Evening star., 1932-12-23
CRUDE OIL PRICES
HIGHLY IRREGULAR
Industry Handicapped by
s-.-
Lack of Standard Scale.
Leases Are Problem.
BY the Associated Press.

BY the Associated Press.
TULSA, Okla. December 23-The
midcontinental oil area, faced by in
ventories and underground resources
OF greatly reduced value as result OF
the widespread price. cutting Of last
week, was counting what blessing it
could find today.
snarled because Of divergent prices paid
for crude oil IN scattered fields.
While the prevailing top price in
Oklahoma, Kansas and North Texas
was II cents a barrel from half a hun
dred pools in Texas, Louisiana, Arkan-
sas and elsewhere, oil sold at a score of
prices. In parts of Panhandle Texas
three scales were in effect, and the
same held for Smackover, Ark: in vari-
Gus other parts of Texas, and along the
Gulf Coast of Louisiana and Texas
Leases Furnish Problem.
Just how greatly incomes from pro-
ductlon and sale of crude have been
affected was task to tax the Ingenuity
OF a regiment of public accountants.
Another problem given prominence
because OF the cut was what to do with
the small leases with their stripper
wells that produce just barrel or less
per day
Thousands of these wells have been
pumping along for year and more
on the ragged edge of abandonment
With prices ranging upward to the dol
lar level that was universal from April
to December the owners of these leases
were breaking even or better.
SOnle Of these wells must be aban-
doneu, and others will be shut in until
prices improve. II and when that time
comes the wells may be re-opened
Some of them undoubtedly. as has been
the case in the past, will be found to be
worthless and flooded with water.
The loss OF some of the stripped
wells, while disastrous to the little fel-
lows, and creating more unemployment
Of lease workers. will mean, however
Just that much less current production
N . period Of sharply cut consump-
The year-end shut-in Of the East
TEXAS Held will mean approximately
ooo0.oO0 barrels OF crude oil kept off
the market, and if no other good is ac-
complished by the Texas Railroad
Commission through this move, the in
oustry generally will be helped that
much. With commission employe at
every pipe line station, there is little
chance for much Illegally produced OF
to escape to- help break the market
further.
Other Federal figures show there has
peen constant withdrawal of crude
OIL from storage throughout the wear.
despite the reduced demand. Total re,
Unable crude stocks of the United
states on October 81 last were 351.-
6o5, 900 barrels, and at the current rate
OF withdrawal should amount to about
348,000000 barrels at the end of the
year. The east Texas shutdown should
bring this figure to around 343. 900 900
barrels. At the beginning of 1882
Onlteo states crude stocks totaled
370,9l5.OO0 barrels.
This reduction of an estimated 27.-
900, 600 barrels in crude stocks has been
and is being accomplished despite a re-
ductlon in +eonsumption figured by
various statistical agencies from per
cert to around 20 per cent.
An example Of the reduction in con-
sumption is given in the Federal Bu-
reau of Mines figures on total motor
fuel stocks. On October 81, 1882. the
607,407 ,oC0 barrels on hand was sufi-
cient for 242 days; on January l. 1882
the 62l,673,000 barrels on hand was
enough to last the country only 22f
days.
Gasoline Prices.
Reflners have had the benefit OF fair
prices for their gasoline throughout the
Spring. Summer and Fall-when the
consumption is greatest. Except for a
part of October. when the independ-
ents tried to raise crude oil to above
81 top, the price was above 4 cents q
gallon for United States motor grade
from the 1st of April to the 18th of
November
Trade journals blamed last weeks
crude price cut on a partial breakdown
OF the proration structure. 1t is talked
freely In the area that thousands of
barrels Of crude oil have moved re-
Gently at prices ranging from 25 cents
to IS cents barrel, while the posted
price was more than twice the latter
figure Gasoline from this source nat
urally was sold at refineries and at re-
tail IN competition with the higher
priced product, creating an unnatural
marketing balance for the cut price
operator.
The Oil and Gas Journal said today
that better prices will obtain just as
soon as thefts Of Oil are stopped and
when the producing companies realize
selling crude under the market will
inevitably result In bringing the posted
schedules down to the cut-price levels"