Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1937-11-20
PORTER TAKES


marketing companies operating u
Montana, or we viii have to sc
our help from the independent re
fineries.
A perusal OF Bulletin No. pages
and OF the November 18th issue
OF the Montana Oil and Mininl
Journal, will give you the amount
of gasoline and crude oil imported
into Montana during the year o.
1886 and the first nine months OF
1897. During 1886. a total OF So
562,913 gallons Of gasoline and i
514,963 barrels of crude oil were
imported into this state and it looks
as If the record for 1887 will be eV-
en- larger. Put these amounts IN
terms OF crude oil and we find that
it amounts to more than 9,400 bar
rels per day, which would take care
of all Of MOntana's surplus oil.
! Please note that of the 50,562,913
| gallons of gasoline imported, APP
proximately 100000 gallons were
imported by the five major compan-
/ les operating in this state.
Is it not just a little ridiculous
to ask the State OF Monana to leg
any u Vi bAE AGA OAA AASAaaf $50
produce only about Onehah of its
consumption, approximately 10000
barrels per day, when Wyoming on
our border is allowed to continue
TO take advantage of our markets
and to contribute TO our over sup
ply? If Montana does go on state
proration, what assurance do we
have that even a larger portion
OF gasoline and oil will not be inn
ported into this state in the future,
thereby reducing still lower the out
let for the independents? Mr.. Hutch
ings seems to think we have suffi-
cient refining capacity and that we
should build no mOre-at the same
time he admits that we have a sur
plus of oil. He says proration will
save our life. Who ever heard OF
proration increasing badly needed
markets.
1t seems to me that with open
markets in states both to the east !
and west, something can be done to
our Outlet-either by build
ing refineries in other territories /
or by getting freight rates down to
a point where we can ship petro-
leum products from our refineries /
here on an equal basis with other
Mr.. Hutchings says much has
been said by the HAYES, who
are against proration, and little by
the "HAVENTS", who possibly are
for it. OF course, I realize that for
the past four or five years people
have been taught that the thing to
do is to take it away from the
HAYES" and to give it to the
HAVEN'T, so it is not surprising
that some of us will unwittingly
embrace the theory that they are
entitled to the fruits OF someone
sIse's labor. But this still does not
our outlet for oil Just to
Keep the record clear, l will say
hat our company has a market f0xil
zoo barrels per month Il hope) in
he Kevin-Sunburst field and no
market at all in either the Border :
'r Cut Bank fields, but we are still
.gainst state proration. I
AS to physical and economic
taste, it appears that all of the in
oil will of necessity be
eft in the ground until there is
sale for it, so we do not need to
Torry over the physical waste. AS
D economic waste, state proration
ill never control the price of oil :
either can the independent oil pro-
ucer-so that angle appears to be
ut
Could it be possible that state
roration here might come out as
here the major companies have
rilled thousands of wells-cutting
own the independents market low
r and lower as these wells were
rilled until it was impossible for
It live under the amount of oil they
,uld expect to sell under state pro-
lcers will be able to drill Cut Bank -
ellis at a cost of $4,000 each and
1t i've under the amount of oil they
,cld expect to sell under state pro-
Ltion as proposed, Do you think
at the people of this state are go
g to stand by and see their wells
lut-in, thus losing hundreds OF
ousands of dollars in tax revenue,
lille millions of gallons of gasoline
Id millions of barrels of crude oil
q being imported into Montana
ON other states? Montana Is pro-
icing approximately one-half OF
e crude oil needed to supply the
products sold in the state,
ID, until such time as 1t produc-
more crude than is used in the
ate, l feel that 1t would be unfair
ask either the producers or the -
ate to surrender their needed in
me for the benefit OF a few i'm =
rters.
Northern Montana oil fields need /
pre- refining capacity-either in 4
Is state or in states to the east and '
st, where there is a market. Each
dependent oil producer must re-
re that he is not too small to
lp in obtaining additional mar
IS. He can contribute his oil, time
money. He must also realize that
5 must be done collectively and