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Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, November 06, 1943, Image 5

Image and text provided by Montana Historical Society; Helena, MT

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075103/1943-11-06/ed-1/seq-5/

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Montana Producers Won't Agree
Vinson Forecasts Jump in Oil
Output Without Price Increase
Members of the Montana oil fraternity, while not in sympathy with re
jection of the proposed 35-cent increase on crude oil by Stabilization Di
rector Fred M. Vinson, will probably be even less in sympathy with the
alternative methods suggested by him, as a means of increasing the nation's
oil output. <
Most news accounts adequately
covered the reasons given - by him
for the turndown.
What most of them didn't 'carry
were Vinson's ideas as to how the
desired production increases may
be had without increasing the price
of crude oil.
Here's his program, as he out
lined it, and with all figures
quoted exactly as given by him:
Full use of the productive ca
pacity of Texas oil fields, which
are estimated to have an unused
capacity of more than 300,000 bar
rels daily over the September rate
of production.
Increased drilling in proven areas,
as distinguished from wildcattlng.
Vinson said the drilling of the
19,000 wells in proved areas, as
planned for 1944, would "contribute
significantly" to the country's pro
ductive capacity, without the neces
sity of a price increase.
The use of foreign oil. He esti
mated that at least 337,000 barrels
daily of foreign oil would be used
Toole County
Abstract Company
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fM8 MCWWTAIW STATUS THJPMOWi A TlUOkAPH COMPANY
Made to Exacting Specifications
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by the end of next year, as a re
sult of measures under way to uti
lize available foreign sources "to
the full."
Estimating that this country,
with only 38 percent of the United
Nations' crude oil reserves, is sup
plying 75 to 80 percent of the oil
for the war, Vinson declared;
"There can be no justification in
exhausting this country's oil re
serves at the most rapid rate pos
sible if there is any feasible alterna
tive." "
Vinson also said that any incen
tive program would have no ef
fect on crude oil production for a
year or two, and that there was
no prospect that such measures
would result in any increase in
gasoline for non-essential civilian
use.
NEW PRIORITY SETUP
Relative priority groups have
been established for the refining
of critical petroleum products re
quired for the armed forces and
essential civilian purposes, the pe
troleum administration for war has
announced. U. S. refiners will be
informed of the suggested prefer
ence groups for the various pe
troleum products by PAW's district
directors of refining.
Oil Trade Notes
All truck operators have been
forbidden to inaugurate new operâ
lions or extend present routes
without receiving prior approval
from the ODT under new orders
issued by Joseph B. Eastman, di
rector of the office of defense
transportation. All truck operators
performing over-the-road, local cart
age or pick-up-and-delivery opera
tions are affected.
Production of 100-octane aviation
gasoline today is more than four
times greater than production in
the early months of 1942, and with
in a few months will be about eight
times greater, the petroleum ad
ministration for war has announced.
PAW also said that present pro
duction exceeds the 1944 goal of
ultimate requirements as set by
military and government author
ities in the spring of 1942. At the
same time PAW released the first
list of new 100-octane plants and
their location. Since Dec. 7, 1941,
PAW and the oil industry have ini
tiated 72 major 100-oclane construc
tion projects. Of these, 32 have
been completed, in spite of delays
in getting the necessary materials,
and the remaining 40 will be com
pleted within four months. An addi
tional 22 domestic plants have been
scheduled In PAW's 1944 program
and engineering work on these has
been under way for some time.
Postwar competition for the
world's petroleum will be keen and
higher prices likely, It is predicted
in "Ethyl News," publication of
Ethyl corporation. A drastic up
heaval in markets as they were
known in prewar times, with a
scramble for the relatively small
surpluses which will be available
for world trade, is the outlook, it
is declared in a survey of "Oil for
Tomorrow."
Coincident with its changing
position from a net exporter of oil
to an importer, to meet war and
civilian consumption, the United
States stands to lose a prewar ex
port market amounting to approxi
mately $400.000,000 annually, the
survey says. If the war continues.
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Home Oil & Refining Co.
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Marketers of Petroleum Products for
Montana Trade
Refinery and General Offices
Orest Falls, Montana

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this country will be a formidable
factor as a buyer in foreign mar
kets. It is asserted.
The United Sûtes, largest oil
producing nation, will not be able
to continue sizable shipments to
Great BriUin and the Continent
after the war because of a probable
excess of domestic demands over
production, the survey shows. As
a result there will be a marked in
crease in movements of oil from the
Middle Elast and Far Elast, it is be
lieved.
The war production board has
announced a revision of conserva
tion order M-28 designed to protect
the power parts of new passenger
cars and trucks which now remain
in the hands of dealers. The amend
ment requires dealers to drain en
gine oil, refilling with at least a
one-half charge of rust-lnhibitlng
oil, and run the engine at idling
speed for five minutes. The oil
must be left standing in the engine.
At six-month intervals, dealers are
required to turn the engine over
to assure that the oil in the engine
and lubricants in the transmission
and rear axle assembly are properly
distributed. Dealers must also re
move all spark plugs at six-month
intervals and inject two ounces of
rust-inhibiting oil Into each cylin
der.
LOS ANGELES—Office of Price
Administration rationing officials
are seeking the co-operation of gaso
line dealers who are asked to "pass
the word along to their customers,
that—
"Motorists with B and C rations
should keep a wary eye on their
gas coupons, and apply for renewal
rations—not immediately on top of
the renewal date—but, at least, 20
days before the last coupon Is to
be used."
Paul Barksdale d'Orr, district
OP A ration chief, advised the early
renewal application in order that
war price and ration boards would
have sufficient time to process the
applications, and the motorists
would not be left without gasoline.

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