Daily Arizona silver belt., 1909-07-29

In spite of the enormous production of petroleum in the United States, there is no likelihood that the supply will exceed the demand for the better grade product, and even the asphaltic oils are not in any danger of lack of demand for any length of time. Re sumption of industrial activity in the country will increase the requirements to such an extent that there will be no possibility of fulfilling all orders, and stocks, which are fairly large at pres ent in all save Pennsylvania grades, will soon be depleted. The Standard Oil company has reduced the prices of crude petroleum, alleging that there is an excess of production; but it is sur missed that the reduction is made with the object of checking production so that the stock which accumulated dur ing the crisis and it's aftermath may be disposed of at a fair price. Inde- pendent operators whom the Wall Street Journal has questioned on the subject say that they consider the reduction on crude oil as an ordinary business de- vice; but they object in the strongest terms to the inclusion of Pennsylvania oils in the change of rates.
 The petroleum known as Pennsy1- vania grade includes all the oils pro duced in that state and in Ohio, Vir- ginia, etc, which have a paraffin base and have no affinity with other oils. The wells yielding this class of oil are not prolific proiucers-some of them give no more than one quarter or one half barrel a day--and the stock is never large. On the average the quan- tity on hand does not exceed 3.000,000 barrels in the whole producing district, and for this there is such keen demand that the supply is never adequate. This being so, the independent operators claim, with good reason, that the in- clusion of the Pennsylvania oils in the list of reductions is unfair to the pro ducers, and benefits the dictating com pany at the expense of the independ- ent concerns. They say that the Stand ard, which regulates prices for them, should be fair enough to advance the price instead of cutting it, for it is well known that there is not enough Pennsylvania oil for the demand, and stocks are practically non-existent. It is pointed out, also, that the refining value and the by-products of Penn sylvania oils far surpass any other.
 The oils produced in California, Texas, Indian Territory, Oklahoma and elsewhere in the west are used almost exclusively for fuel, much being sent to trans Pacific destinations. These oils have an asphalt base, and are ca pablo of blending with others. The wells are generally profuse producers, and there is much more chance of ac- cumulating stocks of the crude article than there is of parafin oils. The con tention of the independent men is that the two grades should be kept entire ly separate in the schedule of prices.
 It is expected that the Standard will raise prices for all classes of oil next fall, when the improvement of busi ness has had its effect upon the fac tories and railroads, and the demand for oil has increased. The share of the advantages of commercial and indus trial improvement enjoyed by the oil companies is very large, and if the present indications on constant better ment of conditions are not falsifed the oil business should be in full activity by the fall of this year.
 The placing of crude oil on the free list is regarded as a direct blow to the independent producer in this country, for it will permit the introduction of Mexican and other competitive oils, the products of which will increase the