Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-02
PETROLEUM AND THE FUEL QUESTION.


Experiments in the use of petroleum for
fuel in rolling mills and glass works are
surrounded with great interest to both man
ufacturers and oil producers. The former
have the hope of developing fuel equal in
reliability to gas and free from the dirt and
Inconvenience of coal; the producers have
the vision before them of an indefinite en-
largement of the market for their product
in the crude form. Add to this the direct
and pecuuiary difference to the community
at large of freedom from coal smoke, if an
economic fuel gas can be developed. and
few experiments can be suggested which in
volve greater interest to a community than
that of oil fuel, or any other practicable
fuel gas, does for this city.
OF the probable economic success of the
processes now under test a more expert
opinion then can be given in these columns,
at present would be necessary. Better
than either will be the result of actual
working tests. But 1t is pertinent to make
one suggestion with regard to results which
have been pretty well established. 1t is
stated as reliable proportion, by processes
already tested, that two and a half barrels of
oil can furnish an effective heat equal to a
ton of coal. The latter processes are seek
ing the very desirable object of materially
reducing that proportion. This makes oil at
so cents, for fuel, equal to coal at 8 cents
per bushel; at IS cents equal to coal at ~
cents, and so on. While this does not offer any
economs on the cost of coal delivered at the
mills, in wholesale lots, it is question
whether, when the cost of stoking and TAX
ing away the ashes is included. oil at 20 or
rs cents might not be preferable in our mills
to ceal at the usual price.
Indeed, we understand that this point is
generally recognized by the manufacturers,
but when that is conceded another difficulty
arises in the well-known volatility of the
crude petroleum market. The mill man
says: IwouId fit up my furnaces for burn
ing oil if could be sure of a steady supply
of fuel at the 20 or 75-cent rate. But what
assurance is there that when have done
that, and an increased demand for petro-
leum from similar establishments ensues,
that the price will not advance to dollar
or more? This means that 1 must either
submit to an increased cost of 60 to IS cents
and upward per ton of finished iron or steel,
or that 1 must lose the expense of changing
nv furnaces from coal to oil and back
again. This by no means unfounded objec-
tion shows the pertinence of the suggestion,
that the oil producers might find. it advan-
tageousto guarantee that price on a stated
of 4hair for of
years.
The producers need to do two things
in order to relieve the present
situation of its onerous features; first. to
bring in competing purchasers for their
product; and second, to enlarge the con-
sumption of crude petroleum. If they can
do this there is no doubt that the demand
for Illuminating purposes could cause rise
in the market, with any resort to the hazard
Gus and costly device of arbitrary restric-
tion. Here we have an opportunity to de-
velop the new demand and bring in COM
peting purchasers; but unless the relative
fuel values of coal and oil are changed by
improved processes, it must be at bottom
prices. But suppose the producers as a
body should agree that the mills of Pitts
burg should have, say one-fifth of their pro-
duction for the next five years, at 70-cent
rate, equal to perhaps 1000, 900 tons of coal.
Would it not in the first place fix a price
below which the petroleum could not de-
cline; and would it not, in the second place.
by the consumption of just so much of the
supply, vastly enhance the probability that
the other tour-ffths of the production would
sell at enhanced prices for Illuminating
purposes?
Ofcourse if Lima oil can be delivered in
Pittsbure more economically than PennsyI-
yania crude, whatever is brought here could
be counted as filling the proposed guarantee
to the extent that the Western fuel comes
here. The necessity is to find some organ
ization qualified to guarantee certain price
to the mills that will take hold of petroleum.
1t would be hard to find any body better
qualified or more interested in doing so than
the organizations of petroleum producers.
Certainly any proposition which contains
the possibility of freeing Pittshurg from the
threatened return of smoke, and OF enlarging
the depressed market for crude petroleum,
is worthy of thorough consideration and the
warmest hope OF the public that it may
prove to be practicable.