The Waterbury Democrat., 1933-10-06
Code Ends Chaos In Oil Industry
Producers
 And Begrmed Workers FreedA Last From Day

shorter refinery day. too. is creat-
 As an example, Midscontinent Petroleum Corporation, oper%Nng the worlds largest independent ae- finery, reports an addition of 200 men. an increase of one-sixth. This refinery now operates on the six hour day instead of eight hours, as heretofore.
 Big refiners can no longer Ill their storage tanks with cheap oil and meet their requirements for long periods with Q cheaply-ob- tained supply. Crude oil withdraw ais from storage will be limited, under the new oil code, to 100,0O0 barrels daily for the country. Ad- ditions to storage VIII pc made only with the approval Of the plan ming and co-ordinating committee. No longer will the royalty owner se his oil produced from his lands at depressed prices for long periods.
 Already, crude prices have in- creased in California, Oklahoma Kansas, Texas and Pennsylvania to levels almost twice that of two months ago. The long -hoped-for $1 crude price in the mid-continent Is now an actuality--meaning a re- sumption of exploration after threo years of comparative idleness.
 Ickcs' "Big Club"
 Tckes has announced that the price fixing provisions will remain in the oil code, but will not be made use of until such action Is necessary. Thus, hc may wield this threat over tho industry as a club to assure price stability. the basis of bringing about settled condi- tons.
 Dollar oil now in effect means a doubling and In some eases trI- bling of tho income from the oil fields to more than 350,000 royalty owners throughout the country. The royalty interest is one-eighth of all oil produced in the United Statcs--which means that 1O0,. 100000 barrels n year, an addi- ton of about $50, 100000 Q year to the incomes of these widely scat tered investors.
 1 "Strippcrs" Flourish Again The new deal solves tho perplex- ing problem of the "strippers" or the aged, small pumping wells Ca stage every gusher reaches some, day). These settled wells are the backbone of the oil industry, ac- counting for the bulk of employ ment In the oil fields. Bringing in of gigantic flush fields such as East Texas and Oklahoma City with its price. breaking effect has | caused those scttled-well owners to operate at' loss for temporary | periods.
 But with sl oil an actuality, these wells can once more be op- crated at q profit, making possible payment of worthwhile wage ana providing increased employ ment. Hundreds of oil-towns arc experiencing revival in buying | power.
 olrs forgotten man = tho small | operator - is certainly getting a new deal. For the first time In | four years 1t will pay him to go out and develop shallow, proven oil leases.
 Imports Under Check | Furthermore, the new deal VIII protect tho domestic oil industry | from excessive imports. since a rntio will be made between domeB- tic production and imports to pre- vent the flooding of the country with cheap. foreign produced oil.
 Proration still remains in the control of each state where prora- ton now exists. but any production fin excess of Ickes' recommended quotas assigned to each state is termed an unfair trade practice and in violation of tho oil code. Thus the federal government seeke only to regulate tho industry. The new deal is like a powerful, heavy governor on an engine-a stabilize ing influence.