Evening star., 1927-05-26
AUTO|STS BENEFIT
FROM OIL OUTPUT
$780, 600, 900 Already Saved
Through 0verproduction
in Fields of U. S.
By j. G. ROYLE.

Special Dispatch to The star.
NEW YOliA, May 26.--The heavy
production OF crude oil in the United
States in the last few months. which
some oil prod, RS are now making
strenuous efforts to reduce, has sa 'e6
consumers OF gasoline $500, 600. 900
since January that is. the amount
consumed from January l to date has
heen sold ri e to .00O.-
900 less than the total at prices cur
rent last Fall There is no immediate
prospect that prices throughout the
country will he general tvanced In
the immediate future. despite the
''-~4s of the = il men.
Cons imption Of petroleum products
probably will he heavier this year IAN
ever before in history. Automobile
manufacturers estimated output for
the IL months at 100000 cars. even
before the Ford Co. confirmed today
announcements of it's new model. the
first Of which was made exclusively
in these dispatches on May 13. But
production has not yet been curtailed
and Improvement Of the situation from
the point of view of the oil companies
promises to come slowly.
Agree to Restriction.
Twenty large companies in the Semi
mole field have agreed to restrict pro-
duction in certain areas and 70 hold
down drilling operations in others.
Eut this agreement lasts only as long
as il of the 90 continue il and does
not include the hundreds of independ:
ent operators who are producing oil
in the Seminole field alone.
The large companies also have indi-
Gated that they are looking with hos.
tile eyes at the volume of production
IN California and in West Texas. The
Seminole. West Texas and California
independents ask belligerently why
they should be curtailed when the re.
mainder Of the petroleum areas are al.
lowed to put out all they can and will
Moreover, the independents point out
that the larger companies have al
ready under lease and are acquiring
huge acreages in Venezuela. COLOMBIA
Russia. Persia and other countries
which they are at liberty to work at
capacity, bringing this oil into markets
where it competes with restricted out.
put from American fields.
Production in America has increased
fully % per cent in the last year. In
no north this year has daily average
crude oil production been under 2,31o..
600 barrels. This compares with a
general average in the first five
months of 1926 Of less than 1850, 900
barrels. Refinery production has al
most kept pace with that of crude oil.
Stocks of gasoline have increased near. |
~ 35 per cent since January /. Mil
lions of gallons both CT crude and re. |
fined products have been going into
storage. Even when the Seminole and
other flush fields are curbed, these |
storage stocks must be worked off be. |
fore prices can react sharply. More.
over, what in former days would have
been average crude production now |
through various cracking processes is |
sufficient to give an overproduction Of !
gasoline. ..... >.
Production i'm Mexico.
The daily average crude oil produc-
ton in West Texas for the last week
scored a gain of $3.50 barrels over the
previous week to a new high record OF
420.620 per day. Mexico has Just |
brought in huge new producer in the |
Panuco felds.- The Maracaibo Basin |
ie hcinC cnffof1 i'm Shono yuhAro Ia,,oa |