Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1932-03-26
THE INEVITABLE HAS HAPPENED
AAAN A M rrE on. PRODUCING INDUSTRY


The OH News for many months has been supplying us
readers With facts and truths about the way oil wells and OIL
fields perom so that the dire predictions based upon
cal potential production would not msead its readers INTO
looking the future Of the oil industry through oaA s
says the ALBUQUERQUE OIL NEWS
Every pusber oil well declines rapidly in daily production
Thus it IS also that every oil field composed OF gusher
wells gradually supply less and less OF the daily require
ments is why fields must be discovered and add
tional wells drilled
To illustrate take the Seminole Citye Oklahoma, field
In 1927 it produced fortyeven million barrels; in 1928
the next year produced eighteen million barrels and in
1891 slightly four million barrels
The present daily production of the principal flush oil
fields discovered and developed during the
past three years, Hobbs Yates Van East Texas Okla
homa City Seminole extensions is the maximum which
allowed produce due to mechanical and
natural conditions In other words the present allowable
der roraton restriction the maximum under intelligent
gneerg practice example the Wilcox sand wells in
oklahoma CITY field were permitted to flow more oil the
sand coming out with oil would the pipes and
necons as if they much straw East Texas wells
we're allowed produce wide for short time they
would flow and practically all OF them would have to
be equipped with pumps
The average number of wells completed per year from
1899 1880 inclusive q S2S In 1881 only 67OS OIL
wells were completed of wells producing in the
United States decreased 2s,l64 during last year
The estimated daily production of crude oil in the United
States estimated by L. E. BignaT petroleum engineer OF
prominence totals 228ll6O barrels Whereas it is estimated
the refineres will require 250OO0 harek per day Of DO
MSTIC crude during the summer monthsor oo4O barrels
per day than be ntegenty produced from present
fields and wells
1t takes many months and sometimes Several years drill
wells the deeper horizons Of unproven structure
These operations necessarily slower than where all forma
ons and their thickness definitely known as the case in
proven fields Even after the discovery well brought in it,
takes many months to provide the pipelines storage, etc.
complete enough additional wells bring the pro
ducton of the its peak Therefore the search for
fields by the drilling Of test wildcat wells dare not
be postponed much longer The major oil companies reeog
nze this They making plans normal amount
Of drilling and prospecting just the handeaps
incident to winter weather have passed
Most of them fully expect that an excise tax which is the
equivalent of tariff will be placed upon imports of both
crude oil and refined products by congress this suf
GENTLY high it will place additional drain upon domestic
production and storage.
the crude oil price-fixing monopoly can prevent
substantial price in face of the present situation
beyond comprehension Furthermore unless 1900 to 10000
wells drilled this year. the oil industry Of the United States
win definitely face shortage Of domestic supply in 1888
situation which they dare not permit to occur.
Thus the inevitable has happened in the oil producing
industry and available production has declined to demand
The price advance thousands of oil field workers
will be reempOyed normal drilling viii be resumed royalty
will experience increase instead Of decrease in
their monthly checks independent operators viii find again
possible finance drilling of well located leases
win have market at other than distress prices.
The oil producing industry is indeed fortunate to have
reached its present status Of sterilization and equilibrium inst
the time when general business conditions are beginning
start the up grade after having passed bottom of the
recent depression Fortunate because they proceed
carry out essential development and validating present
low prices Fortunate because they repair replace
millions Of dollars of equipment needed supplies at pres
ent low prices Fortunate because by taking advantage Of the
the present low cost era to place orders for hundreds Of mil
lions Of dollars of pipe tools STEEL trucks autos paint chem
Gals leases etc. they will take the lead in pushing all business
and prices rapidly up the grade Many months
oil industry was destined o
10 Present indicates that they arc practically be-
ing forced by circumstance beyond their control