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

Pressing need of the nation for
aviation gasoline and other oil sup
plies to carry on mechanical warfare
promises to bring the greatest oil de-
velopment in history to Colorado and
I Wyoming and other western states
during 1943, experts said. Tremendous
supplies Of potential oil are available
and the government needs these. In
i dications that crude oil prices soon
will be advanced, that royalty rates
on the production of oil on public
lands will be slashed, and STRINGS in
Washington to promote huge in
crease in western oil production are
forerunners Of the boom.
Atop last weeks appointment Of
Harold IckeS as petroleum administra-
tor for war, came the announcement
that Sumner Pike, member Of the Sc
curities and exchange commission,
highly regarded by leaders in the oil
industry, had agreed, at the sug-
gestion of President Roosevelt, to help
OPA Administrator Leon Henderson
ION the particular problem of the
crude oil price structure" After q
White house conference, Pike, 5O-year
old Republican, said the President had
asked him to take the assignment.
Pike will start to work next week. His
straight loan arrangement. The ap-
pointment indicates, in the opinion of
experts, that the government is getting
ready to raise price ceilings on oil.
Wyoming and Nearby States
To Supply Northwest
Meanwhile, the war production
board has ordered that Washington
and Oregon draw virtually entire sup
plies of gasoline and ether petroleum
products from Colorado, Idaho, Mon
tana, Utah and wyoming. California
previously has been supplying the
northwest but the government has
recognized there are ample reserves in |
the Rocky mountain area to care for |
the demands for oil in Pacific north |
west and viii use California oil where |
it win be Of more value from strate-
gic standpoint The order means that I
the mountain district will send its oil |
north to meet demands in the vast
area where defense activities are ex-
tensive and viii supply gasoline needs
for other territory that is Of great
strategic Importance.
Oil men hope for early passage by
the house of the O'Adahoney bill re-
ducing government royalties on oil
produced on the public domain. This
bill already has been passed by the
senate When it becomes a law, huge
drilling activity is expected on scores
Of well defined oil structures in the
vest. If the house acts quickly, oil
companies will be able to plan bud
<E~4Il NF i
he new wells can start next spring.
Oil men thought the fact that the
Ramsey Petroleum Co. of Oklahoma,
which was one of the pioneers in Nor
ran and Weld county, Colorado, in the
930s, had come back to Colorado, and
tarted deep wildcat test in the Buck
Raymer area, indicated
he big oil corporations again had ,
urned westward for needed supplies
The Ramsey well ON Monday was
ril1ing below 400 feet, with indica- :
ions that it would be completed be- /;
or Christmas. Meanwhile, other oil !
ompanies that assembled acreage
Turing the 1890 boom In northern
colorado, were back in "the play" and
J was indicated that other wells would
e drilled soon.
Wyoming Discoveries A
sring New Fields
Wyoming was sitting ION top Of the &
'orld" so far as future development u
ras concerned. Several new dis p
overies have been made in that state "
uring 1912, indicating big new fields. "
hese include the development Of the 81
-orse Creek structure, near Cheyenne, o.
here activities are being pushed and u
roperties In Elk Basin, where 1t has Al
cen indicated that the deep sands N
re productive. Elk Basin already has ei
reduced around II million barrels Of h.
-ude oil from the shallower Frontier Ell
.nds and with the deep Embar-Ten- Fl
eep horizon Of the Pennsylvania
.ries indicated for production, in v
nsive drilling campaigns are ex- s
scted.
Oil men recalled that during the n.
rst World war Wyoming oil fields :,
Ipplied great quantities Of war fuel r
the armed forces II the United y
.ates and its allies. The long train Il
ads Of oil moved out of Casper, Wyo. n
lily for months. This oil moved to 4,
aboard for export purposes. Yr