The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-09-03
Independent Oil
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upon thousands of independents will
be forced out of business, as we are
now producing oil near or below the
cost of production.
No doubt the majors have put out
some propaganda about an increased
price of crude, at the same time hop
ing that it would not be granted I'M
less there was a corresponding in
crease in the price of refined prod
ucts, which is very unnecessary.
Right here in Montana we are pay
ing 23 and rs cents retail price for
gasoline under the nose of the refin-
cry and at the same time the market
in Montana, which is dictated by the
Continental Oil Company, insists on
1S ceents a gallon delivered in any
quantity from 1000 to 5000 gallons.
This gasoline is produced from $1.10
per barrel crude oil and they make a
recovery of approximately 500, so it
are receiving $7.72 for the gasoline
from one barrel of crude. Plus a
small additional amount for fuel oil,
distillate and other products, which
would undoubtedly bring the total rev.
enue derived from barrel of $1.10
crude up to $500 per barrel.
1t is in the interests of the major
oil companies to hold down the price
of crude oil to drive these independ-
ents out of business. At the same
time they are presenting propaganda
to import foreign crude oil which is
produced with cheap labor, water
transportation and these majors own
and produce this crude oil in said
foreign lands. This will help to keep
the price down and create an addi-
tional monopoly in these United
States.
You hear world of propaganda
United States. Personally 1 have
heard this same story for the last 25
years, but with deeper drilling, more
scientific methods of detection, crude
oil will be produced in these United
States until such time as other fuels
will economically push it out of the
picture. An example of this situation
is the Elk Basin field in Wyoming
and Montana which has been under
production since 1915 and very re-
Gently they tapped lower sands and
the wells are producing from 1900 to
10000 barrels day. and an estimate
of these reserves cannot even be cal
culated. Wyoming as well as Mon
tana has immense oil reserves that
have not even been discovered.
During the past so years the indie
pendent oil producer has been the
backbone of the oil business as the
majors do not see fit to wildcat new
territory but they merely buy up the
production and properties after they
have been developed and proven
There is a move on now in Montana, |
as well as every other state in the |
lnion, for these same majors to con-
,rol by lease all possible prospective
oil lands. In Montana recently these |
majors have leased up approximately
/ million acres of additional lands
md they are going through the terri
DRY with a fine tooth comb doing
world of validating which eventually
will be paid for out of taxes that they
would ordinarily pay the United
States government in income tax,
which will leave newly developed re-
erves in their hands at the expense
# the United States government.
1 have no animosity against these
major oil companies, as l have dealt
With them over a period of years, but
hey should be required not only to
i've but to let live instead of forming
he greatest monopoly that these
United States have ever SEEN The ]
interests controlled the !;
icture at one time and then were