Arizona state miner., 1927-04-09
PETROLEUM REFINING OF
NATION INCREASING


of the petroleum refineries of the
United States continues to manifest
an increase, although the number of
refineries has decreased, the United
States Bureau of Mines, Department
of Commerce, finds as the result of
a statistical survey conducted by
G. r. Hopkins, associate petroleum
economist, as of January l. 1927.
On that date, there were 465 COM
pleted petroleum refineries in the
United States, with a total daily
crude oil capacity of 3,061,007 bar
rels. In addition, refineries, with
a potential capacity of $1,000 bar
rels were in process of construction.
Of the completed refineries, 327,
with capacity of 2,834.282 barrels,
or SO percent of the total capacity,
were in operation and 1873, with
capacity of 226,725 barrels, or Z per-
cent of the total, we're shut down.
Comparison with the figures of
year ago reveals that during the
year 1926 there was net decrease
of 45 in the total number of COM
pleted refineries, but an increase in
total capacity of 208,040 barrels.
This resulted from steady growth
on the part of many of the larger
refineries, particularly those on the
tide water, which overbalanced the
decrease in capacity due to the
abandonment Of a number of rela-
lively small skimming plants.
The building program as of Janu-
airy 1, 1927, was somewhat larger
than that of January 1, 1926. Cali
fornia maintained her rank as
leading state from the standpoint
of refinery throughout, though
Texas still leads in number of re-
fineries. Practically all of the de-
crease in total number of completed
refineries occurred in the Mid-Con-
tinent field; that is, the states of
Kansas, Oklahoma and Arkansas,
and including the northern parts Of
Louisiana and Texas. In Okla
homa, approximately Is refineries
were dismantled in 1925. The only
section of the Mid-Continent field
where construction activity was in
evidence was the Panhandle dis
trict, where the absence of trunk
pipe lines served as the induce
ment for the building of several
skimming plants. Of more than
passing Importance was the COM
pletion during the year, by the Gulf
Pofipipr co,oonoru ord 4ba MovSnaYo
Petroleum company, of refineries
at Bayonne, N. j., and Baltimore,
Md, respectively, and the building
of refineries by the former COM
pany and the Roxana Petroleum
corporation at Philadelphia and East
Chicago, respectively, both of which
are nearing completion. Washing
ton entered the list of states with
refineries, having on January
two operating refineries with total
daily capacity of 5000 barrels. This
expansion of refinery capacity near
large consuming centers and the
wholesale dismantling of plants near
inland producing areas has become
a definite trend, the chief cause of
which is that crudeoil can be trans
ported at lower cost than refined
products. Western Pennsylvania,
the stronghold of the small re-
finer, held its own in 1926 in point
of refining capacity. The Rocky
Mountain area also showed little
change in refining capacity, the
chief event of the year in this dis
trict being the completion of a re-
finery at Craig, Colo, by the Texas
company.
Of the total number of plants,
completed or building, 271, of ca
pacity 100000 barrels, or 48 per
cent of the total, were complete
plants. This compares with 20 per
cent skimming and IA per cent
complete on January /, 1925. The
remainder were of various types,
such as topping plants in California,
or of combinations of types, such
as the familiar skimming and lubri-
eating oil plant of the Appalachian
area. The rapid increase in con-
sumption of gasoline, linked with
keen competition, has stimulated the
spread of cracking processes, and
the year 1926 witnessed the in
stallation of much cracking equip
ment both in the larger plants,
which already had some equipment,
and in the smaller skinming plants.
The refinery industry in the
United States during the past year
has furnished a good example of
the working of the law of the sur
vival of the fittest, the Bureau of
Mines points out. The greater por-
ton of the refineries dismantled in
1926 were constructed during the
boom times of 1920 apparently in
the hope that the price of gasoline
would hold it's wartime increment.
1t is now history that gasoline, un-
like most other commodities, de-
clined sharply in price following
1920. one of the chief reasons be-