Sistersville daily oil review. [volume] (Sistersville, W. Va.) 1902-1905, 1902-09-16

THE OIL MARKET.

NdIlOuS PtP< AhGS hoaAAAn g. ~An
sylvania oil the runs for August
show that the big strikes did not hold
the daily average production for the
month. bat on the contrary, there
was decline 3 GOO barrels as com.
pared with the runs for July. July
and August as well as September
are among the most active months
the conditions usually being most
favorable for operations. The de-
cline In production demonstrates
very clearly the scarcity aud limited
capacity of producing territory.
The shipments of Pennsylvania oil
showed an increase In August over
those of July of $500 barrels daily,
showing that the Russian competi
ton" which the Standard OH Com
pany conveniently uses as an ex-
cuse 10 maintain low prices for pro
ducers credit balances when there
Is no more sensational or better ex-
cuse, Is not materially effecting the
demand for higher grade oil. The
net stocks of Pennsylvania oil are
now lower than they have been In a
number of years being down to g.
8o6, 5o7 barrels and with these fig
ures the stocks represent little but
tank bottoms, that Is to say, there!is
bat little merchantable oil Ia the
net stocks which can be made avail.
able for use or Shipment Ifthere
ever was a time when Dan o. Days
bumpers should receive or be SAL
lowed" more properly speaking,
better prices for their oil 1t IS under
Eexisting conditions. The South
Penn Oil Company with all its re-
sources cannot produce oil or main
tain Its production at the price be.
Ing paid Dan O'Day's bumpers,
therefore, how can the latter hope
to keep ahead of the game?
II the truth were known the pro-
duction of the Standard On COM
pany per barrel Is costing them all
and more than they get out OF 1t,
but the Standard Oil company has
many other ends from which 1t de-
rives enormous profits and one of
these ends Is refined oils.
The producers product Is kept at
a low level,the consumer pays high
prices for refined oil and the Stand
ard OIL company and the indie
pendent re6ners make enormous
profits. The Pure OIL company,
according to Its report of runs and
shipments, is handling upwards of
500 barrels daily, showing that the
re6ners connected with Its system
of pipe lines are running to their
full capacity and are materially eff
fected by Russian competition :"
1t Is with the Pure Oil comp any as
with the Standard, 1t Is
only the producers who must
bear the burdens of Russian
competition. There are those
among producers who begin to feel
that the Standard Oil Company
have acquired control of the Pure
OH Company II not By the posses
sion of Its stock, by consent and ar
rangement. Conditions certainly
warrant better prices to Dan
O'Day's bumpers but the profits of
the industry, except In rare In
stances of large production from
some particularly rich spot, are d.
verified to the re6ner. A large con-
flagration in the Spindle Top
field Is reported 70 have de-
stroyed great stocks of oil aud
will still further retard the pro.
gress of pumping tue oil from the
former gushers which have now
ceased to gush. How long Dan
O'Day's bumpers will continue to
drill under present conditions of
price and scarcity of territory re-
mains to be determined, but 1t Is
quite safe to predict decline n
operations except In the most pro-