New-York tribune., 1902-06-18
THINK TENA,S OIL WILL FAIL.
WHY STANDARD OFFICIALS ARE INDIF
FERENT-PLANS FOR PETROLEUM
FUEL GO On

The apparent Indifference Of the Standard Oil
Company to the enormous production of petro-
leum in the Beaumont fields in Texas. which has
excited the curiosity of many financial men of
this city. was explained yesterday by an Of
fetal of the company, who said to Tribune re
porter that early failure of the supply Of
Texas oil was expected. This expectation. it
was explained based upon the limited field
of operations at Beaumont and upon the ex-
perience with oil gushers in other fields
Il have been expecting for some time to see
the bottom drop out of the oil excitement in
Texas" the official said. The wells at Beau
mont are all included in area of eighty acres.
Beyond that borings for oil seem to have
yielded no results Some of the wells yielded
enormously at first. ! inclined To believe
the reports that single we'll has Welded as
much 10000 gallons 4 Gay. The question IS,
How long will the wells continue to yield at
that rate In a small territory? Experience with
other oil wells shows that we'll may be eX-
hausted in a short time. Sometimes well has
gushed at the rate of 10000 gallons day for
few weeks and then can be made to yield only
a few hundred gallons a day by pumping
The lack Of confidence in the Texas supply
was explained further by another official of the
company, who said that the company had de-
clined to make contracts for large quantities Of
fuel oil at a low price. in the face Of the large
yields Of Beaumont oil. We have been asked, -
ne said Ito make contracts for large supplies of
oil for fuel a certain price. and We have de-
ciined. Large power producing plants will not
begin the OF fuel oil in place of coal until
they can be assured of a sufficient and cheap
supply of the oil"
Plans for the Of crude petroleum from
Texas as fuel. in place of coal. have been en-
Saging the attention OF many business men Of
this city since the smoke nuisance has become
so serious d menace 10 public health and com
fort The successful use of fuel oil in the large
steam plant Of the Morse Iron Works and Dry
dock Company. in Brooklyn. and the work now
being performed by that company in converting
seven tank steamships from coal burners to
oil burners accounts of which have been pub
lished in The Tribune have indicated 20 many
minds that the city will not he dependent much
longer on coal as a means of producing power
With abundant. steady and cheap supply or
fuel oil assured, it is declared. the large power
producing plants of the city and many other
concerns may become independent of the COM
bination that fixes the price of coal. and may
cease To fear the effects of coal strike.
At present the supply of fuel oil in this city
is largely controlled by the Standard Oil Com
pany. Most of the available supply has been
the residuum of the cOmpany's oil retnerles. al
though the company has one tank steamer,
which burns oil fuel. plying between Port
Arthur. Tex. and NeW-Nork. The company
does not control the Texas oil fields In tact'
it does any property there II simply
buys oil there brings ii to this city and sells IT,
as anv other concern might do. When the line
of tank steamers now being converted in Brook
lvu begins the work OF bringing regular sup
pIy of Beaumont oil from Port Arthur TO this
city the Standard oil Company may retire its
one steamer from that service. Officials of the
company said yesterday that they expected the
price of fuel oil diminish to 90 cents barrel
or less when the supply for this city was IN
creased. AT present the price OF fuel OIL In the
cit is a