Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-02-07

all there aren't dozen men who un-
derstand what it is all about. Everyone
IS asking everyone else questions and
at the OPA the answers have to be
given and the consequences determined
by trial and error.
Behind the temporary dam in the
flow of the rising tide, industrial ac-
tlvity is continuing. Industry at large
knows nothing of the stoppage in the
oil industry and will demand only one
thing the prompt delivery of refined
products which are essential to the in
dustrial gears of nation at war. When
the dam gives way, with the wartime
program simplified to a point where
operators can drill wells and where re-
timers can operate, it will tax the abil-
tiles of all branches of the industry to
carry on at a scale such as demanded
by the army and navy and essential
war industries.
The state of Montana produced oil
at a record rate during 1871 yet every
field excepting Cut Bank had less stor-
age oil on Dec. 81 than on IAN. of
last year. Cut Bank storage oil offers
no problem. There is no oil to be had
in Cut Bank today. spot" oil is vir-
tually off the market The oil in stor-
age in Montana is only enough to sup
ply the normal market for So days.
During the coming year, Montana
markets are more likely to expand than
to decrease. The war demands of Puget
Sound and Alaska are likely to call
upon Montana for maximum effort
Where is the additional oil coming
from?
Whether the rule of one we'll to 40
acres is to be felaxed perhaps depends
upon the market developments, but inn
mediately, operators must turn their
to NEW TERRITORY. That
means that the drilling will concentrate
in proven areas where there are no
wells at present. This spells good for
tune for the owners of royalties on I'M
developed ground in Kelvin field Cut
Banks proven ground is pretty we'll
drilled out, unless the rule of one we'll
to 40 acres is relaxed. Having been
drilled with a preliminary spacing plan
Of one we'll in the center of each 40
acres, Cut Banks producing territory
Ids relatively lew Spots lCll IOI uIlll-
ing. This year would have seen the
start, normally, of the secondary plan
IF we'll spacing.
Kelvin is accordingly likely to get
much new drilling and attention will
urn to the proven high gravity areas
between Kelvin and Cut Bank fields.
Here oil equal in quality to Cut Bank
rude can be found 400 to 300 feet
hallower than in Cut Bank. The recent
of a 270-barrel we'll in the
Ugh gravity oil district, above the rim
ock west of Kelvin suggests even great
r possibilities in the area.
The landowners in this area are due
0 be rewarded for their tenacity in
olding onto their lands while those of
he main field and Cut Bank field have
njoyed an income of millions of dol
lrs from their royalties. From the I'M
rilled areas of today will come the
lush production and much Of the
teady production of tomorrow that will
e necessary to keep the refineries of
orthern Montana and of Washington
nd Idaho in operation. Landowners
no are now getting royalties will be
ne ones who will make the millions
uring the coming years, while the old
: producing farms are in their decline
trough exhaustion or through idleness
lforced by wartime regulations. :