Los Angeles herald., 1909-10-23
FOUR GIANTS TO
CONTEST FOR
OIL SUPREMACY
BATTLE PROMISES TO RAISE
PRICES
CALIFORNIA LMTD. TO ENTER
REFINING FIELD
Will Have d Worldwide Market
Through Selling Agency of eaifour-
Guthrie Company and Cap
ital Refinery

The oil fields of California bid fair
to become the setting Of fierce battle
of the big companies within the next
few mouths, with four powerful RI
walls. the Union, Associated, California
Limited and the Standard, lighting for
supremacy. AS an outcome it is quite
probable in the opinion of many we'll
informed operators. that higher prices
will prevail, the consensus OF opinion
being that 70 cents will be the estab-
Hshed price.
Speculation is rife as to the relia-
bility of rumors that the Standard has
secured options on the Silver Tip, Lu-
ellie. Blue Moon, Army and Coalinga
Peerless and the Fulton at Sunset and
Peerless at Kern River, but well IN
formed oil men contend that the
Standard has little chance to secure
these wells, the product of which is
contracted to the Associated until
February, 1910, at 63 cents.
Limited Enters the Field
Heretofore the Union has been the
only aggressive rival of the Standard
in the refining field. but the California
Limited is entering the field in the
guise of the Capital Refining company,
ana mas BALenSlNG kJlclllLS G9lttbAis7AA~NA'
Balfour Guthrie & Co., the nominal
head of the Capital, are the agents
for the Limited, and have connections
all over the world. The South Ameri-
can markets would be open to the Cap
ital at once. and the extensive agen-
cies of Balfour Guthrie & Co. insures
a worldwide market
The California Limited practically
controls the light oil of the Coalinga
81 Io= ier1Tt tH-.-
three producing wells. outside of the
Coalinga field the production of light
oil is limited to Santa Maria, which
produces a small amount, and Whit
tier and Fulton, the product of which
is consumed locally.
The Standard has a contract with
the California Limited for 100000
barrels, which is being delivered at
the rate of about 100 600 barrels daily,
the oversupply going to the Capital
refineries. This contract is believed to
be considerably more than half filled,
and in the meantime the Limited is
increasing its output by drilling new
wells.
The Associated is the only one of
the four big companies which is not
extensively engaged in refining. This
company loses its big contract with
the Independents next year, when the
AOuQCGI5 ans ptJA ltllDil NliAl lJdIlg
enters upon ten-year contract to con-
vey the oil through its big pipe line,
now being constructed from COalinga,
Kern River, Sunset. Midway and Nc
Kittrick to Port Hartford.
Standard Expected to Fight
An eastern paper in commenting on
the situation says;
There is no question but that the
Standard looks with envious eyes upon
the oil industry of California. as new
er before in the history of the indus
try in the United States has there
been so successful an effort to break
loose from Standard control as there
has been in California through the
deals made between the independent
agencies and the Union Oil company.
"The fact that California produces
one-third of all the oil in the United
States and one-siXth of that of the
entire world of necessity indicates
that this state is to be the battle
ground for future control, and the
forthcoming battle will be watched
with interest. Those best in position
to gauge the future market price of
oil have predicted that the next con-
tracts will be at rs cents a barrel
while the Standard has set the price
at 40 cents and the Associated at so
cents. The Standard has been unable
TO get oil in any quantities at its fig
ure and the Associated has succeeded
in contracting for a small amount at
30 cents, both of which prices are
presumed to be used as clubs over
other producers.
That California is to be an interest
ing battle-ground is a foregone con-
clusion, for it is not believed that the
Standard will remain dormant and let
the Union take away the plum"