The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-01-05
'1AE GASOLINE SITUATION.
DESPITE GREATER SUPPLY
PRICE RISES BECAUSE OIL
HAS BEEN WITHHELD
FROM MARKET.

! Washington, Dec. 31.-Onicial gov
ernment figures made public here to-
day disclosed that in the face of rising
prices Of gasoline, production of crude
petroleum during the last year was
greater than in 1914, although pro-
duction was 'purposely retarded as
far as practicable;" that reserve stocks
of crude petroleum now being held
In the country are the larges ever
recorded, and that exports of gasoline,
to which the rise in prices frequently
has been attributed were in the last
ten months of 1915 less than the ex-
ports during the corresponding Pc
riod Of the two years previous.
Both the department of justice and
the federal trade commission are pre-
pairing to investigate gasoline prices.
A statement issued by the geologi-
cal survey estimates the 1915 produc-
tion Of crude petroleum at z77, ,4OO, 900
barrels. 1000 barrels more than in
|1914.
This" says the statement, docs
not agree with the currently reported
reason for the exceptionally high
prices now prevailing for motor fuel"
1t adds:
"As a result of the overload put
ON the transporting and refining
phases of the petroleum industry by
the excess output of 1914, the year
1915 may be characterized as q period
of readjustment in which production
activity was purposely retarded as
far as practicable. The small increase
therefore is more significant than the
simple figures indicate"
Figures that might be expected to
AFFECT the price of gasoline, according
to geological survey officers, are pro-
duction, consumption and price of
crude petroleum. Consumption fig
ures. they said, were not available,
though consumption was increasing.
A low petroleum price level was re-
ported In April and until August the
price remained at $1.35 a barrel for
the market standard. Then the price
began to soar and on December IL
petroleum was selling at $2.15.
Indications now are, says the state
ment, that the price soon will reach
$3.50. It's previous nigh record.
One production fact pointed out by
the survey is that crude petroleum
stock held In reserve. the largest ever
known. increased $4,000. .0v8 barrels in
1915 ad at present more than 220,-
zee eco -barreis are being held FIELD
storage bE, producers account for a.
goo. 0Q0. barrels Of this.
Export figures for the first ten
months OF 1915 show that gasoline ex-
ports dropped far below the same pc.
riod in 1914 and slightly below 1913.
During the ten months ending with
October, 9S,471,466 barrels left tho
United States against 140.275,273 for
the same period in 1914 and 100, $685.
S71 In 1913.
The relation between the cos. of
crude petroleum and gasoline is hard
to determine. according to officials
who have given the subject study, be-
cause of the varying grades of petro-
leum and the variety of oils produced
I'm recent years. Officials familiar
with the situation today said the re-
cent discovery by DR.. Walter F.. Rit.
man, government chemist of pro-
cess for obtaining from crude oil 200
per cent. more gasoline than by old
rhethods probably would have a bear
ing on both production and price be-
fore another year had passed.