Success Story
Mexican
Crude Oil Leads to Big Business in Cuba
Mexican operations, Sinclair's first venture in
foreign production, were good training for later
explorations
in
South America and Africa. Everything was
imported, from food to the 35,000 board feet of
lumber in each derrick. All the technicians also
were Americans. Most of the Mexican oil was
almost as heavy as asphalt. Sinclair Gulf's
potential was vast. Several wells on the 300
square miles of Mexican leases flowed 30,000
barrels a day. The fields were capable of
150,000 barrels daily without further
development. In Mexico the problem was not to
find oil, but to get it to market.

With American
entry into World War I, all but two of Sinclair
Gulf's tankers were preempted for war duty. The Tamesi
and Panuco, of 20,000 barrel capacity,
cruised at only eight knots, too slow for
convoy. Sinclair's bulk exports from Mexico were
limited to the capacity of these vessels.

Actually Sinclair
Gulf did not need any imports at that time. The
Houston refinery was unfinished. Ample crude
oils were available in the prolific Healdton
field of Oklahoma, augmented by a new discovery
in Hominy, Oklahoma, where the oil was of such
high grade that it brought a 25¢ per barrel
price premium.
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