COMPANY MEETING
ANGLO-ECUADORIAN OILFIELDS
RECORD PRODUCTION MR. H. C. R. WILLIAMSON'S REVIEW
THE adjourned twenty-first annual general meeting of Anglo- Ecuadorian Oilfields Ltd. was held on January r6th at Winchester House, E.C. Mr. H. C. R. Williamson (the chairman) said that the net operating income was down by £94,000. The decrease in trading profit was mainly due to the lower prices ruling for crude oil, two cuts having been made in the autumn of 1938. Further reductions were made in August, 1939, but, on a drastic shutting-in of production, prices after a few weeks were restored to the June 30th level of $1.02 for Mid-Continent 36deg. Beatune gravity and Sx.ro flat for East Texas, which prices were those now ruling.
Work on the field continued normally. Production increased by 4,112 tons to the record figure of 274,874 tons. The increase was due to a greater production of low cold test oil from shallow areas. As regarded production of high cold test oil, no good deep well was brought in until the last two months of the financial year but, in spite of this, production had been maintained in a remark- able manner. The oil industry, like every other major industry in the world, was dominated by the war. It may be laid down as an axiom that war is not in the long run generally beneficial to the oil industry. What was required was a state of peace whereby confidence could be restored, international and domestic trade could flourish untrammelled by excessive bureaucratic con- trol, and prosperity could return to the individual and to the community. Then would oil really come into its own. How the company was going to fare in the current year none could say with any degree of accuracy. They were, however, continuing to develop their lands and to produce in as economical a manner as possible. They were liquid and sound financially. For the rest they must look to the price of American crude oil as having the principal influence on their results.
He hoped that they might next meet in a more peaceful atmo- sphere with the war well won and negotiations for lasting peace at any rate well begun.
The report was unanimously adopted and a dividend of to per cent., less tax, for the year approved.
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