Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-08-24

Crude purchases in Cut Bank
field are said to total more than
! 400, 600 barrels and James w. John
son. Montana representative of
Britsh-American oil company, stat
ed that he wants another 100000
TO 10000 barrels. Crude for Bri-
tishAmerican Is being moved thru
the Toronto Pipeline to Coutts and
there loaded into tank cars for
shipment TO Moose Jaw Consider
able crude has been shipped 10
other Saskatchewan refiners by
tank car. direct from Cut Bank.
Shipments have totaled as high as
$500 barrels per day.
AS a result Of these purchases,
Cut Bank field will be without stor-
age oil by the end OF the present
month One Montana refiner is re-
ported to have turned over 100000
barrels OF stored oil on the basis
of $110 with the understanding
that the oil is to be replaced next
summer. upon demand This means
the buying into 1871 and
the resultant stabilizing Of the price
There is general belief that the
Canadian market vial continue to
call upon Montana for crude until
such time as new oil fields are de-
veloped. The Turner Valley field
Is to be produced during the winter
months at $4,000 barrels per day
and the excess Of production over
winter demand Will be stored by the
refiners who will buy
oil over the entire year rather than
only during the summer months.
Refiners must provide their own
storage and carry their own inven-
cries however. The rate of de-
line OF Turner Valley production
s such that 1t is improbable that
he all-winter operation will sup
by refinery demand OF the prairie
PROVINCES. II is anticipated that
Montana will have to provide from
200 to 1000 barrels per day to
Ieep Saskatchewan refineries in ca
'acity operation during the summer
months.
An important factor Is the de-
nand for aviation gasoline for the
canadian training schools. Turner
yalley crude does not make good
Walton gasoline, owing to low oc-
ane and high sulphur content Ac-
ordingly. aviation gasoline will be
reduced from Saskatchewan refin-
ries. using imported crude. Since
Iontana has a decided advantage
n rail rates over the Midcontinent,
IS believed that Montana crude
Eill provide the high octane gaso-
inc necessary for the training of
1000 flyers which Canada has
during the year 1941
Construction of a large number
( flying fields will result in
arge demand for road oil, of which
iberia has little It is reported in
be Montana industry that Canada
eeds road oil enough to pave 700
lilies OF runways in the flying
chools of the Prairie provinces
his may provide a market for
ondera crude which is ideal for
bad oil purposes.
Irrespective of the future Cana
ian market, the north Montana
'ude market has been placed in
le healthiest situation in its his
Try because refinere will go into
lie winter with empty tanks. There
no storage crude TO become dis
ess crude in the future and the
lparent market now established Is
excess of current daily runs.
ay consumption in Kelvin and Cut
ank fields was 1924 barrels per
~ against the record average
lily runs OF 17,453 barrels. Kew
field storage oil having been run
lring the last / 5 days of May.
MS record is taken as indication
at the normal market will re-
lire considerable additional drill
& in both Cut Bank and Kelvin.