The San Francisco call., 1910-11-16
OUTLOOK PLEASES
PRODUCERS OF OIL
Visit of Federal Officials Leads
to Changed Attitude on
Petroleum Problem
CurtaiIment of Output Continues
as Far as New GuShers
VIII Permit

Oil operators throughout the state
have been greatly encouraged by the
reports emanating from washington.
There is every indication that the fed
eral officials have come to keener
appreciation Of the special problems
that attend the petroleum measures
Within the week the machinery has
been set in motion to dispossess the
Southern Pacific Of illegally acquired
territory: Secretary Ballinger has di-
rected attention TO the necessity. OF
opening the withdrawn areas TO en-
Try. and Assistant Secretary Pierce has
begun work on his report as to loca-
tfons and patents. IN each instance
the department has been persuaded TO
the same process of thought as the
California operators.
GREAT OBJECT ATTAINED
IN this alone ii is well recognized
that q great object has been attained
when the California, delegation went
before congress early in the year, the
greatest difficulty encountered was the
ignorance of the members of both
houses as well as the bureau officials
on the subject Of petrol cum and p--
troleum lands. II was then observed
that the greatest headwaY could be
obtained by bringing the federal Of
Acials 10 California This was done
Their reports have already altered the
method Of thought previously prevail
ing al the national capital.
Although the regulations and legis-
-latiOn for which the CalifOrnians have
been pleading have not been promul-
gated or enacted. il is felt that the
headway gained this week offers a
broad measure Of hope.
nV-uur1T-q7
Curtaillnent of output has continued
during the week as far as practicable,
but the TWO new gushers Of the North
Midway have swelled the production
10 new productions. The big wells
were brought in by the NJ J. and
Midway Premier. In both instances
the flow was estimated as high as 4,L-
900 barrels day. It was stated that
the Midway Premier gusher gave every
indication Of exceeding all former rec
0rds- At times ii poured forth a stream
that indicated a rate Of $4,000 par
rels 2 day.
= These spouters have come upon the
scene al a time when II was believed
that the danger Of overproduction ha1
been met and passed The Lakeview
had been pretty thoroughly curbed
The Producers tanks and reservoirs
were being rapidly completed at San
Luis Obispo. In fact the first 1000, O0C
barrel reservoir had been filled and
the oil had been turned into the sec
ond The American oilhelds gusher
on 36 was well taken care of. Now
however, the big problem will arise
again.
The estimate Of oil in storage in the
state has been placed at 100000 bar
.rels. but operators are agreed thai
there is nothing in this figure TO caus,
apprehension.
The extension Of oil as a substitut,
for coal for fuel has gone on apace
Steamship companies on the Atlantis
are waiting only until they can b.
guaranteed a permanent supply before
changing the bunkers TO tanks.
The statement Of Sir James Mills
that the Union steamship company, o.
which he is president, could not use
oil as fuel under present conditions ha!
revived the suggestion that large OF
stations be established on the Other
shore Of the Pacific Many such have
been established. but the large oil com
panies admit that there is need fol
z@Ore
The obstacle found by the Unior
steamship company was the necessit,
Of carrying on the out trip enough fol
the round journey A station of ade
ouate size in Australia would remov,
this barrier.