Evening star., 1936-08-18
OIL INDUSTRY HAS
EXTRA GOOD YEAR
Both Production and Con-
sumption Move Up to New
Levels During 1886.
81 eciaI Dispatch to The star


NEW YORK. August 18.-Despite
occasional localized gas" wars, the
oil industry has been unusually stable
throughout 1885. and production and
consumption have moved forward to
record levels. The daily average con-
sumption of gasoline for August. it
is estimated, will be around 100000
barrels, about 10 per cent higher thar
In the same month last year.
Total stocks of gasoline declined
100000 barrels in the first week of
this month. On August holdings of
finished and unfinished gasoline we're
81 ,75O, 900 barrels. which vas 12,121,-
COO under the peak of 1851, ,0G0 bar
rels reached in April.
Supply Holds Up.
The 66,348,000 barrels of finished
and natural gasoline at the end of
June, 1856, 900 barrels more han a
year ago. was AZ days supply, con-
trasted with 43 days supply at the
end of June. 1885. 1t Is expected the
days supply at the end of August will
show a further decline. Inventories
of crude oil at the beginning cf the
month stood at 306.75l 900 barrels, or
about equivalent 20 l04 days re-
quirements.
The industry's earnings level has
been sustained. end there is a promise
of favorable third quarter Joseph
Docter, one of Wall Streets authori-
ties on oil securities, believes, how
ever, that companies not in a posi-
tion to modernize their refineries, or
plants. may find 1t difficult to operate
profitably.
The major oil companies, maintain
ing technical research departments,
are constantly discovering new p,oc-
esses and new products. They are
at present working en- refining meth
DDS that will cut down the gasoline
output in the manufacture of heating
and fuel oil.
Larger Demand Expected.
The unusual demand for fuel oil
last Winter resulted in large stocks
Of gasoline. because. in making those
products, a certain amount If gaso-
line is manufactured at the same
time. The oil companies expect that
consumption of heating and fuel Oil
this coming Winter will be larger than
last year. due to industrial activity
and the increased Lumber of Lomes
equipped with oil burners There is an
ample supply Of crude Gil with small
gasoline content that makes excellent
heating and fuel oil, but in the past
the oil companies have Used crude
with a high gasoline content.
1t is possible there may be reduc-
tions in gasoline prices later in the
year. but it is likely heating and fuel
oil prices will be advanced. If the
tank-wagon prices remain stable, The
retailers, who s.srt price wars, will
be forced to maintain fair price or
soon find their losses embarrassing.
The consumption of lubricating oils
has been large and should continue to
run ahead of last year. due to indus
trial. railroad and aviation activity
Earnings of all the major companies
for the last half of 1885 should make
better showing than for the last
half of 1885.
New Pipe Line Rate.
Improved refinery methods are be-
ing installed at many Ieflnerles as
plants are enlarged and modernized,
especially at Texas ports on the Gulf.
A new departure in the transporta-
tion of petroleum is rhe establishment
of pipe line rate from Philadelphia
to Toledo. Ohio. Crude will move West
through lines that originally only
transported crude to the East This is
due in part to overexpansion of re-
finery capacity in Michigan. and the
decline of crude production i'll that
State, forcing rehneries depending
upon Michigan crude to get their sup
plies elsewhere. The natural route
would be through pipe lines already
established from the nidcontinellt,
but these lines apparently are not able
to take care of all the increased
traffic.
tCopyrisht. 1936D