The Carbon County news., 1931-08-06

If there is any question in any
ones mind as to whether or not
the present prices of crude oil are
wholly artificial-are absolutely
manipulated-and that they have
no relation whatever to the So
called Economics" of the general
oil situation, a careful study of
the following data and the graph
above should dispel such uneer-
tainty.
In the last nine years California,
Oklahoma and Texas have each
gone on a rampage of local over
production. California had her
big year in 1923-Oklahoma in
1927-and Texas in 1881.
In California, Santa Fe Springs,
Long Beach and Huntington Beach
all hit their peak in 1923. Santa
Fe Springs produced about S0,000,-
900 barrels that year-Long Beach
about $4,000, 0,000-and Huntington
Beach about 34,000,000-a grand
total of 183,000,000 barrels from
these three California fields in
1923. In 1929 extensions and new
producing horizons sent these
fields on a second spurt-and a
second peak of 153,000,000 barrels.
In Oklahoma, Seminole hit her
peak in 1927 with about 136,000,-
900 barrels. This field produced
105,000,000 barrels in 1928 and
1O1, 100000 barrels in 1929.
Today East Texas is hitting the
high spots with anywhere between
100000 and 100000 barrels day.
A careful study of the accom-
panying graph reveals the start
ling fact that neither the flood
from California in 1928 nor the
flood from Oklahoma in 1927 had
anything like the influence on the
general crude price structure that
East Texas is having today.
The graph shows that, in Cali
fornia, in 1922, the year before the
flood in that State, the average
price of crude was $1.25 barrel
and in 1923, the year of the
flood, it dropped to 90 cents bar
rel. The price of Texas crude
dropped from $1.59 to $1.48, while
Oklahoma crude advanced from
$1.72 to S1.74. It is clearly ap-
parent that the 1923 flood in Cali
fornia did not wreck the prizes
structure of either Oklahoma ol
Texas.
The graph also shows that il
Oklahoma, in 1926, the year be-
fore the Seminole flood, the aver
age price of crude was $2.31-and II
1927, the year of the flood, it drop.
ped to SLAB. The price of Texas
crude dropped from $1.85 to Sill
while California crude dropped
from S1.54 to S1.13. 1t is, there
fore, obvious that the Seminole
flood did not wreck the price struc
ture of either Texas or Califor
MIA.
Before drawing any conclusions
! about 1880 and 1881, let's taxi
into account few vital facts. II
1923 the total output of Califor
MIA increased 124,000,0OO BARREL
over 1922-Texas output increased
12,000,000 barrels and Oklahoma
output increased 100000 bar
rels. The increase for the entir,
United States was about 175,000,
900 barrels. The crude oil in stor
age December 81, 1923 was abou
82,O00,000 barrels more than Oh
December 81, 1922. Imports o
crude oil, in 1928, were about 80,
100000 barrels-or almost exact
ly equal to the increase in store(
crude.
In 1927, the year that Oklahoma
went on a rampage, her outpu
increased 99,000,000 over 1926
Texas output increased 50,000,00I
barrels and California 100000
barrels. The increase for the en-
tire United States was about $780,,
100000 barrels. The crude oil ir
storage December 81, 1927 was
about 100000 barrels more thar