The San Francisco call., 1910-07-13
fftdrGWd| OJCr DgpINYS' LOC0FOrS. Of Rich Oil Ng0
new MARKETS FOR
STATES OUTPUT
Producers Agency Will Soon
Announce Some Big Con-
tracts for Fuel

While marketing conditions in the oil
industry. are still in an unsettled condi
ton. there is every prospect that the
Producers agency will have something
important to announce before many
weeks have gone by. The officials of
the agency have been devoting their
full energies to the enormous task be-
fore them-that of providing storage
and making new selling contracts. That
large contracts are in the process of
negotiation is we'll understood.
The agency members will meet today
in Bakersfield. This will be the first
meeting since the Indignation of the
Bakersfield and Coannga bodies. The
notices for the meeting contain no in
formation of special topics for consid-
Grafton.
Although the agency is long on oil. a
few big contracts and its additional
pipe line facilities would enable ii to
market all that now comes to its tanks.
Within 80 days the first of the big
reservoirs will be completed near San
Luis Obispo. Other facilities for i'm
pounding the surplus will be provided
as rapidly as possible.
There appears TO be good ground for
the reports that the Standard. as well
as the Associated. is purchasing at cur
rent rates. 1t is stated that the stand
ard has offered to contract for the out
put of the Consolidated Midway at so
cents barrel The Consolidated Md
way recently brought in a big pro-
ducer near the famous Lakeview. After
few days of activity this we'll broke
forth with stream that is said to rival
that Of its noted neighbor.
There have been persistent reports
that the panacea of all the ills that
ever beset the oil business lay in the
intended use of oil for the American
navy. 1t has been pointed out re-
peatedly in these columns that
no wholesale change from coal to
petroleum was contemplated at this
time. 1t was explained, however,
that many vessels of the navy
were already using oil and that more
would follow. The situation is Off
cially set forth in a recent communica-
tion from Secretary Meyer of the navy
department to Senator Perkins His
letter follows:
Department of the Navy. Washing
ton, D. c.. June 81. 1910.-My Dear
Senator: Your letter of the 18th inst.
relative to the use of oil as fuel on
naval vessels has been received.
In reply l would inform you that
oil is used as fuel quite extensively on
the vessels of the navy more recently
designed. In the case of the latest
destroyers oil is the only fuel used.
and coal are used under boilers
This fuel oil is purchased by an
nual contract and is advertised for and
bids submitted in the usual way.
The battleships fitted for fuel oil
carry about 400 tons each, and the
torpedo boat destroyers about 210 tons
each. There are at present built and
building 10 torpedo boat destroyers and
six battleships using oil as fuel To
fill the oil tanks of these vessels would
require about $50 tons, and. of course,
the amount of oil used would depend
upon the rapidity with which the tank
supply was exhausted.
In regard to the Delaware I would
state that this vessel is fitted to burn
both oil and coal l regret very much
that 1 have not a photograph of the
Delaware which 1 could forward you,
but you will find very good one in the
Journal of the American Society of
Naval Engineers for November, 1909,
vol 21, No. f.
AS to the probable extent of the
use of oil as fuel in the future of
course, l am unable to state. At the
same time all indications point to it's
continued use.
Trusting that the above remarks
will furnish you with the desired in
formation. l am faithfully yours.
GEORGE L. Won MEYER"