The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-03
YET UNCERTAIN.
Producers of Oil Not JubiIant
, Over the Prospects.
Fear Standard Has Trick Up
Its Sleeve.
TAKING HIGH GRADES.
Said That the Combine Saw the
Output Slipping Away.
Compelled to Get Back in Order
to Have Market.
TAKING HIGH GRADES.

ChdnuIe, Kan, july Sine StdnQdIO
Oil company has begun running all the
high grade oil in Kansas and the terri
tories where the wells have been con-
nected with the pipe lines. Heretofore
the Standard has been running one ESQ
barrel tank from each lease each week.
The daily runs from the entire state of
Kansas since February have averaged
5000 barrels a day. The runs from the
Territories have averaged a little more
than $4,000 barrels a day.
Under the order to run all the high
grade oil the runs from Kansas should
be from 10000 barrels to 1000 barrels a
day. The runs from the territories
should be from $4,000 barrels to $4,000
barrels a day This estimate is based
on the assumption that the order will be
literally carried out by the Standard.
The Standard company is yet unable
to say when all the heavy oil will be
run through the pipe lines. Connections
are making with many leases through
out the field and this is a tedious JOB.
In some instances, more than two miles
of pipe must be laid to make the con-
nec1ions. Producers have been slow in
accepting the offer of the Standard to
relay the lines and run the oil.
If there was no other prospect of
market, producers had taste last
winter of the whimsicalness of the
Standard Oil management in this sec
tion and do not desire to again place
themselves in a position where their
production will be cut off without
moments warning and they will be
caught with all their tanks full of oil.
Nor is there any sign of jubilation on
the part Of the producer of light oil at
the offer of the Standard company to
take all the light oil at the present
starvation prices. Even some producers
who are selling oil to the Standard now
are making arrangements to turn their
oil into one of the many refnerleS
building all over the oil belt. These in
dependent Tefineries are making long
time contracts for oil, and in some in
stances are agreeing to give 81 barrel
for five years, which is just double what
the Standard is now paying for the
highest grade of OIL Some of the re-
f1neries are making long time contracts
and agreeing to pay 20 cents barrel
more than the Standard company will
pay.
Roughly speaking, tha Gulf pipe line
and the Independent refineries will take
about $4,000 barrels of oil a day out of
the Kansas-Territory field. The Gulf
pipe line has contracts for 1900 barrels
already. The refinery at Cherryvale will
take LOCO barrels a day. The rehnerieS
in Chanute will take 1850 barrels
day. The refineries in Erie will take q
600 barrels a day and the plants at
Niotaze, Langton, Paola and Humboldt
call lOI ZsuuO jail CHS" TACSO1AAA1eo ~
Standard Oil officials the daily produc-
ton of the entire field is approximately
so 600 barrels day.
The Gulf pipe line and independent
refineries will take nearly one-third of
this leaving for the Standard from 49,
600 barrels to AZ 600 barrels a day, or
just what the production of the field
was last fall. The Kansas City pipe
line is not figured in this statement be-
cause that project is not yet advanced
Tho C1Tr1f MIN linz
Kansas City pipe line promoters are fig
uring on a minimum daily production
of 5000 barrels. Nor IS there taken into
account the sudden boom in the fuel oil
business which has now reached the
proportions of / 800 barrels a day and is
steadily expanding. The exact figures
on the consumption of fuel oil are hard
to ascertain for the reason that many
of the manufacturers own their own
wells and the shipments are not mat
tiers of common knowledge.
Producers throughout the field are of
the opinion that the Standard saw the
control of the immense output of high
grade oil in Kansas and the territories
shipping away from it and was forced
to get back into the market to hold its
own. The Standard still says it is not
extending its pipe lines to new wells,
but it is drilling wells all the time in
Oklahoma and turning all OF the pro
duction into the pipe lines. 1t also has
begun drilling at Buffalo, in Wilson
county, just west of Chanute, and Buff
falo is in a low grade district. The
Standard has also been drilling in the
neighborhood of Humboldt, in another
heavy oil district.
Producers are of the belief that by
holding out now they can get a better
price for their oil in a short time. There
is a demand for more oil than the
STANDARD controls Not only is the
Standard unable to get enough oil with
in the limits of the territory traversed
by its pipe lines, but it is buying oil in
Texas and refining it