New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-08
Totals .2st, 1o4, 1914 2s2 SOC, 900


The increase in 1916 is accounted
for by the continued ability Of the
newer fields in the mid-continont and
Rocky Mountain regions to supply
enough oil from new wells TO more
than Offset the normal decline in the
older fields east Of the Mississippi.
The incentives that caused the in
crease in 1916 include higher prices FOR
oil at the wells, which encouraged
drilling in all fields; decrease in pro
duction in the Cushing pool, Oklahoma,
which allowed the product Of other
mid-continent fields access TO markets,
and greatly increased demand for
crude oil, expressing the needs OF a
large number OF new refneries that
we're installed during the period OF
overproduction and low prices in 1914
and 1915.
The principal centres Of increased
production in 1916 were in Estill and
Allen counties, Ky; Butler County,
Kan; Carter County, Okla, and Con
verse, Park and Natrona counties, Wyo.
Steady Rise in Prices
Prices Of crude petroleum at the
wells. averaged considerably higher in
1916 than in 1915. The upward ten
dency 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
attained. In this period Pennsylvania
grade advanced .-"'. 1925 TO $3.50 a
barrel and OklahoiatKansas grade
/ from sl.20 to Sl.55 a barrel, and the
product Of the Cushing pool com
manded a premium of 30 TO 90 cents
above the price last quoted. Except
/ for reductions 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
1 Cushing oil, these high prices were
maintained until the middle Of July,
when, led by all Northern Louisiana
grades on July 10, and followed by
/ Oklahoma Kansas grade on July "a
and by Pennsylvania and associated
grades on July 20, a retrogressive
movement was begun, which lasted
until late in August and reduced the
price OF Oklahoma-Kansas grade to 90
cents barrel, practically eliminated
the Cushing premium and brought
Pennsylvania grade to $3.50 a barrel
This depression in the prices Of crude
oil was centred in the mid-continent
fields, where, subsequent to the decline
II Cushing field, general activity IN
the old pools and in newly discovered
extensions had been attended with
success 80 great as 10 bring about
overproduction. The prompt eurtsil
ment Of production in the more pro.
life newer fields prevented further
reductions in price, and the featur'
Of the closing months OF the year wal
an advancing market that affected
Pennsylvania grade on September q
and Oklahoma-KAnsss grade on No
vember %. The closing prices pei
barrel for these typical grades were:
Pennsylvania, s2.s5; Oklshoma-Ksnsss
S140 pennsylvania is now quoted a
$3.50.
As consequence Of an increasing
demand for oil and a decrease In tn,
stocks held by pipe line companies anc
purchasing agents the market for
grades Of petroleum produced in Cali.
fornia was uniformly strong through
out the year. The quotations posted
on December 2s. 1915, remained in ef-
feet until February l6. when all grade,
except Ventura County were advanced
10 cents A further advance OF
cents, posted April ], likewise afectec
all grades except Ventura County
Subsequent advances OF cents each
involving all grades Of oil produced in
the state, became effective on Septem-
Der 20 and November 81.
Under the stimulus OF relati7ely
high prices for crude petroleum durin,
the spring and Early part Of the sum
J mer Of 1915 drilling VA. .ctiys