The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-11
The WORLDS OIL SUPPLY.
Russia Comes Forward a Rival to
This Country.
Robert p. Porter's Letter.

Apropos of Russian progress was read
ing )rt time ago in an English period
lea 1g and interesting article on the
tire Jus growth of the petroleum indus
try is interesting to note in travelling in
pa of Europe, and especially in Asia,
tween Russia and the United States in their
endeavors to supply the world with OIL
Should the Rockefeller and Rothschild in
terests combine they could literally dictate
the price of furnishing light, not to hum
dredS of thousands, but hundreds or millions
of human beings. The American public is
familiar with the operations OF the Stand
ard Oil Company, but not SO we'll informed
as TO the Russian monopoly. 1t may, there
fore, be interesting to know that Baku, the
center of the Russian oil trade, Is situated
In the midst of the fertile oil fields of Balak-
hany, Labunchi Romany and Babi-Eibat,
whose yield was estimated last year at o.
900 barrels. This is carried through pipe
lines to Black Town, half a mile from Bal1u,
where are situated the distilleries, refneries
and reservoirs. Here are the great refinery
works of Nobel Brothers, who In 1877 con-
structed the first pipe line, connecting the
wells of Balakhany with their refineries. Up
to 1877 the crude oil was transported from
the wells at a distance of more than ten
miles by barrels, so that the excessive price
at which petroleum was sold can easily be
imagined. They were soon followed by
others, and there are now twenty-four pipe
lines, six of which carry sea water to oil
wells to feed the steam boilers, about one
thousand, two hundred In number. The I'M
creasing number of the works has obliged
the authorities to assign beyond the limits
of Black Town another vast place called
White Town, where there are large num-
Der of refinerieS the greatest being that Of
the Caspian Black Sea Naphtha OH Com
pany CRothschild)
In these two towns there are now one
thousand and seven iron reservoirs, of
capacity Of thirty-one millions, and two
hundred and sixty-two earthen and stone
depots, of a containing power of two hum
dred and twenty-seven millions. The vital
question of such an abundant quantity or
petroleum is naturally the price at which
it is to be advantageously placed over the
different markets of the world But, In real
ity, the price has been often far from being
remunerative. 1t has constantly varied be-
tween seven and twenty-one copecks the
pood Now the market price is ten CO
pecks, or about five cents This variation
is due to several reasons, the most impor-
tant being the American supply.
According to the authority referred to a
new Russian syndicate is to be formed next
year, which will be constituted by twelve
big firms. A great meeting Is to take place
at st. Petersburg in the autumn, where all
the questions are to be debated First the
syndicate will be on the basis of at Les st q
ten years term. 1t will have it's special
cargo tank boats and agents In great nA2r-
kets. 1t will begin with great capital AID
with American oil, and then with the Rus
sian oil of Grosney fields, at a distance of
twenty-four hours from Baku, which is
threatening the Baku population by its con-
tinually increasing output, The Grosney
fields, which have a free action on the mar
ket, are q serious element of rivalry. Many
foreign firms are making essays on this
field. They have given fair results, and in
a short future especially when the new
Petrosok line is ended they will be the
aim of numbers of firms. The Russian soil
Is rich with oil, the government offers fa@
elities to foreign capitalists to exploit II,
tasus region will be shortly great cehter
of prosperous trade