The times. [volume] (Richmond, Va.) 1890-1903, 1901-10-04
REVIEW MADE OF
TEXAS OIL FIELD
Vast Possibilities Of the New Industry
Pointed Out.
fORTY-FIVE MILLION BARRELS.
Conservative Estimate Places Production OF
the Field at This Rate Within Five
Years Time-Ihe Demand
Will Increase.
Especial Dispatch to The T,mes.)

Especial DlSEatca 10 1pe 4iLneS-J
BALTIMORE, october 3.-The Manufac-
e,,rers, Record for this week publishes
very elaborate review. covering five or
six pages, of the prospects of the Texas
oil field by c. F. Il. Caracristi. G. f. T..
NJ. who has been making q close STUDY
of it for several months. following IN
vestgations made in the same helO some
years ago. At the start MI Saracflsti
critcses very strongly the wild spectia-
ton which has prevailed in the orSahiza-
ton of ~paper' companies, formed more
for. the purpose of selling the stock ..Atn
for the legitimate development OF the OH
business. After pointing out the great
dangers of this imitation to the leslti1na
DEVELOPMENT of business and the loss
that are likely to be incurred by t.
speculative craze. he says In part:
Il am not making this statement blind
iv or To discourage legitimate investment.
but rather to foster those vital iIdustri'l
DEVELOPMENTS tl!at are absolutely neces-
sary to insure and maintain an industry
that has before it possibilities SO vast
that the ordinary NAH cannot possibly
estimate them. Taking this field upon
its actual investment and not upon Its
capitalization as inflated by bubble com
panies l do not hesitate to say that tue
returns upon the money actually eXpeld-
ed for property bought at reasonable
ISurSS anu lile icN Siot'iiiSiiL -
properties will be found as a whole to ex-
coed those of any other field SO far dis
covered east of the Rocky Mountains.
Looking forward to the time when the
business will adjust itself to steady
output. rather than to the enormous pro
duction of the 'gushers' at one point.
he estimates the ultimate possibility Oh
the Texas field at 45,0o0,0D barrels a
wear. which he states may be taken as a
r. n
position. and that this will be reached as
a regular output within five years. He
also states that, after a careful eXami-
nation of conditions, he feels Justified IN
predicting Il future rate of 90 cents per
barrel for Texas crude petroleum. or
about equal to the price of the RUSSIAN
product. allowing for the greater demand
for the Texas output. and at bo cents Il
barrel this fuel oil will be equivalent to
coal at $40 per ION. He advises pro-
cucers against making longtime con-
tracts at present low prices for Oil.
claiming that the home demand for
this product will be such within the
next nine months as to tax the full ca
pacity of the Beaumont field. and bet
ter prices may be had at home than
abroad forcing the foreigners to increase
their bids unon petroleum.
COMPETITION IMPOSSIBLE.
with that of Texas, he says:
There has been a marked falling off In
the prices of Russian oil since the Texts
field was developed. Such decrease IN
value is thoroughly illogical from the
business standpoint, because the condi-
tons of both oils, chemically. Seograpb-
icaly ans! otherwise, are such as to make
competition from either side an ALSO
lutte impossibility once the value of liquid
fuel is established on the Atlantic coast
of the United. States. There are so many
elements in favor of the fuel petroleum
found on the Gulf plateaus that 1t IS
only a temporary matter before the pub
lie will appreciate the vast advantages of
liquid fuel over fixed carbons. ms Is
especially so when consider the pos
siblites of crude petroleum in the pro-
duction of steam in the merchant marines
and navies of the world, as well as on
locomotives and under stationary boil
erS.
THE petroleum found in the Beaumont
district is of great value in the production
of Illuminating gas and will probably
furnish the gas-producing hydro-carbon
of Europe. unless demand IS at once
created in this country, which IS more
than probable.
THE era. of Texas petroleum develop
ment has not yet arrived except in iso-
lated spots that give no index to the
actual possibilities of the -untieveioped In
dlstry The Texas oil fields. especially
in settled prcductiors. are and for many
years will continue to be. of the highest
Importance TO the financial and industrial
world, and within twelve months the de-
mand for Texas fuel petroleum will be
greater than the supply. At present
about 1900 barrels are shipped daily.
but ! his is only a. temporary condition.
caused by the lack of shipping facilities.
The three pipe lines connecting Beaumont
with Sabine and Port Arthur will change
this condition and q much greater out
put will be sold
Referring to the output of the great
"gushers.' he says:
Naturally there will be 4 decrease In
production from year to year, this de-
crease being based upon the lowering OF
the pressure surrounding the petroleum
and the filling of the sand pores with
asphaltum.
THE RADFORD AND SOUTHERN.