Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-31
OF OIL
WIDELY ENDORSED
Leaders in Industry See Hope
for Better Times in
CurtaHment.
BY BENNETT WOLFE,
Associated Press staff Writer.

TULSA, Okla, December 31.-AS the
somewhat battered ship Petroleum In
dustry embarks on the voyage of 1881
her officers and crew look hopefully for
beacons that will guide the vessel clear
of storms.
While the ship one of the newest
upon the industrial seas, was buffeted
upon rough waves during the 12-month
trip just ended she survived in fairly
good condition, her masters believe, and
may enjoy smoother sailing in 1881, If
careful heed is paid to charts which
have been prepared.
Notes of Warning.
Seeking to help find fairer-weather
course, the American Petroleum Insti-
tutc and the Midcontinent Oil and Gas
Association have equipped the navi-
gators with certain maps and notes of
warning. In the face of opposition
confident their recommendations point
the proper course. They do not look
for any dangerous mutiny.
First of all, continued proration of
crude oil production is recommended.
The proration question has been the
subject of much debate in recent weeks
and some vigorous assaults have been
made upon the operation of proration,
but the industry's leaders repeatedly
have urged that this method of re-
stricting production must be kept in
effect if the oil business is to be sta
bilized.
"Proration has saved the industry
from chaotic condition" declared E.
B. ReeSer, president of the Petroleum
Institute, land must be continued
During 1880 the industry overcame Sc
rious threats and maintained a healthy
condition basically, which augurs a
prosperous period during the coming
year."
w. N. Davis, president of the Mid
continent OIL and Gas Association, be-
dustry Is to improve its position.
"Proration Is an essential factor" he
said. Its abandonment would bring
price war which only the strongest
could survive. PROBATION is the only
protection of the small producers who
have no pipe lines, refineries or ex-
elusive markets of their own"
G. c. Herndon, vice president OF the
Sicily Oil Co. and formerly president
of the Kansas Oklahoma division of
the Midcontinent Association, voiced a
similar view:
THAT affairs now are no worse than
they are may be marked up as a dis
tinct credit to proration. PROBATION,
coupled with restraint upon drilling
will make for sterilization"
Reduction of Stocks.
Reduction of stocks of gasoline, the
industry's principal money product, to
an economic balance, is a recommended
ton which has been given especial
emphasis lately by leaders OF the In
dustry.
A tariff on oil imports is being
sought by large group of independent
producers as a relief measure. The
Tariff forces recently gained new ally
when Reeser joined their ranks. The
American Petroleum Institute head
last week telegraphed Secretary Wilbur
Of the Interior Department:
Personally have heretofore not
favored a tariff, but, in view of the
present serious situation (referring to
the plight of 10000 independent pro-
ducers in Northeastern Oklahoma and
Southeastern Kansas who face loss OF
their market outlet in Prairie Oil &
Gas Co.'S withdrawal as a purchaser,
am not fully persuaded that pro-
tective tariff is necessary to save, not
only the wells now in question, but
to save a much larger number OF
wells from the action which other
companies will be required to take from
an economic standpoint. We are not
facing a theory, but a real condition.
The labor thrown out of employment
presents a serious problem.
AS more remote remedy and one
looked to for a permanent solution of
overproduction resulting from COMPETE
tive development of single oil pools,
utilization, or unit operation, Is being
advocated.