Evening star., 1931-12-31
OIL TRADE LOOKS
FOR BETTER TIMES
Mid Continent Producers Are
Hopeful That Curtailment
Will Aid Industry.
BY WILLIAM VOIGT, Jr.,
Associated Press STAFF Writer.

TULSA, Okla, December 3l.-After
one of the most turbulent years in its
history. the Midcontinent oil industry is
ready to step into 1882 confident that
better times are ahead.
Full of negative SuperlativeS, 1881 saw
one sensational event after another
crowded into its 365 days. Here are ex-
ampleS:
Biggest-The East Texas oil field,
which reached its maximum natural
flow during the Summer.
Lowest-PriCeS which went to all-time
depths, reaching a 10 to % cent range
in Oklahoma and Kansas, and actually
dropping to cents a barrel for time
in East Texas
Most draStic-The martial-law action
taken by Cows. w. H. Murray of Okla
homa and Ross Sterling of Texas to try
to stabilize production.
First time in history of the industry
that major operators were brought to
common viewpoint on proration, the
legal curtailment OF flow to match de-
rnand.
Woven into the pattern were extremes
of peSsimiSm and optimism.
Climax In Summer.
With the industry already on the
downward economic path, the year now
passing saw the oil business slide ever
deeper into turmoil. A climax was
reached in Midsummer. but the Fall
saw improvement, both in Stabilization
of production and in prices. Winter
brought fear Of more trouble, due to
decrease in demand for petroleum prod
ucts, but observers say the swift action
of the oil leaders who in December for
the first time got together" on a cur
tailment program, wound up the year
in fine shape.
The troubles piled up early in 1881
Storage was great and we'll after well
blew in down in East Texas. March 4
the price was depressed from SLOT top
per barrel to 81 cents.
Attorney General Mitchell announced
April IS that oil States advisory groups
and State regulatory bodies might limit
production without violation of the
antitrust laws.
Under this ruling representatives of
six States met in September at Okla
homa City fixing the maximum pro-
duction that could be taken from the
ground without danger to the industry.
Daily Flow Increased.
Much happened between those dates
though. More wells in East Texas in
creased the daily f1ow and on May 26
East Texas crude prices dropped from
the 67-cent top to a 37-cent top, which
was the lowest posted price since Au-
gust 23 1906, when 81 cents was paid
for crude of 30-degree gravity
Producers in Oklahoma City went on
q strike July 8, when prices dropped to
their all-time low level of 10 to % cents
a barrel for the Midcontinent area, and
Kansas producers met in Wichita and
agreed TO strike, too. East Texas pro-
duction at this time was about $780, 600
barrels a day.
Prices steadied few days later and
went up to 38-cent average for all
areas except East Texas, where con-
tracts were reported for as low as II
cents a barrel
Tuesday, July %, Gov. Murray issued
his -by-Saturday-or or-martial-law edict.
The increase did not come, and a week
later Gov. Murray actually did send
his State troops into all flush fields.
East Texas went wild, with Oklahoma
%ells shut, and production had climbed
nearly to the million-ba mark by
August IT, when Gov Sterling sent
troops to enforce his newly signed Texas
conservation law
Prices went up-from to 25 cents
b barrel in East Texas and to 10 cents
elsewhere in the area. Eighteen hun
dred East Texas wells were opened Sep
tember and permitted to produce up
to 225 barrels each. The price went up
again, to 68cent top, for East Texas.
85-Cent Top Established
November 2 was a red-letter day for
Tulsa, when the price was increased Is
cents to an 85-cent top, where it now
rests.
The maximum allowable of 1881 900
barrels fixed at the September con-
ference in Oklahoma City was seen as
too great, with Winter at hand, and,
with fear Of a cut in crude prices pres
ent, President A. L. Beatty of the Amer
scan Petroleum Institute called an
emergency meeting of his directors in
st. Louis December II.
This resulted in a voluntary Sunday
shutdown of most Texas and some
Oklahoma and Kansas wells, with the
result that the last weekly report of
the A. P. I. showed a total of 1877 400
barrels decrease in the daily average
production.
With total production from the Ma
tion now at around 2,290,000 barrels a
day and further reduction in output
likely, most operators declare the in
duStry should go through the rest OF
the Winter in excellent condition.