The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-06-23
PRODUCERS
HEED not
WARNING
Note Of oysr-Production Sounded by
.oThs Scout" Last Week, and e
a Consequence $40
CONDITIONS IN THE FIELD Il
In oildom's Broad Domain Are Not
ENCOURAGING for an Advance
in the Quotation


ca far as field conditions are concern
81 decidedly bearlsh aspect is pre-
s throughout the entire Oh re-
lions It was hoped that the drill
would not be rushed In the good terri
,ory of the southwest, but II anything
no volume Of work shows an increuse
snrIng the past week. Our remarks on
oycr production last week were timely,
and well received by the trade as por'
troylnr the true situation. and have
,,IIed forth much favorable comment.
Rpt while the producers accept the
facts laid down in last weeka review
,bpy pay no heed to the warning and
ore going ahead pell-mell, just-hard as
ever. They say that in territory pro-
duclnE average sized wells, they can
make money producing crude as long as
the market Is above the dollar mark.
The small producer, or operators OF
small caiIbre territory, however are
practically barred from drilling, and
win be until the high prices of material
and machinery are cut down, or the
price Of crude marked up.
In the past week there has been
slight reduction in prices for oil well
material, but present rates are not yet
in keeping or on an equitable basis
with the price OF, crude. From the force
NJ circumstances. these high rates
must come down, ana surely will al
though their progress may seem slow.
Manufacturers realized the fact that
their plants would be closed down for
want Of orders unless prices were re-
duced. A general conference of the
manufacturers catering to the oil In
dnstry trade was called shortly after
the appeal made by producers and oil
men in general, which resulted in
slight reduction in prices. But even at
the reduction OF prices already made
the owners Of territory that is not good
for only three or four barrel wells can
not possibly drill at the price paid fo=
crude. From every section of the oil
regions there is a general howl among
this class, who think and say they are
uniusuy Disseminated against by
low market. and the high prices de-
manded for material.
viewing the situation from an Impair
tial standpoint, 1t is hard to tell
where the markets will go unless there
is not a suspension of drilling. Pro-
ducers are certainly standing in their
own light by pushing the drill as they
have in the past month. and pilIng up a
mountain of stocks which will always
be menace to better market for
their product.
A prominent producer said to the writer
in speaking of the trend Of events and
the inevitable result OF the producers
persistence in their present course OF
rushing the drill: Look at the almost
unprecedentedIy large daily average
pipe line runs of Pennsylvania oil in
the month of May. Only think of
daily production of 100000 barrels
day, while at the same time, the ship
ments averaged only about 9O.OOl bar
rels a day. difference Of 10000 barrels
a day. And can tell you II the drill is
kept going at the present pace. with the
same luck that has characterized oper-
atoms In the past few weeks, you may
look for a still further discrepancy be-
tween the runs and shipments. In the
face OF these Indisputable facts, how
can the producer expect the market to
advance, and what Is the use of laying
the blame upon this and that cause, or
influence, when there is nothing in the
world wrong but an over-produet'on.
The stocks in the month OF May show
ed a net gain Of over 100000 barrels, and
II this sort Of thing Is continued fort
length OF time, crude will go down to
seventy-hve cents a barrel, because
there is not single thing in the pre-
misses from which the least ray Of hope
for better prices can be seen.
1.-THE truth OF the matter is. we have
at present better territory, and more Of
It. than at any period since the first
dawn Of the petroleum Industry, and
there is not week passes by but what
new productive territory Is added to the
already large producing area. You Will
Hnd Just exnctly the same conditions
prevailing In the regions producing
Trenton Rock oil. and which In fact. IS
about the only fear against better prices
for Pennsylvania oil. There is more
Trenton Rock oil used to I'LL foreign
orders than any other grade OF crude.
on account OF It's cheapness which en-
ables the shipper or exporter to com
pete with the cheaper and inferior
gradeg Of petroleum produced in Russia
and other foreign countries The high
prices short time ago paid for this
hlghly-scented stuff was an Incen-
tive in stimulating the drill In both
Ohio and Indiana until production far
exceeds the demands, and as aGFesali,
the stocks which had previously been
cut down month after month, are now
being Increased every month until they
have reached enormous proportions.
There ia another thing to which
particularly desire to call attention. and
that Is the increase in production in
other sections OF the United States, and
which Is Milling the markets Of the
west and south, that were formerly sup.
piled with Pennsylvania and Trenton
rock oil And this production, too. Is
constantly on the Increase. When the
grand total Of production Is footed up,
It is found the increase in the output is