The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1912-01-18
CALIFORNIA; OIL
OUTPUT LAST YEAR

Inc petroleum. products or Calif0r-
MIA in 1911 is estimated by David T.
/ Day, of the United States geological
survey, as reaching possible s3,000,-
900 barrels
| At the close of 1910 oil was being
produced in California at an average
rate greater than during 1909. This
increase continued and the total pro-
duction for the year 1911 was between
S0,000000 and $4,000 900 barrels, com
pared with 73,010,560 barrels in 1910.
| While the consumption also increased,
production continued to exceed the
demand, stocks increased to about 40,-
100000 barrels, and prices receded to
80 cents barrel where they were not
governed by long time contracts, al
though higher prices ruled for refining
oils The increaed production was
chiefly from the Sunset and McKit,
| trick region, from the pools already
developed in 1910 Three significant
discoveries during the year were (D
evidences of large field in La Habra
valley; (2) the discovery of a deep
oil sand in the Midway field contain
ing heavier oil than in the higher
zones; and (3) the discovery at the
end of the year in the Coalinga field
of zone of light oil 1,500 feet below
the main producing beds, in a lower
geologic formation. The probability
of this last-mentioned discovery had
been pointed out in the reports on the
Coalinga district published by the
United States geological survey in
1905 and again in 1910.
| The Lake View gusher collapsed at
the end of 1910. In the latter part of
March the Associated Oil company
drilled in La Harba valley, three
miles from the old Fullerton field, and
| in line with the developments in the
Coyote hills. Oil was found at 1850
feet, and the wells started at 600 bar
rels day. This caused such activity
| in the region and such favorable re-
suits that in June the Fullerton field,
including the new developments, was
producing about half million barrels
monthly. The oil sands seem thick and
the wells promise to be persistent pro-
dueers. The Standard Oil company
promptly connected the field by pipe
lines to its tank station at Wortham
and by the end of the year completed
the connection to the new refinery at
FL Segundo, the work on which begun
during the year. The refinery was
practically completed by the end of
December and will begin in January
with a capacity of 5000 barrels dav,
to be rapidly increased. The Associat-
ed Oil company drilled test well in
the Elk hills, San Joaquin valley, and
obtained a small production, thus prov
ing the oii-bearing character of these
hills, as had been predicted by the
government geologists. The oil was
found at depth of more than 5000
feet.
| Important discoveries were made by
drilling along the border of the San
Joaquin valley to the east and north
east of the McKittrick field, in the
Belridge and Lost Hills fields, result.
ing in considerable extension of the
possible productive territory
Large Oil Consumption.
While there was the expected accu-
mutation of stocks, it is important to
note the considerable increases in con-
sumption, important features of which
were contracts with Arizona smelters
for 10000 barrels a month, which were
made at the beginning of the year. In
October the Canadian Pacific railway
was buying 10000 barrels month for
use in terminal yards and on the
steamers plying TO the nortn. IL is sald
to be the plan of this railway eventu-
ally to use oil only for its passenger
service as far at Kamloops, B. G. The
year proved strenuous for the Inde-
pendent Producers agency, and after
many methods for relieving the situa-
tion had been suggested the associa-
tion agreed to plan for providing TO-
100000 barrels of storage, and at the
end of the year contracts for build
ing this storage had been made.
Inasmuch as the consumption has
been increased beyond what was deem.
ed probable at the beginning of the
year, it can not be considered that the
critical conditions existing in Califor
mia in 1911 have been entirely without
permanent benefit to the trade, which
has now reached position where the
addition of even one or two laroe
steamship companies to the ranks of
oil burners, or equivalent consumption
in other directions, would make the
demand equal the present production
1t is not too much to expect that un
less a great increase in production
takes place in 1912 the increase OF
manufactures and of domestic con
sumption will reduce the accumulated
stocks.