The San Francisco call., 1910-06-29
new MARKETSOPEN
FOR OUTPUT OF OIL
Sudden Increase in Production
Leads to Contracts for
Large Quantities

g.. Oil operators who at first looked with
den increase in the output of California
petroleum have now come to regard
this heavy yield as the entering wedge
FOR vast enlargement of the market.
. Since il has been demonstrated that the
oil is here and available new contracts
Of great size have been made. Others
are pending.
The Great Northern railroad is in
line for 5000 barrels day and general
report has it that the Mexican govern
ment viii become q purchaser for fuel
for the national railways. The Mexican
government is said to have taken the
preliminary steps looking to a contract
for 10000. 900 barrels.
Another market has been found in
Chile. where a great part of the output
of the Kern river oil fields limited the
new English concern, will go.
TRANSPORTATION NEEDED
Colonel Timothy Spellacy, veteran oil
. man and candidate for lieutenant gov
ernor on the democratic ticket, is au-
thority for the statement that Argen-
tina would use 1000 barrels Of oil day
al. 65 cents barrel If there were boats
to take the oil there.
Colonel Spellacy, in company with
J. D. Thompson, vice president of the
Premier oil company: James A. Car
penter. field manage of the Premier,
and Harry ". Thomas, secretary of the
Illinois crude company. have just left
the city after z conference with n. F.
Wilson. president of the Lincoln mort
gage and loan company, regarding the
Premier. Mascot. Illinois crude and
other Well known properties in which
they are mutually interested.
THE one great fact that confronts
the oilmen now" said Colonel Spell
lacy lis TO provide for additional stor-
age and transportation Of oil The big
production now means a widening mar
ket. and is the best thing that could
. have happened.
OPENINGS FOR REFINERIES@
I remember six years ago when they
were crying overproduction we didn't
have near the production of the
present time and the price was away
down low. Now there is a big chance
for marketers and refineries to get
into the field. If we had a production
of 100000 barrels 2 day we wouldn't
have an overproduction, for that would
Is just about keep the merchant marine
Of the Pacific ocean in OIL
J. D. Thompson. vice president of the
Premier, said that a prominent man
enga ged in the shipping business had
bought a tramp oil steamer to buy Cal
ifornia oil and sell it on the market in
foreign ports.
r. P. Boyer. vice president of the
Lincoln mortgage and loan company,
said:
Drillers in the gusher territory on
the Maricopa fat and in the Midway
Sunset fields in general are going right
ahead. The Mascot oil company above
Moron, with 26 wells pumping and Z
production of $4,000 barrels a month,
viii have Is new wells drilled before
the first OF the year. The Yellowstone
company, on the fat, is being rushed
along with rotary drill.
DRILLERS ARE ACTIVE
=: -+'The bringing in of the Essex well,
which is about a mile farther out on
the fat than the Yellowstone, has
proved Up the fat to a much larger
extent than was thought probable
when the Lakeview was brought in
It Will be recalled that the Yellow
d. stone struck strong gas pressure that
sanded up the pipe and threw oil all
over the derrick.
F.. THE drillers are active in the gusher
territory. Big wells like the Midway,
Pioneer Midway. the K. T. & O., Ethel
. D. and Standard prove that this terri
tory is the greatest gusher field that
the world has ever known. The the
DRY that oil in the ground is worth as
much as above it is not entertained Sc
riogsly by the most active companies
down there. Besides every one wants
to get all the oil out of his territory
that he can.
We find that the wave of interest
in California oil has spread to the east
There is not only a greater demand
for listed stocks there than ever, but
the demand in England, where we have
a representative, is also strong