Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-06
Huge Natural Gas
Supply Will Turn
Wheels of Trade
Great Midwest Project
Marks Change in Trend
of Fuel Distribution.
BY J. C.. ROYLE

The millions of cubic feet of natural
gas now being wasted are nkley to be
employed as a result of the current
trend in fuel distribution. The latest
and largest project along this line
public utilities heads, Government OIL
Gals and industrial leaders alike.
This move was the starting Of work
on construction of parallel gas lines
from the Panhandle field of Texas to
the manufacturing centerS of the Mid
west. In this project some of the
largest utility interests and oil and gas
producers are associated. They include
the Cities Service Co., Standard Oil
of New Jersey, Texas Corporation, the
insult interests, Columbian Carbon
Corporation, Phillips Petroleum and
Skelly Oil.
A 1,330-MiIe Project
With various extensions these lines
will have length Of 1880 miles. 1t
is the most ambitious project yet under
taken, although other long lines to the
Southeast and in California already
featuring centerS will use natural gas
fuel for the first time as a result.
Government officials see in the move
a trend largely in industrial fueling.
It is realized, however, that natural
gas, either mixed or unnlixed with the
manufactured product, can and will
be used for domestic purposes in the
districts served. Federal fuel special
lists estimate that gas to be delivered
from the Texas Panhandle can prob
ably be purchased at from 5 to 10
cents thousand cubic feet. The cost
to consumers varies. but for domestic
uses it is placed at about 81 thousand
cubic feet.
The two parallel lines just started,
it is estimated, will cost approximately
$1O0,0 100000. But while the outlay is
enormous there seems to be fine mar
gin of profit for the project, with a
corresponding profit to the consumers
in the form Of reduced rates. The
Bureau of Mines has no data as to the
cost of gas transportation over such
distances, but indicates that overhead,
depreciation in equipment and the vol
ume of gas delivered must be considered
in fixing rates.
AS to rate, the Interstate Commerce
Commission has no jurisdiction over
interstate transportation of gas, but in
some States utility commissions have
intra-State regulatory powers. 1t is be-
lieved, however, that the rates the gas
companies can offer will result in less
use Of coal and fuel oil. The oil COM
panies engaged in the project will, how
ever, receive a return from product
hitherto wasted and expect to open
other markets for oil which will equal
ize the loss of costumers for fuel oil.
Supply Is Ample.
The Bureau of Mines states that
there is now available supply Of natu-
raj gas in the Texas area sufficient for
the needs of the territory to be served
by the new lines for at least Is years.
The supply is by no means confined to
the Panhandle area. The companies
involved have tremendous gas reserves
and big mileage in collecting and dis
tributing gas lines in Kansas, Arkansas,
Louisiana, Oklahoma and other areas
which would be readily available to
supply the needs of manufacturing ter
ritory from Denver eastward and north
ward to Detroit and Cleveland.
The big new development is made
possible physically by the development
of welded pipe and the steel industry
is due to benefit also from the con-
struction of these and other gas lines.
Copyright, 1902