Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-06-11
Bulletin No. 81
CONTINUED from Page Onel

possess. Gentlemen, this is the
picture portrayed under normal
conditions. But, my friends, today
this Montana industry faces a cri-
sis and is threatened with extinc-
ton unless the existing status quo
can be changed and rectified. You
are fully aware that the primary
and most valuable product Of crude
oil is gasoline, and we have already
discovered and developed a huge
supply Of petroleum, which is ample
and avilable, of the sweetest, fin
est and best crude oil in the world,
from which the refined gasoline,
kerosene, fuel oil and by-products
are obtained
"Why then is our oil industry In
such a deplorable condition? Be
cause we have no present adequate
market for our large daily produc-
ton of crude, and with a possible
daily potential OF many thousand
more barrels than are produced now.
Over ten thousand men are out of
employment in the northern Mon
tan oil fields, with a customary an
nual payroll of three million dol
taA Jul DCAn6 ACBAAFC0
nually of over two hundred thous-
and dollars in gross production and
net proceeds taxes, and, at least,
eight thousand barrels of possible
daily production of oil is shut in,
with no available market under ex<
listing circumstances. Al
why is this so? The cause is
to be found in the millions Of gall
Ions of gasoline that the major oil
companies import into Montana |
from other states which our Mon /
tana people have been buying and |
using. For example, last year the |
large major oil companies import
ed into our state and sold to Mon
tanans, over fifty million gallons
of gasoline. deriving therefrom inn
mense income, most of which money
went to Wyoming, Oklahoma and
California. At the same time, our
struggling Independent oil operators
and producers were so curtailed
and prorated as to the quantity OF
crude oil that could be sold by
them, that many of them are almost
today, while others OBJ
tain barely enough return to keep
body and souls together. The out
look is dark and gloomy, and, II
the condition continues, 1t spells
disaster for our oil industry.
Now. please remember that 1t is
not as If the imported gasoline was
81 is superior to that which is re-
fined here in Montana from Mon
ANA crude, for rigid chemical tests
have proven that gasoline made
from Montana crude oil is the equal.
f not the superior, of gasoline made
anywhere else.
I'm 1885, our largest crop, wheat
vas valued at SIS, 100000. The
major oil companies had good
,lop in Montana that same year,
or they sold to Montanans thirteen
million dollars worth of gasoline,
from Oklahoma, Wyoming,
md California, and the greater part
If that thirteen million dollars did
Tot benefit our state, nor the people
living there. The most of that
money eventually went back to New
York, where the great oil mag
lates all live. In December, one
arge company in Oklahoma paid
is stock holders $500, 100000 in di-
and they gave their en-
,loyes a Christmas bonus Of $780,
10000. Did Montana or its citizens ]
,enefit FROM that transaction? EN-
hatically, no.
Not content with the PROBATION 1
yhich has been forced on the indie
endents for the last tree years,
ONE of the larger oil companies
tempted last fall to have the state
( Montana itself enforce state pro-
alton, and a lengthy hearing was
ED by our oil conservation board
! Great Falls, from November 20
ntil the middle OF January, 1898;
fter deliberation and consideration,
I the vast amount of testimony
ken, the board finally declared it.
III against any state proration, and
elected the proposal.
What are we going to do about y
? You know there is a saying that
iod helps them who helps them
Ives, and that is what we intend
do about ii right here in Non
ma. That is the reason why clubs
I'd associations have sprung up in
ontana to educate our people and
'ach them the soundness OF de-
anding and using only Montana
ade and Montana produced pro
icts. Those Montanans who have
itiated this movement have the -