The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-23
Oil Producers Think Better
Prices Are Coming.
Contracts Which VIII Soon Re.
quire More Fluid.
FACTORIES REQUIRE IT
Present Advance Has Started
Much More Pumping.
Standard Alone Taking 80, 900
to $4,000 Barrels Daily.

independence, sKas., Sept. 90
There is far more hopeful feeling in
the OIL Held now than has been notice.
apie at any time since last winter. IT
is true that there has not, I'D to this
tlme, been any increase in the price of
the 81 degree oil, but the feeling pre-
walls here, as elsewhere over the field.
lhat II VIII be only a. short time until
there will be another raise. There
was raise last week in the heavy oil
prices and within the last ten DAYS
eastern oil has advanced nine cents.
The raise in the heavy oil prices is
due to the fact that the Standard and
other sellers of fuel oil have contracts
which will in q short time use even
more heavy oil than is now produced.
The raise in price has already started
the drills in the heavy oil fields and
as the production of that quality of
OIL increases the fuel contracts will be
extended. Oil burning has now passed
the experimental stage and there are
many mills and factories which are
actually seeking oil contracts.
More Drills to Start.
1t is the belief here that there will
be no considerable change in the price
of the better grade of oil until the
much as $4,000 barrels a day for a
period of time long enough to test
fairly the. fields production. If latter
many days run of this amount the
field still holds up to its original pro-
ductIon it is reasonable to presume
that there wilfsbe no big raise because
there will be no apparent necessity of
stimulating production. But if, on the
other hand, the field should show a
considerable drop in output after the
pumps are steadily applied, there are
many who believe that the price will
be raised and the drills started again.
There are those, too, who believe
that the field will not hold up to the
present reported production under
strong pumping. This makes more
certain their feeling that raise in
prices is coming. One man here says
that oil is held at the fifty cent mark
simply to hold down the big Territory
wells which boom the production for
awhile and then gradually settle down
to good steady output.
One thing is certain--there is no pill
ing up of stocks large enough to worry
the Standard or anyone else. The over
production of which there is SO much
talk, has not yet worried the buyers OF
oil. For the first seven months of 1905,
the eastern stocks decreased at the rate
Of about 10000 barrels a day. At the
same time, the western stocks increased
only Ii, 600 barrels day, which would
leave a net increase Of stocks of only
1000 barrels a day. These figures are
taken from the official reports and can
not be questioned. Thus, the net in
crease amounted to only one thankful,
or $4,000 barrels, in five days-almost
one tank week. And part of the time
the Standard alone has been building
almost a tank a day, to say nothing of
what the independent users and pur-
chasers of oil are taking in. OF course
there is more than this produced, but it
has stood out in the fields. The STAN
dard has taken advantage of a scare
and bought the oil at low prices.
So far as it is concerned, the over
production has not affected it, except
to enable it to store away 1000 barrels
a day at a low price. 1t is the oil men
who own this oil that stood out in the
250-barrel field tanks without pur-
chaser for so long that are in position
to complain of overDroduction. The
Standard has profited by the condition.
Oil Runs to Increase.
There can be little doubt that the oil
runs are going to increase and reach the
so 600 barrel -a-day mark in the near fu-
ture. The Standard is going to try to
store a tank a day. which would itself
take 81, 900 barrels. That company's two
refineries at Neodesha and Kansas City
are using 1000 barrels more. Then the
Whiting pipe line is daily expected to
be opened and it ought reasonably to
take 10000 barrels to begin with, while
5000 ought to be its capacity month
later after the pumping machinery is
all working smoothly.
Thus, the Standard alone will soon be
able to take from $4,000 to $4,000 barrels
day. The independent ref1ners are
all the time growing and they are be-
ginning to be felt in the oil markets.
Thus the whole situation can safely be
summed up by the statements that the
oil runs are soon going to become large
enough to test thoroughly the fields
production, and that the price will de-
pend very largely upon the showing or
nerrnauency which the field makes I'M
der the heavy pumping.