New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-05
PRODUCTION OF COAL OIL.

n
TIrUsvIILE, Penn, July 3.-Immediatey below
this place. and above the confluence Of the east and
west branches OF Oil Creek, are the Watson Flats,
celebrated for their early connection with the peto
leum oil trade and short distance beyond can be
seen the derrick Of Colonel Drake, which was
erected in 1859 and was the first work of the kind
IN this country. Oil first discovered oozing out
of the ground aud bottled and sold for medicinal
purposes. company formed IN New-l1aven,
Conn, with stockholders IN New-YoIk, to operate
an oil WE'LL but it could not make 1t pay, as the
oil would not flow fast enough, and 1t
was without appliances to sink it further than
those used in digging an ordinary well for wafer
Derricks were then used III sinking salt wells near
Pittsburg. The owner of one of these salt wells
found small quantity of oil sastead of salt. 1t is
a curious fact that salt water is always found near
oil beds. This person put up oil IN bottles with
fancy label containing picture of his well and der
rick, and sold the oil cure for all manner of all
ments. He found it profitable trade and his bot
ties of oil could be had in almost any Broadway
drug store.
George H. Bssel of New-York, was interested in
the New-Haven OIL Company. He had sunk con-
siderable money IN it and wondering how the
thing would be made to pay, when one day he
saw in n Broadway drug store this picture of a der
rick. Upon examining it the thought flashed across
in sinking the oil well. Soon after this the COM
pany sent f. l.. Drake-who for effect upon the
credit of the company bad colonel"
added to his name-to sink their well
in accordance with his new idea. After
many difficulties Mr.. Drake got his derrick mp, and
on August %, 1859 at depth of only 69l2 feet oil
was struck There was Immediately great excite
ment and other wells were sunk. In
that year 1000 barrels of oil produced and it
was sold OF held at $50 barrel. In the following
year the production increased to 100000 barrels,
but not much over one-half of this was consumed.
1t was not then used for purposes of illumination,
and the market was overstOc1ed and before the end
of the year oI sold for 40 cents barrel which
was the average figure in 1861. price
nearer that OF to-day than IN any year since. The
uses as well as the production of oil rapidly IN
creased until last year the production reached
269j0,Sl3 barrels
Since the first oil well was opened in 1859 the
product of the wells have added 81 .5OO0OOO00 to
the wealth OF the United States in the value of the
Grade oil and Its products To-day the product or
these wells lights the cathedrals of Europe, the
mosques of Asia, the pagodas OF Japan and even the
one million gallons day. In 1881 the value OF the
exports of petroleum aud its products was
$40,3l5,6G9, which was greater than that OF
tobacco, woodenware, iron ana steel
manufactures, or 1--we animals, and second
only to cotton and cereals. Its home
consumption has also increased IN proportion,
rank. Oil exchanges have been formed in Titus
willie. OIL City, Bradford, Pittsburg. New-York
Philadelphia and Warren. The sales in these eX-
changes have amounted to 10,000,000 barrels in
one day, while the production is only $4,000
barrels.
The consumption of oil is constantly increasing,
d it is estiiaated that the present low price Will
find "a way to use it advantageousy fuel IN steam
engines and 10 increase its uses III other ways Ihe
daily consumption Of oil il Is estimated will reach
This year II 600 gallons but the production s now
so 900 barrels day and there is about 80, 100000
barrels Oh hand. When the consumption catches
up to the production there Will be rejoicing IN the
hearts of the oil producers. "A.
The export trade however. is rapidly increasing.
In the first tive months this year the foreign demand
was 15S, ,630,4S2 gallons compared with
123, ,242 III the same time last year China,
Japan, British East Indies Dutch East Indies Eng
land anu Germany have largely increased their de-
mand tor the product. Large oil fields have been
discovered III Germany and Russia, but the OIL Is not
of good quality as the American OIL, aud these
foreign fields have not yet been developed to any
great extent, though it is believed that there Is
great fu ure before them.
The history of the discoveries in the oil fields in
this country has been of o series of dis
appointments TO the producers From 1866 to
1872 the price per barrel averaged from
81 TO 10, and the producers were making money
rapidly. Then the field in Butler County was
struck, and from that day to this the production
has been greater than the consumption; Before
Butler had begun to decline the Clarion field was
opened. Then came the Bullion pool with its 1000
and 5000 barrel wells, which forced the price
down to 81 80. This field was soon exhausted and
better times for the producers at hand, when
the Bradford field, the largest in extent ever known
was opened For nearly five years the Bradford
field increased it, production until it had daily
output of over 100000 barrels. The consumption
not over one-half this amount, and with
the Standard Oil monopoly squeezing the
producers, many of them went to the wall. Then
bradford began to decline, and again silver lining
was seen in the cloud but again disappointment
came. In May 1881, the first well struck in
Allegany County New-York, and q new field was
opened which soon more than made up for tue de-
cline. In the spring of the present year the ALE,
fsaf mad fhaf "A haI fln
was the decline, and again the producers looked
forward to the near future when the consumption
would equal the production +rrns Then was spS
with it followed disaster to the owners of
wells generally, and lower priced oil than
since the summer of 1874, when for short time 1t
sold for 10 cents barrel. Where the next field
will be Is only matter of conieoture.
The only time when the excitement over q new
oil field was great as that now reignDg IN the
Cherry Grove district was III 1865, wher the mt
hole fever took possession of the public The trst
we'll AS opened there i'll May OF that year. In less
than two months Plthoie city OF considerable
proportions, and within six months 1T had 5000
Inhabitants and almost as large floating popnla-
ton. At the pinnacle of its greatness II had nifty
hotels, some OF them paatal and gorgeous ana one
of which cost $4,000. 1t had miles of streets
lined with banks and all kinds of business establish
ments. A $4,000 transaction was considered OF
small account and miscaculatIng the tuture OF the
place, wealth was squandered on new enterprises
which III the minds of its citizens promised fabu-
ous fortunes but Pithole was only chlid OF SIX
months' growth when ut began to exhibit symptoms
of an early decay and 1t declined almost as rapidly
as il tspruugup The TRIBUNE correspondent visited
| Pithoe the other day and found only one voter
living III the place. The railroad long ago torn
up and most OF the houses torn down. Two
OF tue streets are still open, and beside them re-
mains pttful scattering of old houses In the last
stages OF decay. Fields of corn and oats stretcn
over the streets and squares where once were gaudy
theatres and dance-hOuses, gorgeous saloons anu
mammoth hotels When the oil fever was high
half acre OF what is now waste pasture-land was
sold at a rate equivalent to 500, 900 an acre. over
on the hill still lives old Mr.. Copeland who in 1868
refused an olier of 100000 for his farm. Two
years later he would have taken rs many cents;