,,the ,,evolution ,,of ,,the ,,oil ,,industry ,illustration3 ,the first oil well drilled near ,titusville1 ,pa41 on ,august #bg1 #ahei1 by ,col4 ,edwin ,l4 ,drake1 the pioneer man of the world ,,the ,,evolution of the ,,oil ,,industry ,,by ,,victor ,,ross ,,illustrated ,,from ,,photographs ,,garden ,,city ,,new ,,york ,,doubleday1 ,,page ,,company #aibj ,,copyright1 #aibj1 ,,by ,,doubleday1 ,,page ,,company ,,all ,,rights ,,reserved1 ,,including ,,that ,,of ,,translation ,,into ,,foreign ,,languages1 ,,including ,,the ,,scandinavian ,,preface ,,by ,,dr4 ,,van ,h4 ,,manning ,director of the ,division of ,technical ,research of the ,american ,petroleum ,institute4 ,formerly ,director of the ,bureau of ,mines of the ,department of the ,interior ,a glance at the chapter headings in this little book shows that it is an endeavour to present in succinct form a survey of a great and ever-expanding economic revolution--the interpenetration by petroleum of all industries1 whether of the factory or the field1 land or sea1 war or peace4 ,this phenomenon has been almost exclusively a development of the past six decades1 and the ,united ,states of ,america have been the predominant factor in the innumerable changes wrought thereby4 ,the narrative confines itself rigidly to historic records and material facts1 undeniably romantic in themselves4 ,but as the epic unfolds itself1 it assumes a super-phase1 the import of which cannot be measured by mere figures--a super-phase with invaluable applications to the problems of humanity in an industrial age4 ,petroleum1 it becomes clear1 was the first natural product to which the abstract theory of order1 as understood by modern social philosophers1 was applied in a large and general sense4 ,it must be accounted good fortune not only for ,america but for the world at large1 that this movement1 though gradual at the outset1 commenced almost within a decade of the birth of the modern petroleum industry at ,titusville1 ,pa41 in #ahei4 ,the outcome has tended to influence economic thought the world over1 especially since war on an unprecedented scale put all established systems1 traditions1 and institutions to the acid test4 ,foreign observers and critics1 friendly or unfriendly1 admit that in one matter ,american foresight and enterprise have taught the older nations valuable lessons--and that is in respect of standardized production--or to put it in another way1 organized industry4 ,america's achievements in this domain during the past half century have represented incalculable and beneficial advancement beyond the industrial conditions of all past centuries4 ,with this record of progress1 the growth and expansion of the petroleum industry have been inseparably associated4 ,the famous pioneers in organizing the production1 refining and distribution of petroleum have also been pioneers in the application of the principle of order to industry2 which1 in essence1 means the elimination of waste and misdirected energy from human effort4 ,organized industry means something entirely different from a system aiming at quick and enormous profits4 ,it is based on a definite theory of scientific effort1 whereby all the possibilities of a given resource are developed to their fullest degree1 so that waste ceases1 the value of the worker's labour is increased with benefits to himself1 and the consumer receives the blessings of nature's dower at the lowest reasonable cost4 ,as the ensuing chapters show1 the accomplishment of these objects in the case of petroleum has involved much more than the application of the physical sciences to manufacturing processes4 ,it has meant the development of systematized methods in discovery and location1 transportation and distribution1 so that from the moment oil is 8struck10 in say a barren patch of prairie1 until any one of the many products of crude petroleum is placed in the hands of the consumer--here1 or in some distant isle of the sea--there shall be no waste and no injustice1 and that all the hands through which it passes shall reap a just benefit4 ,the far-sighted ,americans of the transition period in this country's history1 who created the modern petroleum industry1 and built up the machinery for its continuous expansion1 began with the definite aim of involving order from chaos4 ,they were from the outset reformers of business methods and enemies of waste4 ,the latter had become colossal during the unsettled years that were marked by the duration and aftermath of civil war4 ,the work of these business pioneers was gradual1 but it developed an ever-increasing impetus2 and as the years went on the ethical import of their mission became more and more apparent4 ,it would be wide of the facts to say that the element of gain played no part in these developments4 ,little indeed would be accomplished in the way of progress were the incentive of personal gain in some form or other removed4 ,on this point the ,scottish economist1 ,adam ,smith1 spoke pertinently one hundred and fifty years or more ago3 8,by pursuing his own interest a man frequently promotes that of society more effectually than when he really intends to promote it40 ,nevertheless it is clear that in the case of some of the leaders most closely identified with the organization of the petroleum industry1 personal motive and energy were supplemented by a sincere desire to promote the prosperity and welfare of the ,american people as a whole4 ,coming to the larger question of what the principle of order means to humanity in the abstract1 it must be noted that all modern thinkers whether they be supporters of capitalism--the system on which all past industrial and national progress has been based--or intellectual socialists pin their faith to that principle as the sole means whereby mankind can be raised to a higher level4 ,moderate socialists are especially emphatic on this point and it is the key-note of their writings4 ,they attribute the great mass of poverty and suffering which still exists in this world to lack of order--to the failure of mankind1 in the individual and in the aggregate1 adequately to realize its importance4 ,the goal which all enlightened men1 of whatever school of thought1 desire to see attained1 is the abolition of poverty2 not the imaginary poverty of the man who chafes because he cannot have everything he desires2 but the actual1 galling poverty that is born of the worker's inability to produce sufficient to earn rewards that will enable him to live according to decent standards4 ,it is to the eternal credit of the leaders of the petroleum industry in ,america that they have set a beacon of order and efficiency which lights the road by which that great end--the abolition of poverty--may be reached4 ,it is a principle that runs like a golden thread through the vast and complex system that has grown up around petroleum4 ,the ensuing chapters show how much it has meant in prosperity and progress to the world at large to have a great natural resource like petroleum developed to the fullest degree of its potentialities1 so that all who come in contact with it participate in some measure in the benefits4 ,these considerations are obviously of greater importance than some others which have been impressed on the public mind in exaggerated terms4 ,the fact that a few men of organizing genius may have reaped fortunes in consummating the aim of bringing order out of chaos and turning waste to profit is of slight significance in comparison with the certainty that millions of people have been benefited by their operations4 ,it is one of the rooted axioms born of human experience that genius of whatever order1 so long as it assists civilization1 is entitled to exceptional rewards4 ,particularly is it true of that rare order of genius which lies back of directing minds4 ,without their leadership the efforts of humanity to advance itself would be in vain4 ,what the extraordinarily efficient organization of the petroleum industry has meant in wealth to such leaders is in the aggregate but a drop in the bucket in comparison with the benefits conferred on the people as a whole--increasing rewards for the producer in every stage of its development1 lowered costs for the consumer1 and stimulus to countless forms of industrial activity4 ,thus it can be truthfully maintained that the spirit of coperation1 honest endeavour and hatred of waste and slovenly methods by which the present condition of that industry has been achieved offers a valuable and well recognized message from ,america to the world at large1 and suggests a solution for many of the ills that beset civilization to-day4 ,,contents ,,page ,,preface v ,by ,dr4 ,van ,h4 ,manning4 ,,chapter ,i4 ,,petroleum ,,in ,,history ,,and ,,legend #c ,,ii4 ,,what ,,is ,,petroleum8 #aa ,,iii4 ,,dawn ,,of ,,america',s ,,petroleum ,,industry #cj ,,iv4 ,,founder ,,of ,,the ,,petroleum ,,industry #cg ,v4 ,,petroleum ,,as ,a ,,world ,,industry #dd ,,vi4 ,,locating ,,the ,,oil ,,well #eg ,,vii4 ,,drilling ,,the ,,oil ,,well #fe ,,viii4 ,,collecting ,,and ,,transporting ,,crude3 ,,the ,,pipe ,,line #gf ,,ix4 ,,refining ,,and ,,manufacturing ,,petroleum ,,products #hi ,x4 ,,petroleum ,,and ,,other ,,industries #ajf ,,xi4 ,,petroleum ,,on ,,the ,,seven ,,seas #aaf ,,xii4 ,,petroleum ,,in ,,the ,,great ,,war #abi ,,xiii4 ,,america',s ,,investment ,,in ,,petroleum #adh ,,xiv4 ,,petroleum ,,in ,,the ,,future #afj ,,list ,,of ,,illustrations ,the first oil well1 drilled near ,titusville1 ,pa41 on ,august #bg1 #ahei1 by ,col4 ,edwin ,l4 ,drake ,frontispiece ,,facing ,,page ,a temporary oil reservoir in ,oklahoma #bf ,early activity2 the famous ,red ,hot ,oil ,field near ,shamburg1 ,pa4 #db ,where ,pithole stood #dc ,the ,drader ,well in the ,moreni ,field1 ,roumania #ff ,burkburnett in ,northern ,texas #fg ,big yield well in ,mexico flowing into temporary storage pond #hb ,laying a pipe line through a ,louisiana forest #hc ,lines for loading oil on vessels standing from one to two miles at sea #ih ,battery of crude stills at the ,bayway ,refinery1 ,linden1 ,n4 ,j4 #ii 8,look boxes0 in the 8,still ,house0 where the grades of oil are separated according to gravity #aad ,a modern tanker carrying #d1jjj1jjj gallons of oil #aae ,a tanker being loaded with gasoline and oil at a refinery dock at ,port ,arthur1 ,texas #adf ,kansas wells flowing oil into a temporary sump1 or earthen reservoir #adg ,steam stills at a modern refinery #afb ,storage tank at ,cushing1 ,oklahoma1 struck by lightning #afc ,,the ,,evolution ,,of ,,the ,,oil ,,industry ,,chapter ,i ,,petroleum ,,in ,,history ,,and ,,legend ,while the petroleum industry is in the fullest sense modern1 it has been known to1 and casually utilized by mankind for centuries4 ,it is named in the earliest annals of the race2 and allusions to it are abundant in the literature of the ,east1 from which much of our ,western literature had its inspiration4 ,it was applied to the service of religion1 and was a subject of superstition in times which are enshrouded in legend4 ,in the authorized ,bible and in the ,apocrypha there are more than two hundred allusions to it4 ,the legend of ,noah speaks of his having used pitch to tighten the seams of his ark1 which certainly indicates a familiarity with the uses of fluid bitumen available in the ,east4 ,in ,deuteronomy there is mention of 8oil out of the flinty rock20 and ,biblical students could cite countless other instances where the meaning clearly indicates a common use of the surface deposits of ,western ,asia4 ,it is believed to have been a strong factor in trade between ,ancient ,judea and ,persia1 which latter country has again in the twentieth century become a factor in oil production4 ,it played its part in the worship not only of the ,hebrews but of other ,eastern nations1 and to the primitive minds of those peoples assumed miraculous characteristics4 ,the burning wells of ,baku were the objective of religious pilgrimages among the prehistoric peoples2 and despite the colossal waste of past ages these wells still flow and are a factor in commerce4 ,the ,zoroastrians1 or ,fire ,worshippers1 a sect of ,persian origin1 which gained many adherents in ancient ,india also1 regarded these wells as the manifestations of a great imprisoned spirit1 who was supposed to breathe inflammable vapour from his nostrils4 ,zoroaster has a temple at ,baku1 and students of folk-lore hold that these burning wells helped to confirm the belief in a literal ,hell of fire1 common to races of ,semitic origin4 ,the ,macedonian conqueror of ,asia1 ,alexander the ,great1 witnessed the burning lake of ,ectabana in his march to the east1 centuries before the ,christian era4 ,marco ,polo1 the ,italian explorer of the middle ages1 among many fables1 revealed to ,europe the truth about the oil resources in ,baku1 and had sufficient of the instincts of a trader to discern their commercial value4 ,well-founded belief in the medicinal properties of petroleum1 common to all countries where it is found1 was also prevalent among the ancient peoples4 ,the reference to its use in the construction of ,noah's ark shows that the utility of pitch1 as a binding material in building operations1 was recognized4 ,it is clearly this material that is meant by the 8slime0 which is stated to have been used as mortar for the erection of the ,tower of ,babel2 and it is supposed to have played its part in more definitely authenticated structures like the palaces of ,babylon and ,nineveh1 and the ,temple of ,king ,solomon4 ,less familiar are the ,greek legends relative to petroleum4 ,plutarch1 in his life of ,alexander the ,great1 after recording some experiments of the ,macedonian conqueror with petroleum1 in the course of which he nearly burned a favorite slave to death1 suggests that it was the fluid signified in one of the legends of ,medea4 ,the story ran that ,medea1 wishing to destroy a successful rival in love1 the daughter of ,king ,creon1 gave her a wreath and crown anointed with some inflammable liquid4 ,as her victim approached the altar flame during a religious festival1 the wreath and veil became ignited and the unfortunate princess was burned to ashes4 ,the ancient ,egyptians undoubtedly used petroleum for embalming and medicinal purposes1 and filled the cavities of dead bodies with asphaltum1 so that nomadic ,arabs in later times have been known to use mummies stolen from ,egyptian tombs for fuel4 ,petroleum in its more fluid form is also supposed to have been used to preserve the ancient papyrus against the boring of insects and the rust and rot of time4 ,to this extent at least historians and archologists are indebted to this gift to man4 ,rome1 in her gradual conquest of the ,western world1 made