Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-05-07

premium; and in some instances they
are pledging their properties and their
own credit for use in getting the refin-
cry established. Thus Montana produc-
ers are getting in direct touch with the
buying public for the first time
For the first time, the producer sees
in the gasoline market the basis of his
price of crude. At the same time he
has assurance, for the first time, that
he will have a steady market. No more
will the buyers cut the price in the fall,
during the dull season, store up a lot
of cheap oil and then raise the price
in the spring: not so long as the pro-
ducers have a direct interest in the
refineries. These refineTfes are going
to have a steady volume of business,
just as have the international at Sun
burst and the sole survivor of the pion-
GERS. the Big West at Kelvin The pro-
Queer will have a definite idea how much
crude he is going to sell over period
of a year No longer will he be niger
rich' in the spring and looking for a
soup fine in December.
1t is an interesting fact that the Mon
tana gasoline price structure has begun
to move on its own momentum for the
first time. Gasoline price changes have
come, not as result of the decision
of potentate in Wall Street or in Tulsa,
and not as result of price changes
elsewhere in the United States Cuts
i'll the price of gasoline in Montana have
followed the equilibrium of the Montana
oil industry Although appalling to some
it is a healthy sign of life Idaho, west
ern Washington and the Dakotas are
the natural, S65-day market for Montana
crude. All the crude that this state
ean produce can be marketed in this
trade territory at a fair profit, in fair
competition with gasoline hauled from
500 to 1900 miles.
To the royalty investor this is an i'm
portant evolution. The growing palms.
to the man who leaned heavily upon his
royalty income for his livlihoOd Not
50 for the foIward-looking investor. Like
the Cut Bank producer who foresaw the
Canadian situation and capitalized it,
the intelligent royalty investor has taken
advantage of depressed prices to buy the
che dpest royalties the state has known
since 1920-before there was commercial
production of oil in Montana at which
time no royalty in Montana was cons.d-
cred valuable.
In current publication we discussed
the old James Miller well, where the first
oil well in Kelvin area was drilled in 1912
That well had oil, but not in commercial
quantities. If anyone had known in 1912
what we know today, "a years later, he
could have bought lands containing
100000 100000 worth of oil on the basis
OF sheep pasture. The significance of a
showing of oil has long been recognized
in the Midcontinent and elsewhere but
not until recent years has it been capt.
talized in Montana and this results
from the science of acidization
The Montana crude oil market is
going to be stabilized during the coming
wear. for the first time in its history.
Years of prosperity are ahead. if produc-
ers do no more than care for the re-
quirements OF the seven major refineries
now operating, now building or definitely
contemplated
The royalty investor. owning oil IN
UNDERGROUND STORAGE. can look
foreward to a steady market for his
crude. with price based on the value
OF the refined products