The herald., 1896-04-27
OIL As II IS NOW Quoted
The Enoch Talbot Nearly Ready
for Sea
WILL TAKE 10000 BARRELS
What Treasurer Turner Thinks Of the
Situation
If Producers Would Hang Together OIL csnId
Be Sold At $3.50 Per Barrel-Dlrcct.
ors to Meet

During the past week oil producers
have been plucking up their spirits as
the price showed signs of stiffening, and
now have hopes that, with the depart
ure Of the Enoch Talbot for the north
with a cargo of nearly 10000 barrels, the
local market can be sustained at the
present price, or even higher. The tank
vessel is still lying at Redondo receiv-
ing her load and has now aboard some-
thing between 6000 and 1000 barrels of
petroleum.
At present there is some difficulty in
readily securing enough oil to complete
the loading, producers being backward
in letting even their surplus go at rate
of "a cents per barrel net, when IS to a
is being paid at the wells. This will
have to be done, however, If the local
rate is to be maintained. as the surplus,
which must be disposed of in San Fran
cisco will of necessity be governed by
the ruling quotations in that city. Oil
must be sold cheaper in San Francisco
than here to enable it to compete with
coal, as there it takes something like
IA barrels of petroleum to equal a ton
of coal at the market price, while here
three barrels is the equivalent
Speaking of the disadvantages that
the local producers have been working
under, Treasurer Turner of the Oil ex-
change the other day stated that in his
opinion oil could and should be sold
here at 81. so a barrel At even that price
it can successfully compete with coal.
If one company owned all the wells. or
if the producers would all join the ex-
change and abide by it's prices, rate
of $l.50 could be made and maintained.
Every day sees some new consumer
come into the market, and every day
also sees a diminution of production
from the field. With matters in this
state there seems no reason why, by all
pulling together, the Oil men could not
put the business on a paying footing.
The west end of the oil field Is about
played out and only the deeper wells
are now pumping a paying stream. By
the past actions of a majority Of well
owners, all that is needed is some one
TO take the lead in fixing prices, and
they will follow on up, but fail to stick
literally to the ruling rate and sell for
Just enough less to demoralize the mar
ket. If this could be stopped 1t would
he matter of but short time until all
producers would be realizing good
price for their OIL
Another thing that must be faced is
the present monthly surplus, Until the
consumption has reached the full pro-
duction in this locality. the balance
must be shipped out of this end of the
state and not lie in the tanks as con-
tipual menace to the market. Owners
can hold their oil only so long or short
pose of it in some manner, owing to the
tanks being full, lack of funds to pay
wages. etc. According to Mr.. Turner,
all hands must be willing to put in their
pro rata of oil ,at a lower rate, to be
shipped to San Francisco, in order that
they may thereby realize a profit Oil
what is left here. This seems to work
finely for the San Francisco man, but
is rather hard on the local consumers.
However. even when oil brings 81
cents at the wells here. it costs the Fris-
co manufacturer s1.15 laid down, against
So cents here. 1t is anticipated that the
Talbot will get away with her cargo by
Tuesday night and that the effect of
her departure will be felt in an imme-
diate stiffening of prices. The directors
of the oil exchange meet this afternoon,
but will probably not advance the rate
| until they are assured that the Talbot
has started. 1t is their intention to put
up the price as fast as facts will war
rant them and in so far as they receive
the cooperation and assistance of the
outside producers.