all known oil supplies her own4 ,consequently allusions which obviously refer to petroleum are frequent to the ,roman historians2 and here once more it was applied to the use of religion4 ,the early records of ,russia1 the ,scythian nation of ancient history1 are obscure1 but it is quite clear that the properties of petroleum were known to them for ages4 ,when ,igor descended on ,greece1 his vessels were destroyed by a fire that burned on water2 which has led some modern historians to believe that petroleum entered into the composition of 8,greek ,fire10 the secret of which is lost4 ,the ,greeks1 indeed1 are said to have made ingenious use of petroleum at all times4 ,those who have read in ,gustav ,flaubert's 8,salammbo0 the story of the rising of the mercenary troops of ,carthage after the first ,punic war will recall the tactics of one of the ,greek captains who turned back the ,carthaginian elephant corps1 by sending among them swine smeared with petroleum and ignited4 ,in later days the greatest of ,russian ,emperors1 ,peter the ,great1 showed himself alive to the commercial value of the ,baku wells4 ,when in #agbc he obtained from ,persia control of the ,baku ,khanate1 he ordered the seizure of as much white petroleum as possible1 and directed that a refining master be sent there4 8,this10 remarks a historian of petroleum1 8is the first record of a vacancy for a manager of an oil refinery40 ,as we go farther east history becomes less exact and legend more quaint4 ,in ,burma the story of a sweet-smelling deposit of petroleum is the subject of a tale more than a thousand years old4 ,it is related that ,king ,alsungsithu was making progress through his realms with his seven wives and on his magic raft4 ,at one point the ladies went ashore and finding sweet-smelling earth1 anointed themselves and delayed so long that they forgot the hour appointed for their return4 ,the angered king issued the decree 8let the queens who love scented earth more than me1 their ,lord1 be put to death40 ,the doomed ladies replied 8,from too much love of this fragrant earth we must now die4 ,let it lose its fragrance and become an overflowing stream of foul-smelling oil1 and let those who collect it pay us honour as their protecting deities40 ,they were executed and became ,nats or guardian spirits and belief in them is still preserved among workers in the ,burmese oil fields4 ,but if the legend could be accepted as true the slain women assuredly took a sad vengeance1 for the only offense that can be charged against so beneficent an agent as crude petroleum is its odour1 which assuredly belies its virtues4 ,there are the remains of very ancient oil workings in ,burma1 ,japan and ,china4 ,indeed1 ,china1 a pioneer in many arts1 was undoubtedly one in oil production4 ,boring in the modern sense was unknown to most of the ancient peoples but it was practised in ,china centuries ago1 a fact which will come under consideration when we take up the mechanical phases of oil production4 ,they had some deep wells at a time when other nations were merely utilizing surface accumulations1 and eruptions4 ,a natural substance which has played so considerable a part in the literature and legend of ,europeans and ,asiatics did not fail to appear in the beliefs and practices of the aborigines of this country4 ,from time unknown the red man has gathered and made medicinal use of the surface petroleum of the ,oil ,creek region of ,pennsylvania2 and its utility in more than one respect was known to the ,indians of ,california and ,mexico4 ,the ,senecas imparted to the ,french ,jesuit missionaries--who in the seventeenth century1 explored not only ,eastern ,canada but the ,northern ,states and the ,mississippi ,valley--the curative virtues of oil2 and two hundred years later it was known to the settlers of ,northern ,new ,york ,state1 ,pennsylvania and ,ohio as 8,seneca ,oil40 ,the early ,spanish missionaries to ,mexico and ,california found the natives selling in their market places petroleum gathered from the surface of the water along the seashore1 chiefly for burning purposes4 ,father ,acosta1 one of the early missionaries to ,peru1 noted petroleum floating in the water off ,cape ,blanco and1 as early as #afib1 the ,spanish ,government granted concessions for the collection of ,peruvian oil4 ,in the years immediately prior to our war of ,independence1 allusions to the petroleum resources of what are now the ,united ,states became frequent2 and the commercial value of the product was known to ,general ,washington himself4 ,washington1 who was a great believer in the future of the country1 which was in his day called 8the ,west10 acquired three large tracts of land on the ,ohio ,river bottoms4 ,one of these was at ,point ,pleasant1 the birthplace of ,general ,grant2 a second at ,round ,bottom1 later the site of the ,city of ,cincinnati2 and a third at the mouth of the ,kanawha ,river1 rich in coal and oil4 ,the father of his country had a singular prescience with regard to the element which was to play so great a part in modern ,american industry2 for in his will1 speaking of this third tract1 he says3 8,this tract was taken up by ,general ,lewis and myself on account of the bituminous spring which it contains1 of so inflammable a nature as to burn freely as spirits and is nearly as difficult to extinguish40 ,certain of its immense future value1 he requested his heirs not to dispose of this particular tract4 ,,chapter ,,ii ,,what ,,is ,,petroleum8 ,petroleum1 or to use its comprehensive colloquial synonym1 8oil10 has come to play such a widespread part in every-day life that most people1 the younger generation especially1 take its existence for granted without further enquiry4 ,few pause to reflect that this basic essential of modern commerce is a comparatively new agent for the service of mankind4 ,its applications are so manifold that it is now recognized as indispensable2 whereas in a period so recent as that of the advent of ,lincoln in ,american history it was almost negligible as a contributor to the nation's wealth and productive power4 ,the development of petroleum ranks third among the three great discoveries in the realm of applied science which have revolutionized industry in the past hundred years--the other elements being electricity and steam4 ,in company with electricity1 it has effected changes in methods of manufacture1 and added to the comforts of civilization in ways that it would take volumes to relate4 ,it has been a factor in revolutionizing warfare--as the recent great conflict proved--and it is essential to the arts of peace4 ,like electricity1 with which its development as a servant of man has been coincident1 its utility consists in the fact that it is a source of light1 heat and energy4 ,but unlike electricity it is a passive as well as an active agent4 ,for illustration1 the same motor car which is propelled by one product of crude petroleum is also lubricated and enabled to travel by means of another product of the same commodity4 ,petroleum is the latest of the earth's riches which man has learned to adapt to his needs4 ,the use of iron1 for instance1 goes back to prehistoric times1 and the same is true of nearly all metals1 precious and otherwise1 of salt and many other of our mineral products which the chemistry of creation has provided in the crust of this terrestrial sphere4 ,but for countless centuries man went his way knowing of the existence of petroleum1 yet utilizing it only in a sporadic and casual manner1 until ,american ingenuity and adaptability--working in coperation with scientists of other lands--made it the marvelous agent that it is to-day4 ,and all this has happened since the grandfathers of most of the younger generation of the twentieth century were born4 ,the word petroleum comes from two ,latin terms signifying 8rock0 and 8oil04 8,rock-oil10 which was an early name given it on this continent1 is accounted for by the fact that certain shales and coals possess oil as part of their constituents4 ,it is one of the family of bitumens1 which even in their natural state assume many forms4 ,in its commercial sense the word 8petroleum0 is a generic term covering the whole group of hydro-carbons--the refined or manufactured products as well as the crude oil4 ,but as yet scientists are divided in opinion as to its origin and the extent of the world's supply4 ,all we know is that it is diffused over almost every section of the earth1 and that new deposits--on the scientific development of which geologists are constantly at work--are ever being discovered4 ,one school of scientists holds that it is of inorganic origin1 derived from metallic carbides lying below the porous strata which serve as ,nature's reservoirs for the crude product that is 8mined0 by the modern oil producer4 ,but the more widely accepted view is that crude petroleum is of organic origin1 born of either animal or vegetable matter embedded in the earth's surface1 which in the process of decay or transmutation has taken this form4 ,travellers state that in the neighbourhood of the ,caspian ,sea the conversion of such organic matter into petroleum is visibly in operation to-day4 ,the ,british scientist1 ,sir ,boverton ,redwood1 in explaining the natural process by which petroleum came into existence1 has pointed out that in the comparatively deep and quiescent water along the margin of the land in past there would be abundant opportunity for the accumulation of deposits of the remains of marine animals and plants1 as well as of vegetable matter from the land1 borne down to the coast by water courses4 ,the changes which the world has undergone would result in the burial of these accumulations under sedimentary strata1 during the process of creating land where once was water4 ,during geological ages different parts of the earth's surface have alternately been raised and submerged4 ,when above sea level they have been at times subjected to disintegration and removed by such agencies as water1 wind1 and glaciers1 and when submerged the same localities have received deposits1 as we now see being made under the ocean and at the mouths of rivers4 ,as all the geological formations which are stratified have been deposited in their respective localities while that part of the earth's surface was under water1 and as oil is1 almost without exception1 found in these formations1 we are able to account for the fact that petroleum is frequently discovered in localities which are now at a great distance from the sea4 ,it would also explain why oil is frequently found in association with salt--a circumstance which had its accidental bearing on the earlier development of the petroleum industry in the ,united ,states4 ,many other arguments have been adduced supporting a belief in the vegetable origin of petroleum that would be worth discussing at length1 were this a scientific treatise4 ,much controversy still prevails4 ,the holders of the inorganic theory who assume that petroleum could be formed by chemical reactions from minerals are for the most part chemists who base their conclusions on laboratory experiments2 whereas the scientists who hold by the organic theory are geologists1 who base their contentions on actual investigations of the earth's crust and the records of its changes as written in the rocks4 ,the assumption is that the organic matter1 after being imprisoned in the sedimentary rock by the processes indicated1 under the influence of heat and pressure in some cases assumed the form of coal2 in other instances succumbed to decay2 while in other cases it formed crude petroleum and gas4 ,it is assumed that a mere fraction of the organic matter which was gradually imprisoned in the formation of sedimentary rock would have been sufficient to create incalculable stores of oil and gas4 ,the mode of decomposition by which these elements were generated is one of ,nature's secrets2 and the stage in the history of oil-bearing rock in which the necessary chemical transformation took place is equally a matter of conjecture4 ,as has been said1 the presence of salt is a prevalent phenomenon in connection with oil deposits the world over4 ,not only is a strongly saline water commonly present in the vicinity of petroliferous rock1 but in a number of fields oil is closely connected with large masses of rock-salt1 gypsum and dolomite4 ,an important fact which makes definite conclusions difficult is that in its world-wide distribution petroleum is to be found in almost the whole range of strata which forms the earth's crust2 from the earliest or ,laurentian rocks to the most recent formations of what is known in geology as the ,quarternary period4 ,it is1 however1 evident that oil has often moved from the formations in which it was made to other formations1 generally loose or porous1 which have served as natural reservoirs for storing the oil in the earth4 ,it is probable that in most instances the migration took place by filtration or flowing through fissures or openings from one formation to another1 while in some cases it is evident that a distillation took place and the migration probably was made in the form of vapor1 which was ultimately condensed in a cooler formation and there stored4 ,generally speaking1 however1 it reveals itself in commercial quantities chiefly in the ,devonian and carboniferous formations which are comparatively old2 or in the ,tertiary rocks1 aeons younger in geological evolution4 ,the geographical distribution is as diverse as the geological2 the deposits in many instances occur along well-defined lines and in association with mountain ranges1 though this condition is by no means axiomatic4 ,it is assumed that in the elevatory processes which obviously occurred while the earth's crust was attaining its present characteristics1 certain folds were formed which arrested and collected the oil in productive belts4 ,early misapprehensions with regard to the origin of petroleum are indicated by the familiar word 8coal-oil10 now used to signify one of the most popular products of crude petroleum2 but originally derived from the fact that what we now know as kerosene or lamp oil was produced from the distillation of coal before petroleum became an important source from which the lamp oil was obtained4 ,over a century ago miners in ,shropshire1 ,england1 observed oil trickling from fissures in coal veins and assumed that coal was the source of the liquid4 ,this belief was intensified by the fact that the earliest discoveries in ,pennsylvania1 which resulted in the creation of the great modern petroleum industry of the ,united ,states1 were in the vicinity of vast deposits of bituminous coal4 ,shortly afterward this belief was disproven