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Editorial
November 17, 1933
The Wrangell Sentinel
Wrangell, Alaska
What is this article about?
Editorial comments on challenges of federal oil price fixing at $1.11/barrel, citing Texas Railroad Commissioner Ernest O. Thompson's humorous anecdote about an uncontrollable oil crater in Conroe field. Praises American cooperation in reconstruction efforts but warns against ignoring supply and demand laws.
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OCR Quality
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Full Text
PRICE FIXING
The comment of Ernest O. Thompson, member of the Texas railroad Commission, on Secretary of the Interior Ickes' action in fixing the price of crude oil at $1.11 a barrel is interesting. In talking of controlling production and prices, he mentioned the celebrated Conroe oil field, where in one instance the earth opened up under a well and swallowed it, leaving a veritable crater in the ground. Then he added: "The crater alone is producing 6,000 to 10,000 barrels daily. We can't go down there and read Ickes' telegram to the crater and expect it to stop flowing." He expressed the opinion that a veritable army will be needed to control oil production in Texas with its 47,000 wells, but like a good American, promised that Texas would do what it could to cooperate with the federal government.
That is one satisfying thing about the whole reconstruction scheme. Nearly everyone, regardless of his political or economic views, is cooperating, and if the plan does not succeed in its entirety, it will be no fault of the American people themselves. Regulation of production, control of prices and wages is a big undertaking, however, and the old economic laws of supply and demand cannot be entirely left out of the picture. -Ex.
The comment of Ernest O. Thompson, member of the Texas railroad Commission, on Secretary of the Interior Ickes' action in fixing the price of crude oil at $1.11 a barrel is interesting. In talking of controlling production and prices, he mentioned the celebrated Conroe oil field, where in one instance the earth opened up under a well and swallowed it, leaving a veritable crater in the ground. Then he added: "The crater alone is producing 6,000 to 10,000 barrels daily. We can't go down there and read Ickes' telegram to the crater and expect it to stop flowing." He expressed the opinion that a veritable army will be needed to control oil production in Texas with its 47,000 wells, but like a good American, promised that Texas would do what it could to cooperate with the federal government.
That is one satisfying thing about the whole reconstruction scheme. Nearly everyone, regardless of his political or economic views, is cooperating, and if the plan does not succeed in its entirety, it will be no fault of the American people themselves. Regulation of production, control of prices and wages is a big undertaking, however, and the old economic laws of supply and demand cannot be entirely left out of the picture. -Ex.
What sub-type of article is it?
Economic Policy
Trade Or Commerce
What keywords are associated?
Oil Price Fixing
Production Control
Texas Oil
Reconstruction Scheme
Supply And Demand
Federal Cooperation
What entities or persons were involved?
Ernest O. Thompson
Texas Railroad Commission
Secretary Of The Interior Ickes
Conroe Oil Field
Texas
Federal Government
Editorial Details
Primary Topic
Federal Oil Price Fixing And Production Control Challenges
Stance / Tone
Supportive Of Cooperation With Cautious Optimism
Key Figures
Ernest O. Thompson
Texas Railroad Commission
Secretary Of The Interior Ickes
Conroe Oil Field
Texas
Federal Government
Key Arguments
Controlling Oil Production In Texas Is Extremely Difficult Due To Vast Number Of Wells And Natural Phenomena Like Uncontrollable Craters
Texas Will Cooperate With Federal Efforts Despite Challenges
American Public Is Broadly Cooperating With Reconstruction Schemes
Regulation Of Production, Prices, And Wages Is A Major Undertaking
Economic Laws Of Supply And Demand Must Still Be Considered