The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-01-18

all about oil, its price, quality and prospects.
PETRoLIA, c. W., Jan. IA, 1867.

To THE EDITOR OF THE PRESS
In your issue of Dec. 9th, in an article head
ed 'Wanted-a Market" you make some state
ments in relation to the oil production of this
Province and the quality of the Oil produced,
that may have a tendency to mislead some OF
your readers, and perhaps beget the hopein some
who have invested in Canada oil Companies
that their money is not so hopelessly lost as
they may have feared it was. Allow me to
copy entire the first paragraph Of your article:
The oil wells of Canada are now capable OF
producing about 100000 barrels of petroleum
annually and new wells are still going 1owh~
The only demand as yet is for home CONS >, Up
ton. The sales at Petrolia and BothweI u'l-
ing the year ending Sept. l, 1866 aino1 H W
" 600 barrels. The entire demano 400 ,U Sal1u
an consumption cannot exceed Iooooo parreis,
or so Der cent of the entire proceeds OF the wells
now in operation None OF them are working
to their full capacity, under these dlscouraging
circumstances, and the prospect Is mat many
will be obliged TO suspend altogether.
Discount from the producing capacity of the
wells as above given from % to SO per cent and
the remainder will then be an oyerstatement of
the amount produced, estimating it at the very
best average for any month of the last half-doz-
en-. Probably the entire oil region of Canada
cannot yield over 5000 barrels per week, or
100000 per year. This, the best informed men
here would consider very large figure, while
the shipments from the States to foreign ports,
for eleven months ending Dec. were over l.
100000 barrelsi The sales at Boutwell, and this
place may be correctly stated, though there are
no records or reliable data from which to ascer-
tain the exact amount. Probably not half
dozen new wells are now being sunk, if we ex-
cept few test wells being put down on out
side" or undeveloped territory, while at least
from one half to three-fourths of all the wells
are now standing still. Atithe present price Il
oil, nothing short of a sixteen or twenty bar
rel well will pay to pump, and this is nearly if
not quite three times the average size of the
wells in operation three months ago. The
amount of oil refined in the Province, as well
as the amount required to supply the home
market is variously estimated, scarcely any
two authorities agreeing.
III relation to the quality of Canada oil as
compared with that of the States, your author
ity is sadly at fault. You say:
The Boutwell, oil yields rs, the Petrolia oil
G6 2-3 and the Pennsylvania oil only 60 per
cent. of refined oil 1t is furthermore claimed
that the Canadian illuminating oil will last
one-titth longer than the Pennsylvania article.
These advantages must ultimately tell in its
favor. tH
But for the expressive word "only," which
prefixes it, L could imagine that the compost
tor had upset nine in the above SO as to make
out the SIXTY per cent. of refined oil as the pro-
duct of the Pennsylvania crude. The truth is, as
allnfefners here who have used both kinds will
inform you, while the yield of refined from the
crude article of Boutwell, and Petrola are stat
ed in the above with approximate correctness,
the ennsylvania crude oil yields from eighty
five to ninety per cent. of refined. More than
this; being more volatile than that of Canada,
having less residuum, the oil Of Pennsylvania
allows Of changing the stills three times a
week, while it is difficult to work more than
three changes of the heavy oil of this locality
in two weeks.
Ii the Canada oil for illuminating purposes
will last one-ffth longer than that of Penn it
is owingato its being more imperfectly refined.
We have nothing here that compares with
your Portland kerosene which is now quoted
in Montreal at about 65 cents, while the best
Canada article brings only II to 20. But then
the kerosene is a coal oil and not rock oil like
the kinds under notice. 1t is a fact, however,
that refined Pennsylvania rock oil, brought in
from the States, commands about ten cents
per gallon more at wholesale, in the Canada
market, than the domestic article take it
this difference is wholly owing to the differ
ence in the treatment" OF the two articles
that from your side being better deodorized.-
The retailer finds no difficulty in placing his
barrel of refined Pennsylvania oil inside his
shop, in close proximity to other impregnable
merchandise, while no retailer allows cask
of Canada refined inside, but invariably keeps
it upon the platform or some other outside
place. because of its almost sure effect in i'm
parting its own peculiar odor to his teas
sugars flour, batter and other articles of kim
bred nature. The process of refining and
"treating" is far from perfect here.
Allow me to make another extract from
your article: a
One cargo OF crude oil was sent abroad few
years ago. 1t was the first attempt to estab-
lish foreign trade, and has not been followed
up. Prices have dwindled to $3.50 or SO at
Boutwell, and 81 % to LIS at Petrolia in cold
A steady demand at So barrel in Boutwell,
and 81 or $2.25 III Petroia would set all the
pumps at work. Such demand is sure to
make itself felt, sooner or later.
The prices to which oil has "dwindled," as
above stated, are likely to mislead, and excite
false hopes. Since Dec. LIST do not believe
barrel of oil has been sold at this place for over
one dollar while know that great deal has
been sold for less. 1t is very difficult to sell at
any price, and the figure have given is the
maximum. AT Boutwell, it is higher only be-
cause of its better quality, but it is doubtful
if twenty barrel well at Boutwell, will pay
any more profit than one of the same size
here, owing in large measure to the greater
quantity of water that has to be contended
with. What you say of the effect of an in
creased price and of the likelihood of its SOON
er or later being realized, is doubt just and in
accordance with the common judgment of
those engaged III the business.
AS you correctly state, a few years ago car
go--I think there We're several-of crude oil
was sent abroad to Liverpool, but the expert
ment was not only failure but deserved to be
such. The shipment made from Oil
Springs-seven miles south of this place-at
time when large flowing wells were running
oleaginous contents upon the surface OF the
ground. The barrels were filled from the
pools of oil thus created, with no care to sepa-
rate from it the leaves and dirt with which it
was mixed. The compound thus sent abroad
was nearly worthless, and did not pay the ex-
penses of shipment.
Recently one hundred barrels of our best Pc
trolia oil, put up i'll new and neatly painted and
well gummcd casks, have been shipped by
New York house, one half to Liverpool and the
balance to Antwerp, and it is hoped q better
reputation may thus be established for a great
ed by the former shipment If foreign mar
ket should be opened, should hope what you
say of Portland taking advantage Of it might
be realized, but unfortunately for such hope
the only railroad that approaches near to the
oil regions Of either this place or Boutwell, is
the Great Western, which is conducted in open
and undisguised hostility to the Grand Trunk
If shipment should be made it will probably
be done. through New York (unless direct from
Sarnialas it is already ascertained that it can
be done on better terms through that port than
through Montreal, even in the season of open
navigation of the St Lawrence. If the Grand
Trunk will run a branch from Camlachie, six
miles, to Wyoming, it can compete with the
Great Western, for by the terms of the charter
of the branch TO this place, the G. T. is secured
the right to run its own trains over it by pav-
meat OF reasonable tribute, the amount in case
of disagreement, to be settled by arbitration
Such branch may be built, and then Portland
will stand fair chance TO become a shipping