by the discovery of valuable oil fields in the western part of the province of ,ontario1 ,canada1 where no coal exists2 and other discoveries on this continent and elsewhere have furnished abundant proof that oil may exist in large volumes independently of coal4 ,in considering the two primary theories as to the origin of petroleum1 whether inorganic--that is from chemical action on rocks forming part of the earth's crust1 or whether organic1 from the decay of vegetable and animal matter--there are many strong arguments for both theories and it is quite reasonable to believe that both may be correct4 ,there are localities where petroleum exists in formations showing little evidence of animal or vegetable remains and little possibility of having reached these formations by migration4 ,as a rule1 the production in such formations is small1 rarely in commercial quantities1 and it is probably derived from inorganic sources4 ,this possibility is further demonstrated by laboratory experiments4 ,on the other hand1 it is probable that the greatest sources of petroleum are due to organic origin1 more particularly in the carboniferous or the tertiary formations1 where coal1 cannel-coal1 lignite1 and other similar products are most frequently found4 ,hydro-carbons identical with most of the products of the distillation of petroleum1 are so commonly obtained from the distillation of coal1 lignite1 and even bituminous shale and peat that in most cases the organic theory of the source of petroleum appears to be the correct one4 ,natural gas usually exists in association with oil deposits and in a great measure has the same properties1 its existence as a gas or a liquid being dependent on the temperature and pressure under which it is held4 ,in recent years1 before it is sold for consumption as natural gas1 it has become the general practice of oil producers to compress and chill the gas to obtain a considerable yield of gasoline which exists in the natural gas as a vapor4 ,another process for extracting this gasoline is by absorption1 that is1 passing the gas under a comparatively low pressure through a heavy oil1 which takes out a part of the gasoline from the gas4 ,in both processes1 but especially in the high compression system1 there is a considerable percentage of very volatile gasoline obtained1 which is highly explosive and difficult to retain as a liquid4 ,varying in different localities and under different conditions1 natural gas yields commercially from one-half gallon to five gallons of gasoline per thousand cubic feet1 although extreme cases show much wider range4 ,natural gas1 in conjunction with hydraulic pressure1 is the cause of what is known to oil operators as a 8gusher0 or flowing well4 ,it is the compression and volatility of the gas imprisoned for ages in the rock that sends the oil spouting into the air and has been known to create a flow of #agj1jjj barrels in a single day4 ,as a general practice1 and probably due to the weight of overlying strata1 the pressure of gas encountered in drilling into oil formations is proportional to the depth4 ,this pressure is generally known as rock pressure and the flow of the wells is in part due to it4 ,a principal factor in the production of oil or gas is the nature of the formations from which the production is derived--their thickness and porosity4 ,in some cases1 notably in ,mexico1 the flow seems to be caused by the action of water4 ,here the formations are very porous1 opposing little obstacle to the flow of the oil and gas through the formation4 ,the production from the wells under these conditions is very great and1 unlike most wells1 a gradual decline in the yield is unusual1 there being little sign of exhaustion until the moment when the well begins producing salt water in increasing proportions4 ,after the appearance of the salt water the production of oil diminishes rapidly and for practical purposes soon ceases1 due to the small production of oil and the fact that it comes out as an emulsion with the water1 which is very difficult to utilize4 ,a characteristic of the ,mexican wells is that the oil1 and finally the salt water which follows it1 are generally produced at a high temperature--from #aae to #ade degrees4 ,such gushers originally produced another fallacious belief that oil exists in subterranean pools or reservoirs2 but investigation has shown that oil has been preserved in the rocks in a way somewhat similar to that in which water is retained in a sponge4 ,a typical piece of oil rock examined under the microscope reveals millions of tiny interstices between different grains of sand4 ,porous1 oil-bearing sandstone may contain one-tenth or one-eighth of its bulk in petroleum4 ,the term 8oil sands0 is common in the oil industry and refers to the type of coarse grained porous rock which forms the best reservoir for petroleum2 but limestone and some of the rocks described by geologists as conglomerates sometimes serve the same purpose4 ,in every instance the oil-bearing stratum has been covered by a layer of non-porous rock1 whose impervious qualities keep the oil and gas imprisoned until penetrated by the drill4 ,surface deposits are also a well-known phenomenon2 and were the only type of deposits known to the world until modern times4 ,about them has grown up much interesting history and legend which will be dealt with in a subsequent chapter4 ,the geographical distribution of petroleum is1 as has been said1 world-wide1 and the oil prospector1 followed by the capitalist1 who make these discoveries available to the world1 are constantly opening up new fields4 ,oil discoveries necessarily mean great commercial expansion for the localities in which they occur2 and no small part of the enormous wealth of the ,united ,states has resulted both from the abundance of our deposits of crude1 and from the manifold uses to which they have been applied in the improvement and standardization of manufacture4 ,though the ,united ,states is the greatest oil producing country in the world1 production on modern commercial and scientific lines first began across the seas1 in the little ,kingdom of ,roumania4 ,there the industry in a modern sense had its birth in #aheg4 ,the ,united ,states entered the field by virtue of the ,pennsylvania discoveries in #ahei1 and the original industry has attained enormous proportions through later discoveries in such scattered portions of our country as ,california1 ,oklahoma1 ,wyoming and ,texas4 ,italy was the third entrant in the field of organized production in #ahfj1 but her industry has never assumed large proportions4 ,other countries became producers in the following order3 ,canada1 ,russia1 ,galicia 7then ,austrian1 now ,polish71 ,japan1 ,germany1 ,india 7,burma71 ,dutch ,east ,indies1 ,peru and ,mexico4 ,the ,mexican industry dates back only to #aijg and that country is now recognized as one of the world's greatest fields4 ,in the ,united ,states when we speak of benzine1 gasoline and naphtha we allude to the more volatile distillates of petroleum4 ,lamp oil1 as it is called in ,england1 and kerosene or coal oil1 as it is known in ,america1 constitutes another product4 ,while petroleum refining is conducted primarily for the production of motor fuel1 illuminating oil1 lubricants1 wax1 gas oil1 and fuel oil1 of various grades1 there are a host of specialty products obtained from petroleum which go into use in almost every phase of human activity4 ,these include pharmaceutical preparations for internal and external use1 in the form of medicinal oils1 ointments1 salves1 and soaps2 cements1 including binders for briquetted fuels1 water-proofing and saturating agents2 special solvents1 used to some extent in all chemical laboratories2 and an imposing list of rare chemicals1 such as higher alcohols of the nature of fusel-oil1 and a large variety of organic sulphur compounds4 ,the word 8naphtha0 comes from ,russia1 where it is applied to all crude petroleum1 and was supposedly derived from the ,persian1 nafata1 to exude4 ,early ,roman writers like ,strabo and ,pliny1 who were acquainted with the burning and lighting properties of the surface oil deposits known to the ancients1 spoke of it as bitumen and liquidum candidum4 ,and other terms in ,roman and ,greek literature obviously signify the same substance4 ,additional designations are3 ,ropa1 ropianka1 7,galician ,polish7 pacura 7,roumanian71 ,huile de naphte and ptrole brut 7,french72 erdoel1 rohoel1 rohnaphtha 7,german72 yenan 7,burmese72 sekinoyn 7,japanese7 shi-yu 7,chinese72 chapapote 7,mexican74 ,there are also a large number of names for such petroleum products as paraffine1 or mineral wax1 of which the ,spanish brea is an example2 and for asphalt1 which is really petroleum in a dense form4 ,surface indications of petroleum and natural gas are frequent and diversified4 ,the most common is in the nature of seepages1 which are generally found in what are geologically highly disturbed areas1 underlain with petroleum deposits4 ,these seepages most frequently occur where the oil-containing formations have been folded and exposed on the surface1 either when the folding took place or subsequently through the cutting of water courses4 ,from these formations the oil seeps out and is shown as a coating on the streams or1 in case the quantity is great or the oil very heavy1 it is shown as asphalt deposits1 of which there are many in ,mexico1 and of which the best known are the pitch lakes in ,trinidad and ,venezuela4 ,it is a common occurrence in oil fields1 more particularly those in the younger geological formations1 to find mud volcanoes1 probably caused by the escape of gas1 bringing with it some water1 which reaches the surface as mud4 ,these mud volcanoes vary from a foot or two to several hundred feet in height in different localities and frequently cover an area of several acres4 ,another evidence of petroleum is found in ,galicia in the form of ozocerite1 which is in many ways similar to paraffin1 but has some distinctive characteristics4 ,this ozocerite is found on the surface or in mines4 ,it exists in nature frequently in the form of lumps of several pounds of weight and more commonly impregnating the shale from which it is removed by boiling and removed as a scum on the boiling water4 ,illustration3 ,a temporary oil reservoir in ,oklahoma4 ,when petroleum is produced in advance of the erection of tanks it is held by earthen dams ,petroleum is found in different parts of the world and even in different formations in the same locality with widely different properties and composition4 ,in some cases the oil is found almost white and varies through all the shades of amber and brown to black4 ,it is found as highly liquid as gasoline and with a viscosity such that it will hardly run away from the hole--almost as viscous as the asphalt used for pavements4 ,it is also interesting to note that the crude oil from different localities1 and even from different formations in the same locality1 not only varies greatly in its own properties1 but the manufactured products derived from different grades have very different properties as well4 ,from some crude oils special lubricating oils can be made which cannot be manufactured from other oils4 ,the same is true of the paraffins derived from different oils1 some1 for example1 being especially desirable for one purpose while paraffin derived from another crude is more suitable for another purpose1 due to its different properties and action under treatment4 ,thus1 the refined oils from different crudes show a great variety1 some lamp oils possessing much greater illuminating power than that derived from other crudes and this not due to the method of manufacture but to the actual difference in the properties of the refined oil derived from the different crudes4 ,in ,roumania and ,russia the wells produce enormous quantities of sand with the oil1 particularly when they first start flowing4 ,the ,roumanian wells frequently start flowing sand as fine as flour and more like the dust of a country road4 ,this sand may hardly smell of oil at first and at this stage it covers the ground like a volcanic ash1 sometimes breaking in the roofs of neighbouring houses4 ,in the course of a few days the sand begins to show more oil but piles up around the mouth of the well1 giving it the appearance of a small volcano4 ,as the quantity of oil increases it reaches a stage where the oil and sand will flow away from the well together and the oil is settled out in dams before being pumped to the tanks4 ,later1 the percentage of sand becomes less until it is almost negligible4 ,the action of the sharp sand is similar to that of a sand blast1 necessitating much ingenuity in changing the pipes and valves for handling the well while it is flowing4 ,the diversity that is characteristic of petroleum in its geological and geographical distribution1 and in its adaptability to the needs of humanity1 is also to be found in the nature of the crude oil deposits4 ,it differs in colour1 density and other qualities in almost every field4 ,in ,america1 with which this book chiefly deals1 three distinct basic types are recognized2 the mixed base 7paraffine and asphalt in combination7 found in ,ohio1 ,oklahoma and other ,states2 the paraffine base1 which is characteristic of the paler crudes of ,pennsylvania and ,west ,virginia2 and the asphalt base common to the fields of ,california and ,texas4 ,the special qualities of the crude fix in a large measure1 the character of the products each yields when subjected to refining and manufacturing processes4 ,,chapter ,,iii ,,dawn ,,of ,,america',s ,,petroleum ,,industry ,the words of ,washington show that long before the actual birth of the petroleum industry in the ,united ,states1 discerning minds were at work on the best means of turning the bituminous or petrolific deposits of this continent to practical commercial uses4 ,in passing it may be said of ,washington that he was the father of his country in a wider sense than that of having been the victorious general who made the ,republic possible1 and its first executive head4 ,he was its earliest influential prophet of the power that was to be born of the unlimited natural resources of what was then the 8hinterland0 of the original commonwealth4 ,during the first five decades of the nineteenth century there were a considerable number of ,americans1 less eminent than he--explorers1 scientists and business men of imagination who looked to petroleum as a potential resource of national wealth4 ,and speculations of this kind were not confined to the ,united ,states4 ,in ,great ,britain and other countries processes were patented for the refining of mineral oils4 ,the main purpose in view was the development of a substitute for sperm oils in anticipation of the decline of the whaling industry1 which had become the main source of illuminants and lubricants4 ,in ,america1 also1 petroleum had its recognized medicinal uses1 the traditions of which had been acquired from the ,indians4 ,thus1 in the thirties1 8,seneca ,oil0 produced at ,lake ,seneca1 ,new ,york2 and 8,american ,medicinal ,oil10 a ,kentucky preparation1 were familiar household remedies1 especially as embrocations for burns1 sores and rheumatic affections4 ,the casual use of petroleum as a basis for proprietary medicines had1 as will be seen1 an interesting bearing on the future development of the industry2 but the great factor which led to the production and utilization of petroleum on a large scale was a natural phenomenon already alluded to--its alliance with salt or brine deposits4 ,had not the growing ,american population been compelled to secure adequate quantities of salt by boring and establishing brine wells1 it is possible that the ,pennsylvania oil discoveries1 with which the real history of the modern petroleum industry begins1 might have been indefinitely delayed4 ,during the first half of the nineteenth century five different states had salt industries based on the boring process--,pennsylvania1 ,ohio1 ,west ,virginia1 ,kentucky and ,tennessee4 ,in connection with most of these wells petroleum occasionally appeared1 usually to the annoyance and embarrassment of the operators4 ,in the light of future events it is interesting to note that sometimes the presence of the dark and evil-smelling liquid led to the abandonment and condemnation of a salt property4 ,nevertheless1 it was the machinery devised for the purpose of boring for brine that enabled men like ,drake and other petroleum pioneers to achieve their revolutionary discoveries4 ,the first ,american salt well of which there is any official record was begun in #ahjf and completed in ,january1 #ahjh1 on the ,great ,kanawha ,river in what is now ,west ,virginia4 ,charlestown1 ,va41 was then the nearest town1 and in the vicinity of this brine well the first burning gas spring had been discovered in #aggc4 ,at ,tarentum1 on the ,allegheny ,river1 ,pennsylvania1 salt wells were started in #ahaj which also yielded petroleum in considerable quantities1 and such pioneers as ,col4 ,ferris and ,samuel ,m4 ,kier endeavoured later to turn this by-product to commercial account4 ,the first flowing oil well was drilled unintentionally in #ahah at the mouth of ,troublesome ,creek1 on the ,big ,south ,fork of the ,cumberland ,river1 twenty-eight miles south-east of ,monticello1 ,va41 by one ,martin ,beatty1 who was seeking brine4 8,the ,devil's ,tar0 as he called it1 was allowed to flow into the ,cumberland ,river and covered its surface for a distance of thirty-five miles4 ,the oil became ignited and an enormous conflagration ensued1 which destroyed trees along the banks of the river1 and also the salt works4 ,what would to-day be regarded as a piece of stupendous good fortune was then accounted a disaster2 though this particular well later supplied the chief ingredient for 8,american ,medical ,oil0 a remunerative compound bottled at ,burkeville1 ,kentucky4 ,the most enterprising man in utilizing this unwelcome by-product of his salt wells was ,samuel ,m4 ,kier4 ,originally a chemist and druggist1 he resolved in the later forties to ascertain its uses both as a medicine and as an illuminant4 ,experiments at distillation to secure a burning fluid for lighting purposes were a success1 and his product attained some vogue in rivalry to a kerosene which was being extracted from oil shales in the province of ,new ,brunswick1 ,canada4 ,but ,mr4 ,kier's chief business was that of the sale of petroleum for medicinal purposes--a compound he named 8,kier's ,rock ,oil40 ,he advertised it by imitations of an ,american greenback1 which bore a vignette showing the plant at ,tarentum with the derricks used in boring and pumping the brine wells--for it must be remembered that ,kier was primarily a salt merchant who treated petroleum as a side-issue4 ,this imitation greenback was destined to influence the course of history4 ,a prominent ,new ,haven business man of the day was ,mr4 ,george ,h4 ,bissell1 who had become interested in the possibilities of petroleum through his acquaintanceship with ,prof4 ,crosby of ,dartmouth ,college4 ,the latter had received from a physician at ,titusville1 ,pa41 a historical city in connection with the coming industry1 a bottle of petroleum1 sent as a curiosity4 ,bissell was so interested that he1 in company with friends1 purchased for #e1jjj a tract of one hundred acres at ,titusville1 with an oil spring on it4 ,a company was founded1 known as the ,pennsylvania ,rock ,oil ,company1 with a nominal capital of #ejj1jjj and a tentative start made at collecting the surface oil by digging and trenching4 ,prof4 ,b4 ,silliman1 of ,new ,haven1 made a favourable report on the fluid as an illuminant but the cost of production rendered the project commercially impracticable4 ,mr4 ,bissell was1 therefore1 left with the ,titusville property on his hands4 ,the story runs that one day in the summer of #aheg while in ,new ,york he saw in the window of a ,broadway drug store one of ,kier's imitation greenbacks1 showing the picture of the derricks at ,tarentum1 ,pa4 ,the idea suddenly came to him of developing the ,titusville property just as salt properties were developed by boring and pumping4 ,though short of capital1 he set about obtaining backing for the attempt1 and the final outcome was that a small syndicate was formed in ,new ,haven1 ,conn41 to work the ,titusville oil lands4 ,this syndicate engaged ,edwin ,laurencine ,drake1 the most historic figure in connection with the beginning of the ,american industry1 to carry out the work4 ,how he set about his task1 and how he succeeded will be the subject of a subsequent chapter4 ,it is necessary to point out that unless the foundations had already been laid for refining and marketing the crude petroleum1 ,drake's discovery would have been almost as valueless as that in #ahah1 which resulted in the conflagration on the ,cumberland ,river4 ,science1 however1 had been grappling with the problem of extracting from the crude a safe burning oil and eliminating the offensive odour4 ,this latter was a very important consideration1 and for years after petroleum began to assume the proportions of a large industry it encountered prejudice on this account4 ,by the later 'fifties so much progress had been made that the possibilities had been created not merely for a large domestic trade in oil1 but also for the development of an export market4 ,drake's discoveries at ,titusville in ,august1 #ahei1 may1 therefore1 be said to have come at the psychological moment4 ,,chapter ,,iv ,,founder ,,of ,,the ,,petroleum ,,industry ,on ,october #d1 #aija1 a magnificent monument was unveiled at ,woodlawn ,cemetery1 ,titusville1 ,pa41 to the memory of ,edwin ,laurencine ,drake at the expense of the late ,henry ,h4 ,rogers1 of the ,standard ,oil ,company1 himself a pioneer of the ,pennsylvania oil fields in the boom days of the sixties4 ,the inscription on the monument not only describes ,drake as the 8,founder of the ,petroleum ,industry0 but gives an explicit review of what his services meant1 not only to the people of the ,united ,states but to mankind at large4 ,it runs as follows3- ,col4 ,e4 ,l4 ,drake1 born at ,greenville1 ,n4 ,y41 ,march #bi1 #ahai2 died at ,bethlehem1 ,pennsylvania1 ,november #h1 #ahhd1 ,founder of the ,petroleum ,industry1 ,the friend of man4 ,called by circumstances to the solution of a great mining problem1 he triumphantly vindicated ,american skill and near this spot laid the foundation of an industry that has enriched the ,state1 benefited mankind1 stimulated mechanic arts1 enlarged the pharmacopoeia1 and has attained world wide proportions4 ,he sought for himself not wealth nor social distinction4 ,content to let others follow where he had led1 at the threshold of his fame he retired to end his days in quieter pursuits4 ,his highest ambition the successful accomplishment of his task1 his noble victory the conquest of the rock1 bequeathing to posterity the fruits of his labour and his industry4 ,his last days oppressed by ills--,to want1 no stranger--,he died in obscurity4 ,this monument is erected by ,henry ,huttleson ,rogers1 in grateful recognition and remembrance4 ,drake was in his fortieth year when1 through friends in ,new ,haven1 he was appointed director and superintendent of the ,titusville properties of the ,pennsylvania ,rock ,oil ,company and the ,seneca ,oil ,company4 ,as a youth he had led a wandering life and his education was such as he could pick up at odd moments4 ,he had worked as a commercial traveller and hotel clerk1 and was a railroad conductor at the time he took service with the ,bissell syndicate1 which had decided to experiment in drilling for oil4 ,he himself was so thorough a believer in the project that he put all his small savings into it4 ,the salary at which he was engaged was a thousand dollars a year1 which signified considerably more in the later fifties than it does to-day4 ,on reaching ,titusville early in #ahei he soon realized that he was handicapped by lack of practical knowledge of drilling processes1 and therefore sent for one ,william ,smith1 a man of long experience as a driller of brine wells1 who came with his two sons to assist in the work4 ,the method adopted was that of forcing cast iron pipe through the soil at a spot near the 8old oil spring10--well known to the farmers of the locality4 ,operations were started in ,february and after many tedious delays rock was struck at a depth of thirty-six feet4 ,if they were to go farther steam power was necessary1 and by ,august #ast1 this had been secured4 ,in the meantime the drilling operations had been the joke of the countryside1 but ,drake literally could not afford to fail4 ,with steam power it was found possible to drill through the rock at the rate of about three feet a day until toward the end of the month oil was struck at a depth of sixty-nine and a half feet4 ,no record was kept of the exact date1 though the ,new ,york ,tribune a few weeks later fixed it at ,august #bcrd4 ,the well was not a free flowing one1 but yielded to the pumping process4 ,the discovery1 momentous as it was1 did not create much excitement except in the immediate locality4 ,john ,brown's raid1 at ,harper's ,ferry1 and the possibility of the ,civil ,war1 which was to ensue within less than two years1 were the chief topics in the public mind of ,america4 ,shortly after the discovery a fire wiped out the existing plant but kindly neighbours1 now satisfied that the experiment was no failure1 assisted ,drake1 and when the well was again set in working order its flow was more promising than ever4 ,in the view of experts1 ,drake's achievement as a pioneer may be regarded as limited to one great feat1 the drilling with steam power of the first cased oil well4 ,he ceased to be an active factor in the development of the newborn industry with the drilling of this first well4 ,following his inspiration1 others organized it and in the course of a few years a great army of industrial workers1 merchants1 financiers and distributors of all classes became associated with petroleum and placed it in a foremost position among the world's industries4 ,drake himself finally left the oil regions in #ahfc with about #ae1jjj savings1 which he soon lost in other forms of speculation4 ,in the stupendous events of the national conflict he was almost forgotten4 ,in #ahfi1 ten years after his discovery1 the older oil men who had known him learned that he was sick and penniless1 with a wife and family at the point of starvation4 ,they raised among themselves a purse of #e1jjj and later the ,state ,legislature was prevailed upon to grant him an annual pension of #a1ejj1 which maintained him in comparative comfort at his home in ,bethlehem1 ,pennsylvania1 until his death in #ahhd4 ,the scale on which petroleum production increased during the period immediately following ,drake's discovery is indicated by the fact that though the total ,american production in #ahei was #bjjj barrels1 in #ahfi it had risen to #d1bae1jjj barrels4 ,it must be remembered that those who started the oil industry in the ,united ,states were in almost every instance poor men who attained wealth with its development4 ,as the news of the new industry and its possibilities spread1 more and more wells were sunk along ,oil ,creek and the ,allegheny ,river2 farm lands containing oil prospects began to command enormous sums1 methods of extracting the crude petroleum from the depths of the earth improved and gradually ,american inventive genius began to be applied to the industry with enormously fruitful results4 ,the ,civil ,war undoubtedly interrupted development at the outset1 and the new oil fields gave many a brave soldier to the ,northern cause4 ,the really sensational developments in connection with the oil fields began as the ,civil ,war was drawing to a close4 ,then they commenced to assume the romantic and fevered aspect of ,california in the days of the early gold rush a decade or more previous4 ,unfortunately1 the oil fields possessed no ,bret ,harte1 as did ,california1 to write the epic of good-fortune and ill-fortune4 ,the story of the ,city of ,pithole1 not far from ,titusville1 is1 however1 as romantic as anything in the annals of gold discovery4 ,it sprang to full life in #ahfe1 a mushroom city with all the vices and excitements of frontier life4 ,fabulous tales have been told of its population1 which probably never exceeded #bj1jjj but #bj1jjj men and women all excited by the fever of speculation and money-getting gave life in ,pithole a gusto not equalled at that time on any other part of the continent4 ,gamblers and adventurers flocked there in company with many legitimate oil men4 ,in the speculation that ensued fortunes were made and lost daily4 ,then1 after a year or two1 the wells which had shown such riches began to decline and ,pithole was quickly deserted4 ,a few years later a visitor found only two inhabited houses in a city that had for a time been the home of thousands of restless mortals4 ,later still some of the abandoned wells were made productive by new processes1 but the glory of the mushroom city had vanished forever4 ,in other parts of this continent there have been oil crazes1 but nothing approaching the story of ,pithole4 ,and it is famous for another reason2 it was the scene of the establishment of one of the earliest pipe-lines1 a system