The Washington times., 1916-01-01
Federal Oil Inquiry
Adds to Mystery OF
High GaSoLene Prices
Uncle Sans Investigators NotFinding Out Why Quo
tatiOns Mounting SteadiIy-Refiners Long Have
Been Crying "WoIf," and War Has Not In
creased Demand

to IT, II must take pro rata from all
producers. II a field offered 1900 bar
rels in given time and only 10000
could be taken. the pine line must take
two-thirds Of the offerings of all pro-
ducers,. This requirement. It was BIT
terly charged. WAS being hagrantly vio-
lated: but the investigation seemed t.
demonstrate that while absolute ed
hercnce to the pro rata rule was irGpos-
sible. the results under it hao amounted
to substantial adherence, and the pipe
line people were shown to have tried in
apparent good faith to live w to the
law.
High Pressure Method Expensive.
The process OF extracting a high
percentage OF gasolene by using high
temperature and pressure is not re-
garded as practical for the smaller
refiners; it is too expensive. But it
can be used in the big establishments.
Some months ago II was announced
that DR.. Rittman, of Washington, had
discovered a process for taking twice
as much gasolene from the crude as
had been secured under the older
processes This was a sensation in
the oil trade for time, but gradually
the impression leaked out among the
refners that the Rittman method
might not be anything so very new
that perhaps 1t was in effect one OF
the processes discovered, tried, and
discarded for some OF the various rea-
sons that have served to interfere
with some very promising systems
The refiners are constantly at work
with experiments, especially the
great scientific and technical corps Of
the Standard
One of the most interesting suRges-
tions about the national oil situation
Is that the Standard, disgusteJ with
the legal and legislative obstacles
that have been interposed in the way
OF its business. has been getting ready
to transfer some of its most impor-
tant operations to other countries
to use the oil of China, Palestine,
Russia etc. AS a possible develop
ment OF the industry after the war,
and for which It is alleged prepare :
.tions were going on before the war.
TINS rs regarded as at least highly in
teresting.
No Shortage of Supply.
1t cannot be charged that falling pro-
duction OF petroleum is responsible for
the great increase in price. The Geo.
logical Survey announces that the pro-
duction in 1915 exceeded that of 1914
and that the amount in storage reserve
at the end Of 1915 was greater than at
the end OF 1914.
At the end of 1916, says the Survey.
the crude product in storage held by
pipe companies was 1876 900 O0OO barrels.
which is stated as 50. 900. 900 barrles more
than a year before.
Prices for crude were low in all
production fields until August, when
the decline in the Cushing field. OF
Oklahoma. which produces a very
high-grad> oil for gasolene purposes,
was followed by an Increase in the
demand for oil from other fields.
Pennsylvania grade" the market
standard, was at $135 per barrel NSom
April to August since then 1t has
risen to $215 the middle of December,
with prospects that it will touch
$3.50 soon
From February to August Kansas
and Oklahoma grade" oil stood at 40
cents the barrel; 1t has gone up 70
$1.20.