Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-10-24
EOery Operator Must Read. This

present price is not sufficient to provide
funds and incentive
4 To encourage and provide funds to
carry on a research program to develop
means Of making available the immense
reserves not capable of being recovered
under present known methods
5. To provide necessary funds to enable the
industry to keep in employment within
the industry the trained and skilled en-
ployees in competition with industries
not so necessary to our war effort.
The witnesses representing the Indepen-
Petroleum Association Of America believe
that the suggestion offered by Price Admin
iStrator Leon Henderson that some form
Of subsidy should be substituted for the
suggested price increase is unsound and
improper for the following reasons:
l. The program suggests a revolution IN our
political philosophy which seems neither
necessary or desirable. Since the sug-
gestion seems to have been prompted by
a desire to insure against excess profits
that might result to some through the
price increases suggested it seems proper
to suggest that this situation is pro-
vided for through tax laws whereby the
government gets this excess profits
through tax collections
2. The suggestion is untried in relation to
this industry and its success uncertain
3. The time required to invoke such pro
gram might postpone the satisfaction of
the requirements of this industry to
such an extent as to render us unable
to meet the actual needs for our war
activities This postponement could
well become very expensive to our
country in the lives Of our people, ss
well as actual cash outlay
T. The novelty of the program suggests
difficulties too numerous for our i'm
mediate comprehension.
The suggestion Of few difficulties now
apparent makes evident the confusion and
encouragement that must follow its initia-
ton
ITO whom would the benefits be made
available?
ut has been suggested that it should not
be available to the producer who is pro-
ducing at a cost equal to or below present
prices. Since most producers have both high
and low cost production, how viii his share
be apportioned?
IF 1t is to be used as an incentive for
new drilling and exploration, win the funds
be made available before the work is done
or after? If after, where is the applicant to
obtain the funds with which to drill? If be-
ore, on what basis are we to determine the
amount allowed? The same questions are
applicable to secondary work
IF the program seems too confusing to
the operator whose life experience
las been based on other methods, where
viii we get the experienced operators to
ulfil our program?
IF we place the bonus or subsidy "at the
ottom of the well" it has been suggested
hat new operators will be encouraged to
inter- the industry who will drill for the
ubsidy and not for oil
The political implications are interesting
would be unfortunate if exploration were
arTied on for politics instead of for oil
THE only certainty Of this program Is the
eplacement Of a great body of American
tizens heretofore engaged in the success
u operation Of an essential industry by
who have no pride of industrial
accomplishments but whose success must
ok for inspiration in the monthly pay
neck directed by political employee"
That is the industry'S view of the Situa-
on.
Yet it is safe to say that it has been
anned the way it is going to go.
If it is foreordained would 1t not be
stter for the industry to swing into the
wv order, like other industries have doneP
Would not a little constructive thinking
ong these lines among members Of the
dustry help bring a quicker solution to
e alarming problem of supplying the ma
IN with petroleum enough to fight the
ps and the Huns?
It is food for thought for patriotic oil
oducers.
And now word to our members:
The current publication of this organiza-
N has to do with Conrad Butte structure,
potential new oil source in the central
yeetgrass Arch. Persons who ask for it
Il receive an interesting publication and
ap.