The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-08-07
INTERESTING PHASES
OF THE BIG OIL BOOM

The oil boom spreads and intensifies
daily. San Francisco men and San Fran
cisco capital are going into large opera
lions in the Fresno County oil fields near
Coalinga and southwark, and San Joaquin
Valley companies still multiply to operate
all through the oil region which stretches
south to Tehachapi along the foothills
of the eastern slope of the Coast Range
and in districts in the Kern County foot
hills of the Sierra Nevadas. A number Of
prominent San Francisco capitalists and
business men are interested in big COM
panies newly formed to exploit properties
bought or bonded. The biggest scheme
formed in the city is the proposed Oil Ex-
change, of which Wendell Easton is the
head, and which is designed to practl-
cally control the States output of oil. in
Guiding Southern California as well as the
Coolinga field.
1t may be said that the new oil situa-
ton has two main general features. One
is the legitimate development of the I'M
doubtedly great oil resources of the State
north of Tehachapi, and the other is the
natural and undoubtedly great aggrega-
ton of wildcat operations and downright
swindling schemes that are and will con-
tine to be fioated for the benefit of I'M
scrupulous promoters and the catching of
suckers who are not we'll posted on the
ways and wrinkles of the oil business.
The Coalinga field has quickly become
the banner producing district OF the STATE.
1t is the first producing field of any i'm
pertance developed north OF southern
California, and it is the first actual
demonstration that there are great com
mercial possibilities in the oil yleldlng
formations that continuously attend the
Coast Range throughout the length Of the
State. After thirtyfVe years OF trultleSs
prospecting from Tehachapi to- Del Norte
a rich field has at last been developed.
f1a1t a
experts that such fields would be dlscoV-
cred in time in this stretch of folded, IN
altered sandstones and shales:
The Coalinga oil appears to be the best
fuel oil yet found in the State. 1t is diff
ferent from any of the Southern Califor-
MIA oils in being lighter, less OF the Nola-
tile elements having escaped. 10 the eA>
tent of the supply it has driven the
Southern California oil out OF the san
Francisco market, and the producers OBJ
tain a higher price. Large San FRANCISCO
consumers pay about 81 80 per barrel, ana
the producers are said TO net over 81
barrel at the wells while Los Angeles
producers get IS cents. The entire present
production is from the small area at on
CITY controlled by Messrs. Garfield &
Chanslor and their associates, VINO are
securing extensive additional areas 70
prospect. With the exception Oh Ile
Kreyenhagen field about twenty miles
south of Oil City, where small yleld mas
already been secured all other operations
are yet but prospecting ones ana carry
reason to expect the development OF other
producing fields of importance. A great
amount of good money will be sunk IN
there will probably add largely to the
oil supply and to the wealth of the lucky
ones.
But the fakes are legion. Few, could
be easily pointed out, but IT IS wen known ,
that scores of stock companies are oelnlg
fioated on the basis OF any cofNGI en- u! ~
distant patch of desert and on the Ilde
of the popular oil craze This pasls Goes
well enough in one way, as the shareS d, are
mainly bought in a purely g9mpnnS
spirit, not at all to draw dividends from
future sales of oil, but to sell at an ao-
vance. FIJI, e, =
to operate in good faith and the operators
are simply and fOolishly going II pllnd.
The land secured is within rev wi! dnl a,;,
of a producing or a promising territory
and there is likely an oil seepage on the
land, as there is in thousands OF places
where ten barrels of oil could not pe Sc
cured But wells will be put down where
an expert could tell that there was no
chance of success. Many San tranclsGo
people, as well as thousands OF people
elsewhere are venturing money in these
two classes of operations. Inc wrecks
of disastrous oil operations will strew the
San Joaquin Valley, while mere anu ana, lnele
a notable success may be attained
The Fresno Republican has awakened
amid 1t the deHgF t0 cav Win ali confidence in
the value and future of Fresno County
oil fields, ii says:
different thing, and 1t IS with STOCK
gambling rather than with oil develop
ment that the. present boom, OUTSIDE
of Fresno is chiefly concerned. Wild
cat COMPANIES are being formed by
men of no responsibility and no resources
beyond a doubtful title to stretch OF
doubtful land which they have no means
nor intention of developing. The stock
of these companies is being put on the
market, not as an investment, but as a
gambling risk. People buy it, not TO Keep
#, but to sell it again at inflated prices,
each holder hoping to pass 1t on TO an,
other until the last man is left TO mold
the bag and the whole thing collapses
Such manias of speculation do not help
hut only hinder legitimate development
and in the long run they bring an odium
which nothing can counterfeit.
Amid the present "wildcatting" in the
new oil territory a portion of a paper In
the current Mining and Scientific Press by
w l.. Watts is of especial interest: MI.
Watts has spent years in special studies
of the California oil regions for the State
Mining Bureau. Regarding The Busl-
ness Risks of the Oil ProSpector he says:
''The business risk of prospecting for oil
varies greatly. Oil prospecting PROPOSE
tions may be divided into two orders:
First, the orthodox proposition: In
this case the prospectors have in view
definite oil-yielding stratum, whch mas
proved remunerative in adjacent terri
tory, and from WnlCn stratum IilSy HPSCt
TO obtain their oil. Moreover, they nave
sufficient geological evidence, in sight to
warrant the assumption that the OIL
stratum they have in view. forms an oil
line through the territory they are about
Second. the wildcat propositions. In
this instance the prospectors nave no
definite oil stratum in view which has
proved remunerative in adjacent territory,
or they have not sufficient geological eyi-.
dence in sight to warrant the assumption
that an oil-yielding stratum, which is
known to be productive in adjacent ter,
ritory, forms an oil line through the land
they are about to prospect.
'In prospect wells of the first order the
least risk is taken where the outcrop of
an oil sand, which has proved, remunera-
tive in certain oil field, can be actually
traced through the territory to be pros
pected. and the geological structure OF the
locality is known.
more risk, however, is undertaken
where there ispo outorop of the oil sand,
although the strike and dip of a remuner-
alive body of oil sand in an adjacent oil
field are known, and the rocks everything
the oil sand can be traced to the territory
about to be prospected.
Most oil-mining enterprises which nave
for their object the development of new
Territory. especially when operations are