Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-08-22

United States. Conroe is important but
since its discovery in 1881, 800 Wildcats
have yielded only IL new prospects or
pools, none Of which promise to equal
Gulf Coast tend to produce gas instead
of oil.
CALIFORNIA?-The outline OF the
probably productive areas in California
are drawn to day practically as they were
20 years ago. Shell recently discovered
a new pool, but this win be a longtime
reserve and will give no problem OF over
production, for it Is owned completely
by the She'll Otherwise there has
been no important discovery in California
since Kettleman Hills in 1929. The per-
centage Of dry holes jumped from Fl per
cent in 1928 TO 40 in 1881, As in 1882
and 40 in 1888. -
MICHTGAN?-Is producing less than
IL Of the United States total and has
produced to date about 10 days do
nestle consumption. 49,
To summarize there is room for many
new discoveries, but the potential area
is being greatly reduced in older produc-
ing states which have flooded the market
in the past.
We feel that the Rocky Mountain re-
gion Is going to supply the country with
oil for many years to come. However,
the law Of scarcity will force prices up
ward Our oil will sell at the highest
prices in petroleum history. We forgot
one item:
SUBSTITUTES There will be no oil
famine. Science can keep the flyivers
filled with motor fuel If 1t is with shaIe
oil, 1t will mean that crude oil win COM
pete at $3.50 per barrel. OF 1t is alec
hol made from waste farm products,
crude oil will compete at SO per barrel.
Shortage or surplus depends upon the
ID A INT til.
duced and NOT on the total amount in
reserve, nor on the substitutes which may
be available In the course of time at
some higher price level. Use of sub
stititutes will RAISE the price of crude
while allevating the shortage
WHEN WILL THE SHORTAGE Be
COME APPARENT? AS soon as the
inevitable law of exhaustion catches up
with East Texas. 1t may come next
year-surely in not less than five years.
We know from history above given that
flush fields fade rapidly when they once
pass their peak.
IS OIL A GOOD nNVESTldENT?-Th
man who has a million barrels OF oil to
sell in the next decade is luckier than
the man with million ounces OF silver.
The price of silver may be jockeyed
around by politicians and manipulators
but the price of crude oil will be de-
termined by the law of supply and de-
mand. Inevitably, there will be need
for every barrel Of oil the world can
produce.
Montana has the greatest future of
all the oil states Ranking third in
area, 1t has 40, 661, 1859 acres of possible
oil bearing lands--second in the United
States only to Texas with 153, 1885, AGA
acres of prospective oil land. Montana
has more than 10 per cent of the pros
pective oil land in the United States with
prospecting barely begun. There are
fewer wells drilled in all of Montana
than in two Oklahoma counties. When
we think of East Texas field (smRller
than Cut Bank field) with 1900 wells
drilled, We know that none of US can
realize what is before us in the way of
drilling Add to that the fact that
DEEP DRILLING -history elsewhere
know that none can go wrong in buying
oil in Montana.
HOW CAN OIL BE BOUGHT?-Buy
land in fee simple, including all mineral
rights, else take longtime leases else
buy landowners royalties. We favor.
the third method, for it escapes large
outlay of money, avoids land taxes and
rentals and makes 1t unnecessary for an
investor TO give his other business and
learn the drilling business, as is neces-
eary in lease operation.
The safest most profitable investment
in the country today is in OIL.
The best place to buy oil is in the
Rocky Mountain region and particularly
in Montana where oil can be purchased in
underground storage for few pennies
per barrel; where the investor who buys
NOW has all the advantage Of deep
drilling that is inevitably coming; and
where geographic condition provides
the highest price structure in the United
States