Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-04-15
AUTO SALES TO AID
i. S. OIL INDUSTRY
Addition OF 100000 Cars
on Roads to Have Big
Effect on Trade.
ny j. c. R0YLE.

Special Dispatch - The star
NEW YORK. April IL ~Ovcrpro-
ductiou of petroleum in the United
States is merely temporary. That Is
the consensus of opinion today
among oil men IN close touch with
the situation in every oil field In
he country. Price cuts already have
resulted in 4 decrease IN production
The season of greatest consumption
il ut hand The necessity az pro
yidng storage facilities for oil which
for the moment cannot tnd market
also has checked output.
Inventories undoubtedly have In
creased faster than production
Stocks have grown hurdeusome since
the first Of the year. The Seminole
pool has been producing at least
one sixth OF the current supply.
which is running ~ per cent heavier
han year ago However, the Semi
mole flow Is expected 10 pass its
peak at no distant date Warm
weather will stabilize consumption
and the storage of crude is bound
10 strengthen the position of refined
products.
Crude Values Lower.
The average OF crude values has
been lowered by more than 40 per
cent SINCE ESt 1GAobci, III N'iiNV
aaence inventories OF oil companies
specializing in either crude or re-
ftnad petroleum have suffered a sharT
markdown. But the fact should not
he overlooked that consumption
seems now bound TO run at leaS,
Ia 10 per cent heavier than in 1925
BY The end Of this year there win
he Al least 100000 more automo-
hileS in operation than at the open
ing Of the wear. not counting in re-
n1acements At a most conservative
estimate each Of these will account
for SEQ gallons Of gas. or total Of
500 .O00 GOO gallons more than was
burned in 1925,
None the less. the Seminole held
il producing at a greater rate than
was ever attained before by any
single oiI-hearinG area With com
pletion Of pipe lines and storage facli'
tiles this run may show further in
crease before the month is over.
Drilling in other fields also has been
active. Storage is a heavy financial
burden on most oil companies, but
it is likely To prove profitable in the
long run.
Seminole crude Is of high gravity,
and unless it is turned into gasoline
and it's other subsidiary products at
once. heavy loss ensues. Gasoline
stocks now may exceed ESQ, 600, 900
gallons in. storage throughout the
country or about 20 to % per cent,
more than was so held last year In
addition TO the expenditure of capital
for. storage facilities. many of the
larger oil compa MES have spent huge
sums in prospecting for additional
supplies. Much of this work has been
in ma
Activity in Louisiana.
There has been great activity in
the leasing of oil lands in the northern
Louisiana fields with payments for
time running over 100000 day.
The shut-in production OF Sta ndard Oil
OF California alone, however, is esti
mated at between % 900 and $4,000
barrels a day. while discoveries made
in the last year are expected to yield
Is. 500. 900 barrels.
Production of petroleum accounted
for by other countries than the United
States has risen from IA 10 Fl per
cent since 1928. Mexico has slumped
hut South American countries have
gained
oklahoma Is facing q crisis In the
oil industry owing to new freight
rates on petroleum products recently
effective. The new schedule, Okla
homa producers assert, gives pref
erence to Kansas producers of 2
cents hundred pounds on shipments
west OF the Mississippi and to Chi.
cago. This. 1t is said, win force Okla
homa refiners to ship their products
fob. Kansas and absorb loss
About 26 refineries are affected. with
combined capacity of 226, 100 bar.
rels of 1880 carloads daily. Each time
Okla homa Indiana leases are auction.
ed, however, spirited bidding ensues