The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-13
PRODUCTION AND PRICES OF COAL

4
| PRODUCTION AND PRICES OF COAL
| OIL.
/ The large advance in the price of coal
| Oil during the last few days is an inter-
| esting feature of current commerce. It's
| occurrence simultaneously with the rise
| in the price of cattle and beef suggests
| some points of similarity, though of
| course there IS no connection between
| the two cases. The cattle market as
well as the petroleum market is con-
| trolled and can be manipulated by
| few hands. but it is probable that in
both cases the present rise of price is
| due to an existing shortage pros
| pective diminution of supply. The dis
| patches indicate a steady and pro-
gressive decrease of the supply of coal
| oil so clearly as to leave no doubt that
unless new fields are discovered very
soon the diminishing supply will prove
| more and more unequal to the increas-
ing demand. The article has become
almost a necessity of life and it's uses
in various forms seem to be increasing.
1t has an immense consumption for
illuminating and fuel purposes, and
some of it's by-products enter largely
into daily life and commerce. AS an
article of export it has become an i'm
portapt item. In 1894 our exports of
crude oil amounted to $4,415,915, of re-
fined oil to $37, 0s3.s91, and of paraffin
and paraffin wax. product of coal oil,
to $6,460, 625, making total of SAT, $3.50, 431.
There are no statistics as to the amount
or value of the petroleum consumed in
this country. but it must be enormous.
1t is obvious, therefore, that the failure
or any considerable diminution in the
supply of the article would be a serious
matter.
The history of coal oil in the United
States is one of the romances of COM
merce, and an analysis of its effects,
direct and indirect. on national life and
character would form an interesting SUBJ
ject for the social scientist. The rise
and decline of Titusville, on Oil creek,
Pennsylvania, the rapid accumulation
of great fortunes and their equally rapid
loss, the fluctuations of the oil market
and the operations of the Standard Oil
Company would furnish ample material
for an interesting chapter.
The price of the article during the
last thirty-fixe years. while it has some
times fluctu4fed wildly. verifies in the
main the law of supply and demand. In
1860, when the entire product in the
United States was only 100000 barrels,
the price was $3.50 per barrel. The next
year the product was 2.110.000 barrels
but as it had not yet come into general
use and the refined grades were still
very crude. the supply was far ahead
of the demand, and the price dropped
to $273 per barrel. The same conditions
prevailed in 1862, when the product in
creased to 3,o55,000 barrels and the price
fell to $1O5 per barrel. The next year
production fell off, and as the consump-
ton was increasing the price rose to
1897 barrel. From this time the
variations were not SO great The pro-
duction increased year by year and the
price showed a generally downward ten
dency till 1879. when oil was SIS cents a
barrel. This was the first time it had
ever been below 81. In 1886 the out
put had reached 26,150.000 barrels and
the price was II cents. In 1898 the
product was 4S,412.666 barrels, valued at
SIS, 932, 1926. The very considerable in
crease of price during the last year and
that is now going on is doubtless due
either to a falling off in the product or
a threatened exhaustion of the supply,
though, considering the extent of the
country and the large areas that have
not yet been explored for oil, the latter
is not likely to happen soon. 1t takes
money, however, to prospect for oil, and
some rich fields may remain undis-
covered for many years to come. 1t was
thirty years after the great Pennsyl-
vania7 field was opened before oil was
discovered in Indiana. and while the
recent advance of price will doubtless
stimulate prospecting, it may be many
years before another field will be dis
covered as promising as that in this
State. The Indiana oil field is now an
important factor in estimating produc-
ton and prices, and is becoming more
so every day.