Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1906-04-27
RUSSIA is A RIVAL.
COMPETITOR OF AMERICA IN
INDIA OIL FIELDS.
Advantage Lies with Our Producers
in Advanced Methods Of Re-
finement, Transport
tation, Etc.


India is at present almost exclusively
controlled by Russia. OF the 22, 500, 900
gallons of kerosene oil imported into
Bombay during the fiscal year 1904-05
the cars empire was credited with
more than 100000 gallons, valued at
nearly $2,000,000. This oil, however, is
not the highest quality of illuminating
fluid, states the New York Tribune.
Russia has never been able to meet tho
United States in competition for the
higher grades of oil, but for some years
she ha3 practically control The mar
ket of British Indian in low grade and
low priced oils.
For these oils, however, other COM
petitors have appeared in the market,
which threaten to take away ultimate
ly her present supremacy. Dutch Bor-
neo has within the last three years in
creased the volume of her export OF
Kerosene to Bombay from 100000 to g.
100000 gallons.
Burma oil also shows a remarkable
advance, and it's first shipment to Bonn
bay was recorded last year. Being a
part of British India, politically, Bur
ma imports her oil into Bombay duty
free, which, of course, gives her great
advantage over the Russian producer.
The American producers of kerosene
have lately been devoting considerable
attention to the importation of Russian
oil into Bombay. 1t is believed that
with advanced methods of refinement,
system of bulk transportation and inn
mense installations the United States
will be able to meet successfully the
competition, not only of Russia, but of
Borneo and Burma, in the kerosene
markets of India.
The Russian oil sent to India is pro-
duced near Baku, on the western shore
of the Caspian sea. From there it is
carried across Trans Caucasia, some
500 miles, to the port of Batoum, on
the Black Sea, on tank cars, holding
ten tons each, like those which were
used in the Pennsylvania oil fields over
80 years ago. The cost of railway
freight is $3.50 ton.
At Batoum the oil is loaded on oil
steamers, which transport it across the
Black sea, through the Bosporus and
Dardenelles, down the Aegean sea,
across the Mediterranean, through the
Suez canal, through the Red sea and
the Arabian sea to Bombay, the dis
lance traversed being some 5000 miles,
although Bombay is only about 1000
miles in straight line from Baku, the
point of departure.
1t is thought by the producers of the
United States that in their facilities
for transportation they have an ad-
vantage which will enable them easily
to wrest from Russia the predominance
which she has held in the oil trade OF
British India. Russia, herself, how
ever. is doing good deal to lessen the
costs of transportation, and this must
be taken into account in forming plans
of action in the contest
A pipe line to unite the wells at
Baku with the port of Batoum has
been completed, and this cannot fail to
have an important and far reaching
effect on the Russian oil industry. The
length of the line is $40 miles. It
crosses the watershed of the province,
and will carry crude oil from Baku to
be distilled and shipped at Batoum.
The total capacity of the tanks and
pipes of the line is, roughly speaking,
112,507 tons. The saving in freight by
the pipe line is estimated to be equal
to one-half of the old car freight,
which will prove an important factor
in the competition to hold the oil mar
kets of British India.
The increase of exports is estimated
to amount to more than 100000 tons a
year, and it is calculated that as the
result of the construction of the new
pipe line lessening of the cost of oil
to the consumer can be made of about
two cents gallon. The American
producers must be able to meet this
reduction, and, possibly, increase 1t, II
it is to secure the rigch field now being
worked by Russia.