Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-01

troleum refining began after the Drake
we'll was brought in. AS A matter OF
fact. petroleum had for many decades
been SKINNED from springs and crude
" refined. One James Young pro-
duced petroleum from Scotch shales.
which are still worked and refined IL
into very good illuminating oil
BEFORE the Drake we'll was brought in
there were SO companies in this coun-
try in active operation producing
rock OIL from shale and coal.
brakes discovery that crude petro-
lsum could he produced in large guam
titles by drilling wells rather than IN
insignificant quantities from springs
was nevertheless the beginning OF the
modern industry. :,
The Drake discovery well marked
the end of the whale oil land taiiow
candle period. and for 80 succeeding
years the chief object Of the petroleum
Industry was TO extend the use OF and
IN meet the demand for kerosene.
Gasoline was a dangerous by-prcduct
which presented 10 oil refiners grave
problem of disposal. First II was
J poured into creeks. Later IL was
dumped on protected areas OF waste
land and either burned or allowed TO
evaporatA Finally came the Internal
combustion engine. in which EI1le
gasoline vapor. mixed with II or 10
times as much air. would produce ar
explosion. at the head OF a piston. that
would run an engine most Cheap!y
Presently somebody hitched one of
these engines 10 a vehicle-the begin
ming Of the automobile. Since then
pretty nearly everybody has been
hi;ching gasoline engines 10 vehicles.
Uses Vastly Extended.
The Wright brothers coupled one to
n pair of wings and made an airpiane
Then il was found that the conhina-
ton of storage batteries and internal
combustion engines produced exactly
the rich, power for submarines Some
body else noted that petroleum was
more effective fuel. under the boilers
Of locomotives and steamships. than
coal. Less spectacular discoveries Gre
| ated a thousand ether demands upon
petroleum products. And SO the Age OF
! Petroleum was insugurated. ana all
/ the world wens hunting for THIS most
priced and mysterious OF its resources
IL is not easy TO picture the expan'
sion OF the industry in very recent
wears. one Of the leaders in the oil
industry placed the investment in thc
entire industry in 1905 AZ $3.50 .nh" '''Ne.
probably rather inw figure, NJ that
time The Standard on group was >cs',s-
what less than half. In lall, when
the Standard holding company Was
dissolved by judicial decree. the co;s.'
hlred Standard companies were val
uei AT about SSS0 eae 200. other rem
ing interests AZ about $3.50. 0oA,oeo
and producing properties were cslru,
lated 10 he worth around sl.SSe. aAe.-
400 more. That made a valuation
for the entire industry ct se,seS.aAa.'
coo Estimates have ranged from this
figure up to $s..se poo, goo.
Huge Present Investment.
Present Investment. calculated from
published reports and general stats
teal information. Is estimated by corn
pesent authorities around Sti,eea, oee,-
600. In making this figure. The 81
companies which comprised the old
standard oil system before its d'sSc~
tuition are put down az SIS sNe eco eho
petroleum producing properties SO IS.
80. oau. eVe; and the remainder. S..
1Sa, NOo. uaN is assigned ~ the ecyn
panlcs gres; and small. which grew
up Independently of the So-catlet
: andard group ard never were as>o
cia,ed with il,
During thu 20 wears jUSt passed
which have marked the mos; Ssectac>
ularly rapid development 90 the in
auStry, there has been continuous
decentralization NJ control. The l. ;
Bureau ~ Mines STA istlCS SHOW ,ha:
in 1894 the Standard Srcup ef cam
vi nies controlled ~ W. cent ~ the
refining capacity ef the country. }vas
inS only ID per cent IL the suseisestd
entS, Following The Standards ttiS-
solution, the independents sxraa&ex4
rapidly AZ the hesnnlaS cf 1919 the
con,a mics ~ the t..d Standard group
wese credited With eay - rer cent ~
the sVIsninN capacity, the independents
With IS Ry 1asa the d!vtstca was
So.ca He'd Standard group, s. lser cent
independents. e. yer cent At the emu
1T 1924 he sotalscA Standard xtNaNN
was credited with IS PEE cent. she IN
dependents With 81 per <>ent, Az pres
ent the so,caiied Standard gy~>un
about 81 and TIRE independents 80 per
cent.
AlIheush saSei!ne has altered. In
many WAYS, he course NJ Amer Van
life, most ct uS knew n,tte more
about Il other than that gas makes
the uh euS ge IT. meet an ever se<,w,
ms demand for Information aaaa. gas
cl,nc the Institute has prepared these
statements