Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-24
INCREASES IN OIL
PRICES DEMANDED
Trade Journal Editor Believes
Move Should Be Made
to Aid Industry.
BY WILLIAM vOIGT. JR.,
Associated Press staff Writer.

TULSA, Okla, September pa
blunt query asking why oil prices have
not been increased is hurled at lead
ers of the industry in IN article by
Andrew M. Rowley, managing editor OF
the Oil and Gas Journal, to Re printed
in the Forthcoming issue OF that pub
lication.
Mr.. Rowley writes that there mo
longer exists any reason or even any
excuse for delaying Increases IN prices
for crude oil to an extent which VIII
permit producers to operate their prop
critics at a profit"
The article points out that the crude
oil industry has been stabilized ana
the industry knows for the f1rst Tune
in years what output may be expected.
ASSURANCE of Stability.
NThat the industry realizes
production has been curbed def1nltely
to market requirement or less is
indicated conclusively by the TACT a
number of companies are already
making plans to protect their future
requirements by procuring promising
acreage" Mr.. Rowley writes.
He notes that assurance OF staolllts
in the industry is shown by ~ tne
fact curtailment of production is not
ton of producers, but is fixed and en-
forced by State bodies, and 20 the
throwing into the discard OF the buga-
boo's potential production.
Potential production, Mr. Rowley de-
cIares, does not mean a thing ana rs
the flimsiest myth that ever trlgnten-
ed a big industry"
The article analyses the water con-
ditions in the Hobbs, N. Mex, pool and
Lob {fv,
that the operators themselves in those
areas will hold production to mini
mum in the interests of conservation
and prevention of water enc-oachment.
It says that. though the Hobbs field has
been estimated good for 100000 bar
rels daily, the operators will hold 1t TO
a maximum of $4,000 barrels daily 10
prevent ruin of the pool. In four
months. Mr.. Rowley writes, the 14O-
foot oil structure there has been re-
duced to 75-foot structure because oil
water encroachment.
Water encroachment under unlimited
production IN East Texas also would
result in physical waste, and that field
under State control will be pinched
into 100000 barrels maximum.
Declaring that the economic reasons
alone will tend to prevent production
exceeding market demand, Mr. Row.
nal to show that the petroleum in
oIstry is in better statistical condition
than 1t has been for years"
Crude oil production so far this
year Is about 5000 900 barrels less
than during the similar period last
year." the writer asserts. Crude oil
stocks on August /, he writes, were
more than 100000 barrels less than
last year, while gasoline stocks were
nearly 100000 barrels less.
Stocks Reduced.
Summarizing the situation" Mr.
Rowley writes, "crude and gasoline
stocks already are vastly reduced, and
under the plan of holding production
in the United States to 2.376,000 bar
rels daily the result would be con-
tinued withdrawal of a minimum of
$4,000 barrels daily from storage, even
after Oklahoma's flush fields are OPEN
ed and the State is producing $4,000
barrels daily, $4,000 barrels more than
it is producing now"
Despite this optimistic condition. the
writer continues when one views the
price situation he gets an entirely diff
ferent picture and one which is mighty
hard to understand" One year ago
the price in the midcontinent area for
36 gravity crude was $1.29. Now it is
81 cents.