Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-19
TIGHTENING OF OIL
OUTPUT BAN LIKELY
Proration Agreement May Be
Made More Stringent as
Sales Subside.
BY BENNETT WOLFE.
Associated Press stan Writer.


TULSA, OKLA, November 19.-The
oil proration structure, the dam built
by producers in an attempt to check
the petroleum output to balance with
demand, may be made more stringent
In Oklahoma.
with market requirements slacken-
ing, largely the result of the seasonal
slump in gasoline consumption. and
with supplies in storage mounting, the
demand for Oklahoma crude oil has
dropped sharply.
The situation was brought forcibly
to the attention of producers today by
the Prairie Oil & Gas Co.'S action in
reducing its purchases of oil from the
Oklahoma City field to a scant 5000
barrels daily, or $4,000 barrels less than
the amount the company has been
taking.
Survey Planned.
Following the Prairie's action Alvin
Richards, Tulsa, president of the
Kansas-O Oklahoma division OF the Md
continent Oil g. Gas Association and
chairman of the associations PROBATION
Committee, named a subcommittee to
make a survey of the producing and
purchasing situation in Oklahoma with
q view to recommendations for a de-
crease in the States daily allowed pro-
duction.
This development comes at time
when Oklahomas production is at the
lowest level in four years and the coun-
trys total output is well below what
it was two years ago. General adop-
ton of proration practices Is given the
credit for the reduced production.
Under present orders of the State
Corporation Commission Oklahoma Is
permitted an average daily output Of
545,000 barrels of crude oil. A pre-
lt,..ix, esfrvoxy hos indicated RtCha rrig
said, that this figure is in excess of the
actual market demand.
Upon completion of the new survey,
the Oil and Gas Association may rec
ommend to operators that a supple
mental order, further restricting the
States production, be sought from the
corporation commission. Members of
Prairie Oil & Gas Co.; e. r. Filley, the
Texas Co., and Ray M. Collins, State
oil umpire.
Operators in the Oklahoma City field,
the most vitality affected by the latest
DEVELOPMENTS, were called to meet today
for discussion of the altered situation.
In order that proration programs in
Kansas, Oklahoma and Texas may be
kept in general accord, the Oklahoma
committee has suggested, in resolu-
ton to William N. Davis, vice president
of the Phillips Petroleum Co. and gen.
eral president of the Mid-Continent
on and Gas Association, that the mat
ter of adjusting inequalities in the pro-
grams of the three States be laid before
the associations board Of directors.
Purchases Reduced.
e. B. Reeser, president Of the Barns
dali Corporation, who last week was re-
elected president of the American Pc
troleum Institute, pledged the commit
tee his help in seeking to effect a
remedy for the present situation.
Fred S. Cook, superintendent OF the
land department Of the Prairie Co,
said q sharp reduction In sales and full
storage tanks compelled the company
to cut its oil purchases. In October
alone, he said, the Prairie stored l,4OO,-
900 barrels of oil.
In recent weeks Oklahoma's produc-
tion has been well below the allowed
figures. Even with an increase Of 49,
400 barrels in the daily average produc-
ton last week, the output was held at
6O6,350 barrels.