The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1910-09-14
DEVELOP MENT
INVIGORATES
OIL INDUSTRY
Small Producers Not Affected
by Cut in Price Made by
Associated
Extensive Plans of the Palmer
Company Have important
Influence

SANTA MARIA. Sept. lathe ex-
tensive plans of the Palmer oil com
pany, the increase in development
work, the construction of a new refin-
cry a Avila and the opening of the new
town of Sisquoc have proved the most
important events of the last week in
local oil circles. The smaller producers
have not been affected by the cut in
price announced by the Associated oil
company, as the oil from this field is
being delivered on long term contracts
at prices ranging from so to IS cents a
barrel. Most of the contracts are at
the so cent figure. In those instances
where the right of cancellation exists
the purchasing companies have con-
tinuej to buy on-the so cent basis
The threatened decline in production
in the west field has been more than
offset by the development of a 1000
barrel gusher on the Squires lease of
the Union oil company. This big flow
was struck in the very heart of the
field at point where the properties
of several companies corner. 1t bears
out the theory long held by the more
experienced operators in this field that
a big pool is still to be tapped at
the lower levels.
The Palmer company has filled all
ITS available reservoirs and has on
OIL II is able TO complete its contract
deliveries within the first 10 DAYS of
each month. 1t is understood here that
the Palmer has taken over the old
Graciosa pipe line and will extend it to
IT'S own property. This will give it
clear outlet to Port Hartford. a dis
lance of about so miles. The fall is
sufhcient to send the fuel through the
tube by gravity.
Inc Palmer plans are said to include
big refinery at some point near tide
water and a feet of steamships for the
distribution of the product
The big storage reservoirs of the
Producers transportation company near
san Luis Obispo are nearing compile
tlon. Half of the tankage is in place
and the earth has been dug out for the
two big reservoirs. In one of these
the concrete lining has been about half
completed.
Al Avila the Union oil company will
soon erect a new refinery 1t will no
used for the treatment of the coarser
distillates- The plant at Avila will be
far more extensive than was first an
houhced The tankage there will be
completed within month. Homes are
Delng erected for the employees
The opening of the town of Sisouec
VIII greatly accelerate the work in the
Cat canyon fields. The new town is at
the end of the Pacific Coast railway, at
the head Of Cat canyon, and within two
miles of the Palmer property A station
has been erected and plans made for
the building of shops. Lots were auc-
toned and 40 were disposed of at the
first sale
The Enterprise oil company has
spudded in on a 50 acre tract in Cat
canyon purchased from T. r. Finley.
The people interested are said to be
San Francisco capitalists connected
with the Brooks oil company
The Pinal company has struck a rich
sand at a depth of 200 feet on its $40
depth the drill passed through 200 feet
of promising ooze. Manager Goodwin
viii put the well on the pump in a few
days just to test the sands The orig
inal intention was to proceed through
TO the big sands at the 5000 foot mark,
but the showing was regarded as suf-
ficiently encouEag ing to warrant tesr.
The Pinal is about to start five strings
Of tools in the west field.
The West has brought in a very
promising we'll The oil has grown
lighter with the bailing. The well will
not be put on the pump until the oil
has been thoroughly cleaned out. New
Pennsylvania. on the adjoining tract
has been delayed with its well by rea-
son Of a break in the tubing. The flow
is about the same as the West. This
territory requires time by reason of
the great depth and heavy sands
The Cat Canyon oil company has
begun work under favorable auspices
It is stated that negotiations have been
opened for the purchase of the Onti-
veras tract adjoining. The Associated
oil company is named as the prospec-
tive purchaser