The herald., 1896-01-10
THE LOCAL OIL INDUSTRY
Material Decrease in the Pro-
ductivity of the Wells
FIELD BEING EXHAUSTED
Too Many Derricks for the Limited
Territory
the Acreage Basis-Items From
Among the Drilers

Many attempts have been made to give
reason for the continued depression in
the oil industry and schemes to better con.
ditions have been suggested and some OF
them tried without avail. Failure has al
ways resulted because the base of the
whole difficulty was never reached. Nu-
merous obstacles have always arisen to
impede the way of intended reforms or, if
the reforms were applied, only partial re-
lief followed. The outcome of it all is that
today the oil industry is almost demoral-
lied.
An oil man of several years. experience
in the business and who has followed
closely the growth of the local field from
the time of it's first opening said in an in
terview yesterday that no good could re-
suit from the spasmodic efforts of pro-
ducers to free themselves from the burden
of the present depression for the reason
that the oil industry was not properly Or
Ranized in the beginning.
In the first place. said he, the Los An
geles oil belt is located in a section divided
into town lots. On that account wells have
have been drilled in such close proximity
to each other that district of a very linz
tied territory has been exploited by over
three hundred wells. In other words,
just about twenty times as much
labor and capital has been expended
in producing GER ain amount of petro-
leum as was necessary. The business has
not been carried on economically and those
who engaged in it are now beginning to
suffer the consequences. No one in par
ticular is to blame. 1t is natural for
man, seeing his neighbor pumping oil
from his adjoining lot, to drill we'll on
his own property in order to reap a part of
the harvest. Just SO it has been in the en-
tire field, until there are more derricls
than would be necessary to work to advan-
tage an oil belt many times greater in mag
nitude.
In talking over the situation with we'll
informed producer the other day, l came
to the conclusion from a careful compara-
tive estimate made from statistics of the
entire field, that the daily output of oil has
decreased at least 1000 barrels. Perhaps
a closer estimate would be 1900 or 1900
barrels. This is not due to temporary
suspension OF pumping, but a falling Off in
the productivity of the wells, something
that cannot be regaired within the present
territory. The HERALD has published
the statement that wells recently opened
were not as prolific as those drilled earlier
in the history of the industry and 1 men
ton it now as significant of what l have
just said. The territory known as the oil
field has passed it's best days and will
hereafter decline.
In this connection l would say that the
talk of transporting oil is nonsense.
Soon there will be no need of shipping it
outside of the city. An increase in the
local consumption will bring about con-
dition which will be balanced by the de-
crease of the output of tho wells.
All this applies merely to what is known
as the Los Angeles oil field. Regarding
the industry as whole / have a different
opinion. There is no doubt in my mind
but a large area of oil producing land ex-
lists in this country, which will sooner or
later be developed. When the main belt
has been located, as it surely will if pros
pecting continues. wide field will be
opened on the acreage basis, and an indus
try will spring up from it second to none in
the state.
ITEMS FROM THE FIELD
Rex we'll No. is down 42O feet.
Beach, Young & Cochran have succeeded
in Strengthening the hole at their site on
Temple street, and are once more going
down toward the sand.
Bophs & Leslie. after a weeks fishing
have raised the tools from their we'll on
Victor street.
Everything is in readiness for drilling at
Brophy Bros. rig on Victor street, south of
Temple.
Lehman & Mills were busy yesterday try.
ing to repair the damage done by fire early
in the morning. Their loss will be in the
neghborhood of $500.
The drillers are down over 600 feet in
the Green well west of Belmont avenue.