Evening star., 1916-01-01
GASOLINE IS HIGHER
ON GREATER OUTPUT
Geological Survey Makes Pub
lie Striking Array of Pc
troleum Figures.
SAYS PRICE MAY REACH
$3.50 PER BARREL AGAIN
Declares Production Activity in 1915
Purposely Retarded as Far as
Practicable.

Increased production of gasoline last
year. falling off in the exports and
the largest known reserve are shown
in figures compiled by the United
States geological survey and made pub
lie today. The price has Increased
during the past few weeks and the
government officials estimate that IN
a short time it may reach its previous
high average of $3.50 barrel at the
wells. Both the Department of Justice
and the federal trade commission are
preparing to investigate the prices.
A statement issued by the geological
survey estimates the 1915 production of
market petroleum at 267,40O,0o0. 1000
barrels more than in 1914.
This" says the statement. does not
agree with the currently reported rea-
son for the exceptionally high prices
now prevailing for motor fuel 1t
adds
LAS 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 NAV be
characterized as a period of readjust-
ment in which production activity was
purposely retarded as far as pract Ca Die.
The small increase, therefore. is more
significant than the simple figures in
dicate."
Factors that might be expected to
affect the price of gasoline, according
to geological survey officials. are pro-
duction. consumption and prices or
crude petroleum. Consumption figures.
they said. were not available. though
con assumption was increasing.
Enormous Stocks in Reserve.
A low petroleum price level was
reached in April, and until August the
price remained at $l.35 a barrel for
the market standard. Then the price
began to soar. and December II petro-
leum was selling at $2.15. Indications
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 50.000,000 barrels in
1915, and at present more than 100000
900 barrals are being held. Field
storage by producers accounts for 24,-
100000 barrels of this.
Export figures for the first ten months
of 1915 show that gasoline exports
dropped far below the same period in
1914 and slightly below 1913. During
the ten months ending with October
9S,471,466 barrels left the United States.
against 140,275.273 for the same period
in 1914, and 100.353,S71 in 1913.
Hope for Change in New Process.
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 petroleum
and the variety of oils produced in re-
f1nement. An increased demand for
gasoline, they say, means an increased
production with a consequent in
crease in production of kerosene, lubri-
eating oils and other petroleum prod
ucts. All petroleum products have
risen In price.
Officials familiar with the situation
said today the recent discovery by DIR.
Walter F. Rittman. government
chemist. of a process for obtaining
from crude oils 200 per cent more gas
oline than by OLD methods. proba bly,
would have a bearing on both produc-
tion and price before another year had
passed Several companies already
have started production under the new
method. Their output. and the output
Of others to be started, it was said,
would be felt soon on the market.