Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-05-28
RISE OF THE OIL BUSINESS.

From q Cure-AII Petroleum 1t Soon Came to
30 One of the Leading Products of the
World-Somo Interesting Statistics From
J.1. Buchanan.
j. T. Buchanan, who has been associated
for years with Captain J. j. Vandergrift,
took care of the oil interests in very clever
manner. His address follows, and was
listened to with great interest:
The year 1919 marked the discovery of
gold in California and the first real step to
the petroleum development in Pennsylva'
mia. 1t is true that exactly a century be-
fore the French commander at Duquesne.
writing to Montcalm re erred to oil streams
where the Seneca Indians held their re-
ligious services, so that Pittsburg comes
honestly by her religious instincts, but it
was about lS49 that Samuel W. kier gave
commercial value to what the Indians had
hitherto regarded as only of spiritual value,
charging his fellow citizens 1886 per barrel,
the highest price ever attained by petro-
leum. His half-pint bottles of "cure all'
went forth with the following announce
ment:
"Kier's petroleum or rock oil, celebrated
remedy. Procured from well in Allegheny
county Pa, 400 feet below the earth's sur
Tnce. Put up and sold by Samuel W. kier.
1868 Liberty street, Pittsburg, Pa. Price 80
cents"
1t is said there was a market for about
three barrels per day at that time. Three
years later the trade diminished, and this
enterprising benefactor OF the human race
undertook to distil the oil to make fluid
suitable for burning in lamps,
Oil Fields Exchanged for a Cow.
In 1854 all the oil territory then known in
Pennsylvania was traded for a COW; now
5000 0OO, COO would scarcely purchase it with
upward of $4,000 wells that are producing
OIL The wells were originally drilled with a
spring pole cut from tho adjoining forests to
depth of go feet to 600 feet; now the ma.
chinery developed by the business is
wonderful in the width of its range and the
ingenuity of its device, the drilling tools
alone weighing upward Of a ton and the
wells being drilled to depth of 5000 feet.
In the year Drake drilled the well on Wat
sons flats, couple Of miles from Titus.
Vile, the field was a limited area on Oil
Creek, and the production which in 1s49 had
been only three barrels per day had grown
to 9, 600 barrels per annum. Now the oil field
has extended northest and.southwest over
large portions OF the counties of McKean
Warren. Venango. Clarion, Butler, ALE
gheny, Beaver, Washington and Greene in
West Virginia and Ohio, not to mention the
Western oil fields; and the production has
increased co upward of 10000 barrels pei
day, or nearly $4,000 600 barrels per annum
including Northwestern Ohio.
For the past 90 years go 600 wells have been
drilled, or 8 0O0 wells per year. The industry
has come to give employment to at least
1000 persons directly engaged in its con
duct, who receive for their labor not less
tnan SIG 900 900 per annum. and the oil has
extended it's medicinal and pharmaceutical
use in ways never dreamt of by Mr.. kier.
The amount produced within a radius of &c
miles from Pittsburg is certainly 1000 bar.
rels per day, on over $1,000. 600 barrels per
year, bringing to the city over $40, ,000, 900 an
nually, 80 per cent of which is returned to
the laborers, mechanics, pipe works, lumber
dealers, machinists and Oil we'll supply man
uacturers. 1t would be a very interesting
calculation to estimate really how much the
particularly glass manufacturers, have
prof1ted from petroleum, of which ut least
$475 600, 600 barrels have thus far been pro
duced. The home and foreign consumption
other and can be arrived at by dividing the
total shipments. Fuel demand is considered
generally in excess of the supply of Trenton
rock oil, which amounts to about IL, ,OOt
barrels per annum.
Effect of the McDona'd Discovery.
The highest production of Pennsylvania
oil was probably reached through the sud
den rise of the Mcdonald field last Novem.
ber, when the average for the month was
reported at 1874 500 barrels per day. In April
the average was down again to 92,2l4 barrels
per day.
There are at least 10000 miles of oil kinds
of pipe in g. actual use receiving, transporting
and delivering crude petroleum, which is be.
ing constantly added to. The capital invested
in the transportation branch Of the business
amounts to upward Of $50 1000. The stock
of oil In iron tanks consists of 5000. 900 bar
rels. including 100000 barrels of Trenton
rock OIL There is refining capacity in the
United States for Illuminating oil consider.
ably in excess of the production.
In 1872 the people consumed 252. 600, 600 gal
ions OF American petroleum per ann um. To-
day they consume ,26O 200 gallons. The
price they pay to-day for this amount is
5000 600, 0@0 less than would have been paid
ior the same amount in 1872, and one-half of
this saving or $1C0 000 600 is attributable SOLE
ly to the cheapenng of the manufacture and
sale OF the products, the other 500 900, 900 be-
ing attributable to the decrease in the value
of the crude material consequent upon the
increased production.
The use of petroleum in this country for
fuel has only been matter of yesterday.
With the increase of production the de-
mand has arisen, and is likely to arise, and
no limit can be set to the growing need of
our own country as time advances for fuel
and light, to say nothing of the increasing
demands of foreign countries