which has been an invaluable auxiliary to the growth of the ,american industry4 ,illustration3 ,early activity2 the famous ,red ,hot ,oil ,field near ,shamburg1 ,pa41 in #ahgj ,illustration3 ,where ,pithole stood--the main street of a ,pennsylvania oil town1 which had a population of #bj1jjj in #ahgj1 as it looks to-day ,the success of the early oil men of the ,united ,states not only in grappling with the problem of crude production1 but with those of conservation1 transportation1 refining and the development of new uses for the various elements of the treated crude1 set an example to all the world4 ,from #ahgj onward1 though ,pennsylvania continued to lead1 ,american methods were copied in many other countries4 ,the foundations of the trade which have made petroleum the most international of all commercial undertakings were at that time laid2 and this brings us to a survey of the industry as a world interest4 ,,chapter ,v ,,petroleum ,,as ,a ,,world ,,industry ,the standardization of the petroleum industry which began in ,america during the later sixties naturally excited emulation4 ,just previous to the ,pennsylvania discoveries of #ahei something like a systematic industry had been established in connection with the ,roumanian deposits1 sixty years later destined to be a military objective of vital importance in the ,world ,war4 ,but the actual sinking of oil wells by the boring process was a later development in ,europe4 ,as was natural1 the first foreign country to profit by ,drake's example was our neighbour ,canada1 which has long been an oil producing country1 and to a still greater extent1 thanks to friendly ,american initiative1 an oil-refining country4 ,before speaking of the extent of the ,american branch of the industry in the twentieth century it is worth while briefly to scan the oil fields of other lands4 ,the most important are those of ,russia1 particularly the deposits of ,baku1 which1 as has been related1 figured in ancient history and legend4 ,the unsettled condition of ,russia renders an exact statement of the condition of its oil industry impossible at the present time1 but prior to the war the ,russian oil-fields had an output of approximately #gb1jjj1jjj barrels annually1 or #ae per cent4 of the then world's production4 ,during the past fifty years the ,russian fields have produced at least #a1fej1jjj1jjj barrels2 but1 though this aggregate seems large it represents less than half of the petroleum production of the ,united ,states during the same period4 ,it is believed1 however1 that ,russia possesses great wealth in undeveloped oil fields1 particularly in the south-western ,caucasus4 ,as yet the main part of the production of this vast country has come from an area of about #d1jjj acres in the ,baku region1 near the ,caspian ,sea4 ,prior to #ahgj ,russia's output of petroleum came from surface pits1 dug by hand1 rarely more than #ej feet deep4 ,boring by steam power after the ,american method was first systematically introduced by ,robert ,nobel1 the famous scientist and expert in explosives1 who went to ,baku in #ahgc4 ,even in #ahic the number of bored wells in ,russia was less than #ejj1 but at the last census in #aiaa wells of this type had increased to over #c1jjj4 ,the ,nobel brothers also assisted ,russian oil production by introducing improved methods of transporting the crude oil1 based on ,american experience1 as well as improving refining processes through their own ingenuity4 ,many other companies operating in ,russia prior to the ,bolshevist rgime have showed some disposition to follow their example1 but the progressive spirit that has actuated the oil pioneers of ,north ,america has been lacking4 ,one great obstacle to development which existed long before the ,russian revolution of #aiag was the intractable character of the ,russian workmen1 encouraged1 it must be admitted1 by the reactionary spirit of the ,russian capitalist4 ,in contests between capital and labour much loss was sustained through incendiarism1 and there are recorded instances where in a single night dozens of productive oil-wells1 which had taken years to 8bring in10 owing to the special geological difficulties of the ,russian fields1 were destroyed4 ,such catastrophes of course represent economic loss to the whole people2 and ,americans have good reason to congratulate themselves that in the oil fields of the ,united ,states labour conditions have been such that conflicts have been almost unknown4 ,roumania1 geographically adjacent to ,russia1 was prior to its participation in the great war1 producing about #aa1jjj1jjj barrels1 or approximately #a1fjj1jjj tons1 of crude petroleum annually4 ,the beginnings of her industry1 already alluded to1 were based on hand dug wells1 three feet square and walled with horizontal oak planks1 into which workmen would descend and bring up the oil in wooden buckets or bags of leather4 ,here1 too1 the oil area is comparatively small1 and it was not until twenty years ago that mechanical equipment designed on the ,american model was introduced by foreign capitalists4 ,men trained in the oil-fields of this continent found employment there1 although1 when at the end of #aiaf the exigencies of war compelled the ,allies to adopt the policy of destroying the ,roumanian wells1 in order that the ,central ,empires should not obtain much needed supplies of oil1 it was by ,english instructions and officers that the melancholy task was accomplished4 ,roumania has a great petroleum storage port at ,constanza1 fed by a trunk pipe-line of ,american model connecting it with the oil-fields4 ,galicia or ,austrian ,poland1 as it was once called1 lies in the same geographical zone as ,roumania1 and possesses an oil area #bjj miles in length and varying from #dj to #fj miles in width1 although #ij of its production comes from the ,boryslaw field4 ,this field1 which was the chief source of supply for the ,central ,empires during the war1 necessarily suffered much in the conflict but ten years ago was producing about #a1ijj1jjj tons of crude annually4 ,it is now on the way to restoration4 ,the development of the ,galician industry on a large scale was directly due to the introduction of modern drilling methods in #ahhb4 ,the petroleum wealth of that country lies very deep and wells of a depth of #d1jjj feet are common4 ,though the chief customer of the ,galician fields for a considerable period1 ,germany also made efforts at developing a petroleum industry of her own1 but1 as in the case of ,italy1 her oil-fields1 though not entirely negligible1 do not bulk large in the statistics4 ,it is clear that ,europe not only owes much to ,american ideas for her native developments but is also dependent on other continents and to sea-borne cargoes of oil for supplies adequate to her needs4 ,this is particularly true of ,great ,britain and ,france1 whose statesmen have emphatically expressed their gratitude for the indispensable aid in the prosecution of the war provided by the leaders of the ,american oil industry1 who organized a steady supply on an enormous scale4 ,the early efforts of ,british scientists to develop home supplies of oil from shales and other forms of oil bearing rock were productive of benefits through improved methods of refining1 rather than by the development of a really important home industry4 ,thus the ,united ,states and all oil-producing countries owe a debt of gratitude to ,dr4 ,james ,young of ,renfrewshire1 ,scotland1 whose improvements in the processes of manufacturing paraffine from shale oil1 during the early part of the nineteenth century1 were of infinite value in developing the uses of petroleum after its presence in large quantities was proven by the pioneers of ,pennsylvania4 ,great ,britain1 realizing her own need1 also helped the world's oil industry when she built the first oil-tank steamers on the ,river ,tyne4 ,though ,great ,britain1 with the exception of a small well recently drilled1 has no deposits of crude so far as known1 she is at the present time experimenting with processes to distil petroleum from oil shales1 coal1 cannel coals1 ironstones1 lignite and peat2 but more important still1 she is encouraging the oil industry in various parts of her great ,empire4 ,under the ,british flag1 either as autonomous parts of that ,empire or as countries which she holds a mandate to govern1 are the important oil-fields in ,burma1 ,persia1 ,egypt1 ,trinidad and ,assam4 ,the ,burma fields have of late years been developed in accordance with modern practice1 and the producing area1 long a subject of quaint legend1 much extended1 so that according to recent estimates the annual crude production from this source is upwards of one million tons4 ,the ,persian oil fields will be a factor to be reckoned with in future1 and an oil port fed by a pipe line on the ,american model already exists at ,abadan on the ,persian ,gulf4 ,egypt has also a future as a petroleum producing country1 for within the past ten years not only 8gushers0 but wells which give evidence of steady flowing qualities have been discovered1 and plans for development are already well advanced4 ,crossing to this hemisphere the name of the ,british colony ,trinidad at once suggests itself4 ,its famous lake of pitch has long been a source of supply for that dense form of petroleum which is known as asphalt2 while other deposits of crude yield surprising percentages of more volatile products like motor spirit4 ,and while on the subject of petroleum under the ,british flag1 reference may be made to ,canada1 although the industry there is very closely allied with that of the ,united ,states4 ,in ,eastern ,canada1 oil has long been produced in limited quantities1 but within recent years the prospects of great new oil areas in the foothills of the ,rocky mountains and extending almost as far north as the ,arctic circle have led to glowing hopes that may or may not be realized4 ,a more distant foreign field1 which is gaining importance in the eyes of the world1 is that of the ,dutch ,indies in the ,far ,east4 ,there has been considerable oil production in ,borneo1 ,java1 and ,sumatra1 in the development of which the services of ,american experts have been enlisted and indeed it may be said that the petroleum industry has done a great deal to make world-citizens or cosmopolites of many good ,americans4 ,japan's connection with oil is ancient and it has its own industry at ,echigo2 but like ,china1 which also worked deposits of oil in prehistoric days1 it is a large importer of ,american petroleum products1 especially illuminating oils4 ,the ,american travelling in remote parts of ,asia is often reminded of home on seeing the tin containers that have crossed the ,pacific from this country4 ,returning to this continent we find that the ,mexican oil fields have come into prominence more rapidly than those in any other land1 for there the industry has existed only since #aijg4 ,the ,mexican pools now rank after the ,united ,states as the second largest producing area in the world4 ,most of the latter-day sensations in the matter of petroleum have been provided by ,mexico1 where both ,american and ,british capitalists have acquired large interests4 ,in #aijh the 8,dos ,bocas0 gusher in ,northern ,vera ,cruz was drilled4 ,at a depth of #a1hjj feet gas was encountered which blew out the drilling apparatus and presently1 through a fissure which developed under the boiler room of the drilling plant1 an eight-inch column of oil was spouting hundreds of feet into the air4 ,becoming ignited it burned for fifty-eight days1 producing a column of flame a thousand feet in height and fifty feet in diameter4 ,the well then began to produce hot salt water and is still producing probably a million barrels of salt water per day4 ,in #aiaj another great gusher1 the 8,potrero del ,llano0 was struck but fire was fortunately averted1 and the daily flow was estimated at #abe1jjj barrels4 ,production on so magnificent a scale has never been known in any other part of the world4 ,before this well went to salt water1 in #aiai1 it had produced more than #ajj1jjj1jjj barrels of oil4 ,another ,latin ,american republic which has developed a very important oil industry in recent years is ,peru1 and it is supposed that other parts of ,south ,america will yield their riches in the future4 ,despite the petroleum wealth of other lands1 however1 the ,united ,states far outdistances them1 not only in the output of crude petroleum but in the manifold products extracted from it4 ,the magnitude of the ,american industry may be gleaned from the fact that in the past year 7#aiai7 ,united ,states wells produced about #cgg1jjj1jjj barrels1 or over #fe per cent4 of the world's supply4 ,the lead of ,pennsylvania as the chief oil-producing state and the pivotal point of the world's supply continued for many years1 but has long since been superseded4 ,for a number of years this state provided #ih per cent4 of the oil production of this country4 ,in #ahia the total production of ,pennsylvania oil was #ce1hci1ggg barrels1 and in #ahig #ce1afe1iij barrels1 so that the maximum was reached in #ahia4 ,the greatest daily average production was during the month of ,november1 #ahia1 when it reached #ace1fgf barrels4 ,this pioneer territory suffered a gradual decline1 and at the present time it is estimated that ,pennsylvania produces about five per cent4 of the ,american supply4 ,nevertheless1 the output is considerably greater than in the boom days of the sixties when the phrase 8,struck ,ile0 became an accepted synonym for the sudden acquirement of riches4 ,as the importance of the industry grew1 oil prospectors busied themselves in every part of the republic in probing for this source of wealth1 and are still indefatigable after sixty years4 ,what is known as the ,mid-,continent fields1 which includes such ,states as ,kansas1 ,oklahoma and ,wyoming1 have developed enormous potentialities1 while on the other side of the ,rockies and the ,sierras the ,california fields some years ago became one of the great sources of the world's supply4 ,the ,california development is an example of the rapidity with which an oil field can become productive on an enormous scale under modern methods4 ,the records of achievement there show that it is possible1 with the modern system of rotary drilling1 to get down nearly #d1jjj feet below the surface within the period of a month1 depending on the nature of the formations1 and the experience in that state demonstrated a finer quality of crude at such depths than could be produced from deposits nearer to the surface4 ,california too furnishes at certain points an illustration of the mechanical ingenuity of the modern oil worker2 