New-York tribune., 1910-10-04
EXPLAINS OIL PRICE CUT
Standard Company Says IL is 10
Stimulate Consumption.
WAR FOR FAR EAST TRADE
Conflict Promptly Follows Can
ceiling of Agreement with
japanese Concern.

E-oiiorvi-r the announcement from TOXIC
assr week that the agreement between the
standard OIL Company and the Asia1lc
Petroleum Company, Limited, had been
cancelled. thus ending the combination be-
tween Jspanese and foreign oil companies.
and that a price war had begun, the
Standard oil Company yesterday issued a
statement describing conditions in the in
dust-v and explaining the reasons in
fuencing it II its decision to cut prices in
foreign markets.
The worlds production Of crude Oil the
company notes, is increasing much more
rapidly than the worlds consumption Of
refined oil. situation which can be sue
cessfuIly met only by increasing the de-
uland for the refined product: and il is
10 stimulate that demand that the com
parE has adopted the policy OF reducing
lls prices IN the Far East and IN Europe,
II has already reduced them N The
United States. The statement says
During the last three years the world S
production Of crude OIL has been lncredslll6 ;
81 rate Tar IN excess OF the lncr increase II =.
The world consumption OF kerosene, OF
refined oil. In 1906 the world 5 production
OF crude petroleum was -loeN,V01 oarrelS'
IN 1893 The production was 304,e0O0e0 bar
Tels an i7crease of q. geo 900 barrels The
increase II TIE crude oil production n lhe
United States during the same PERIOD Was
DL-EElS-
ITe world = increase me NOTiu - -
oil therosene) business in 1906 was z&oVU9oo
barrels and II 1863 y5.oO0O00 barrels, an n
crease Of 5.0000OJ barrels.
These figures show that while the Worlo ;
production Of crude oil has increased from
-Sb 20 1903 by 42la per cent the MOTto
consumption OF refined oil (herosene) has
only increased by l0.4 per- cent
While IL y true that during the past
three wears q very large market IN the
United States has been created Tor Oh as
rrer -resar1
crude Oh the stocks are increasing rapldly .
and at the present time IN The lnlteO
States alone there is held III tankage by
1he Standard oil Company and others d
stock or over 1I5.@oooeo barrels
II must he borne in mind that IN SelllnS
o1 Tor fuel there is an enormous waste
ne the valuable products contained IN the
crude oil. fuel oil as marketed to-day N
rhe United States being practicaliE crIoe
oil from which only the sllEhly inIla NINA NINA
ble hight ends have been extracted. Nere
the fuel oil now being sold refined in the
CUSTOMARY manner. there would be OBJ
tanned from II. IN addition TO refined oil.
lubrics ting oil. paraffine wax and other
Nalus ble hy-proouCts.
Notwithstanding the enormous overpro-
duction Of crude oil to-day. there have
been foated during the past six or seven
months upon the English and European
markets over seventy new oil companies
which have been promoted for the pur-
nose Of exploiting and developing new
petroleum fields located al over the world
= Is foregone conclusion that only
successfully reach the actual producing
stage. OF II any vav become even small
factors IN the world s petroleum business.
Tor i i not 70 be expected that anv Of the
~lresdy ests sDllshed petroleum companies
VII be willing 70 step aside and make
nom for such new production might
- developed BY some OF these new com
uzCleS
II view of the conditions and circum-
Stances as explained above. the Standard
on Company has lnsuEurated 4 campaign
20 increase the worlds consumption Of
-aN-ed OIL The level Of prices for refined
I'll TO-DAY In the United States Is lower
han - any time during recent Years. and
direct result of these prices the con-
sum 1-l'n % refined oil IN this country Is
'~~-essTnS- The same policy Is now being
s--I~~lv pursued abroad. as. especially in
~ Far East. with ITS enormous pOpula-
sion. there exists Sn unusual opportunity
nj r~rrea sing the consumption Of refined
on. and in order 10 accomplish this con
siderable reductions in prices not only IN
--e East but also in Europe. have already
i=ar made