The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-01-03

OUTPUT EX-
CEEDS 1874
GOVERNMENT REPORTS RESERVE
OIL STOCKS NOW HELD THE
LARGEST EVER kNOWN-WlLL
INVESTIGATE PRICES.

w dSHlHSlOl, Jan. o.-OlICldl gov
eminent figures made public here
Friday disclosed that in the face of
rising prices of gasoline, production
of crude petroleum during the last
year was greater than in 1914, al
though production was "purposely re-
tarded as much as practicable;" that
reserve stocks of crude petroleum
now being held in the country are the
largest ever recorded and that eX-
ports of gasoline, to which the rise
in prices frequently has been attrib-
uted, were in the last ten months of
1915 less than the exports during the
corresponding period 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 geoogi-
cal survey estimated the 1915 produc.
tion of market petroleum at 267
600 barrels, 100000 barrels more
than in 1914.
"This,' says the statement, does
not agree with the currently reported
reason for the exceptionally high
prices now prevailing for motor fuel"
A Period of Readjustment.
1t adds
"As a result of the overload put
on the transporting and refining pha-
ses of the petroleum industry by the
excess output of 1914, the year 1915
may be characterized a period of
readjustment in which production ac
tivity was purposely retarded as far
as practicable The small increase,
therefore, is more significant than
the simple figures indicate"
Factors that might be expected to
affect the price of gasoline, according
to geological survey officials, are pro-
duction, consumption and prices of
ures, they said, were not available,
although consumption was increasing.
A low petroleum price level was
reached 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 II
petroleum was selling at $2.15. Indi
cations now are, says the statement.
that the price soon will reach $3.50,
its previous high record.
One production fact brought out by
the survey is that crude petroleum
stocks held in reserve, the largest
ever known, increased 50,OO0,OOO bar
rels in 1918, and at present more
than 22O,OOO,OOO barrels are being
held.
Portion in Field Storage.
Field storage by producers accounts
for 24,OOOOOO barrels of this.
Export figures for the first ten
months of 1915 show that gasoline
exports dropped far below the same
period in 1911 and slightly below
1913. During the ten months ending
with October, 9S, 7l,466 barrels left
the United States against 1iO,275,273
for the same period in 1914 and 1O0,
353,273 for the same period in 1914
and 10O,353,S71 in 1913.
The relation between the cost of
crude petroleum and gasoline is hard
TO determine, according to officials
who have given the subject study,
because of the varying grades of pc
troleum and the variety of oils pro
duced in refinement. An increased
demand for gasoline, they say, means
an increased production with con-
seQuent increase in production of
kerosene. lubricating oils and other
petroleum products.
All petroleum products have risen
in price.
Officials familiar with the situation |
said Friday the recent discovery of
DIR. Walter F. Rittman, government
chemist of process for obtaining
from crude oils 200 per cent more /
gasoline than by old methods. prob
ably would have bearing on both
production and price before another
wear had passed Several companies
already have started production un-
der the new method. Their output
and the output of others TO be start
ID, it was said, would be felt soon on
the market.