for there are to be seen oil wells sunk in the sea at a considerable distance from the shore1 the encroachment of sea-water being overcome by carrying the casing above high-water mark4 ,until a comparatively recent period the ,california fields held the record for production1 but in #aiah the young ,state of ,oklahoma forged to the front1 with a production of more than #ajj1jjj1jjj barrels in one year1 and a large undeveloped territory which there is every reason to believe will prove rich in petroleum4 ,tulsa is the centre of the ,oklahoma industry and is an example of a town which has grown suddenly from a small agricultural settlement to a thriving centre of metropolitan aspect as a result of the oil industry4 ,there are those who believe that ,texas will very shortly attain eminence equal to that of both ,california and ,oklahoma as a petroleum region4 ,the gulf fields came into prominence about the dawn of the present century1 and have perhaps witnessed more booms than other sections of this continent4 ,speculative eras in new fields which have been brought in by 8wildcat0 drilling1 which term should not be confused with wildcat mining speculation1 are however regarded by sane and conservative oil men as harmful rather than helpful to the petroleum industry4 ,they invariably produce false inflation and subsequent depression2 and involve in reproach one of the greatest economic blessings bestowed upon humanity4 ,thus far we have surveyed petroleum in its many general aspects and the remainder of this treatise will be devoted to a description of its production1 subsequent treatment and manifold application to the needs of present day commerce and civilization4 ,,chapter ,,vi ,,locating ,,the ,,oil ,,well ,when ,edwin ,laurencine ,drake went to ,titusville1 in #ahei the first question he asked of the natives was the location of 8the oil spring0 known to the ,indians and the farmers who succeeded them4 ,the modern oil seeker no longer concerns himself with surface indications4 ,in truth there is little or nothing in the contour of the latter-day oil-fields to suggest oil to the eyes of the uninitiated4 ,but geologists first located probable oil bearing formations and have made calculations of the formations two or three thousand feet below and the drilling sites are located in accordance with them4 ,roughly1 the theory upon which such operations are based is that the sub-surface rocks undulate1 and that the presence of oil is most assured at the highest points of the undulations4 ,by measuring dips at given points they calculate the distance in a certain direction to what they deem the most favourable site and surveyors proceed to fix and designate it4 ,in cases1 not infrequent when the lease which conveys the right of drilling is limited in area1 it is the business of the surveyor to see that the site chosen is well within the boundaries of the plot acquired for drilling purposes4 ,on the subject of present-day methods of location a recent contributor to 8,the ,lamp10 an ,american oil journal1 provides much interesting data4 ,oil geology1 he points out1 is not an exact science but it enables one to focus exact information upon the creation of a theory regarding the probable structure of an untested area4 ,in ,oklahoma1 for instance1 geological investigations made within the past five years resulted in the discovery of many of the new pools4 ,all drilling is in some sense speculative1 or to use the oil man's phrase1 a 8wild cat10 at the outset2 but in ,oklahoma it was found that the proportion of dry holes on territory recommended by the geologists was less than one-third of the failures that resulted before that science was invoked4 ,the speculative nature of the oil business in its initial stages is indicated by the fact that less than one per cent4 of the area of the oil region of ,pennsylvania is producing territory1 although it has probably been more thoroughly drilled than any field in the world4 ,the limited extent of even the permanently productive fields is one of the phenomena of petroleum4 ,more than one-half of the production of the ,state of ,wyoming is found within an area of not more than six square miles4 ,the famous ,tepetate-,casiano pool of ,mexico1 which produced more than seventy-five million barrels of oil from #aiaj to #aiah1 is about one-half mile wide and three miles long4 ,when we compare the acreage of oil areas with that of the continent1 the analogy of the needle in the haystack at once suggests itself4 ,the geologist draws the certain deduction that oil migrates through some porous formation from its original source and concentrates itself in detached 8pools0 of comparatively small dimensions4 ,it is the oil pioneer's business to find these pools4 ,again1 there may be several successive deposits of what are known as 8oil sands10 separated from each other by hundreds of feet of barren formation4 ,the depth of a well in itself means nothing4 ,the operator must know in what strata he expects to find the oil4 ,if these beds prove dry1 then he abandons the test1 regardless of whether the drilling has reached #a1jjj or #d1jjj feet4 ,past experience has taught the geologist that oil-bearing formations manifest themselves by certain surface indications1 such as gas springs1 and surface seepages of oil or asphalt4 ,in an untested field the expert studies the character of the successive formations along such outcroppings4 ,in any mountainous region earthcrust upheavals during past ages have exposed a series of formations1 similar to those which lie deep below the surface of the plains4 ,thus it is possible to predict with a fair degree of accuracy just what the formations will be for a considerable depth from geological indications4 ,geologists have also learned to recognize certain types of structures favourable to the accumulation of oil pools1 known as anticlines1 synclines1 salt domes1 monoclines and so forth4 ,thus it is sometimes possible to make in advance of drilling a surprisingly accurate forecast of what these operations will reveal4 ,because for the most part oil fields exist in rather sparsely populated districts1 remote from centres of commercial and industrial activity1 the general reader has probably very little knowledge of the unceasing efforts that are being made in many parts of this country to maintain the supply of crude oil at an adequate level through new discoveries4 ,the spirit of enterprise and initiative is even more alive to-day than it was in the time of ,drake and the pioneers who followed him in the ,pennsylvania field4 ,the hopeful speculative spirit is as ever necessary2 the capital fulfils an ever-growing function in this source of prosperity and employment for the community at large4 ,in the oil industry any well drilled outside the narrow limits of a producing 8pool0 is regarded as a 8wild cat0 test4 ,the element of a gamble is inevitably present1 but has been materially reduced by science4 ,an old established company in an important field is constantly adding to its land holdings in advance of the trend of development1 and out of the profits from its developed productions sets aside a certain amount to expend for speculative ventures1 to protect its investment in pipe lines1 refineries1 etc4 ,the company also continues to drill in the vicinity of a producing pool until it is entirely surrounded by dry holes1 and its limits demonstrated4 ,consequently1 in an established oil field development work and prospecting are one and the same thing4 ,the matter of opening up new fields in regions where there have been no previous wells to serve as a guide presents a very different phase of speculative enterprise4 ,the pioneer producer must make a very substantial financial investment for roads and equipment4 ,he must have the courage and grit to continue his efforts1 even though he at the outset obtains negative and unsatisfactory results2 sometimes for a period of years4 ,nor do his troubles end when he has made an important discovery1 for then land hitherto almost valueless becomes much sought after by competitors1 and legal complications involving titles and taxes are not slow to develop4 ,if he has been fortunate enough to open up a real oil-field his exploration work must be of sufficiently broad scope to determine the location of the principal belt of favourable territory1 the approximate depth and character of the oil bearing formations1 and the possibilities of permanence in the wells themselves4 ,the quality of the crude petroleum 8mined0 may be less important than the quantity4 ,though it is obvious that the obstacles that confront the pioneer operator are not insurmountable1 the conditions described show why the history of oil discovery is bestrewn with failures4 ,this has been particularly true of the ,latin ,american fields of ,venezuela1 ,colombia1 ,argentina and ,costa ,rica1 and of many ,asiatic attempts4 ,even in the great gusher field of ,mexico the first tests were drilled in #ahfi1 yet it was not until #aijb that any important production indicative of the great future of that region resulted4 ,more than #ej wells drilled in a space of #cc years were failures4 ,it is1 therefore1 apparent that detailed1 scientific information on which to proceed is almost as important in the initial steps as strong financial backing1 and efficient organization4 ,the methods used in the early days of the ,appalachian fields of ,pennsylvania depended absolutely on 8fool's luck0 and steadfast optimism4 ,as this field extended down into ,west ,virginia and ,kentucky1 and over into ,ohio1 the ever-increasing number of failures caused the operators to cast about for some sort of a working formula in choosing locations4 ,from the crude efforts of these early investigators the fundamentals of modern oil-geology were developed4 ,the old-fashioned operators' creed contained this axiom3 8,if you wild-cat enough in an oil field1 you will make money in the long run40 ,but this no longer is a safe working motto4 ,the steadily increased cost of drilling has made it of paramount importance to make careful selection beforehand4 ,the modern oil operator realizes that ,mother ,earth provides many clues and hints which he cannot afford to disregard4 ,the oil geologist interprets the surface indications and such other information relating to a given area as is available2 and is ever on guard against the over-optimism of the promoter4 ,,chapter ,,vii ,,drilling ,,the ,,oil ,,well ,methods of well drilling differ in various regions in accordance with the special problems to be encountered and perhaps no other industry furnishes more examples of mechanical ingenuity in the solution of physical difficulties4 ,drake went about the business of drilling the first well by using the traditional methods of boring for salt4 ,improvement was inevitable1 however1 and the ,canadian wells of ,western ,ontario1 which came into existence almost contemporaneously with those of ,pennsylvania1 were fruitful of inventions which have influenced drilling practices in many parts of the world4 ,if we go back to the origins of oil and salt drilling mechanisms we find ourselves in ,china centuries before the ,christian era4 ,the ,chinese used an auger attached to a pole that was held in a vertical position from a cross pole supported on a post4 ,the end of the cross pole was fastened to a lever while a driller guided the cable to which an auger or boring tool was attached4 ,several coolies jumped from a platform on to the reverse side of the board1 so that the tool would be jerked up and would plunge down and thus deepen the hole with each stroke4 ,the deeper the hole became1 the more coolies required for the task of 8kicking down40 ,jumpers were not a part of the staff of an oil-drilling organization in ,america in the early days but foot power was sometimes employed for the same purpose of driving the drilling tools into the ground4 ,to-day labour-saving machinery plays as great a part in well drilling as in other branches of industry4 ,let us suppose then that an oil company1 or an individual with the requisite capital at his back1 has advanced through the preliminaries which must precede drilling operations2 the geologists have made a favourable declaration as to the prospective site2 the leases and royalties have been arranged and the title is secure4 ,when it is decided to start drilling1 roads are built1 water lines laid1 and the lumber1 casing machinery and other equipment are hauled to the location 7often under very primitive and difficult conditions74 ,the apparatus most commonly installed under these circumstances is the ,pennsylvania cable system1 which consists of a standard derrick or rig1 built of wood or steel1 about eighty feet in height1 having a twenty-foot base and a four-foot top4 ,the strength of the derrick is conditioned entirely by the size and depth of the well the operator wishes to drill1 for nowadays nothing is left to chance4 ,the size of the hole necessary in starting a well depends upon the physical formation4 ,if it is soft1 it is necessary to start with a hole of large diameter1 to overcome the disabilities produced by caving4 ,it sometimes happens that soft formations cave so much that it is necessary to insert several columns of casing before the required depth is reached4 ,a hole with a large diameter is also used in deep drilling4 ,illustration3 ,the ,drader ,well in the ,moreni field1 ,roumania4 ,this well was producing #bj1jjj barrels daily when it caught fire ,illustration3 ,burkburnett in northern ,texas1 showing development since ,august1 #aiah ,the drilling equipment is called by the oil workers a 8string of tools40 ,it consists of a rope socket1 a stem or sinker about thirty feet long and five inches or more in diameter1 depending on the size of the hole to be drilled1 with a bit at the bottom4 ,attached to a string of tools is a set of what are known as 8jars10 which take their name from their function of enabling the driller to jar the sinker loose4 ,manila or wire cable is wound upon a large reel known as the 8bull wheel0 which is placed in the base of the derrick and a section of this cable passes over a crown pulley at the top of the derrick and is fastened to the rope socket and 8string of tools40 ,the drilling movement is created by a power-driven walking beam which is a heavy timber working on an axis4 ,this walking beam rocks up and down1 with a stroke of three or four feet2 thus the tools are raised and dropped at regular intervals1 their great weight giving them a stroke equal in force to a steam hammer4 ,the power used is ordinarily steam and the cable is connected with the walking beam by a temper screw1 which enables the driller to