Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1882-07-04
The New Oil Discoveries.
Tun ENORMOUS DEVELOPMENT OF rue
rRoLEUM R.GIoN OF PrNNsYLvANIA.


II is 2S years since the Pennsylvania oil
| region first attracted the attention and specu-
lation of the country. The project of boring
for oil was subject of Jest till suddenly a
well. yielding 400 gallons day, was opened,
and then the developments, fresh now in the
recollection of the nation, brought a tide
of emigrants to the region. The land which
had been worth but "a few dollars per acre,
all at once brought extravagant prices.
Single farms sold for from $500, 900 to ST.
100000. One of the wells produced half
million barrels of oil in one year. From a
feverish speculation the oil industry became
a regular department of commerce, and the
oil region in the northwestern part of Pennsyl-
| vania has furnished probably three-fourths OF
the petroleum found in the markets. A few
weeks ago new field, richer than anv
operated in long time, was opened, and the
cry now is that too much oil is pouring out
of the ground. The fear is expressed that
for the time the industry will be prostrated
by the reduction in price in consequence OF
the enormous yield of petroleum. Hundreds
of people are hurrying to the region, remind
ing the inhabitants in that portion of Pennsyl-
vania OF the days in 1859, when there was a
rush to the oil region as to a new gold mining
camp.
The new district is in Warren county.
Four wells have been drilled and are pro-
ducing large quantities of oil. The total
yield of these wells is over-stated, possibly,
but it is asserted that altogether they are pro-
ducing 1000 barrels a day. One of the wells
has been flowing since May Is, and continues
to send forth daily 500 barrels. The principal
well was opened about ten days ago, and the
extraordinary yield of 1850 barrels in 10
hours is announced as the first outcome of
the undertaking. This sudden yield prepares
the reader to believe the statement that for
lack of tankage large quantities of
the oil are running to waste, though tanks
of a capacity of 1900 barrels
each are being erected. The wilder
ness is filed up with people, and the
surprising rapidity with which houses and
places of business are prepared in mining
towns is equaled by the enterprise in this
new oil region for il is presumed that the
less prolific fields will be abandoned, and this
more favored region will become the center
of attraction. The speedy appreciation of
property is one result. Land on the belt is
only to be had for $1,000 per acre and one
fourth of the production, great increase up
on the old valuation. The preparation to
drill other wells proceeds, and. as il requires
only two three weeks to drill a " ell, a pro-
portionate yield will make the supply coming
from the region far larger than the demand.
The production Of last year is given as nearly
thirty million barrels of crude oil, a third
more than was required to answer the dc.
mands of the trade. In fact for five wears
the production has exceeded the requirement
In the storage tanks and nj the seaboard 90
600 barrels, or much more than a years con-
sumption. are awaiting shipment. This cir
cumstance would not be disduieting were il
rot that the unexpected increase of stock will
| send prices down below a paying standard.
The serious import to many investors and
dealers Of this over production Of oil is obvi.
| Gus. and the corresponding fact that decline
| effects favorably households throughout the
land whose expenditure for light is lessened,
is to be remembered The torrent of the