The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1910-07-22
NEWS OF THE OIL WELLS

!. In the midst of phenomenal pro
J perity. California petroleum produ,
: ers now are face to face with pei
y picking problem that is causing ten
porary embarrassment.
The tremendous deposits of petro
a tum underlying the Golden Stat
have, during the past few months
yielded such an enormous quantit
, OF the precious fluid that the outpu
at the present time SURPRISES the pip
line facilities for transporting it t,
!, market and has taxed producers t,
the utmost to provide storage facili
ties to conserve it.
| The petroleum, of California TO
May was simply stupendous. Durin,
that month over 100000 barrels O
the precious fluid were brought forth
from the bowels of the earth, repre-
senting value of more than $500,
1000.
Until three months ago 5000, 0O(
barrels was considered a phenomena
output for period of 80 to 81 days
But within that time the production
has increased by leaps and bounds
until now it is over the 100000
barrel mark. If the pace is sustain
ed during the present month, the
production for the first six months
OF 1910 will have been on basis of
100000 barrels for the year. This
is record that Russia has but few
times exceeded.
Whether the present rate of pro-
duction is maintained for the balance
OF the year or not depends largely
on the great Lakeview geyser, which
us producing at the rate of $1,000 bar
rels daily, having maintained this
record since March Is last. How
ever, constantly increasing produc-
ton in the various fields of the state
warrant the belief that there will be
no material diminution of production
even though the Lakeview geyser sub
sides.
But for the great Lakeview gey-
ser, consumption would now be run
ming neck and neck with produc-
ton. In the light of this, the Lake
view and other gushers that have
been brought in during the past few
months, have been a great blessing to
the oil industry of the Golden state,
for they have provided a surplus
which should be the means of influ-
encing the adoption of petroleum as
fuel by the navies of the United |
States and other countries, as we'll as |
by large corporations, such as rail-
road and steamship lines, that have
been holding off awaiting an assur-
ance of an ample and permanent sup
ply of the liquid fuel.
Just now the most important con-
slderations confronting the petroleum
producers Of California are the per-
fecting of banking arrangements for
securing olans on oil storage certif-
cates and teh organization of a COM
pany which will provide oil storage
facilities to care for the constantly
Increasing production of the precious
fluid.
The California Independent Oil
PRODUCERS Agency, which controls
he petroleum situation in California,
lespite the Standards activities, has
,harge of the work of arranging
facilities for handling the
III. The agency purposes to organize
is own bank, provided satisfactory
'lan cannot be evolved with local
financial institutions.
What the Agency is seeking to ac-
omplish is the securing of loans on
II storage certificates that may be-
ssued by the Agency, the later to 1
epay the loans after the sale of the
II, but In no case to deliver oil to
enders holding certificates, thus pre-
enting any coup that might be at
empted by the Standard to gain con-
rol of the oil supply in this state.
1t is intended that the storage
that is to be organized
mong the independent operators
hall provide facilities for storing
100000 barrels of oil. The
gency now has 100000 barrels of
II in storage and at the present rate
production Of the Independent
this figure soon will no IN.