lower the tools and handle them with ease and accuracy4 ,another method of growing importance is the rotary system1 perfected within the present century in the ,gulf ,coast field of ,texas and ,louisiana and which in many sections is coming into common use4 ,its special advantage is speed in soft or caving formations4 ,it consists of a perforated fish-tail bit screwed to a string of drill pipe1 which projects up through the derrick platform and is rotated at the rate of about two hundred revolutions per minute by a turn-table4 ,the top or 8grip0 joint of the pipe is usually made square1 or hexagonal1 to supply a good bearing surface for the turn-table4 ,the tools are suspended by means of a swivel at the top of the grip joint4 ,this swivel also has a hose connection through which thin mud is pumped down to the bottom of the hole4 ,the circulation of this mud carries out the cuttings made by the fish-tail bit1 and also serves to plaster up the side of the hole and thus prevent caving4 ,the column of mud in the hole exerts a hydrostatic pressure which absolutely prevents quicksand from running in and causing the hole to collapse4 ,a rotary appliance has been known to drill two hundred feet or more in twelve hours1 but usually so high a rate of speed is impossible1 since the pipe stem has to be pulled out at frequent intervals and the bit replaced4 ,the fact that the delicate fish-tail bit grows smaller with wear creates this necessity4 ,another periodical process that must be carried on in the intervals of drilling is that of lining the hole with casing1 in order that water and caving strata may be cased off before the oil sands are reached4 ,after a well is operating1 the lower part of the casing may rust through1 causing leakage4 ,to meet this difficulty an inner casing is put in place with a casing shoe1 on the outside of which is lead or other soft material which expands under pressure from above to make a snug fit4 ,not infrequently1 it is necessary to decrease the size of the hole with packers in this way four or five times1 though it is kept as large as is practicable all the way down4 ,when oil is struck it is sometimes suddenly driven to the surface by imprisoned gas1 and another gusher1 a comparatively common phenomenon in ,mexico1 is recorded4 ,but if this condition does not arise1 tubing and pump are inserted and the oil is drawn to the surface4 ,not infrequently1 however1 the oil sands at the outset do not yield an adequate flow and in a great number of cases what is known as 8shooting0 with nitro-glycerine1 an interesting and once dangerous process1 is resorted to4 ,in the early days before oil production had been reduced to scientific formulas the obtaining of crude was often attended with serious hazards to life4 ,ignorance of the properties of petroleum also created imaginary dangers for the pioneers4 ,in #ahfj the people of ,western ,pennsylvania were thrown into a panic by the proposal of a stranger1 claiming to be a ,european scientist1 to shoot a white-hot bolt into the bowels of the earth through an iron pipe driven to a great depth for the purpose4 ,by the ignition of inflammable gases thought to exist in the great cavities beneath the earth's crust the promoter expected to produce a sufficient explosion to lay bare the subterranean reservoirs of oil4 ,the ,pennsylvania populace1 instead of viewing this proposal with the apathy usually accorded to the first essays of inventive minds1 possessed sufficient imagination to picture the possible results1 and were so convinced that the alleged scientist minimized the possibilities of his project that they selected a small but determined committee to lynch him4 ,because he threatened to undermine not merely the foundations of society but the ground on which society subsisted1 he was taken into custody by the authorities and solemnly warned to desist4 ,less than a year afterward nitro-glycerine was being exploded in large quantities down deep in the earth to shatter the oil-bearing rock and make wells flow1 without noticeable public or physical disturbance4 ,any one who has watched farmers blow up tree stumps with dynamite may imagine what effect eighty quarts of nitro-glycerine would produce at the bottom of a deep eight-inch well4 ,the 8oil-shooters0 are necessarily men of steady nerve and extreme caution4 ,a shot will vary from ten quarts to as much as three hundred quarts1 as the well to be treated may seem to require4 ,for this purpose the nitro-glycerine is contained in tin tubes or shells five feet long and two inches or more in diameter1 pointed at the lower end and having bail handles at the top4 ,from five to fifteen shells1 as the case may be1 are lowered into the hole with extreme delicacy1 and then the 8go-devil0--a five-pound pointed shell--is released point downward4 ,nowadays1 it is customary to use a nitro-glycerine squib wound with a long fuse more often than a 8go-devil10 since the lowering of the cans of explosives may loosen earth which forms a cushion above the shells4 ,an example of the presence of mind of a well shooter was provided a few years ago4 ,just after the first shell had been lowered1 the rope suddenly slackened4 ,this could only mean that the well had unexpectedly begun to flow and that in the space of a few seconds the shell containing six quarts of deadly explosive would be hurled from the well mouth4 ,there was no time to run and the only thing that could be done this 8well shooter0 did4 ,bracing himself directly over the well he grasped the shell as it came to the surface1 and although the impetus with which it had ascended threw him across the derrick and dislocated his shoulder1 he held it free from contact and saved the lives of the entire crew4 ,under the careful arrangements now made1 a well is controlled with no more loss of oil than the driller thinks necessary to flush out the dirt and debris caused by the explosion4 ,the early or flush production of a well is usually of considerably greater volume than its normal or settled flow after it has been in operation for a few weeks4 ,this decline in production is often as much as #ej in the first #cj days4 ,where wells do not flow naturally1 various devices can be used to stimulate the output4 ,gas pressure has much to do with the problem4 ,as a general rule the well of low gas pressure must be pumped from the beginning4 ,the 8gusher0 which is the result of high gas pressure usually recedes rapidly in the matter of flow and becomes what is known as a 8pumper10 the name given to wells when pumping is resorted to4 ,the minimum of flow at which a well ceases to be profitable varies according to location1 and is fixed by many conditions of which transportation and quality are the most important4 ,thus1 in ,mexico1 a well yielding only fifty or one hundred barrels per day is usually abandoned as uncommercial1 whereas in ,pennsylvania and ,west ,virginia1 where the facilities for handling are better1 there are thousands of old 8pumpers0 in operation producing a superior grade of oil1 many of which supply only one-fourth of a barrel per day4 ,the production of the first well drilled on a new location fixes the policy to be pursued with regard to the rest of the acreage under lease4 ,after it has been tested and proven to be satisfactory the remainder of the property is drilled as quickly as possible4 ,if the field is shallow and the wells are all 8pumpers10 a central power station operated by gas or gasoline is sometimes installed which may provide the energy for pumping as many as a dozen wells4 ,the shackle-rods spread out over the field like a spider's web1 and the rhythmical 8chug-chug0 is music to the ears of the oil man and also to the farmer who has leased the oil rights to him--for the song of the pumping plant symbolizes fat royalties4 ,it will be clear to the reader that even in the initial process the production of crude petroleum under modern standardized processes which eliminate1 so far as possible1 waste of labour or of product1 involves a considerable capital expenditure4 ,the cost of a well in a new district1 where the depth is likely to be in the neighbourhood of three thousand feet1 may amount to considerably more than #ej1jjj and a year may pass in the process of drilling4 ,in the case of deep wells a permanent derrick is built1 but in earlier days1 for shallower holes a portable drilling machine was used1 and with good fortune oil was often reached within a short time and the cost kept well within a margin of #e1jjj4 ,it will be remembered that in the original ,drake well at ,titusville1 oil was struck at sixty-nine and a half feet and that it took seven months to drill the well2 a concrete illustration of the improvement in methods which has transpired in sixty years4 ,but the days of cheap drilling have passed into the limbo of half-forgotten things and there is practically no oil production at the present time which does not represent a very considerable initial outlay4 ,,chapter ,,viii ,,collecting ,,and ,,transporting ,,crude3 ,,the ,,pipe ,,line ,when a new lease or area proves itself to be commercially productive1 marketing the product becomes the next consideration4 ,in the earliest stages of recovery and storage of petroleum there were great losses through lack of facilities1 but modern mechanical science has largely eliminated the appalling waste of early days4 ,the crude is pumped into small flow tanks1 and from there run either to a pipe line station or to a 8tank farm40 ,the problem of saving the flow of gushing wells at one time presented serious difficulties2 and one of the most valuable of the early inventions was the clay underground tank4 ,the petroleum is directed into a sump-hole lined 7wherever possible7 with clay1 which1 because of its close texture1 makes an absolutely leakage proof reservoir4 ,from the sump-hole it is pumped to the tanks1 but this is usually but a temporary shift4 ,when the gushing process ceases1 pumps are installed and direct pipe connection with the storage tanks is established4 ,the modern pump which lifts the oil from the oil-bearing strata to the surface is a very powerful mechanism4 ,one of these will handle a column of oil as high as four thousand feet1 and deliver it into pipes4 ,as has been mentioned in alluding to the ,california seacoast fields1 the intervening ocean itself constitutes no obstacle to operations4 ,not infrequently the walking beam1 used in the drilling1 is brought into commission for pumping purposes4 ,it is rather a cumbersome system but has this advantage1 that it enables the operator to begin production immediately and realize cash for his output4 ,in what is known as the field tank1 situated adjacent to the derricks and pumps1 the oil operator deposits his daily production1 which is later pumped to the 8tank farm0 for shipment4 ,the capacity of a tank is known to a gallon4 ,so many inches or feet of petroleum in a tank represent so many barrels4 ,the gauger drops a steel tape into the oil until it touches bottom1 and the location of the oil showing on this steel is the measure of the contents4 ,then the valves are opened and a portion of the contents flows away to the pump station or 8tank farm40 ,a second measurement is taken1 and the difference between the first and second measurement reveals the quantity of oil drawn off4 ,the gauger then issues to the producer a credit certificate or 8run ticket0 representing the quantity of the crude received at that particular time4 ,there are other complications1 however1 before the oil reaches the market4 ,if the wells are gaseous in any considerable degree1 the oil must pass through a gas separator before it enters the tanks4 ,the gauger must measure and draw off any water present1 which1 owing to the proverbial incompatability of oil and water1 is not difficult1 and in calculating the amount of the credit slip he sees to it that no water is inadvertently paid for4 ,gas itself is not infrequently an important by-product of an oil lease4 ,almost invariably gas is associated with oil1 although oil is not always found where gas is available4 ,from many wells immense quantities of gas escape while drilling is in progress1 and may occasionally wreck the machinery4 ,drillers have become expert in handling these difficulties and in casing off the gas and corking it up for future use4 ,in many of the oil districts of the ,south and ,middle ,west1 natural gas from the producing areas has become the fuel of countless people who will never return to the use of coal1 so long as this cheap and cleanly source of heat and light is available4 ,some wells yield as much as #be1jjj1jjj feet of gas per day4 ,with gas and water eliminated1 the crude oil is pumped from the 8field tank0 to the 8tank farm10 a collection of great containers built near the oil fields to take care of the output of wells which produce oil faster than the pipe lines carry it to the refineries4 ,these containers are built of sheet steel and have a standard capacity of about #ee1jjj barrels in most cases1 although some are constructed to contain #hj1jjj barrels4 ,they are riveted and must be absolutely proof against leakage4 ,incidentally1 it may be mentioned that one of the difficulties which human ingenuity cannot combat is the tendency of lightning to become attracted by these steel constructions on the open prairies4 ,great havoc and waste sometimes result4 ,another convulsion of nature also dreaded by the oil man of the ,middle ,west is the cyclone1 which at times is especially disastrous to derricks and pumping plants4 ,there is but one more stage through which the crude petroleum passes on its way to the refinery1 but this stage is so important and has been such a vital factor in the organization of the ,american oil industry1 as well as in those of other countries which have emulated the system1 that it demands extended reference4 ,it is the pipe-line system which has done more to make the products of petroleum available to all at reasonable prices than any other innovation in connection with the industry4 ,it is in reality like the waterworks system which reaches under the streets of modern towns and cities1 but extending beneath the surface of millions of square miles of territory4 ,when1 as a result of the ,pennsylvania discoveries1 petroleum became a commercial commodity1 and opened up sources of untold wealth to the people of this continent1 little thought was at first given to the transportation problem4 ,the earlier wells on ,oil ,creek were situated so close to the navigable water that barrels of oil could without difficulty be loaded upon barges or smaller craft and floated down the river4 ,in periods of drought when the water was too low to float