The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-06-16
CONDITIONS
UNFAYORA.BLE
T0PRODUCERS.
Production 1ns5eases Throughout the
Southwest Oh country And
st0o us Swell s..
THE SCOUT s WEEKLY REVIEW
OF the situati IN oildOn'~Al the
Latest D ,opments r tho


handling oily L6r tht month of June
conclusIyelyIthow this It tho predictions
made in tht 81 columrfs have come to
noss and tat the prd duction has ma
tsrially inc!eqsed an4 the stocks like
wise augminted. THE increase, how
ever, is greltest in tn + Trenton rock re-
p,ons, although the gala lnithe Penn
sylvanla socks is mi ch larger than
was ANTICIPATED by y he average produ-
Ger. 1t wis plainly 4 oreseen some time
ago that the many good wells struck
IN eompa,atlvely neIv territory would
ircrease he runs fd- above the ship
,nepts ana as consequence the stocks
show a large daily gain. Tho large
gain in The net stocks was indeed a
SUNRISE % the trade and gives but lit
tle encouragement foS any reaction In
the market for oil.
Especially is this outlook discourage
ing in the face OF the steady and contin-
ued development of good wells In new
territory and the finding OF more than
average IDducers in dIgglngs well de-
fined. Ihe almost unprecedentediy
large daily average runs of Pennsylva-
nil oil a,Ss not considered possible by
many ~ ducers, who thought the de-
clIae ce he old wells would hold the
gain doSnito small percentage. The
daily tn of Pennsylvania oil were the
largest kverage in the month of May
phown ma long time, reading almost
10000 barrels,
Ana Il. tae drill is pushed With usual
energy nIthe deep sand pools of wetzsl
county, ana In the new Wallace district
IN Ilarilon county, West Virginia, to-
rsther With the increased production
dat Wih come from the Gaines an
nex In Iioga county Pennsylvania, the
indteafnns are that the pipe line re-
port i b June win show still larger
daily Average.
Freduction VS., Consumption.
IVA careful study of the situation It
IA fund operations have steadily Wild
enei out and developed newiterrItory In
Almost every quarter until there is
,n,re oil produced than there is a de-
mind for, and the surplus Is piled up
ipstocks as an unsurmountable barrier
a.ainst better prices. In the face of all
tiese bearish features there are several
Prospective fields likely to be opened up
md add to the already large output a
considerable new production.
Lewis county, West Virginia, Is so
ar an unknown quantity. but the large
number Of well informed operators who
are pushing the experimental drill in
the Camden and Weston districts show
their faith in the future Of the terri
tory and the unexpected Is just as like
" to happen here as it did at Gaines
Garner or the Wallace district.
In the prosecution OF most other In
dustrIes where the output exceeds the
demand and the stocks become heavy
with no indication Of any chhhge for the
better, production Is curtalled until the
demand warrants resumption of
work, But in the oil industry there are
no restrictions, no government in pro-
duction, but everyone for himself, all
striving hardest to acquire the largest
production, and the result is an over
production and a low market. Why
do not the producers form trust as is
found in the production OF every staple
article or commodity, and prosecute
their business upon business principles?
Producers, as a rule. never hang up the
drill until compelled by circumstances.
Necessity becomes the mother Of inven-
tons, so to speak.
The Small Producer.
with the beginning of the new year
everything looked bright and prosper
GUS to the small producer, and he felt
certain this year he could drill his light
territory and increase his bank account
or start one. Upon the strength OF the
outlook he plunged into debt when the
market for crude was high and produc-
ton not equni to the demand, but be-
fore he could realize upon his invest
ments, conditions were Changed-eom-
pletely reversed, and he finds himself In
hole, from which It is hard to extri-
cate himself. Some are inclined to take
an optimistic view OF the present situn-
tlon and think with the dawn Of n new
year the big production will have dwln-
died down, the stocks drawn upon and
that the Calling will be fair again. There
are others just as pesslmistIc in their
way Of looking at the situation, and
argue that unless drilling is suspended
and the stocks worked on the situation
will be no better for years. The view is
largely drawn from the large amount Of
new territory recently developed and
the prospective pools In sight. which
they think will last long while to
maintain large production. To revert
to the May report, the figures show the
net increase of stocks were over 100000
barrels. OF this amount the ohio and
Indlann stocks are credited with 5000
barrels, leaving the gain in Pennsylvo-
MIA stocks to be 272,277 barrels, There
were only two months OF tho year 1889!
that showed n decrease in the Pennsyi'
ania stocks. In round numbers the runs
OF Pennsylvania oil FOR the month Of
May averaged $3.50 barrels day
which wore the heaviest recorded fol-
the past three years and n half This
IS a gain over AprlrH daily average o.
over 5000 barrels a day, as the runs II