Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-12-19

The price of oil has been increased 10
cents by principal buyers in Northern Mon
tana.
This is evidence Of the desire of refiners
to get more production. The new prices hit
the ceiling established by the freezing
order of the office of price administration.
No higher prices can be paid. This is all the
Montana oil industry can do for itself
Refiners who are paying an additional 10
cents per barrel are making a contribution
to the producing industry, inasmuch as they
cannot pass along to the public their in
creased cost They appreciate, however, that
costs have gone up. These increased costs
have slowed down production. The refiners
know, because their costs have likewise gone
up, with no possibility of getting any more
for their products. Profits in refining are
figured in tiny fractions Of a cent per gal
lon of the various products. Only those
who have sharp lead pencils can stay in the
business.
Whether the increase of 10 cents per bar
rel will step up drilling is doubtful but it
should demonstrate to the OPA that the oil
industry is doing everything within its power
to avert the impending shortage of pc
troleum which will certainly shackle war
production in the not distant future.
There is no shortage Of available oil. Give
Cut Bank producers the right to drill more
than one well to 40 acres and provide them
with minimum requirements of casing and
pump assemblies, and Cut Bank field will
provide the military with adequate pc
troleum in Canada. Alaska and the Pacific
northwest.
But if Cut Bank has to continue to drill
under WPB M-68 rules-one well to 40
acres and without adequate casing-Cut
Bank won't long be factor in the i'm
portant role it has been carrying in the war
program. We have heard recent estimates
that there are no more than SIXTY re-
naming locations in Cut Bank-nearly all
of them belonging to the larger companies.
The Independents, with the exception of
those in newly acquired leases in the Tribal
pool, are without locations to drill
Are these Independents SLACKERSP Are
they to be condemned because they are not
exerting themselves in this emergency
What are they to do?
If it is true that there are but so standard
locations remaining, it is high time that
steps be taken to secure an exception to the
M-68 spacing rule; also that steps be taken
to secure additional equipment.
Kelvin field has MISUNDERSTANDING thou
Sands-of undrilled locations Every location
In Kelvin field is a wildcat-it may be a big
well and it may be dry hole. An offset to
the dry hole may be a flowing well; like
wise an offset to the largest producer may
be a dry hole Therefore it requires DRILL
ING and more drilling. Kelvin producers
nave grown SO lean in the past five
years that they have no funds with
which to drill. If they could get funds and
to go ahead, there is no doubt
hat Kelvin would quickly solve the problem
If the serious oil shortage in Canada and
hereby provide the Alaska highway with
he motor fuel necessary to transport vast
mounts of supplies to Alaska and to
russia
There are square miles of undrilled oil
ands in Kelvin field, whereas Cut Bank is
hinly covered by the primary program Of
me well to 40 acres
If conservation of steel is more important
han supply of petroleum for the north
lest, then these fields should be allowed to
ecline and producers can tighten their
elts and enjoy the 1O-cents- per-barrel in
rease in the price of crude However there
mt producer who wants to take that at
tude.
We have talked with dozens of producers
! Cut Bank. Kelvin and Pondera and find
hem all anxious to make a substantial con-