Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-19
Boosting Oil Prices by Bayonets.

DVvsIAAS VII 4IASCS Wy nay OAGtS'
That the oil industry is In a bad
way, owing to overproduction and the
consequent lowering of the market price
of the material. in various FORMS is
strikingly in evidence in the drastic
measures taken in Oklahoma and Texas
to shut of the supply of the raw prod
uct. In both States wells have been
closed to prevent further flow. the net
result of these shutdowns being the
curtailment of the country's daily out
put by about million barrels. Already
the effect of this curtailment upon the
price of crude petroleum is being felt,
some companies having advanced their
rates twenty-five cents above the pre-
vious quotations. The goal of Governor
Murray of Oklahoma, dollar barrel,
is yet to be attained.
The spectacle of State executives
forcibly restricting production, with the
use of the militia of their States to
compel obedience. is not altogether a
happy one. Just few days ago a pro-
posal to the Governors of the cotton
States to bring about the destruction Of
one-third of the growing crop met with
sufficient resistance to cause the idea
to be abandoned. Yet they might. in
certain political exigencies, have given
sufficient support TO cause the sponsors
of the plan to proceed, and. perhaps
with milit1ry aid given by the Gov
errors. to destroy the percentage of
growing cotton estimated as necessary
to restore the price to normal.
The plight Of the petroleum industry,
arising from oyerproduction, is like that
which af1icts the bituminous industry.
There are too many mines in proper
ton to the demand for soft coal There
are too many oil wells for the mainte-
nance OF the flow necessary to meet the
needs Of the market. A coal mine is
easily developed, and there is a wide
spread of bituminous Expenditure of
q few thousand dollars VIII bring soft
coal to the surface and send it to mar
ket. Just so, comparatively small
sum spent in drilling In a rich oil field
will bring millions of barrels more to
the surface
Admittedly, the problem is dificult
one. There is, however, no assured
remedy in political actions by state ex-
ecutives. acting independently. 1t is
more than State problem. 1t is more
than a national problem. indeed. Con-
situations have been held between the
oil producers and the Government, with
cut developing any dependable plan for
regulation Of the outflow to meet the
demand and to prevent overproduction.
and also, in the interest Of the con-
sumner. to prevent underproduction and
consequent imitation of prices.
The good cid law of supply and de-
mand seems TO be unequal to the inme-
diate solution Of this puzzling question
of how to keep the two in balance. Per-
haps that is because time enough is not
given TO let IL work The impatient
spirit OF the day demands swift results
such as that of the jump of twenty live
cents IN the price of crude" following
the closing OF the Oklahoma wells. But
such a result is indispensable for long
continuance or for equitable effect upon
all concerned. The additional dollars
that are made in increased wholesale
prices are coming from the pockets Of
those who use the ultimate products
Are they not entitled to their claim for
consideration? Should not the con-
sumner, without whom the industry can
not exist, have the benefit of some more
economic measure than the forcihle
closing of wells at the point of the
hayonets Of State militiamen at the or
ders of politically-minded executiyes7