Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-01-01
Government Begins Drastic
Investigation of Rapid
Boost IN Cost of Petroleum
Products Recently
VAST QUANTITIES ARE
HELD IN STORAGE NOW
Output of Wells Larger Than
in 1914 and Export Sales
Have Fallen Off, Say tx
pert Authorities,

~ N1aNiNa 4tteNNAA aFA@fNN AAN"@S "f"~f
WASHINGTON. Dee af-Ofrciai gov
erument figures made pnhlic here to-
day disclosed that IN the face of ris-
ing prices 81 gasoline, production Of
crude petroleum during the last year
was greater than in 1914, although
production was purposely retarded as
far as practicable. that reserve
stocks of crude petroleum now being
held IN the country is tn. largest ever
r-cnrded and that exports OF gaso-
line, 60 which the rise IN prices fre-
auentiv has been attributed. were IN
the last pau months of 1915 less than
the Exports during the corresponding
period e th.. two years previous
Both the department. OF justice and
The federal trade commission are pre-
pairing a. investigate gasoline prices.
Vast imount stored.
4 statement issued by the geologi-
cal survey estimated the 1915 produc-
ton IL market Getr~.-uaa AZ -ti, 400
zee barrels. e.oa0 barrels more than
ia 1914
This. says the statement. does not
agree with the currently reported rea-
son for the exceptionally high prices
now prevailing Tor motor fuel II
adds
AS a result Of the overload put
on the transporting and refining
phases 81 the petroleum industry by
th, excess output Of 1914. the year
1915 mav be- characterized rs period
of readjustment In which production
+ activity was purposely retarded as far
as uraetfrnbie The small uere0fe
therefore. Il more siguifieant than ths
+ figures Indicate"
FACTORS Affecting Prices.
Factors that might b. expected =
affeet the price of gasoline, accord
ing u survey officials. are production
Z consumption and prices Of crude pc
3 troleum. Consumption figures, thcs
said We're MOI available. though con
sumption was increasing.
4 low petroleum price level was
( reached in April and until August the
price remained al sl.35 a barrel fel
the market STANDARD Then the price
began Co soar and on December u
petroleum was selling nc t2.la. In
dicafi0ns are now. says the statement
that the price will soon reach $2.5b
rs previous high record
one production fact brought out hs
the survey is that crude petroleum
stocks held in reserve. the larges
ever known. Increased 50.000,0 bar
rels in 1915 and 1t present more thai
l20 00e.0 .000 barrels are being held
Field storage by products accounts iei
$4,000. .000 barrels OF this
Exports Drop in Volume.
Export figures for the first tcI
months Of 1915 show that gasoline
exports dropped far below the sans
period la 1911, and slightly below
1918 During the ten months endinl
with October 9S,47l.46b barrels LEI
the United states. against l4o.2t5,- q
for the same period IN 1915 and lVes
s-2.s7f ia 1913.
The relation between the cost @
crude petroleum and gasoline is haI'
to determine according 20 oftlciai
who have given the subject study be
cause Of the varying grades Of petrol
cum and the variety Of oils produces
in refinement. An increased demand
for gasoline. they say, means an ~
creased production with q gonseauen
increase in production Of Kerosene
Iubricating oils and other petroleum
products All petroleum product
have risen in price.
Price VIII BE lower.
Officials familiar with the situation
said today the recent discovery ,,
Or Walter F. I;ittman. governmen
chemlstg Of a process for obtalnln
from crude oils zoe per cent NOR
easoline than by old methods. prom
ahlv would have a bearing on botl
production and price before anotho
wear had PASSED. several companlf
already have started production unde
the new method Their output. an
the output Of others 20 be started
WAS said. would be felt ON the market