Show OIL SURPLUS TO END MIDDLE LE OF NEXT NE YEAR Foster Fostel Bain Dain Says Sas Demand Will ill Meet Icet Supply About That Then Th Time Then n Well We'll See Sec Activity in Uintah tah Basin The fhe present period of ot overproduction overproduction overproduction in the oil industry will wUl end by the middle of ot 1924 Dr H. H Foster Bain director of or the United States bureau of mines predicted in testifying before the senate public lands committees committee's inquiry Into the Uie leaving of ot government oil reserves He based the prediction he said on opinions of experts in whose judgment judgment judgment judg judg- ment he had Implicit confidence Discussion of ot the market condItions conditions conditions condi condI- grew out of efforts of ot Senator Walsh Democrat Montana to obtain from the witness an estimate as to the period in which the government might feel confident or obtaining In Inthe inthe inthe the open market almost any quant quanta t t tf of oil for storage as reserve It is js hard to state a definite figure figure fig fig- ure the director said If the government government government gov gov- would be willing to pay par lIla lice luethe the price demanded It should have no difficulty certainly for a reasonable reasonable reasonable reason reason- reason reason- able number of years Men In whom I have every confidence believe the present surplus will be met by consumption consumption consumption con con- by the middle of ot next year It is IB a fact that every Tery company company company com com- pany which has the capit capitals r-is r now storing all it can and selling little as possible at prevailing prices Dr Bain said he be was waa present at Three Rivers N. N M M. the home 0 of r Albert lbert B. B Fall then secretary of ot the thu interior In Dec December 1921 on th of the visit of Harry F. F Sinclair later the lessee of at reserve No 3 in Wyoming Mr Bain said he made the trip to carry a draft of ti the proposed storage construction contract and was not aware of Mr Sinclair's presence until they met atthe at atthe the local st station tion He understood rl the director said that the oil magnate magnate magnate mag mag- nate had come to discuss questions question affecting leases of Osage Indian lands and had tal taken en up the Teapot Dome lease only incidentally Asked as to the cost the go government government govern govern- vern- vern ment would have to meet if it It undertook undertook undertook un un- the development t of one of ot the reserves the witness laid ald this had been considered by the California California Cali- Cali Cali fornia Cornia bureau of mines which sti- sti mated that would be required for drilling alone upon reserve re reserve reserve re- re serve No 1 1 There would be additional expense for transportation and storage facilities facilities facilities facil facil- he said It world wo ild cost the government more than a private company even with the same degree of economy and efficiency exercised ed since the private company turns ts g money over rapidly during the period of ot development while in the case o of at government the tho entire cost would have to be expended without return thus making the gr gross ss cost the capital capi capital capi- capi tal investment Referring to the original e estimate of his office of oC barrel barrels as the capacity of ot reserve No 3 3 Dr Bain said one disc discrepancy b between between be be- tween this total and that of to barrels no now o- o to be in sight In that pr proper property ct c- c t ty was caused by tw two erroneous de de- J We allowed barrels for the first Wall Tall creek sand Band lie e a said and nd none was found there and we estimated that the sands a tract of 5 S. 03 iO f a acres when as a matter o of knowledge the they cover a In much ue a a iller ill ill- 11 er area Outs e estimates o of the reserve all held beld our figures too teo conservative coner and ran lan all the way from barrels t to Mr Sr Sj Si clairs clair's geologists agreed suh ly with our estimate Replying to Mr Walsh ah he adde that the tho contents oE or the lower had bad not been taken j into to acco it at t either in the first or 01 subsequent ea- ea a- a i i |