The Portland daily press., 1895-05-20
HISTORY OF PETROLEUM.
Old.Time Oil Fever Recalled.

Old-Time Oil Fever Recalled.
Russian Competition with American Oil
Rise of the Standard Company's Mon
| opoly.
| George Grantham Balm in Boston Tran
script.)
The enormous increase in the price of
crude oil has made and unmade great
many fortunes in the last two weeks.
suited from the discovery of new oil
fields and the abandonment of those
which were worked out. The huctua-
tions in the price of oil have no parallel
in the products of mine or field in the
United States. The oil fields ofsnorthern
Pennsylvania were mentioned in 176O in
a book written by Ponchot, one Of Mont
calm's soldiers. They lay almost un-
touched, though. till the discoveries Of
1S59-60. The total production of petro-
leum in the United States in 1859 was
1000 barrels, and all of this was procured
in Pennsylvania. Then came the rush to
the oil fields and the excitement that
equaled in intensity the gold fever of
1849. Oil wells were sunk on every avail
able piece of property in the so-called oil
region of Pennsylvania, and the product
in 1860 ran up to half million barrels.
| IT,. + Lo Fol l1x o
900 barrels. In the year 1862 it jumped
to 100000 barrels, and the over-pro-
duction was so great that it was esti-
mated 100000 barrels OF oil went to
waste. The next year showed produc-
tion of 2, 500, 600 barrels; the next, 2,000,-
600: the next 100000 barrels. Since
that time the production has fiuctuated,
increasing usually, bur showing a de-
crease in some years. Since the Standard
oil company came in to control of the
oil business there has been an occasional
shutdown to lessen production and keep
up prices.
| The position of Pennsylvania as the
only oil-producing state did not change
| until some years after the discoveries at
Titusville. When Pennsylvania is con-
| sidered as an oil producer the oil fields
Of the contiguous territory in New York
|
practically one field. OF late years Ohio
has become very important oil pro-
ducer , and more lately West Virginia
has gained Importance. In 1874 the
Pennsylvania York fields produced
10, 600, 900 barrels, while it was estimated
that all of the other fields had produced
prior to that time less than 5000, 900 bar
rels. In 1876 Pennsylvania produced
eight and three-fouIths million barrels,
and the total product of Ohio, West
Virginia and California was only: 163, 600
barrels. Last year, however. Ohio pro-
duced 100000 barrels and West Viz
ginia half as much, while California g
product was nearly half million bar
Iels. Pennsylvania at the same time pro-
duced 20, 600, COO barrels.
| Since the beginning of the operations
at Titusville, more than 600 million bar
rels of petroleum have been produced in
the United States, and nearly so per cent
i of this was produced in the Pennsyl-
vania-New York fields. Ohio has pro-
duced 5 per cent and West Virginia only
| about 8 per cent. So the Importance of
West Virginia as an oil field is of mush-
| room growth.
The foreign demand for petroleum is
what keeps the price up. But for the
enormous exports, one-haif the oil wells
in the United States would he shut
dowu.s.We exported last year $50 million
gallons of crude petroleum. 1t went to
England, to France. to Germany, to
China. to Japan. Most of these countries
have petroleum fields of their own, but
the production from ITEM is not equal
to the local demand. Russia is our only
competitor in the markets of the world
| Russia produced little more than 33,
| OOO, 900 barrels of petroleum in 1858,
while the United States produced 4S mil
lions in the same year. Austria-Hungary
| came next with $4,000 barrels, and Can
ada next with abOut 100000. But in a
| United States and Russia together pro-
| duced all but 2,890,000 barrels. The
| United States produced 81 per cent of
the whole, aud Russia nearly 40 per cent.
| The United States Oil has had the ad-
van ntage' of the Russian oil because of it's
superior quality, but the cheapness OF
| the Russian oil has made it a formidable
competitor. Of course the general use
j of this oil is a matter OF recent growth,
for the production of both Russia and
American petroleum was insignificant
until the Titusville discovery, and the
later development near Baku on the
Caspian. But the possibilities of the
growth of the trade in oil abroad are al.
most without limit. In India aud China
alone there are millions of people who
| are going to use Russian and American
| Illuminating oil some day. A review OF
trade published at Calcutta said year
ago that the consumption of oil in Indie
was only $1,000. 900 gallons year, o1
which the greater part was furnished by
America. But the population of India
is 300, 100000. and the growth Of the oil
trade is not to be calculated. "There is
an Indefinite opening for the develop.
ment," said this review. At that time
there was some discussion about Russia
and A merfca coming to some understand
ing by which the Russian shippers
would serve the Asiatio consumers and
the American would confine their sales
to Europe. But no such arrangement
was made. The American oil already
has sure hold on the European market
One-third of the exports of illuminating
oil from this country is to England.
But there are great possibilities of de
velopment in Asia, and American pro-
ducers have been am bilious to take ad
vantage of them.
The United States consul at Ningpo
Writing TO the state department in the
latter part of 1892 said that probably not
| of