The Sidney herald., 1956-11-01
Petroleum PLAYS
Increased Role
In Montana

In Montana
The petroleum industry, which
got off to a fresh start in Mon
tana five years ago with the dis
covery of oil in the Williston Ba-
sin, is playing an increasingly
significant role in the continuing
growth and development of the
state, Eldon Davenport, Executive
Vice Chairman of the Montana
State Oil Industry Information
Committee said recently.
Davenport, noted that petro-
leum production in Montana now
amounts to more than 20 million
barrels a year - double the
amount produced in 1949. This is
a promise, he continued, "that the
future of petroleum's contribu-
tons to the state in revenue, es-
sential products, taxes, services,
and other benefits of social and
economic Importance are very
bright indeed"
The OIIC spokesman, also of
Shell Oil Company in Billings,
based his remarks on a study,
"Petroleum's Growing Place in
Montana's Economy" just pub
lished by the American Petroleum
Institute. He emphasized that
competitive enterprise - the ba-
sis of everything that makes
America tick has made it
possible for the oil industry to
grow with the growing needs of
the public, and to serve the peo-
pie well in quantity, quality, and
price"
In the 40-odd years since Mon
tana's first commercial well was
brought in, many oil installations
have sprung up all over the state,
Davenport said. Currently, there
are 1924 producing oil wells,
10 refineries with a combined
capacity of $3.50 barrels daily,
and $40 miles of pipe lines"
Montana is not only a pro-
Queer but a big consumer of pc
troleum products, Davenport said,
and many facets of its economy
rely on oil. He said Montana citi-
zens consumed more than $685.
100000 gallons of major petro-
leum products in 1854, an amount
equal to $40 gallons per person.
This is an increase of IL per cent
over 1949.
Principal products consumed in
Montana are motor fuel and in
dustrial fuels.
Montana's 213,7O0 passenger
cars, 1,160 buses, and $4,000
trucks used 221, $50 900 gallons of
motor fuel in 1854. Ranking 9th
in railroad consumption of Pc
troleum fuels, Montana today
consumes about 129,400,0 600 GAL
Ions in one year.
More than half of the oil need
ed to fill the growing needs of
Montana's refineries come from
out-of-state sources - primarily
from Wyoming. Montana exports
many oil products, channeling
them west into markets in the
Idaho and Washington area via
pipe line, tank car, and over
the-road truck transport, the
OIIC official said.
Tying in with the tremendous
growth of production and re-
is an expanding transpor-
tation = distribution = marketing
chain that not only provides sup
plies for the thousands of con-
sumers but also generates in
creasing amounts of tax reven-
ues for fiscal and financial oper-
ations of the state government"
he explained.
"Gasoline taxes alone amount
to more than 100000 dollars a
year. These taxes r in addition
to those paid directly by the in
dustry." He also pointed out that
business taxes and IL
cense fees contribute materially
to state, county, and community
Golfers.
There are 934 service stations
in Montana, and in 1854 they did
nearly A, SOC, 900 dollars worth of
business - an increase of AZ per
cent since 1948, Davenport said.
He emphasized too that the ma
lority of these service stations
are independently owned or oper-
ated by local business men
who retail well known brands.
THE number of ways in which
petroleum is used in Montana and
the number of services that 1T
performs are too many, by far,
even to begin counting, Daven-
port said. Competition is the
force that not only keeps the in
on its toes but also keeps
at reasonable levels"