Salt Lake Telegram | 1921-09-04 | Page 37 | 'Teeter-Totter' in Oil Game

I T Totter Teeter T otter in on Oil Game Gam e I Not more than tour fourscore core years ears ago aco beiran beiran be- be I iran ao the he first chapter In the tho history I be-I of ol th tho worlds world's primary primaT Industry oil Since that time man many havo have been the Important po tant I developments de that have taken place The oil Industry has has' recorded the tho rise and I fall of oC the price of ot oil three times Umes ach aach time tho the rise riso to higher levels and each time the fall tall In lesse Perhaps the tho most Important chapter In tho the Annals An ian- nn- nn nals of oC oil history is being written to today to- to da day clay v vJ J J Ji period of ot readjustment exists with I credit deflation on the thc lan landslide Coupled Coupled Coupled Cou Cou- pled with that condition is a situation in itself alarming there alarming there exists a n. tremendous dous production overproductIon 0 o of crude petroleum Together with tho the ordinary price I cutting cutting cut cut- ting Ung of ot all commodities caused roused by tho the thoI general deflation taking place the tho overproduction overproduction over over- I production of ot oil has resulted in even more serious cuts cuts- cutsIn In tho the price of ot that I product than was at first anticipated But the But the Is not new Three times during the tho past twenty twenty- I. I years cars practically the same Samo condition has existed and each time has It recovered Ito to moro more substantial positions I It 19 Is s a peculiarity of ot tho tIle oil business I that during periods of oC business depression depres depres- I sion slon and scarce money the production of petroleum reaches re new higher records I Tho The reason for tor tho condition lies In the tho fact act that during the periods of ot easy I money and prosperity d development work worl drilling of ot both tooth pro proven en and I prospective oil areas are is greatly stimulated accordingly an increase in th the tho production of petroleum When the business cycle turns on the iho downward trend th h market Is left eft with an overproduction o of oC oil and in incidentally iden- iden tall tally It Is during that period when j tho the maximum of oC production exists It was was In the near noar panic pattie of oC 1907 1903 that that- the new Illinois field and the Glen GlenPool GlenPool Pool In Oklahoma flooded the market with II an excess of petroleum During the tho trIn tryIng tryIng try try- In Ing days of oC 1915 1914 the flush production of t Cushing Okla Olda 01 swamped tile the market and caused the usual depression In oil oli prices The Thc last ast seven years ears of ot super- super prosperity has hag encouraged extensive de development tie tie- nt- nt work throughout the tho entire Southwest and has resulted in the openIng openIng openIng open- open Ing up of several prolific oil pools among them being Ste Stephens county Texas Salt Creek Wyo Cushing Ol Okla 01 la Eldorado Arl Ark and La Ln During the periods of oC depression an anti ana overproduction the oil prices havo have tottered teeter up and down In 1907 Pennsylvania anla crude was quoted at around 1 U. U 1 then Jumped t ta 3 In 1914 back to to toI I around 2 1 up lip p again ln to th the price of oC f In 1920 and Is down own toda today to a price or of Nevertheless the oil fraternity ox- ox x- x presses ses Its confidence that a new price hl higher her than an any preceding will be posted in the not far tar distant future For tho the past pat score of oC years ears oil history has recorded a totter teeter of ot oil ol prices Each new low level Is not as low tow lowas lowa's lowas rs as as the tile ono one preceding while each etch new high level is Just a little 1 higher sher than the theone one preceding If It oil history repeats itself as 38 oil history history history his his- tory has done and fwd as s it is expected tI oil history will d do lurIng during the coming few tew years ears one m may expect to see a period of or good business activity lt when th th eoll In Industry In- In will wUl rehabilitate Itself and establish establish lish a record for large e earnings and big bigi profits proms One sidelight on the present ent situation situation situation sit sit- i Is this The Tho oil enterprise that weathers the present Industrial storm will be bo in a 1 very substantial position upon Its termination and will enjoy enJo bountiful prosperity With Will momentum m gradually increasing rs ros the business conditions Improve concerns concerns concerns con con- cerns engaged In the oil Industry may expect to soon eOon find themselves on on tho the tho crest of oC a wave of prosperity presenting presenting pre pro an opportunity to profit those who ho have lent not only their moral but rl during the tho downswing of oC the recent oil teeter teeter D. D. D M. M Brown In Oil Gazette