The Petroleum Centre daily record. [volume] (Petroleum Center, Pa.) 1868-1873, 1873-07-19
THE OIL SITUATION.

IOH tue NeuauSo CpeSso'oi' ~ "'
q careful perusal:
The present unsettled condition OF the oil
market, with a tendency to still lower prices
may well excite the alarm OF producer and
business men generally, for we are all ID one
boat together. There is remedy, but tha'
remedy il unattainable. 1t is to bring
down the production until it is no greater
than the demand. 1t Is uuattainabie, be-
cause there can be no concert OF action
among so many producers, nearly all OF
whom are forced to pump to meet the de-
mands against them. But, aside from the
natural tendency to low prices which an ex-
cess Of any article always produces upon
the market, there arc speculators whose in
terest it is to keep up the present depresi
sion. If they can ruin the business OF the
producers they can buy up large portions Of
territory at small figure. The producer
ia therefore between two fires; one caused
by ovsr-production, and another By specula-
tors, representing large capital, who bear
the market and create panics.
The end of this must come soon. Pro-
duc.ion must stop, either by concert of &C!
ion, by prices becoming so low that none
but the few larger wells can be kept work.
ing, or by general smash up and sales by
the Sheriff. One or the or the other OF
these things must happen. OF a new outle
for oil must be found that will make the de-
mand OF least equal to the supply.
A meeting of producers was held in the
lower oil region last week to consult upon
the condition of affairs and seek for reme-
dies. An able aud exhaustive speech was
made by gentleman called Captain Butt
Ter. His remarks read well and are plausi =
Bile. lie states that petroleum can be used
FOR manu- tactnring gas in large cities. He
eserts that it is cheaper for that purpose al
seven dollars barrel than oal, and thai
gas made Eom oil is superior to that now il
general use. His statements do not appear
to be made at random, nor based upon the
theory alone. He was about to complete
negotiations for lighting one of the larges
cities 10 tine West with gas made from pc.
troleum, and other large cities would follow
the example. In this connection Captain
Butler said, the cost of refitting existing ga
wo rks to adopt them to nse petroleum in
stead Of coal, would not he more than tw'
per centum ou the original cost Of tn
works.
| These statements are given with the al
otione who understands what Le is talkin,
about and they should receive consideraI
tion in apractical way: not by resolu
tions,' but by atest. If ,swn can b
lighted by gas made from petroleum. cheap
er than with that made from coal, aud if o
gas is purer, and has greater illuminatin
power, let 1t be done at once, and don
here at home, among the wells. Il Franl
lin, Oil City, Titnsyille, Meadville an
Erie were thus lighted, the figures could
made to show that the light furnished wa
better and cheaper, the days. of coal st
would be over while oil could be procure
at even ten dollars per barrel, Bnt it seen
au up hill business 10 ask 81. Louis or Chi
cago to try petroleum gas before we try
ourselves at home. Here in Franklin is
good place to test Capt Batler's statements
we will not say theory, for he talks.
facts aud experiment
The ruiuous condition OF the oil mark,
today demands prompt remedy, if an
remedy can be found The production
now estimated, In round numbers, at 500
barrels daily. Isthis oil could be sold ft
81 per barrel, which is above present rate
it would make tho gross receipts from O
$50, 900 per day. 1t Is estimated that .heI
are 4, 400 pumping wells In the entire II
giou. which cost Sc each daily, for labt
aui contingencies, aud that there are eigh
wells going down daily, at an average CO.
of $4,000 each. From these statistic
which aro as accurate as the nature of ii
business will permit 1t iseasy to SEQ tn,
5 the producers as mass are daily losiu
ground.
Aifthis over-produetiou is caused by tt
+ crazy operations 10 the lower district.
> is said that atifty barrel well at one thu
y in the Butter region was considered b,
Y little better than u dry hole, and that Il