The Wichita daily eagle., 1904-04-01
OIL BOOM IN KANSAS.
Refinery at Kansas City Has Given an
Impetus.


(New York Evening Post Letter.
Neodesha, Kan, March 31.-The an
nouncement that the Standard Oil Com
pany has decided to build a refinery at
Kansas City at once has given a great
impetus to the oil industry in the Kansas
field. The company has more than hun
dred cars Of material in the yards at
Whiting. Ind, and it was expected that
the eastern end of. pipe line from the
Kansas field would be there. The COM
pany, however, has purchased q tract of
120 acres at Kansas City, on Sugar Creek,
and it is said that work with 800 men will
begin at once, the whole to be completed
by September. Whether the Whiting
plant will be built aslo is not known, but
the erection of this one so near the field
IS considered certain to build up the in
dustry rapidly and every lessee is plan
ming for greater efforts.
Last June there were in all this field
only 735 wells producing oil. Lsat De-
cember there were 1882; January added
pa, and February go. making a total of
more than 1900 producing wells. More
than 200 wells are being drilled and 70
rigs are building for further work. With
the opening Of spring there viii be a
greatly increased population
Chanute is the largest field in the Kan
sas territory, having 613 wells with 55
others drilling. Humboldt has 3S3 pro-
ducing and 80 drilling; Neodesha. 2S5 and
IS drilling; Independence. 143 and "A drill
ing. while Bartlesville, in the Indian Ter
1ac drt!
problem of getting rid of the product had
become a serious one. Here on two
farms the Standard has great storage
tanks On one lot are forty of 5000 bar
rels capacity each; the other will later
have an equal amount Pipes are extend
ed all over the oil fields TO this central
station.
The independence oil fields lie princs-
pally to the southwest. Last June leases
in this quarter were had almost for the
asking Today they are almost as high
priced as real estate on WsI street. By
way Of illustration, about ;hree years ago
the Coffeyville, Independence, Cherryvale.
and other gas companies. with their leaS-
es. could have been bought for $500, 900.
Now an Independence gas company is re-
ceiving NOR than a thousand dollars
day royalty on oil alone. The property is
said to be worth from s5,0O0O0O to $500
900. New territory is developed constant
ly. Coffeyville could produce anywhere
from 500 to 1000 barrels day If there was
a market. a pipe line may soon be laid
to this new field
In 1901 Kansas produced a little more
more than 100000 barrels of oil. In 1902
the production had increased to about
So. 600. and in 1903 to more than l000,o0
barrels sold at an average price OF s1.10
a barrel It is probable that 1904 Will wit
ness a production of 100000 barrels from
Kansas fields. Indian territory should
produce from 225.OO0 to 500.o00 barrels.
State eGologist Haworth says: "Our
1116 wells have averaged a cost of about
81. 500 each. or a little more than $500
O00 To this should be added the cost of
all dry holes which would average less
than $1,000 each. as all casing is drawn
from such wells for future use. l am con-
fident that thus far not more than 10 per
cent of all wells drilled have been fail
ures. This would increase the cost to
about So, 100000. Should every drill stop
today. the wells already made would
more than pay this entire bill In one yeor
if the price of oil remains as 1t is now"
Every effort Is being made by the agents
Of the OIL Trust TO encourage develop
ments in Kansas The depletion of the
older fields makes it vitally important
that the new territory should he given
every encouragement The Standard is
the Only buyer in the field-it measures.
tests. and handles the oil, and sends
checks to the stockholders
In the last week the price has fallen.
The price OF South Neodesha oil dropped
to slsl. North Neodesha TO s1-11. and the
heavy product viii sell for fifty-five cetns.
There is not. enough of the last to cut
much Of figure. There IS no reason for
surprise in the drop. and that il has been
DELAYED this long is considered a good
omen in the minds OF the practical oil
men. The conditions have been ideal in
respect to price. and the oldest inhahi-
tant" Of the oil region cannot recall
new field in which better and more stable
prices for oil were secured
nOMICIt : IN CijEe