The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-04-28

"RuAu W AtaA hso vi every manu- WIKI
prosperity and good times throughout
the entire oil regions, In fact condl-
lions as to the market show a COM
plete innovation. and the situation mus.
be accepted as in the past when simila.
conditions prevailed in the most phIlo-
sophical manner, which has from the
earliest period of the trade character-.
lied the producing fraternity. Refined
and the bi-products have not baen
marked down on the same basis with
crude. and in fact the refined market
shows but little change.
It cannot be said that our foreign
trade. has fallen of to any material ex-
tent. and according to the last report of
our export trade the highest prices for
petroleum and Its various products pre-
vailed and more money was received
for the same amount of shipments than
was ever before known.
Just why refined prices should be kept
up and crude marked down is a mys-
terry the producer has as yet been I'M
able to solve. one thing, however, Is
certain In the premises, there is no
equity between the prices for crude and
refined. and the producer is forced to
bear the hardshlps of this dIscrimina-
ton. Reiners ought to be in clover u
the present prices refined demands and
the low figure they paid for the raw
material. The marking down OF crude
and the outlook for still further de-
probation In crude must necessarily
lead TO a Curtailment OF new operations
in small calibFe territory In every Sec
lion of the oil regions, This fact is al
ready apparent In the northern and
middle fields. and in many instances
when new work was cut out and the
drill about ready TO start, work has
been indefinitely suspended.
And so Is this d0ubly the case
In small territory In the southwest dis
trict. where the deep drilling Is more
expensive, to say nothing about the
added cost OF new machinery, supplies
and all kind OF material as well az
labor A careful comparison Of the cost
of operation In the old territory OF the
northern and middle fields and the
southwest is not less than Is per cant
given. The low market for crude, too,
will have depreciating influence upon
experimental work In the southwest re-
gions and It is also safe to say that u
material falling of In this class OF work
will follow
OF course the downward market will
not interfere with the rich corporations
and comparisons in prosecuting expert
mental work, but rather gives to this
class monopoly in hunting new terri:
tory. The falling on that is expected
will naturally follow the cut in crude.
in new operations must in great de-
gree effect the manufacturers OF oil
we'll supplies and machinery, as well as
labor.
Many producers are led to believe that
the cause OF the present slump in tho
crude market is on account Of Russian
OIL which Is u mistake. The Russian
product Of late has not materially enter
ed into competition with the American
product as 1t Is principally used for
fuel in ocean traffic and the demand, 1t
is said almost exceeds the supply
In this review the writer is able TO
guve the trade n brief review or the
Russian trade for the past year which
is not only highly instructive but inter.
esting as well, and which Is also speclhl
that AEN&l AAAAb ~ "N-s
print. II should command the careful
attention, not only OF the producer but
of every one engaged in the great IN
dustry. The most salient features OF
the Russian oil field to the producer
OF of in America are the comparative,
ly very small number of wells, thu small
amount of territory at present devel0p-
ed and the enormous output. Accoru-
ing to Consul Chambers report on ths
Russian petroleum trade for 1888 anu
which is authentic, there were $40 Well
completed in the Russian field and the
total number completed at the close
Of the ysar footed up 1,l2s. Tho daily
average production OF Russian OIL toF
1899 was in round numbeps 1926 bar
rels, making the average to the wei OF
almost 1870 barrels day.
Comparison for this same period
shows that thu production In the United
States was about 140. 900 barrels day,
which Is an average to the well OF l2ss
than two barrels day production. the
whole number Of wells completed in the
Pennsylvania and Trenton rock regions
In 1893, aggregated 1895. On the race
of this statement II looks as II these
figures would give 10 the Russian pro-
Queer a great advantage but there az
other difficulties and with which he has
to meet which add materially to the
prIcp Of his product and which do NOT
give the American produce trouble
Strange as It may seem, yet there wera
only six flowing wells In the Baker OIL
f1aIIs ut the close nf 1893. Particular
attention is directed to the constantly
Increasing cost OF producing Russian
oil which owing to the increased depth
oil Is found and also the steadily IN,
craaslng volume Of water encounteTeu
in drilling wells. Added to this increas,
ing cost Is the cash royalty demandal
by the government from the producers
or lessaes Of territory, which is also IN,
crrasiug by reason Of the Practi'Se o'
nuctlnnIng on the territory to the hl6h-
est bidder.
The Inferior quality Of Russian OIL
the poor and limited facilities OF trans,
porting the refined product abroad anu
the constantly Increasing demand OF tha
oft Tor fuel purposes, all tend 40 ths
nrpat advantage OF the American pro-
ducpr. The report shows that the price
az Russian oil ut the wells in 1893 whS
from seventy cents at the beginning o.
the year 10 81 05 at the close for a par
rrl Of forty-two ballons, Atn these
prices many OF the corporations opera
ting IN the Russian field were apls 70
resiizo n handsome profit upon their IN
yHetments. Refined oil brought on
hoard Of cars at Baum 2.3 cents pr
roIlon at the commencement or IN,
yoar. The price for refined aayancau
NTH In August II commanded 20 cent?
n.r. rllon and in December reacheu
cents per gallon. which were the highest
nricps ever quoted for Russian rehneo
md which wcrc mainly due to slngG-
lar combination Of circumstances; 70
t,,rn up the situation In n nut-sheil: tnt