The herald., 1897-11-05
Supply and Demand Keep
an Even Pace
BIG TANK TO BE BUILT
PETROLEUM PRODUCTION FOR
THE PAST TWENTY YEARS
What Secretary Strasburg Thinks OF
the Situation-California Oils
Need a Special Refining

"The oil outlook in the local district
was never more promising than at the
present time" said Secretary and Cen
eral Superintendent Edward Strasburg
of the Oil Producers Trustees last even
ing, "and from present indications the
development Of crude petroleum will
henceforth be carried forward on a more
extensive scale than at any previous
time New wells are constantly being
sunk. and many more are contemplated.
A contract was yesterday let for the
construction of a tank with capacity
of 100, 900 barrels which will be located
Just south of the Standard Oil company's
tanks, and which is to be completed in
side of thirty days. 1t represents an
investment of $4,000, and will receive
all the surplus oil of members of the Oil
Producers Trustees. The market is now
good, and no trouble is encountered in
disposing of the product. Some pro-
ducers are still handling their own oil
in order that they may fulfill contract
obligations but by January 1st almost
contracts, and then they will join the
SlulLdliOIl. <Ai PiSoShS W. AAeAAaNAS
about 80 per cent of the local output,
and at the beginning of the new year
we hope to control the entire production.
We will then be masters of the situation.
but that is not our desire. We are fully
satisfied with the market at 81 per bar
rel. We could get SIPS, but we don't
want it. In fact, the members of our
organization have pledged themselves to
use their best efforts in maintaining the
price at 81 per barrel, and we propose to
live up to this pledge.
"At the present time there is short
age of about $4,000 barrels here which
is attributed to the recent shutdown of
two weeks and the decrease in a few
wells. Instead of production, we
can hardly get enough oil to supply the
demand. But there is recently re-
newed interest in the oil industry in the
Los Angeles district, and there are also
several very promising wells in sight,
and in short time the daily output will,
in my judgment, be greatly increased.
During the past few months many of the
wells have been abandoned, as they have
been pumped two years or more, but
the work of development is continually
going on and profitable wells are be-
ing found almost daily.
There are about 500 wells in active
operation, producing about 10000 bar
rels daily and employing a force of 300
men. I think the entire country here
abouts contains oil, and with constant
| development Southern California will
in a few years become the greatest Pc
troleum producing country in the world"
During the past thirty days there has
been a marked increase in the oil in
dustry, not only in the local field but
at every petroleum district in Southern
California. This fact is particularly
noticed at Summerland, Puente and
| Fullerton, where many new wells are
being sunk. 1t is said that Los An
geles syndicate has RECENTLY secured an
option on oil land near the latter place
and expect to commence boring shortly.
During the past few days number of
men who are thoroughly posted on oil
production have expressed the opinion
that this state is yet in it's infancy as a n
oil producing country. In the follow
ing table will be found an interesting
statement of the production of crude
petroleum in California from the begin
ing of operations up to the close of last
year. Previous to year 1876, 175, 600 bar