Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-07-18
The DANGER OF IGNORANCE

the tremendous cost Of overland transpor-
tation warranted the increase
MR.. JOHNsON-Tnen those increases
were made because OF the increase Of over
land transportation. Yet the tremendous
increase in producing that same oil, which
is admitted to be IS to 80 percent, went
unnoticed That, I assume, was Of no con-
sequence.
Now are you familiar with the fact Nr.
Henderson, that new discoveries OF oil in
the United States have been declining for
the past three years and that we are now
discovering less oil than before we entered
into this war? Did you know that?
MIR. HENDERSON-My answer is that
there has been no shortage Of oil, and there
has been a curtailment over a period of
months in the allowables-one that was lust
instituted within the last 10 days or two
weeks.
know the crude producers asked me to
raise the price Is cents a barrel, which is
roughly 100000 a day, In order to increase
validating, and I could not see my way
clear to do it. I spent quite bit of time on
the question of whether we should add a
million dollars day to the cost Of crude.
when the oil industry generally was doing
better than it had done for years. I see no
reason in the emergency why should do
that. And, If do-and I mean this as no
discourtesy-and if I do see it, I win au-
thorize the price increase: if I do not see
It, I viii not.
MIR. JOHNSON-Well, that is what am
trying to do now, to give you some much
needed information as a basis to help you
see it.
There are thousands of stripper wells
throughout the midcontinent field and few
If any of them, are now making the cost
Of production. Practically every producer or
operator of a stripper well is losing money.
and many Of the independent operators have
refused to abandon stripper wells because
of their patriotic desire to help in this war
effort They cannot keep that UP and um-
less they get relief and get it within the
next few weeks or months, practically every
stripper well in the United States will be
sold to major companies for song or else
be forced to be abandoned. And when those
wells are abandoned, out of 10 of them
viii be ruined. Salt water viii come in and
ruin them. They cannot be reclaimed and
you Mr.. Henderson, must accept the re-
sponsibility.
Mr.. Henderson, since it is the common
big and little, old and young, in every state
in the union that produces any oil at ALL
and apparently also of Mr.. Ickes' office.
that price is the surest incentive to finding
new oil reserves. and since the government
is asking for new oil reserves and calling
on the independent operators to keep their
stripper wells open, don't you think that
these small crude producers and operators
are entitled TO some personal consideration
on your part within the next few days, or
at least weeks?
MIR. HENDERSON, certainly will give
it to them.
MR. Johnson know you have a tough,
thankless job, but do want to impress up
on your mind that unless relief comes to
the owners Of stripper wells, and other In
dependent producers, that you are going to
wake up some morning to find there is
serious shortage of production in the United
States
This matter has been presented time and
again by the independent producers and
they so far have not gotten to first base
It Is a serious matter that I raise today
[ might add that 1 am not personally in
5erested financially In the oil business. I
own no royalties, oil stocks or oil lands But
many Of my constituents are in distress be-
cause OF the arbitrary position Of this wit
ness who has made 1t pretty clear that he
1nows little or nothing about oil business.
May also add that the winning Of the war
S whale Of a lot more important than
the money involved And believe the gen.
.leman win agree. I have not complained
about his selecting his own personnel I
ealize he has a tough job. I am trying to
oe helpful. If I had his job no doubt
would select my own personnel in whom
had confidence. am sure the gentleman
nows that have never asked him to APP
point anyone to any job, and all I ask at
lis hands is square deal for all.
I am interested primarily in winning this
var, and I fear what viii happen If we
un out of OIL Frankly, I am afraid the
witness does not realize the very danger that
S facing US so far as oil is concerned. And
am going to make the prediction now, in
he presence of this committee, that unless
omething is done within the next few weeks
r months that America may awaken to find
serious shortage Of oil If this war con-
lnues as lang as many now predict hope
nd pray the time viii not come when we
viii have to use olive oil In our airplanes
nd in our tanks, as Hitler is reported to
e doing now on the Russian front Thank
on. MIR, Henderson. I'll be seeing you later