The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-06-27
bbls.
per month

Total ........... .........ofe'ooo
Making total of $4,000 bbls. per |
month or 4,176,000 bbls. per year. This
does not include the oil consumed by the
drillers the Oil refineries, the Mare ISL
and navy yard the ferry boats, and a
great many other interests in the state
Of California, which are using large
quantities Of oil.
In addition to the above, Mr.. Claus
spreckles has made contract with a
number of the large producers of oil in
Kern river district for 100000 bbls of
Oil to be sent to the Sandwich Islands.
1t is only three years since the begin
ming of this industry, and We're 1t not
for the supply which has accumulated
while the manufacturing interests We're
making the changes in their machinery
there would not be sufficient production
to supply the present demand.
There is every reason to believe that
the state of California will consume at
least twice as much oil during the next
year as is being produced at the present
time, and unless new and productive
fields are opened very soon, the manu-
factories of the Golden state will be
obliged to ship oil from Texas.
The Standard Oil company advertised
a supply to fill their tanks, ten of which
are located in the Kern river district,
near Bakersfield, and five at Mckittrick,
in the same county. The total capacity
of these fifteen tanks is $4,000 bbls. II
is said by parties who claim to know
that only one bid was submitted, AMI
that the price was zoe per Dbl.
The writer visited the wells of all The
large producers during February and
March, both in Kern county and Los An
geles and found that the on men Were
unanimously in favor of making the
price of oil not to exceed SOC per Dbl.
claiming that at this price it would con
into universal use, and that ii could b
produced at a profit of 45c per bbl., thu
cost of producing being only sc per BIB.
AT that time the lowest price was Al
at the WE'LL and that was for a long con-
tract in large quantities. Since tina
time and during the month of May SOM
contracts weres made on low grade 1
gravity oil at soc per Dbl at the well, an.
at this rate the oil would cost the con
sumner 14c at San Francisco.
To give you an idea of the profits il
the oil business, 1 will give you tn
illustrations:
Good land in new territory can b
bought for 81 900 per acre. Purchase fou
acres, put one we'll on each acre at
cost of 81 000 plus the cost of land, wi
make the investment $4,000. The pro
duction at 50 bbs each per we'll will b
300 bbls per day, 5000 per month, or -.
OoO per year. At SOC per Dbl you woul
have s21, 500, less sc per Dbl, for producin
per year on an investment of $4,000.
You mention the price of oil as ben
Use per Dbl. Say we make it 15c, an
you then have an annual income {
s7,200 per year on an investment of $25
900.
The life of an oil we'll with $50 fec
of oil sand and 10 per cent saturation {
oil is about 20 years; SO that with TIL
investment YOU have an assured incorl
of $4,000.
am aware of the fact that there a,
wildcat companies, and it is to be e,
pected that there would be, but we fin
Them in the mining business in our ow
xate.
do not hesitate to refer you TO som