The herald., 1895-09-01
NEWS FROM THE OIL FIELDS
An Important Notice to Members OF
the Exchange
Facts Concerning the Outlook for Transpor-
tation-No Relief Yet In Sight.
Notes From the Field

! The delay which the different compan-
J les with which the exchange has been
negotiating for the transportation of oil
have shown in accepting the propositions
| offered tn EN- has occssioned a great deal
of comment on the part of producers as
| to their interest in the matter. When it
had been clearly shown to them through
| the most reliable sou rces that the output
:. the fields was sufficient to warrant the
| establishment Of a transportation COM
pany, why then should they hesitate in
closing contract Immediately? was the
skeptlcal inquiry put by a number of
| interested parties.
partial explanation may be found
| in the fact that the total product OF the
field is not under the control of the sx-
change or in such a shape as to be con-
trolled by any one company. Capitalists
are therefore slow to enter an enterprise
which would involve the expenditure
of large amount of money in the erection
of storage tanks and the connection of
long tank lines TO the sea and the main
tainance of oil ships. etc. When the
conditions are such that they might, after
building up a broad market in the
ducers who by cutting among them selves,
would reduce the price oi petroleum.. AS
a matter of fact, the present low prices
which prevail are due principally to
the force of competition carried on be-
tween small operators Sales have been
made at as low price as so cents per
barrel. At that rate 1T would take a ten.
barrel well two years to pay for ITSELF
estimating the cost of drilli ing and keep
ing it in repair to be S2l00. The ordinary
well does not live much Ion ger than two
years, though it is impossible to fix the
life of wells in this field, as none have as
yet been exhausted. On an average it
costs so cents barrel to produce oil.
Operators cannot therefore afford to work
their wells and receive anything like
fair remuneration for less than rs cents
per barrel for their output.
Notices wers Yesterday issued by the
exchange requesting all OF Its mem bers
to call at the rooms in the Brad bury
building as early in the week as possible
for the purpose OF considering matters of
vital Importance to all producers.
Apparatus has been put up at we'll No.
. OF the American Oil company With
which it is intended to redrill the well.
No pumping has been done for several
DAYS on account of the caving in OF the
hole
n. W. Wing Will peSlH DullulnS new
tank in which to store his surplus oil.
the present storing capacity at the we'll
being insufficient TO contain the output.
Preparations were being made yesterday
for drilling well on the Lusk property
at the corner of Park place and Temple
street.
Drilling will begin tomorrow in the i
Chandler we'll on Beaudry avenue.
In the extreme eastern corner of the |
field on Bellevue avenue, between |
Beaudry and Custer avenues. Brophy |
Bros. are putting up a derrick, where
they will soon be drilling for oil. This !
is the farthest extension of the fielu !,
toward the east that has vet been ma de.
There seems to he dehuite line which
is followed that leads almost directly to-
wards the oil regions OF Puente. Experts
are OF the opinion that the two fields will |
some day be connected with a line of I
wells more productive than any yet dis
coYerd.