The herald., 1896-05-04
WHAT OIL MEN ARE DOING
Prospect of an Advance in Price Being
Made Today
Some Figures on Tankage-Supply and De.
mand and How the Market Is to Be
Regulated With the Talbot

1t is the consensus of opinion amons
members of the exchange that the price
of oil will be advanced today, but tU
what extent is not yet determined. Some
of the more sanguine well-owners want
the rate put up at one jump to 81, which
would be an advance of Is cents on the
prevailing rate. Others think that .
cents is all that should at present be
put on, leaving the balance to follow
next week if the situation warrants. The
long-anticipated dollar mark seems fair
ly in sight, and it is now only question
of eXpediency whether or not it shall be
attained at the risk of stagnating the
market, by one fell swoop, or to take a
couple of weeks about it.
Great activity prevails in the field,
there now being thirteen new wells in
which the drill is working, and the same
number of old holes in process of deepen
ing. Operations have been begun to-
ward sinking a we'll on Ninth street or,
Pico Heights, back of Westlake park,
where it is hoped to find a continuatio
of the oil sand. The machinery ie on tho
ground and boring will begin this week.
Should a paying we'll be struck in this
vicinity it would Immediately give grea
impetus to production, as it would dem
onstrate that the present field is not a
pocket, but well-defined strata whose
limits are not bounded by blocks but by
miles.
Sales are reported as encouraging, and
the price of So cents f. o. b.,
or IS cents at the wells well
maintained The Standard Oil COM
pany has advanced it's price to 70
cents, which it is paying for oil deliver
ed at its tanks. Producers are slow to
sell at this rate, and the Standard watts
are not overiiowing. AS showing the
available tankage now on hand in the
city, the following figures are not unin-
xSx.1 .rt; n. L
holding capacity of So, 900 barrels; the
Standard two tanks, one of AZ, 900 and the
other 1c,500 barrels in capacity; the
Producers Oil company 10000, and the
Pacific 100000 All these are iron tanks
of the latest improved construction, hav-
ing total capacity of 10, 500 barrels OF
oil.
In the field are smaller iron and wood
en- watts to the total holding capacity
of something over go 900 barrels, and il,
the railroad yards and the oil exchange
wooden tanks II, 900 more barrels can be
accommodated. Thus there is at present
holding room for nearly 2S0 900 barrels
right in the city. A month or more ago
the oil exchange instituted a,canvass of
the total available supply on hand in
the tanks at the wells and at the end of
February figured it out that there was
about 1000 barrels ON the ground. Tho
Enoch Talbot then made the first trip
and shortly afterward it was found that
the tanks had nearly recovered their
| loss.
Now, the boat has again departed, TAX
ing nearly 5000 barrels north, and it is
stated that the available supply has
shown no material increase or decrease
| This would seem to prove that if the boat
continues her trips, say once month
and relieves the market of about 10, 00O
barrels the consumption in this vicinity
is ample to keep pace with the present
production. That is how the exchange
men figure and upon this they will base
any advance that may be made. If they
can keep the boat running taking away
the surplus there seems no reason why
81 or even higher price cannot be made
and maintained.