Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-26
.O|L TRADE WARNED
OF EXCESS STOCKS
Association Head Urges an
Immediate Program for
CurtaiIment.
BY WILLIAM VOIGT, JR,
Associated Press stan Writer.

TULSA, Okla, November ga warn
ing to the oil industry that it must take
adequate measures at once to keep
production in line with demand or see
its past efforts fail has been issued by
William N Davis, president of the Mid
continent Oil and Gas Association.
Texas is singled out as the offender
by Mr.. Davis in a prepared statement
in which he points out that State Is the
only one which has persisted in increas-
ing oil output in the face Of trouble
some overproduction.
"The oil industry should take warn
ing that it is again overproducing both
crude and refined production" the
statement said.
Cites Recent reports.
Operations continued at the present
rate will dangerously increase existing
excessive stocks of both crude and gaSo-
line and prevent the realization Of
benefits which would otherwise accrue
from the constructive efforts and Sacr1-
fees that have been made"
Mr.. Davis cited the recent reports Of
the economics committees Of both the
Federal Oil Conservation Board and the
American Petroleum Institute and de-
clares that previous forecasts Of these
committees have so closely approx
mated subsequent events that they
should now be universally accepted as
the guide to the industry's activities"
Averaging the figures of the two re-
ports for the nine-month period end
ing June 80, 1892, Mr.. Davis declared
I'VE find that the United States. crude
production should be $4,000 barrels
daily and runs of crude to stills $685.
600 barrels. For the period Of low con-
sumption ending March 81, 1892, crude
production should be 2,1o6, 900 barrels
daily and runs to stills 2,156,00O barrels.
Comparison of these figures with those
of current operations shows clearly that
the industry, Is headed for renewed and
increased troubles"
The OIL and GasJournaPS table OF pro-
duction for the week just ended showed
a total crude production OF 2,442, 1898
barrels daily, a variation downward OF
only about 10000 barrels from the pre-
ceding week. The American Petroleum
Institute reported daily average produc-
ton for the past week was 2,453,OOO.
Each figure is far above the quoted
needs of the industry.
Refinery operations for the past week,
reported by the A. P. I. showed that
plants handling 952 per cent Of the
Nations capacity announced daily
again far above listed requirements.
Peak in 1929.
Continuing, Mr.. Davis noted that
while a measure of proration had been
in effect in central pools in Oklahoma,
Texas and California prior to August,
1929, it was not until then, when United
States production reached its peak, that
serious and far-reaching efforts to cor
rect the situation were inaugurated.
During the above period, notwith-
standing discovery Of Kettleman-Hill
and other lesser but important pools,
California reduced its production $685.
374 barrels per day. Oklahoma, with
the added burden of the Oklahoma City
pool and others, cut its daily produc-
ton by 184,335 barrels. Other produc-
ing States effected an aggregate reduc-
ton of $4,000 barrels daily. and during
the same period Texas increased its pro-
duction 100000 barrels per day"