The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1901-12-29
Dill PRODUCERS
IRE EXPECTANT
Stockholders Have the
Power to Bring
About Climax.
Situation Produces General
Interest Throughout
the State.

The general situation concerning oil
production in California has not recently
met with any marked change. The only
condition IN sight that promises any re-
lief from low prices and DISCRIMINATION
is the existence Of the Associated Oil
COMPANY Some producers are saying
that the Standard Oil Company will help
them to get a higher price. On the other
hand II is lged that as the market Tor
petroleum is based upon competition
with coal, the only purpose that the
Standard Oil Company can have is TO
make as large a market as possible by
crowding out coal to the fullest extent,
which can be done at a low figure rather
than at q higher one
The fields show less development work
going on. The talk Of coming dollar oil
is heard. The owners Of lands are wait
ing to see what will be done. Assur-
ances are received from the Associated
been cIouded and that future events are
likely to be satisfactory.
The leading consideration for the future
Of the Gil industry would seem to be that
the demand should increase. Those who
have undertaken to burn oil instead or
coal have no reason to be dissatisfied
with oil as tueL Large contracts nave
recently been renewed In the East, as
in California, the tests OF petroleum as
fuel have been satisfactory. The Ma
uOnal Oil Reporter, published IN New
York in a recent issue had two state
ments Of significance. One was that the
New York Chamber of Commerce has
adopted a resolution favorable to the
Beaumont fuel oil. The other is the fol-
lowing:
Save Fifty Per Cent.
Since the discovery OF oil there have been a
tive cost OF coal and oil for fuel. Some OF these
were made by experts, who figured heat units
on the scientific basis, others by oil men. and
the coal baron also had an estimate on the sub
tect Taking oil at the value asked for 1t. the
results in favor Of that fuel were almost stag
never given the subject thought. Actual ex-
perience is beginning to come in now, and the
first one to be placed on record in detail prom
ises to give fuel oil boom that IL has never
experienced before. Charles Clark & Co., dredg-
ing contractors, began figuring on oil for fuel
soon after McFaddin No. 1 came in, but II re-
Quired some time to build barges for transport
ing it from the field to the boats and holding
the reserve. On account OF the time lost In
making these arrangements they have just
learned what their saving is in dollars and cents.
The following results were obtained from coal
and oil: Coal per month, sos; Oil, S12 so;
transportation. 81 80; storage barge $50; differ
ence in cost Of coal and oil. S43; saving IN fire.
men, ETC., 800; saving in favor Of oil. $4,000.
In the above figures 1t must be borne in mind
barge will not occur next month, which will
make the saving propOrtionately more. The
barge Is used to hold a reserve supply for the
Dredging boats, and will last for many years,
but It Is nsured in the first months expenses.
bill Of less than $4,000
Controls the Cream.
Concerning the hopes Of the Associated
Oil Company the Los Angeles Herald
quotes Kern RIVER district producer as
saying:
II the holdings Of the Associated OH Com
pany inclosed the map Of the Kern
River field by a red line II can be seen that
the very cream Of the producing territory has
been gathered in by the combine save one
tract in the northeast, and another In the
southwest. Now, what the outside pro-
ducers do to the combine which, I claim. con-
trolls the sltuation2 I am perfectly certain
that oil cannot be produced on either OF these
two tracts for less than 80 cents to 40 cents
barrel and make profit. There Is no 10 cent
oil anywhere about there. and. consequently I
maintain that the combine directly controls
the very best portion OF the field, and In an in
direct way also controls the outlying territory.
tnasmuch as none OF the producers there can
sell at very low figure without making a
heavy loss. In such case the Associated OIL
Company ought to be able to make contracts
on a basis rsmunerative to all concerned.
The voting by stockholders Of the pro-
ductng companies will continue next
month The stockholders have had all
the arguments presented to them by
this time. The situation, involving the
future Of vast industry and many mill
lions Of dollars, is one OF great interest.
From one end of the State to the other
all eyes are now on the Associated on
Company.