The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-05-28
THE PETROLEUM TRADE AND SUP
PLIES,


Since thsre has bssn prospect of war be-
tween England and Russia, the petroleum
trade has been discussing what effect hostili.
ties would probably have upon the oil mar
ket. So far, the rumors of war have effected
petroleum less than any OF the great com.
modities, and yet Russia is the only COM
pstitor the United States has in the petrole-
um trade.
The oil wells Of Western Pennsylvania
and those OF Baku, on the Caspian Sea
practically supply the world with petrol
cum. 1t is true some oil Is produced in Cam
ada, South America, British Burmsh, Aus
tris. and even IN Germany, bat it ia not suf-
ficient to supply home consumption. 1t is
impossible to state exactly what the worlds
consumption of petroleum amounts to. The
daily demand upon the Pennsylvania wells
for home and foreign markets is now about
10000 barrels day. but it is difficult to OBJ.
tain trustworthy figures regarding foreign
oils.
As to the production of oil, statistics are a
little more satisfactory. The propucsion Of oil
in 1884 must be put down at $1,000, 0O0' bar
rels of foriy.two gallons each. OF
this amount 24,sOo00o were pro-
duced by the United States and
100000 barrels in Russia OF Americas
production over two-thirds go abroad. With
the exception of 100000 puds (7,250,0O0
gallons), which were exported, Russia con.
sumes the entire output OF the Baku wells.
Americas largest customer is Germany.
Then comes England and Belgium, China,
Farther East Indies Fsance and Holland.
From the foregoing il is plain that war
engaging England, Indis, Afghan and Rus
Ella can have little or no effect upon the
American oil trade. Russia's Oil. production
is now about equivalent to the home de-
mand. She buys very little OF Us. AT the
same time her export trade Is so small that
even il 1t were to fall to rs during hostilities
we would not be benefited to any extent.
1t is well known that in the event OF an
Afghan war Baku would be the pint of
shipment for troops en- route from the eau
cssus to the seat of operations. The fleet OF
oil ste amers trading on the Caspian and on
the Volga would no doubt be used as trans.
ports, aud many persons think that
this, with the possible drain upon the
population of Baku for military service
might psralyzs. at least for o time, the
Caucasian oil trade. For the past years the
Russian oil business has been making great
strides, securing first OF all the home market,
and now being on the point OF branching out
into Germany and Turkey, and the markets
OF Asia Minor and Central Aeia. Any check
upon this extension would of course be Q
benefit TO the American oil industry. Many
persons when they speak of tho good effect
war would have upon the oil market are no
doubt looking at the matter from this stand
point. 1t seems to us, however, that war Is
more likely to stimulate than to check the
development of the Russian oil fl elds, and
our reasons for thinking so are these: Russia
depends upon England almost entirely for
her ceal supply. Even now before war is de-
cared the shipment OF coal from Ne wcastle
to Russia has almost ceased, and there is, ac-
Petersburg. Now. of the total product OF
the Baku wells. only so per cent. is illumin.
ating oil, the remainder being either l1bri.
eating oil or refuse, tar, etc., which makes an
excellent and very portable fuel. II has
loag been used on the Caspian and Voiga
steamers, and recently on the Caucasian ana
Central Russian Railroad. 1t is probable that
in the event OF war there might be great
demand for this ''refuse fuel" for use first OF
a. on the railroads in lieu of coal and on the
ste amships, which no doubt will be kept
going at far livelier rate transporting men
ind munitions of war than they were trans
porting crude and refined petroleum. The
| production OF crude oil would thus b in.
| creased, and with every seventy barrels Of
'refuse fuel' there would be thirty barrels
Of raf3na Al oil Which would hava Ia find Z