The herald., 1897-11-17
Conditions OF Market and
Field
DOLLAR PRICE MAINTAINED
ANOTHER SHUT DOWN ORDER
~~UMS PROBABLE
Consumers Still Hold or Contracts.
New Tank Under Way-East
Field Flow Decreasing

OIL consumers are still holding back
contracts In the hopes of break In the
producers combine and q cheaper price
than a dollar d barrel. Some of the oil
men, on the other hand, ore talking of
raising the price still farther. The east
field flow, however, still gluts the mar
ket. storage capacity is scant and grow
ing scantier daily, and sober heads
among the producers do not favor the
bluff OF boosting prices.
Even to maintain the present price
their strongest move seems to be to call
O mass meeting OF producers and order
another shut down and enforce it.
This In probably what will be done as
soon as the wilder ones get through talk
ing and the sober heads get things Ii,
hand.
In spite of the lack of discipline showa
towards the end of the last stoppage,
the trustees can expect a more univer-
sal obedience to their next shut down
order, because Of the considerable in
crease in membership of the producers
combination. They now have pledged to
their orders the producers of fully 5000
out Of $500 barrels daily output, and the
demoralizing influence Of non member
wells pumping away in spite Of the trus-
tees orders will be greatly lessened.
With a view to storing the surplus
and maintaining prices without recourse
to shut downs, the trustees have bought
a block of land 265xS0O feet on Macy
street near the Santa Fc track. and or
dered $4,000 barrel tank there. Tie
tank Is now on its way here from Pitts
1,.vvs .v,A Vyt1I 1Na MT In, r,1n no n
Brothers as quickly as possible on it's
arrival. 1t will cost about $4,000, and
will probably be at once followed by two
others, as some $4,000 has already been
subscribed for this purpose. The ag-
grcgate capacity of the three tanks,
10000 barrels, will nearly equal thirty
days output of the entire oil field
The east field has produced all of the
oil sold In the last two months. If the
producers trustees are right in expect
ing 1t to repeat the history of the heavy
flow in the west field, they can, with the
help of the new storage tanks. doubtless
hold the price up to the dollar mark.
The east field wells at first ran from
90 to 200 barrels each per day, but from
five to twenty-five is nearer the present
output. Very few, If any, are now run
ming as high as fifty barrels. All Of the
oil produced is seventeen to nineteen
gravity, though down 1000 to 1900 fees.
This is the same grade as was the heavy
flow found in the first sand, 600 to 100
deep, in the west field which was
quickly exhausted. In the west field u
from 500 to 100 feet Il steadier flow Of
heavier oil, twelve to fourteen CAVITY,
was found in u second sand strata.
But some of the east field wells are
nearly as deep as the second sand wells
OF the west field and still getting the
first sand oils of the west field. More
over, the flow has already lessened very
materially in the east field and some wa
ter has appeared there.
East field we'll owners seem afraid to
develop in consequence of these condi-
tions and the trustees argue that the
bulk of the flow there Is temporary
For these same reasons each well owner
there naturally wants to pump out all
the oil he can before his neiEhbor does
it for him, and q shutdown is hard to
enforce unless every well is in the com
bination. The Union Oil company has
again opened their 3300-barre tank to
storage, and the producers trustees
hope with tho new tank ordered, at least
with the two others contemplated, and
another shutdown, to maintain tn.
present price until q market can be Sc
cured for all the output.
A morning paper the other day, told
of 'the lightness of the oil causing
more prolific flow," and suggested that
rich oil strata be uncovered by the acre.
It also announced that Secretary and
General Manager Strasburg of the Oil
Producers trustees said that "a per-
manent market has been established
for nearly the entire product, leaving
little or no surplus to tide over shortages
that spasmodically occur with the de-
cline of wells"
Mr.. Strasburg, when seen by Herald
reporter yesterday, said: THAT is not
SO. I hope to secure contracts soon for
oil of the oil, we will want to sell and
expect to do so, but we have not done it
yet" The beet sugar refincries, for in
stance, Spreckels, Los Alamitos and
Chino, will soon require nearly 100000
barrels.
Another wild tale to the effect that
Scott and Lotus are hiding a big light
under their bushel at Brooklyn Heights
and will spring another big flow on the
market from that quarter is secuted by
Mr. Strasburg. II examined their WE'LL"
he said. "and the character of the oil is
such that they could not have gotten
any without at least leaving a mark Of H.
somewhere, but couldn't find it," Two
other beautiful legends were then cruel
ly slaughtered by Mr.. Strasburg. first,
that the Union Oil company had shut
their tank in order to bear the market
for speculative purposes; and, that the
Oil Burners Supply company, who are
consumers as well as drillers, being re-
finers of distillate oils, the nearest ap-
proach to gasoline obtainable from our
heavy oils. had thrown 1000 barrels on
the market at 40 cents in order to break
down the dollar price.
'The Union company stopped tanking
oil simply because they were full Of it,
said Mr.. Strasburg. "and as for the OIL
Burners having the market that way
would surely have heard of 1t II it had
occurred, and did not hear of it,
NOTES OF THE FIELD