Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-01-08
PETROLEUM PRODUCTION
BREAKS RECORD IN 1876
Despite Increase Prices Are Main
tanned at High Figure-Euc-
tuations Noted.

Petroleum production and marketing
In the United States broke all records
during the year 1916. but. despite the
increase in this product, prices were
maintained at a high figure. except for
a slump in the middle of the year.
caused by general activity in oilfields,
brought about by the offered high
prices. according to a statement pre-
pared by John D. Northrop of the
United States geological survey. When
the slump came the production of some
of the wells was cut down. thus re-
turning prices to normal.
It is estimated that during the calen-
dar year 292. 100000 barrels of crude
petroleum was produced and marketed
quantity is declared to be greater by
100000 barrels. or 4 per cent, than
the output the previous year. In ad-
dition to this amount produced and
produced and placed in temporary field
storage in Kansas and Oklahoma.
The incentives that caused the in
creased production last year." says the
oil at the wells. which encouraged
drilling in all fields; a decrease in pro-
duction in the Gushing pool, Okla,
which allowed the product of other
midcontinent fields access to markets.:
and a greatly increased demand for
crude oil. expressing the needs of a
large number of new refneries that
were installed during the period of
overproduction and low prices in 1914
and 1916.
Considerably Higher in 1916.
Prices of crude petroleum at the
wells averaged considerably higher in
1916 than in 1915. The upward tend
ency of the market, inherited from
1915. persisted. with steady advances
in the prices of practically every type
of high-grade oil. until March. when
relative stability at high levels was at
tanned In this period Pennsylvania
grade advanced from s225 to $3.50 a
barrel and Oklahoma Kansas grade
from $1-20 to s1-55 barrel. and the
product of the Cushing pool command
ed a premium of so to 60 cents above
the price last quoted. Except for re-
auctions of little significance in the
price of one of the low-grade crude
oils produced in northern Louisiana, in
June. and in the premiums paid for
Cushing oil, these high prices were
maintained until the middle of July,
when. led by all northern Louisiana
grades on the 18th and followed by
Oklahoma Kansas grade en- the Gath
ana py pennsylvania and associated
grades on the 18th, a retrogressive
movement was begun which lasted
until late in August and reduced the
price of Oklahoma-Kansas grade to 80
cents a barrel, practically eliminated
the Cushing premium and brought
Pennsylvania grade to $3.50 barrel.
This depression in the prices of crude
oil was conferred In the midcontinent
fields. where, subsequent to the decline
OF Cushing field. general activity in
the old pools and in newly discovered
extensions had been attended with sue
cess SO great as to bring about over
production The prompt curtailment Of
production in the more prolific newer
neids prevented further reductions in
price, and the features of the closing
months of the year were an advancing
market that affected Pennsylvania
grade on September 2s and Oklahoma
Kansas grade on November 20. The
closing prices per barrel for these typ
ical grades were: Pennsylvania, $2.S5 !;
oklahoma Kansas, S1.40.