The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1910-04-21
HEAVY DEMAND
FOR GOOD fuel
MAKES MARKET
Southern Pacific Alone Con-
sumes Thirty Thousand
Barrels a Day
Pipe Lines Garry the Petroleum
From the Fields to
Tidewater
New Outlet to Be Found in
Arizona and the South
west

In round numbers the production of
oil per day at the present time in Cali
fornia is $4,000 barrels. while the con-
sumption is $4,000 barrels. which
means that there is more market than
supply In order to fill the present
demand the marketing companies are
drawing on their reserves at the rate
of about 10000 barrels daily. This
very plainly shows the healthy condi-
ton of the market for crude OIL
The growing market is due to the
introduction of oil as fuel in South
American countries, to its extension in
the northwest, to the needs of the
Western Pacific railroad, to the adop-
ton of oil as fuel by several small
railroads, and to its use by new trans
Pacific liners in the place of coal The
steady demand is increased further by
the general revival of business. en-
largement of factories, erection of new
ones, the greater tonnage hauled by
The railroads and the growth. In every
line of trade, both large and small on
the Pacific coast.
California's marketing situation is
divided into three phases with three
distinct companies in control of each
phase. The marketing companies of
the state are the Standard oil COM
pany, Associated oil company and
Producers transportation company
tine alnalSdlndIfOn Oh tue Union vi
company and Independent oil pro-
ducers' agency interests).
The Standard is for the most part
refining concern, purchasing and de-
veloping oils of light gravity. which
are transported through pipe lines and
in tank cars to it's refinery at Point
Richmond The Standard sells fuel
oil to some extent around Gan
Francisco bay as the result of re-
Gently adopted refining method by
which il is able to treat crude oil,
using the .toppings" for refining pur-
posses and the "residuum" for fuel It's
properties for fuel are not impaired,
and the petroleum is put to a double
use.
The Associated oil company is called
an interior or coast marketer, con-
fning the sale of it's oil to factories,
the Southern Pacific, municipalities ana
similar institutions.
The export or foreign trade is handiea
largely by the Union or Producers
+ra9enartation company. The Union
maintains a pipe line across the ls'n
nus of Panama. where the use OF oil
has been greatly increased by the
canal work The United States gov
eminent is consuming about 1000 oar
rels a day furnished entirely by the
| Union. The market in the nitrate re-
! gions of Chile and on the railroads ol
| Guatemala has 1nCGSdStu llhS0iSN"
To bring the product of the oil helds
NJ tho valley TO the consumers on this
coast and foreign lands the companies
maintain pipe lines and carrier fleets
The standard oil company has a pipe
line from the Coalinga field to It's re
fnery at Point Richmond and last sum
mer doubled the capacity of the car
rier from Mendoza to Point Richmond
The Kern fields are also connected by
he rQfinarV There Is a
line from the Kern river field ana
branch from Midway joining the main
line near Bakersfield. There Is also
branch line into McKittrick which UNI
til recently was not used. Last month
the Standard took $50 900 barrels out OF
Midway. The line from Bakersheid 10
Point Richmond will handle about 26,-
600 barrels a day.
The Associated oil company has
rified line from Coalinga to Port Costa
its tide water terminal, capable of run
ming about 10000 barrels day. The
line was completed last winter Coal
inga is connected with the coast by an
other line the old Matson pipe line,
which touches tide water at Monterey.
It's capacity is about $4,000 barrels
daily. A rifed line from Bakersfield to
Port Costa cares from the product of
the Kern river field and third rified
line is now being constructed from
Coalinga to Maricopa.
The line of the Producers transpor-
tation company in the coalition of the
Union and independent forces has just
been completed from Coalinga and
Maricopa to Port Hartford. Lines have
been built from Coalinga south to
point on the desert termed the juno
ton and from Maricopa north through
Midway and McKittrick. branch line
also connects with the Kern river field
! n l.
rels day.
While this comprises the present pipe
line facilities of the marketing compa-
MES in the valley, other large projects
have been launched. The increased
business in the Midway field is causing
the Standard to construct another
branch line from Midway to Bakers
field with a capacity of approximately
10000 barrels a day. The California
Arizona pipe line company has just
been organized to construct carrier
from the Kern county fields into Ari-
iona and later to Mexico. 1t is gem
orally supposed that this enterprise is
identified with the Santa Fe railroad
company which is large consumer of
oil in the territory. Announcement has
lust been made of a line to be built
from Kern county over the Tehachapi
mountains to Mojave by the Southern
Pacific The line will cost several mil
lions of dollars 1t Will be great saw
ing to the railroad in the cost of trans
porting its fuel.
Of the states production about so per
cent is controlled by the Agency Union
combination The Standard Oil com
pany purchases about 20 per cent, the
Southern Pacific consumes about 10000
barrels a day and the Santa Fe about
1900 barrels.
BY their combination with the Union
oil company and the construction of
pipe lines to tide water, the indie
pendent agencies of Kern county and
Coalinga took the marketing of their
product practically in their own
hands. The Producers Transporta-
tion company was organized to con-
struct pipe lines and transport the oil.
The bonds were offered to the inde-
pendent producers first and those that
remain unsubscribed for after certain
length of time were taken by the
Union oil company. The agency mem
bers agreed to give the product of
their properties for term of 10 years,
beginning February 1. 1910.
The Union oil company is appointed
exclusive sales agent. with exclusive
right and authority to handle, market
and sell all of the product Of the COM