Evening star., 1930-12-10
new FIGHT IN OIL ,
PROBATION H|NTED
Industry Disturbed by Prob
lem of Controlling Ex-
CeSsiVe Output.
BY BENNETT WOLFE,
Associated Press stan Writer.

TULSA, Okla, December 10.-Straws
bobbing around in this oil capital show
how winds of uncertainty are blowing
in the petroleum industry.
While the big leaders Of the industry
are confident of its ability to weather
whatever squalls may be ahead and
emerge in a readjusted and strength
ened position, a general feeling prevails
that the immediate future holds any
thing but fair-weather course.
Developments OF the next few months
are awaited expectantly by all branches
Of the industry. They have been point
ed out in various ways as likely>to have
much to do with the industry's future
New Agreement RumOred.
Rumblings Of new and more IN
tense fight to destroy proration-the
dam that has kept oil-surfeited areas
from flooding the market with produc-
tion-have been heard for several
days. In some quarters, where prora-
ton is regarded as vitality necessary for
stabilization of the industry, these re-
ports are viewed with serious misgiv-
ings; in Others, they appear to have
tacit approval.
The forces opposing proration ques-
ton its benefits. They point out that
while the country's production Of crude
| oil has been reduced to the lowest level
since August, 1926, crude prices have
declined more than so per cent, despite
increased consumption.
ITO what purpose have we cut pro-
duction of crude oil, with consumption
gaining, II we are worse of now than
when we started?" argue the opponents
of proration.
Supporters of proration, on the other
hand, declare the industry cannot AFFORD
to dispense with 1t in the present
emergency.
1.-The condition Of waste and demoral-
| iZation would reach staggering proper
tions should the proration structure be
| broken" they hold. pointing out that
the Oklahoma City field alone, II opened
to It's full fow, would produce enough
oil to meet the market requirements Of
the entire country.
E. B. Reeser, president of the Ameri-
can Petroleum Institute and the Barns
| dali Corporation, who last week became
new ally of the oil-tariff proponents,
declared continuance of proration was
essential, tariff or no tariff.
Tariff on Imports Suggested.
"A tariff on oil imports will help" he
said, but domestic curtailment will
have to be practiced for a long time
afterward. The potential American
supply ID Ol
Another question mark of the future,
and one that Is of immediate concern
to many small producers in the mid
continent area, Is the problem of O
market outlet for the crude oil affected
by the Prairie Oil & Gas Co.'S with
drawal as a general purchaser on jan
uary l. More than $1,000 wells in Okla
homa, Kansas and Texas, most of them
| small producers in settled fields, are
affected. Solution of the problem,
through the cooperative help Of other
purchasing companies, is being attempt
ed under the guidance Of Ray NJ. Col
Inns, Oklahoma oil umpire.
However, while leaders Of the industry
agree the Prairie's withdrawal is q Sc
we're blow, they regard it as Of minor
Importance in comparison to the men
ace that would follow breakdown Of
proration.
Somebody will be found to take this
| OIL" said w. G. Skelly, president of the
Skelly Oil Co., referring to the oil cut
of by the Prairie's action. But II the
lid is lifted on pipe line runs the avail
able tankage will be filled within 80
days and then the situation, so far as
buying oil Is concerned, will be worse
than now, with the added disadvantage
that the present price structure viii
! have been ruined"
Fears Chaos in Market.
I'VE cannot afford to permit chaos
to rule in the oil market" Reeser added.
If proration loses, every interest In
the State will suffer. At present 80 per
cent of the land in Oklahoma is under
lease for oil and these leases would be
rendered practically valueless II the lid
is lifted"
The Tulsa Chamber of Commerce has
hno 1fc4a -.
The directors have authorized a reso-
luton designed to start a Statewide
campaign of the Chamber of Commerce
In the cause Of oil conservation.