The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-05-12
HARD THE-LOT
OF THE CRUDE
OIL PRODUCERS
A. the Same high Prices, Making It
. impossible For the Small Cal
ibre Wells to Pay.
OIL WELL SUPPLIES REMAIN
M Market Continues It's Decent
without Interruptionspd on
the other Hand.

Az PREDICTED in last weeks review the
,.t,oI s,,H market has dropped several
limits and from every Indication "the
s.5 "a not yet" The outlook in the
sor,bern field points to a larger devel-
nnmspt than was first expected when
~. gslnes gusher made its advent.
Tbos. who have made careful study
NJ ,be geographical formation In this
mrtpde have no hesltancy in saying
,pot q large area OF that section of
rogstry is underlaid with the Chip
mink sand formation, and that It is
orIy question OF time until larger
development VIII materialIze. The VEN
mrssome wildcatter Is in evidence in
every direction from the late gusher
and for miles in advance from the
new development. An old scout who
has Just returned from tour of in
snectlon Of the new Gaines develop
megt says the woods. are full Of wild
eat ventures and It wifi be very strange
II some of them do not strike some
thing that viii lead to tangible results.
The gusher has materially declined in
nrnductlon and will be set to pumping
in a few days.
The producers OF small scalibre terri
tory view the present situation with
disirust and see but little hope for
them for some time to come. They
fuly realize. with the market depre-
eating the development OF prolific terri
tory and also the mandate of the oil
well supply magnates just proclaimed.
thnt il Is simply impossible for them to
prosecute operations without going in
The hole. When the market commence
ed It's descent unopposed far below all
antlcipatiOns, they felt reasonably sure
they would find relief In a reduction In
the high prices that have so long ruled
for oil well supplies, but In this they
are surely disappointed The oil we'll
supply men have Just met in Pitts
burgh and as a result Of their dettber-
atoms given the operator and contrac-
tor to understand that the old prices
will prevail. Phey tell the producers
their actions are justified upon the
ground that the manufacturer fatty re-
fuses to cut his present rates, and II
the dealers want their goods they must
pas the prices demanded. The supply
means prohlbitory law to the produc-
er Of small calibre territory, for TO OPP
crate in the face Of their adverse con.
dldon is out of the question.
At this writing the market has drop
ped to 81 43 and before many more
days 1t Is expected another cut Will
follow. This reduction does not per-
tain to Pennsylvania oil alone, but ex-
tends to the Ohio and Indiana fields, as
we'll.
The average producer has never stop
ped long enough to compare the prices
Of crude with the prices OF the refined
products and In reality does not know
that upon principles of equality he is
not getting near the value OF this pro
duct The high figures demanded for
export oil and the various products
iustifles q 81 market for crude. Just
why the producer Is Disseminated
against is more than the average oil
man can understand. II refined ana
the bi-products are kept up why should
nor the market for crude be kept in
sympathy with refined?
A careful review OF the new Gaines
development in the northern region re-
vcas the fact that 1t Is one Of the most
arfiye witnessed in the northern dlVls-
ion FOR many years. The big well is
tho Incentive to all this and many hope
IN their operations to find duplicate TO
the gusher. Operations are increasing
W the Allegheny river along the line
between Forest and Venango counties.
A new company has Just been organic
cd and the drill will be set a-bobblng In
few days on 1,O0O-acre tract. Other
parties have secured large blocks OF
territory in this latitude and in short
time this section of oIldom will present
quite an animated scene. Operations
too. in the different pools In Warren