The Washington times., 1916-01-01
By JUDsoN c. wELLIVER.

the WnOle petroleum products situation
in this country has thus far tended to
increase the mystery about tendencies In
the oil business. Less than three years
ago authorities on oil matters were dill
gently predicting that conditions. which
we're then thoroughly bad were going
to be worse. The refiners in the mid
continent field were pictured as prac-
tically all losing money. with every in
dication that they were going to lose
more or else be forced out Of business.
At that time. It was declared. the price
of crude oil was advancing with no cor
responding increase in the price of
products That condition. instead of i'm
proving. continued to grow worse. so
that as recently as last spring the oil
trade sharps were insisting that good
business sense would dictate that they
quit.
New Plan Found to Make GasOlene.
1t was in the midst of a period of
depression that attention began to be
forced to a new process of distilling
gasolene from petroleum under high
pressure. This process was regarded,
when II first came out, as likely to
be the last straw on the camels back.
AS described by a Government inves-
tigator, 1t was simply a plan of using
heat and high pressure to get more
gasolene and less of other and less
valuable products from the oil
"They take q tank fun of petroleum
and squeeze IL as II II were a sponge.
he said. THE old process used to
produce about 18 per cent of gasolene
from the crude. These were improved
to the point where up to 38 per cent
was turned out, and this was regard |
ed rs wonderful. But the latest proc |
ess squeezes the sponge under high
temperature and pressure, and turns |
rs per cent Of the mass into gaso- !
lene. II is said to be capable of get !
ting even as much as 30 per cent of |
the best crude oil into gasolene."
The advent OF such a wonderful |
process was naturally expected to |
bring further troubles to the refiners, |
and their prospect seemed hopeless. |
There would be overproduction OF the |
most eXtravagant kind.
Despite this gloomy forecast Of a little |
over two years ago. the price of Easo-
lene Is now high and mounting higher. |
There has been prophecy lately that 1t |
would soon reach % cents the gallon, |
and might get to % at no distant period |
Tho inVestigators want to know why; |
ann they are not finding out very fast.
War Affected Supply Little.
One part of the explanation. which
the war has created a huge. unexpected |
demand. asked one OF the Govern |
ment authorities. and he declared that |
he did not consider this true While de-
tailed figures on export OF petroleum |
products as affected by the war had not !
been studied. 1t was doubted II. in fact. |
any more Gasolene hau oeen sold since |
the war began than before. The expla-
nation was that for considerable time |
after war started the oil steamships. |
which were largely sailed under the Brit |
ish flag, were off the seas: there were /
too many German cruisers turning uD in /
unexpected places By the time these |
commerce destroyers were cleared away,
big volume of sales had been lost. |
Since then the allies have Eeen taking |
large quantities of gasolene. but they |
maze not been able TO take as much as
they wanted, because there were not |
ships to handle IT. Some of the mid
Continent refiners have recently been /
quoted as saying that they could send
several times as much gasolene abroad !
u they could get ships to carry it. /
Moreover, the big Austro- German mar
ket has been cut off entirely in recent |
time.
Seeking Other Causes.
So the investigators are seeking other
causes for the increase in gasolene
price. Among the possible causes is the
fact that production in the great Cush-
ing. Okla, field is beginning to dimin-
ish. This was the greatest oil field
ever opened in the world. 1t turns out
very high grade OF crude oil TOR gas
olene purposes; so good, in tact, that
rehners in other sections of the mid
continent field found themselves under
necessity of extending pipe lines TO
Gushing or using great numbers of
tank cars in order to supply themselves
with this high-class crude. The busi-
ness got adjusted to the notion of
making Gushing OIL the basis; and now
that the production there is falling
Off 1t is suspected that there is difti-
Guilty readlusting.
The price OF crude oil has been going
up so fast that the old grievance
against the Standard Oil Company mas
been pretty thoroughly wiped out. IL
has always been fashionable to, blame
all troubles of the oil business on the
standard; when something couldn't
readily be explained that served the
purpose. But the increase in crude
prices has been such as may be illus
trated by single case recently brought
to the attention of the investigators.
A mid-continent producer was get
ting, during the period of biggest pro-
duction and lowest prices some g.
barrels of crude per week. The price
was very low. Then the wells began
to fall on in production: now he is
getting 5000 barrels, or one-fourth as
much crude; but ne is selling it for iust
as much money per week as he former
ly got for the 1900 barrels.
Another Explanation Exploded.
Another of the established explana-
tions OF the troubles in the industry re-
ceived a shock when the Bureau of Cor
porations last spring printed its report
on an investigation of conditions in the
Ardmore' OF Healdton, oil field. It is
one of the smaller producing fields, and
there had been complaint ;iIat the pipe
lines were discriminating against GER
tain producers and in favor of Others
The United States Senate passed a
resolution directing an Investigation of
these and ether charges and of general
conditions in tho field
This inquiry was made with great
care. 1t produced verv little to Indicate
that there had been discrimination. The
Oklahoma Legislature has passed a law
requiring that when a pipe line COM
pany was unable TO take all oil offered