New York Paper - Relation of Bonuses and Costs to Present-day Prices of Crude and its Products (with Discussion)

The following compilations are made from a series of investigations and are used to present the subject in an unbiased manner, as the writer does not represent any company or financial interest. The present situation is complex. The producers are hard pressed by reason of the low price of crude, while the independent refiner is little better off, because of the corresponding cut in price of refined products, except on occasional contracts. If the real costs are analyzed, it will be seen that the land speculators and the lessors—royalty owners—make the larger profits and not the struggling legitimate operator or independent refiner. The present-day (October, 1922) posted prices per barrel for crudes are Kansas, Oklahoma, Mexia, Gulf Coast, and Louisiana..... $1.25 Healdton............................................. 0.75 Northern Texas and Central Texas...................... 1 . 50 Pennsylvania......................................... 3.00 Wyoming, Elk Basin.................................. 1.25 Wyoming, Salt Creek................................ 0.70 California Base..................................... 0.60 These prices are at the well. In addition, crudes must be gathered and transported to refinery (by pipe line or tank cars), refined, and the refined products marketed. These crudes are of various gravities, ranging within a narrow margin for each field or district, so that averages are not difficult to deduce, and it is these averages that really determine the average operating conditions. In order to show the present realizations, the prices and costs now obtaining are listed against the average yields; the figures are also adjusted VOL. urn.----71