Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1882-07-05

pouring out of the ground. The fear is
expressed that for the time the industry
will be FRUSTRATED by the reduction in
price liz consequence of the enormous
yield of petroleum. Hundreds of people
are hurrying to the region, reminding
the inhabitants in that portion of Penn
sylvania of the days in 1859, when there
was rush to the oil region as to 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, posi-
bly,, but it is asserted that altogether
they are producing four thousand bar
rels day. One of the wells has been
flowing since May 18th, and continues to
send forth daily eight hundred barrels.
The principal well was opened about ten
days ago, and the extraordinary. yield
of twelve hundred and fifty barrels in
nineteen hours is announced as the first
outcome of the undertaking. This sud-
den 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 capacity of
twelve hundred barrels each are being
erected. The wilderness is filed up
with people, and the surprising rapidity
with which houses and places of business
are prepared in mining towns is equalled
by the enterprise in this new oil region;
for it 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 at 1000 per acre
and one-fourth of the production,
great increase upon the old valuation.
The preparations to drill other wells pro-
ceeds, and, as it requires only two or
three weeks to drill well, proportion
ate yield will make the supply coming
from that region far larger than the de-
mand.
The production OF last year is given
as nearly thirty million barrels of crude
oil, third more than was required to
answer the demands of the trade. In
fact for five years the production has ex-
ceeded the requirement. In the stor-
age tanks and at the seaboard 10000
barrels, or much more than years con-
sumption, are awaiting shipment. This
circumstance would not be disquieting
were it not that the unexpected increase
of stock will send prices down below
paying standard. The serious import to
many investors and dealers of this over
production of oil is obvious, and The
corresponding fact that decline affects
favorably households throughout the
land whose expenditure for light is les
sened, is to be remembered. The tor
rent of the crude petroleum is blessing
to others if not to the spectators and
those persons who profits come from a
well-sustained market.
In 1859, the production of oil in Penn
sylvania was 5000 barrels, of value at
the wells of 81, 1854. The following year
the production was 100000 barrels,
worth at the wells 81, 368,000 From
1859 to 1876 the total production was
76,326, 733 barrels, worth 1915, 904, $50
at the wells. The average price per bar
rel for the year 1859 was $13. Ina year
the price had gone down to S. and in
the succeeding year the price was only
So. IS, while the production had in
creased near fourfold, the latter fact ex-
planning the former. Up to the end of
1874 there had been drilled 10, 499 wells
in the oil region. The history of sud-
den fortunes which cast glamour over
the early days of the oil industry cannot
be repeated in equal measure. Doubt
less stronger statements are made than
the case will warrant. Enough is well
ascerta1ned, however, to justify the
rather excited accounts which comefrom
the new wells. The commercial bearing
of the discovery is plain, and it is to be
hoped for the sake of persons who are
unable to bear the loss that the predic-
tions of disastrous fall in prices are
needlessly alarming, while consumers
everywhere will be glad to hear that at
least one article in the domestic economy
is likely to be cheaper.