The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-01
PRODUCTION OF OIL
Facts Gathered That Are Of
Interest to the Investor.
The Truth About Its Consumption
The Market and the Price
Transportation Facilities.

Few people outside OF those directly en-
gagged In the sale Of oil or In the freight
departments OF the railroads realize how
rapidly the use of oil is increasing. An oil
company that cannot obtain a fair price
for its product must be in hard straits
financially or else it's oil must be Of
an inferior quality. Some Of the very
small producers doubtless have some diff
Guilty in getting good prices, as most large
consumers prefer to place their contracts
where they are sure of a supply equal to
all requirements. but. as the demand is in
creasing every day and the supply in
creases but slowly, the small dealer is in
a fair way TO receive a dollar a barrel
Transportation facilities have had much
10 do not only with increasing the price
but in creating a market.
THE CONSUMPTION OF OIL IN SAN
FRANCISCO HAS NOW REACHED ONE
MILLION BARRELS PER ANNUM, and
the demand will increase. for the manu-
facturer who burns coal cannot long COM
pete with the one who uses crude oil. The
Southern Pacific Railroad company is
gradually increasing the number Of oil
burners on its road. and. as was truly
stated by an official Of the road, If THE
COMPANY SHOULD CONCLUDE TO USE
OIL ON ITS ENTIRE SYSTEM, THE
PRESENT OUTPUT OF THE STATE
WOULD BE INADEQUATE TO SUPPLY
II. In the meantime, the leading oil con-
sumers Ia the city OF Los Angeles require
ton. The mines, mills and smelters OF
the State are using 1t for fuel. The car
lines are operated. and the big buildings of
San Francisco, Los Angeles. Oakland and
other cities are hSated By the aid of oil
burners Rehneries are being erected at
va nnfnfG In IL tate nfnn-IinaE ara
being surveyed and tanks are
being built at the points Of production and
consumption; the questions OF transpOrta-
ton and price are gradually being ad-
Justed: railroads and spur tracks are run
into the producing fields; the Standard Oil
Company has entered California with an
Appropriation OF more than $50, O.0O0. 1t is
now completing storage tanks in Kern
county which will have 100000 barrels ca
paciIy, are now laying a pipe line into the
Sunset field and erecting a 100000 refinery
at Point Richmond.
II Is estimated that three and one-half
barrels of California petroleum are about
equal in efficiency 10 one ton of coal.
The following in regard to the relative
fuel value of coal and Los Angeles oil, as
shown by combustion in furnaces. is from
a bulletin of the State Mining Bureau, by
Prof. w. l.. Watts:
1.-THE heating furnaces of Los Angeles
Steel and Iron Company, one ton yelling
ton coal equals go barrels OF oil; for steam
purposes. one ton Wellington coal equals
three barrels of oil.
Los AhStieS COnsOidated Electric RAN
road Company, steam purposes, one ton or
Wellington coal equals 1852 barrels of oil.
Los Angeles Courthouse. steam pur-
poses. one ton good coal equals $40 bar
rels of oil
OIL BRINGS WEALTH TO THOSE OF
MODERATE leans
The Importance Of the oil industry in Cal
ffornia has just begun to dawn on the in
vesting public.
IncredulOus smiles nave met the bearer of
the stories of the fabulous wealth of the
oil fields.
When capitalists were told of the returns
that could be received from an investment
OF almost ridiculous smallness, they would