New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-05-21
PETROLEUM IN MEXICO.
RICH DEPOSITS BELIEVED TO EXIST.

RICH DEPOSITS BELIEVED TO EXIST
AMERICAN CAPITAL INVESTED IN MEXICAN OIL
FIELDs-INDUsTRIAL IMPORTANCE OF TIE En-
TERPRIsE.
lTRoM AN OCCASIONAL CORRESPONDENT OF THE TRiBCNEl
CITY OF MEXICO. April 25.-While the area OF
petroleum production has extended from Canada
and Pennsylvania to California. Russia and ser
many Mexico has so far remained outside It's limits.
There is prospect that she Will become
large producer of that substance Some time since
Mr.. Loughead. who has been connected with the
oil industry since its inception in Canada. examined
district in the State of Vera Cruz and found there
q sandstone formation like that in the oil fields OF
Ontario and Pennsylvania lie procured some
barrels of the oil which oozed from the surface, and
laid the subject before capitalists in Boston.
Being satisfied with his representations. they Sc
cured "A tract which is no less than eightysiX miles
long by wide, and sent him back recently to
select place for the works. 1t is stated that an
other company has secured property in the same
district, and also expects to find oil IN abundance
The oil fields are situated southwest of the port
of Tuxpam. and extend from the foot of the San
Fllippe Mountains to within nine miles of the coast
Oil is found in small lakes, and has been used
in Il small way Ivy the peasants for many years. 1t
is not asserted that al abundant supply exists, as
that must await the test of experience, bnt it is e<
as 600 feet 1t is estimated that the first well can
be sunk to that depth for $500 which is about
six times as much as it would cost in Pennsylvania.
The Government has agreed to admit the machinery
free of duty and seems disposed to give the enter
prise every encouragement.
The Importance of petroleum to Mexico can
hardly be oveIcstmated. 1t seems to be the one
product needed to complete the good fortune of
country which claims in its National motto that
the Lord hath not so dealt with any other
nation" Artificial light of all kinds is expensive
here and throughout the Interior. In this city the
electric light Eliminates the Plaza and the princi
pal street. shining with peculiar brilliancy i'll the
clear thin atmosphere that pcrvades this mountain
plateau, which is one and half miles higher than
New-York But both electricity and gas too
costly to come into general use. especially as street
lighting is not deemed of primary Importance in
country where most people are indoors every night
by o o'clock and business is practically suspended
by Z. In cities such as Puebla, Queretaro aud San
Luis POtOs the streets are still lighted with dismal
oil lamps suspended at the crossings. The people
of these cities are sensible of their shortcomings
this respect and would readily adopt better
system of lighting if they could do so at reasonable
expense In hotels and private dwellings, here and
elsewhere. candles and lamps are almost exclu-
sivey used. only a lew costly residences being
supplied with gas, which is made use OF chiefly III
stores and factories.
As fuel petroleum would be of the greatest ser
vice to Mexico, until the coal fields which are
said to exist in pueba as well rs IN Sonora are de-
veloped, people must continue to depend upon wood
and charcoal, Which are sold ut what would he
deemed famine prices IN the United States. We're
coal Gil abundant, Mexican If not American in
gennlty would readily improve the appliances by
which il may be used as'iue. for mining nanuiac-
turing and cooking purposes
Willie the capacity of this country to produce
petroleum abundanty Is thus about to be tested, 1t
is satisfactory find that American producers are
not negectlng their interests. One OF the largest
corporations in the United States has for some time
directed its attention to this market and has re
Gently taken steps to extend its trade here The
petroleum business WAS formerly IN the hands OF
steamship company, which executed orders 1or
the accommodation of merchants in Vera Cruz and
elsewhere, but it forms part OF the general
traffic. The great cost of petroleum, however re-
tards is consumption Oil which sells Tor about ~
cents per gallon in Ncw-YOrk, Is taxed as much
more for freight to Vera Cruz where 1t is subjected
to a dut, of cents per kilogram T. lilo p0nndsl,
which is equivalent to abont 81 cents per gall
The freight to this city and the municipal duty
come about - cents more 50 that the oil costs at
the hands of the wholesale vendor who would call
20 per cent moderate proht thereon. N0fthward
the cost is still greater, owing to the mgh rte lor
transportation and the lack OF active competition.
In Zacatecas quart bottle sells for 40 cents IN
Mexican silver, which Is worth about Is per cent
less than American gold currency. The ordinary
box with two tin cases, containing about seventy
pounds weight Of oil, sells for $ll 30. Even at
this high figure it is perhaps more economical to
burn petroleum IN stores and large rooms than
stearine candles. which are imported from France
and sell at 10 cents lAmericanl per pound. -,
Although petroleum Is so valuable commodity
in Mexico, IT would not be well for people TO rush
to the oil fields 1t is only those with capital who
can engage safely in a business which must be Mt
best of slow growth 1t may be assumed conf,
IDENTIFY that if the oil industry is To he developed
here successfully II viii he done only by companies
which can command the large sum needed to buy
the land bore the wells. refine the crude oil, trans
port it to the chief cities and wait until it becomes
article of general consumption.