Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1922-03-02
THE CALIFORNIA OIL INDUSTRY
Continued

In 1867 there were 65 oil companies
in existance in California. | say ''in
existance," but not in operation, for
they were largely fictitious and their
object was to gull the public Of their
cash But as their business was built
upon the sand and the public weary Of
being gulled they dwindled down until,
in 1887. there were only four companies
in existence, yet they kept the fires of
hope and faith burning.
The second period Of development
was from 1868 to 1892, during which
time prospecting in various sections
continued and small reflneries were
started But the industry had received
bad name. The promoters had failed
to fulfill their promises, experts having
declared the oil Of but little account.
The wood that was used in the refiner-
cries had To be hauled thirty miles or
more The freight to San Francisco
was SIS 90 to 800. 90 per ton, which ate
rp the profits. 1t required stout hearts
and big bank accounts to continue the
search for oil in paying quantities. The
deepest wells Of that day cost from
fifty thousand to one hundred thousand
dollars to sink. However, little by
little the industry grew. In 1892 a
well was sunk in Los Angeles to a
depth of 1865 feet. This yielded some
oil and the old excitement was renewed
Within three years over 800 wells were
sunk in the vicinity, of which about 100
were fairly productive, yielding gross
total of 900 barrels per day. In 1897
the total production of this field was
/, 400, 900 barrels, and by 1902 over
fourteen hundred wells had been bored
and had yielded 5000, 900 barrels.
In 1899 oil was discovered at Bakers
field The first well was sunk 20 feet
with pick and shovel and then bored
with an auger into the oil sand. AS is
often the case with old timers in Cali
fornia. little interest was created local
ly, but outsiders became interested. so
that o real oil boom developed, Bakers
field at that time was a small and iusig
nificant town, but investors and specu-
lators poured in, so that it sprung into
the limelight almost over night, and
the town developed into a real city,
The land around it was sandy and for
bidding in appearances in fact, just
desert Land that would not bring
81 25 per acre jumped to 81. 600 90 and
sometimes to 81, 500 90 per acre, and
finally to $1,000 90 and even $40, 600 COL
10 1892 there were eleven hundred
producing wells in the Bakersfield sec
ton, producing from few barrels to-
600 barrels per day, or say four million
barrels per year. This huge production
glutted the market, and oil that had
been selling from 81 90 to 81 80 per
barrel dropped to as as low as Is cents
Up to this time il had net been 1sed
as fuel, but its use for fuel soon devel-
oped, and was found to be much cheap
than coal. which had to be imported,
and at cost at that time of from 81 90
TO SIP 90 per ton, while 30 barrels of
oil was equivalent to ton of coal as
fuel, consequently coal burning soon
almost entirely ceased But IN 1889
the oil industry received another serious
set back, an explosion having occurred
on one Of the Southern Pacific export
steamers and for some time they aban-
doned it's use. But inventive genius
soon overcame ali obstacles and oil
took its place permanently as fuel
Freight rates however became a serious
problem. but that, too. was soon solved
by the construction of vast pipe lines
which carried the oil direct from the
wells to the inland and coast reservoirs
of storage, There are many thousands
Of miles of these pipe lines in use to-
day,
Tire great San Joaquin or Miracle
Valley, as we like to call il. has be-
come the centre of oil production of
California rs il is the centre of innumer-
able other industries, Fresno county n
1897, produced 10000 barrels OF oil, in
1901 547, 600 barrels, in 1911 II. $50, 600
barrels and has kept on increasing
year by year ever since. Kern
county however has developed marve-
lous wells. some as high as Is, 600 bar
res per day from a single we'll The
great Lake View gucher. which was
struck in 1910. is Of great interest. Ii
had been sunk to a depth Of 2, 800 feet,
when the directors Of the company