The sun., 1881-01-16
The Petroleum Wells of Russia.

The Petroleum Wells of Russia.
Few persons appreciate to what extent
our petroleum export trade is menaced by
Russian competition. How large quantity
OF the staple exists in Russia, and at how
early date this new source OF supply may
be made accessible to European consumers,
are questions Of great interest to American
producers and refiners, and they are an
swered at length in a lately published re-
port OF our Consul at Odessa.
Traces Of oil have been found in several
parts OF Russia but the great petroleum
district Of the empire lies within radius OF
fifty miles around Baku, point on the
western shore OF the Caspian, about $50
miles south OF Astrakhan. 1t is In this dis
trict that operators, with relatively rude
appliances, have lately opened flowing wells,
exceeding in the volume Of their deliveries
anything exhibited by the oil fields OF Penn
sylvania. Although the production OF oil
on q large scale Is thing OF recent
date, the naphtha deposits Of Baku
seem to have been known and used
from immemorial times. The surface
oil, which gathers in pools and lakes,
has been employed for many generations
for greasing wheels, preparing wine skins,
and as an agent for embalming the dead.
That Baku was an outpost or colony OF the
old Persian empire may be inferred from
the fact that community OF fire worship
pers still exists in the neighborhood. Priests
from the Parsee settlement at Bombay con-
duct their religious services, and the illu-
minating gas employed in their place Of
Aht tntn AI ,vNlx
pressing pipes down into the earth. 1t was
not until 1872, however, when the lands
about Baku passed into the hands OF pri-
vate owners, that tho resources Of the dis
trict began to be turned to large account.
At the end Of that year there were 415 So
called "wells," but most OF these were
mere shallow holes in the ground. like ordi
nary water wells. At present there are up
ward Of 800 bored wells in the tract, ranging
from $50 to 700 feet in depth. 1t is said that
depth Of $50 feet in what Is called
known territory" has never failed to
produce oil in large and generally enor-
nous quantities. According to Consul
DYER there are flowing fountains capable Of
yielding more than 5000 barrels OF crude oil
per day. Thirteen others are specified
whose daily product ranges from 1880 to
| $3.50 barrels OF course the flow OF these
| fountains is OF short duration, rarely last
ing four months. after which pumping Is
necessary. The appliances for refining
are SO inadequate, and the demand
Of the market reached by the river
| yolga is 30 limited, that an incalculable
| quantity of the crude product goes to waste
| When we are told that the crude naphtha
| now sells at the wells for six cents a barrel.
| we can understand that the city Govern
ment Of Baku should find it cheaper than
| water for irrigating the streets 1t lasts
| upon the thoroughfares from three to four
| days, forming compact and firm pavement
OF oily sand.
Consul DYER estimates that by the end OF
the present year the possible production Of
| refined oil at Baku will not fall far below
| 2O00, 900 barrels. One firm OF refners have
invested $2,500,0O0 in their business, and
| their establishment already has capacity
OF 100000 barrels. The present low price OF
their product is due to the fact that the
market accessible to the Volga and its trib-
utaries has been overstocked. There is, to
be sure, O railway. only forty miles in
length. from point on the Volga to town
on the river Don, from which all OF the
|
expense OF transporting the oil In barrels by
rail is 30 great that the idea Of shipment by
| this route cannot be entertained. For the
moment, therefore, the oil Of Baku ia shut
out from Odessa and other Russian ports OF
| which 1t would otherwise have monopoly,
the duty on petroleum In Russia being near
ly So q barrel. At present the refined oil
costs at Baku 1s cents per barrel, while the
barrel itself costs So, almost all the timber
used for cooperage being brought from ST.
beria. The cost OF transportation by way Of
the Caspian and the Yolga to Nishni Nov
gorod is SIPS, and the ruling price at that
entrepot is fron. 81 to $3.50. The very small
margin for profit afforded by these rates ex-
plains the temporary depression OF the
Baku petroleum industry
1t is with view OF bringing this vast
reservoir Of naphtha into close relations
with the markets OF the Black Sea and Med
iterranean that new railroad. equipped
with tank cars, is to be built from Tifiis to
Baku, a distance OF 800 miles. The line from
Poti, on the Black Sea, to Tihls is now in
operation, and work has already been begun
at four points on the extension to the oil
fields OF the Caspian. This section of the
road, 1t seems, Is not at all difficult OF con-
struction, and the contractors have agreed
TO have the line open to Baku in eighteen
months. The maximum freight which the
company are allowed by their charter to
charge for the transportation OF petroleum
from the wells to the seaboard is 72
cents barrel, A pipe line also is pro-
jected for part OF the route between Tiha
and Poti, and Mr. DYER has no doubt that
the entire distance from Tiilis to the sea.
board will eventually be piped. as the eleVa'
tion is sufficient to press the liquid to Its
destination without the aid OF pumps.
| When the railway from the oil wells to the