Crude oil production has been reduced about 1M barrels/day thanks to martial law-enforced shutdowns in Oklahoma and East Texas; refiners in those two regions face oil shortage. Violaters in East Texas ordered jailed until martial law is lifted; no evidence of resistance reported. Texas Gov. Sterling says intends to maintain martial law at least 30 days. East Texas proclamation of martial law and complete oil well shutdown was much more drastic than the expected action of cutting production to the allowed quota there (270,000 barrels/day). Gasoline in the Oklahoma wholesale market is up 1 1/4 cents to 5 cents/gallon in the week ending Aug. 17, but at least two major crude oil buyers feel the situation is still too unstable to raise buying prices. E. Reeser, Amer. Petroleum Inst. pres., praises Texas Gov. Sterling's "courageous action ... in placing East Texas oil field under martial law"; scores of congratulatory telegrams received from oil operators across the country.
Thursday, August 26, 2010
How to Curb Surpluses: Declare Marital Law
News from 1930 has its RSS feed back. One of the big problems of the depression, perhaps its definition, was there was more production than demand. Innovative states came up with a solution to the surplus of oil, which hopefully OPEC won't emulate. From August 19,(the item leads with concerns about the high cost of medical care):