uation is the soundest in years. This
position is supported by other oil men
| and By the increased sales of gaso-
| line and other products from one end
! Of the country to the other.
The impetus which Spring weather
| usually gives to motoring already has
| begun to make itself felt. New auto.
| mobiles are being turned out at a
| higher rate than in any other April
| in history. The percentage Of pas
sengers and freight being carried by
! motor transportation is showing a re-.
me- rkable increase. Stocks Of gaso-
line are still heavy. but this is due
more to the improved facilities for
cracking. which are permitting a
heavier yield of gasoline from each
barrel OF crude, than to large crude
! output.
"At no time in the last 10 years, to
my knowledge" said Mr. Phillips,
has there been a condition like that
at present. There is no important
new oil field in sight Production of
nearly all the old pools Is declining
and most Of the new production to-
day is coming from deeper drilling In
proven fields. Moreover, there is no
large surplus of crude oil or refined
products at this time"
South American Activities.
South American activities are on
the increase, but the possibilities
there have scarcely been touched. Mr..
Phillips does not Anticipate that the
Venezuelan output will have an i'm
portant effect on the domestic market
this year.
Mexican exports have been checked
by wrangleS over the new rules, and
any extraordinary increase in the
amount of Mexican oil reaching do
mestic markets Is unlikely, despite
the announcement by Mexican gov
ernment officials that the American
and British oil companies have ac-
cepted the Mexican departmental
regulations.
California suffered q severe loss in
the San Luis Obispo tank farm fire.
The oil burned up represented almost
T12 per cent of the crude stocks on
the Pacific Coast, which had been
piling up until they amounted to be-
tween 1856. 100000 and 100, ,000, 900 bar
rels. The California fields are now
producing about 100000 barrels day.
The Union Oil Co. had nearly 27.O00,-
600 barrels in storage, of which As
per cent was destroyed.
So far as the financial loss was con-
cerned, it was not heavy, since the
oil was insured up to 80 per cent of
distributed among q number of in
surance companies. Although oil
storage fires have not been unusual,
the ignition Of underground reservoirs
by lightning as in the latest California
blaze is extraordinary. Oil men say
this danger can hardly be guarded
against, since gas rises to the top of
the reservoirs, making them highly
infiammable.
Lightning Hits Twice.
The fact that lightning struck two
reservoirs Of the same company, one
at San Luis Obispo and the other at
Berea, at nearly the same time was
remarkable, especially in u district
where severe electrical storms are un-
usual. The grouping of reservoirs in
farms" is an efficiency measure
which Oil men believe to be justified
despite the recent disaster.
The oil companies now are reaping
the benefits of the sums paid out In
State gasoline taxes and Federal taxes
in heavier sales of gas. Most Of the
money so collected has gone into
country roads and these have done
more than any other factor to In
crease automobile travel and gasoline
consumption. The payments OF the
State gasoline taxes so far this year
indicate the total will approach $780,
600, 900.