Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-30
CRUDE PETROLEUM
PRICE IN UPSW|NG
Recent Developments Point
to Improvement in U. S.
Oil Industry.
BY BENNETT WOLFE,

Associated Press stan writer.
TULSA, Okla, July 3O.-Stripped Of
excess weight, the oil industry may rea-
sonabIy expect to pull itself from the
boys of depression or at least make a
good start in that direction, before the
year ends.
Such view, inspired by recent en-
couraging developments, is gaining
ground in mid-continent oil circles. The
upswing of the crude petroleum market
and improvement of the industry's sta
tistical position have been the major
note of cheer
Contributing to the more favorable
outlook is the industry's physical posi-
ton. Operating expenses have been re-
! ouced and saner producing and market
ing programs adopted
Semi-AnnuaI Review.
The Oil and Gas Journal will say this
week, in semi-annual review, that the
| industry should be able at least to
start on its way out of the woods dur
| ing the coming half year"
This is not a period of undue opti-
| mism," the journal will continue, but
1t would be unwiSe to overlook the con-
Structive factors at work within the in
dustry and what they have been ac-
comprising toward stabilizing produc-
the last six months in the face Of the
East Texas stampede.
Tie liquidation of excess stocks. the
lesson learned by producers and refiners
from the experience of reckless produc-
ton in East Taxes.
The indications of a better demand
at living price during the remainder
OF the season encourage the hope Of
SUBSTANTIAL improvement from now on.
fA4 Sv,l,
eral a long time to get away from. the
idea that production meant profit,
hunting for the pct Of gold at the end
OF the rainbow. More progress was
| made, except in East Texas, toward &C
tual sterilization of operations during
the last six months than ever before.
More attention is being given to the
limitations CT requirements on produc-
ton and the need for getting a return
on the investment, essentials in any
permanent prosperity.
Trade Statistics.
That sounder attitude on the part
| of the bulk of producers and refiners
| Is going to help materially toward even-
tual recovery the next half year"
These statistics are cited as indi-
| eating the industry is in a favorable
position:
Crude oil production for the first half
of the year totaled 4l5.774,190 barrels,
or 53,119, 423 barrels less than for the
| first half of 1890 Production for the
II months ended with June was 1884,
100000 barrels less than for the pre-
ceding 12-month period.
| Crude runs to stills were reduced
from 396.910,000 barrels in the first
| five months of 1880 to 362, 098. 900 bar
rels in the same period this year.
The total demand for crude oil os-
| tensibly has been greater than the
| available supply, so that on June I
! stocks had been cut to 1922. 900 bar
! rels, decrease of more than $4,000, 600
! from the figure on June !, 1880.
Decrease in Stocks.
Including refined oils. stocks de-
| creased from JAP 900 barrels on
! June l, 1880, to 656,212 900 barrels on
! the same date this year, drop of more
than 100000 barrels.
Domestic consumption CT gasoline was
practically the same for the first half
of this year as for the first half of 1890,
| which means that during this year of
acute general depression the demand
| for the principal product of the oil in
dustry is from 10 to IL per cent above
| the demand during the boom year Of
| 1929