Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-03-18
BELIEVING IMPOSSIBLE" THINGS
The petroleum industry moving rapidly that
CHANGE O fan indush

~ HE great fortunes i'm oil have been
made in such times as when gasO-
line displaced kerosene as the most
important product of crude oil. There
were those who bewailed the loss of the
kerosene market and the passing of
coal OIL" To some il meant disaster.
But TO the fOrward-Iookilg ones. 1t
meant an opportunity for fortunes:
greater fortunes than could be dreamed
of in the kerosene era.
The loss of the Canadian market a
year and half ago spelled disaster to
some Montana peOple-Or they thought
il did The Canadian market. which
spurted to great heights in the summer
time and dropped to nil in the winter
months kept the industry busy-but
kept the industry broke" because of
the up-and-dOwn manipulation. When
ever there was a lot of oil and no mar
ket the price of crude went down to the
level of cost of production. Whenever
the supply dropped off or whenever a
local market outlet developed, the price
OF crude skyrocketed far above the
MidcOntincnt or any other prices Each
price increase resulted in a lot of drill
ling and a lot of resultant production
was rewarded with a price cut. II was
a perpetual headache. Yet when il
ended. there were many who thought
that the north Montana oil industry was
forever ruined
Today we find that American refinery
consumption is taking up the crude that
was formerly sent to Canada and for
the first time the price of crude is based
for the most part on the Midc0ntinent
price. For the first time we have some
sort of uniformity that will make it
possible for an operator or royalty i'm
weston to look forward to probable
rate of earning through a fairly stable
price. Present prices are much too low,
il is agreed but it will be the law of
supply and demand that will adjust the
price. Those who know the history of
oil prices I'm the NIidcOntincnt have no
fear that the AVERAGE price will not
be much higher than present prices,
over the period of years.
The more we study the national mar
kct situation the more convinced we are
that there is an active market ahead for
all the oil that can be produced in the
Rocky Mountain region. The national
situation was never better with no sign
of breakdown of the successful regula-
tiOn OF the oil industry, through volun-
tary agencies. Over these agencies
hangs the constant threat of government
control should private enterprise fail.
Government control would doubtless
mean naturalization OF the oil industry,
so there is no producer large or small,
who honestly wants any semblance of
government control. There are some
who see i'm such change the uppor-
tunity to leash in" during the process.
Those clever persons are urging gov
ernment control for personal gain.
The changes that are honestly taking
place in the oil industry are pTOvid-
ing great opportunities for increased
profits in the oil industry. There is
every reason to believe that oil operators
will be able TO make a great deal more
money out of oil production in the
future than they have in the past.
Along with that statement goes the fact
that methods of 10 or Is years ago
would mean ruin to the operator who
utilized them. Everything has changed:
drilling methods, production methods
and refining
Xot much change has taken place In
drilling methods in Montana. We are
still using the drilling methods OF the
early 'twenties, but the day is at hand
when the new. modern equipment will
come I'm TO replace old cable tool equip
lnent. Manufacturers are all turning