such craft1 oil boats would be assembled on a mill pond near the wells and the water dammed back while the loading was in progress4 ,then the gates would be opened1 and the fleet1 carried on the flood and guided by pilots1 would be rushed down ,oil ,creek to the ,allegheny ,river4 ,as production increased1 and new districts without convenient water transportation were successfully drilled1 it was necessary to devise new methods4 ,the production of some wells1 inaccessible by water1 became a drug on the market and in #ahfb crude oil prices at such wells fell as low as #aj cents a barrel4 ,to meet the difficulty1 a system of teaming was adopted and great caravans of the oil wagons became a familiar sight in inland oil regions4 ,such a caravan in the days before the pipe-lines would sometimes consist of no less than #f1jjj wagons drawn by two horses each1 and carrying from five to seven barrels of oil4 ,travellers of the early sixties encountering this spectacle were amazed at the endless stream of vehicles4 ,work was thus provided for a large number of men1 who1 with a team1 could earn from #aj to #be per day conveying petroleum from the wells to the nearest point of shipment4 ,roads were in many cases so bad that they tore down fences and made new thoroughfares to suit their convenience and they were a lawless set1 as later events proved4 ,the inspiration of constructing a pipe-line which would obviate teaming1 and by which oil could be made to flow direct to the shipping point or the refinery1 is credited to a ,jerseyman named ,hutchings1 who laid a short pipe line from some wells in which he was interested4 ,the first test of conveying crude oil in pipes was through a two-inch iron pipe in process of being laid ,february #ai1 #ahfc from the ,tarr ,farm to the ,humboldt ,refinery at ,plumer1 ,pa41 about six miles northeast of ,oil ,city1 ,pa4 ,the distance was two and a half miles4 ,the teamsters1 forseeing that their earnings would be diminished and perhaps disappear1 if the system were generally adopted1 destroyed the line and warned other producers against similar attempts4 ,hutchings was obstinate and built a second line4 ,again the teamsters completely destroyed his work4 ,undaunted1 he tried again1 with no better luck1 and in the end died a broken and penniless man4 ,but his idea did not die with him4 ,in #ahfe one ,henry ,harley commenced to lay a pipe line to the terminus of the ,oil ,creek railroad but the teamsters not only cut his pipes but burned his collection tanks4 ,the ,state authorities1 however1 gave him armed protection and his line was completed4 ,it was of two-inch diameter1 with a rated daily capacity of #hjj barrels4 ,illustration3 ,a big yield well in ,mexico flowing into a temporary storage pond ,illustration3 ,laying a pipe line through a ,louisiana forest ,j4 ,d4 ,henry1 one of the most eminent historians of petroleum1 asserts that the first commercially successful pipe line was constructed in the summer of #ahfe by ,samuel ,van ,syckel of ,titusville1 from the mushroom city of ,pithole1 ,pa41 to the nearest railway station1 ,miller ,farm1 a distance of four miles4 ,van ,syckel had the backing of ,new ,york capital1 and the basis of his success1 after similar projects had been abandoned as visionary1 was due to better mechanical arrangements4 ,van ,syckel's line does not appear to have suffered from the lawlessness of teamsters4 ,on the completion of ,harley's second line in the same neighbourhood1 both proved so commercially successful that capitalists bought and amalgamated the two4 ,teamsters continued to give trouble and effect damage but protective measures were successful in securing the performance of the enterprise4 ,from that time onward the mileage of pipe-lines has steadily multiplied1 and by means of them the crude petroleum collected at a 8tank farm0 on the prairies is conveyed to refineries many hundreds of miles away4 ,the first pipe-line of considerable length was laid in #ahhj from ,butler ,county1 ,penn4 to ,cleveland1 ,ohio1 a distance of over #ajj miles4 ,almost immediately after trunk lines from ,bradford1 ,pa4 to the ,atlantic seaboard were commenced4 ,by #ahic there were #c1jjj miles of pipe lines in the ,eastern states with storage facilities for #ce1jjj1jjj barrels of oil4 ,british and ,french historians of petroleum1 viewing the development of the industry from the standpoint of impartial observers1 regard the year #ahhc as an epochal one in its history1 because it marked the initiation of a comprehensive policy with regard to pipe-lines1 under the inspiration of ,john ,d4 ,rockefeller4 ,mr4 ,rockefeller1 originally a produce merchant1 became interested in the oil business as early as #ahfb by the purchase of an interest in a small refinery at ,cleveland1 and by #ahfe1 had become so convinced of the possibilities of the petroleum industry that he devoted himself exclusively to the refining and shipping business4 ,in #ahgj this business became incorporated as the ,standard ,oil ,company4 ,of the events of #ahhc ,alfred ,lidgett1 a noted ,british oil expert and editor of the ,petroleum ,times 7,london1 ,england71 says in his book 8,petroleum10 published in #aiai3 8,then a few master minds came to the front1 and loyally supported by ,john ,d4 ,rockefeller1 they undertook the herculean task of practically girdling the ,united ,states with a system of oil pipe-lines that has no parallel anywhere4 ,they eliminated the jaded horses1 oil boats1 wooden tankage and slow freights1 tedious methods1 and questionable practice of handling petroleum1 and substituted therefor the steam pump1 the iron conduit1 the steel tank storage1 and systematic and business-like methods which soon commanded the confidence and respect of all oil-producers4 ,they extended their pipe-lines to almost every producing well and established a transportation system which serves the industry to-day as no other on earth is served4 ,the advantages of the modern pipe-line to the oil-producer are obvious40 ,the pipe-line connection to the producer's well and tanks ensures prompt clearance of the crude and a steady cash market for his output1 under the system defined in the last chapter4 ,the elimination of waste and the reduction of cost in connection with transportation1 of course1 resulted in great material benefits to the consumer of petroleum products4 ,it is indeed quite clear that without this ,napoleonic organization of the pipe-line service the boon of petroleum could not have been adequately utilized by humanity at large4 ,in conveying oil through the pipe lines both gravity and pumping are used4 ,the pumping station at the 8tank farm0 forces the crude into pipes through which it commences its long journey to the refinery4 ,this pumping equipment is in itself a wonderful mechanism and drives the oil over heights where gravity cannot assist4 ,the pipe at the field lines where the journey starts varies in diameter from #b to #h inches and the joints are screw threaded4 ,the main trunk lines are from #f to #ab inches in diameter and pumping stations to continue the driving process are located at necessary intervals along the route4 ,in some fields the oil is heavier than in others and then the stations have to be located nearer to each other1 while in the case of certain very heavy crudes1 heat is applied to promote the flow before it enters the pipe-line4 ,by this system the amount of oil that flows under the soil of the ,united ,states to distant points exceeds half a million barrels daily4 ,concealed and unobtrusive1 these lines do their work so well that millions of people whom they serve are unaware of their existence4 ,everyone knows of the freight train that links up the small town factory with the central distributing point1 and of the grain car which carries the farmer's wheat to the seaboard2 but little attention is paid to this great but inconspicuous transportation adjunct of ,american industry1 the petroleum pipe-line4 ,as the system has grown1 handling in tank cars of anything but refined product has become more and more nearly obsolete1 for economic reasons4 ,once installed1 the pipe-line system is cheap and easily maintained4 ,it would1 indeed1 be quite impossible to conduct the ,american oil industry of to-day by the use of railroads1 even though they were greatly multiplied4 ,the crude oil which flows daily1 east of the ,rocky ,mountains1 through pipe-lines would fill over #b1ejj tank cars4 ,since1 on the average1 a barrel of crude travels #a1jjj miles before it reaches its destination1 it would require approximately #ge1jjj tank cars to do the daily work of transportation effected by the pipe-lines1 not to mention approximately #ijj engines which it is estimated would be required to move them4 ,leaving out all the possibilities of congestion in stormy weather1 it will be seen that such a task is one that railroads could not hope to carry out4 ,in its present dimensions the oil industry1 therefore1 owes as much to the pipe-line as to the actual existence of oil deposits themselves4 ,the work they perform is infinitely more even and uninterrupted than that of any system of railroad or water transportation4 ,the pipe-lines run to full capacity1 winter and summer1 day and night1 the year round1 making possible the existence of great central refining plants where the crude can be treated in bulk at the lowest possible cost1 and where distribution can be effected at the lightest impost on the ultimate consumer4 ,,chapter ,,ix ,,refining ,,and ,,manufacturing ,,petroleum ,,products ,as has already been intimated1 the ,pennsylvania oil discoveries of fifty years ago would have been relatively valueless if methods of refining had not advanced sufficiently to develop the marketable possibilities4 ,if the reader has followed this narrative he will not have failed to note that it was the optimism of experimental chemists1 who discerned in petroleum the possibilities of an illuminant which would take the place of whale oil and other fats1 which first suggested to pioneer investors like ,bissell the idea of developing ,america's oil fields by the boring system4 ,certain crude traditional methods of refining petroleum had prevailed for centuries in the ,east1 but they had not produced an illuminant that would be acceptable to our civilization4 ,the advancement of science1 which gradually enabled the early ,american refiners to produce a comparatively odourless1 safe1 and free-burning oil from the crude1 gave the necessary stimulus to the new industry4 ,the ,american refining system has since become one of the greatest examples of standardized industry1 fascinating in its minutiae1 and amazing in the efficiency and economy of its organization4 ,the pipe-line system has promoted the establishment of great central refineries whither the crude travels distances of anywhere from five hundred to fifteen hundred miles1 and which1 by treating it in vast quantities1 are enabled to provide the world with the products of petroleum at the lowest possible cost4 ,it is the purpose of the refining process to produce from the crude petroleum marketable products and this involves two stages4 ,first3 ,the separation of the crude petroleum into its constituent parts1 corresponding in general to gasoline1 kerosene1 lubricating oil1 etc41 and1 subsequently1 the purification of each of these roughly separated products to bring them into marketable condition4 ,the process might be best understood by likening the crude petroleum to gravel scooped from out of the hillside4 ,such gravel would consist of a mixture of sand1 fine gravel1 coarse gravel1 rocks and boulders4 ,in this condition it would be unmarketable1 except perhaps to fill up marshy land4 ,by analogy the crude petroleum consists of a mixture of many different compounds and the mixture itself is unmarketable and of no value except as a fuel1 at once troublesome and dangerous4 ,to prepare the freshly mined or 8crude0 gravel for the market it would be sifted through a series of screens which would separate it into its component sizes4 ,as a result of the sifting operation there would be produced builders' sand suitable for use in mortar1 fine and coarse gravel desirable for concrete1 rough rock for road foundations1 and boulders for masonry structures4 ,the crude petroleum oil is a liquid and cannot be sifted on screens as is the crude gravel1 but nature has given it properties in consequence of which it may be separated into its constituents almost as easily as is the gravel4 ,these properties are the different boiling points of the several constituents4 ,thus1 when water or any other single liquid is heated it continues to increase in temperature until boiling begins1 after which its temperature remains the same1 no matter how rapidly the heat is applied1 until all of the liquid has been boiled away4 ,when petroleum is heated1 however1 it begins to boil at a very low temperature1 a temperature hardly hot enough to injure the skin1 in some cases4 ,it is not the whole of the petroleum which is boiling1 however1 but only the very lightest part of it1 that is1 the gasoline or naphtha4 ,if the temperature were to be held constant for a short length of time all of the gasoline would have been boiled off1 and although the liquid would be just as hot as it was before1 the boiling would cease entirely4 ,if the heating is now continued1 however1 and the temperature of the oil raised to some higher figure1 it again begins to boil and now it is the kerosene constituent of the crude petroleum which is being converted into vapour and driven out of the liquid4 ,after a time all of this kerosene will be gone1 and as before1 the liquid1 although still at the same temperature at which it has just previously been actively boiling1 remains quiescent4 ,in this fashion the various constituents of the crude petroleum may be separated from one another by a 8sifting0 operation somewhat similar to that used to separate sand from gravel and gravel from rock1 except that instead of employing screens to effect the separation there is employed an apparatus in which the heat of the oil can be gradually increased and the products1 which are successively driven off in this fashion1 separated from one another4 ,the apparatus commonly employed for this purpose is called a 8still0 and consists merely of a steel receptacle1 usually in the form of a horizontal cylinder1 much like a simple steam boiler4 ,these stills have been developed to large capacity1 some of them holding upwards of #ej1jjj wine gallons of oil at one time4 ,the still is mounted over a furnace which is usually heated by coal just as an ordinary steam boiler4 ,in this still the temperature of the crude petroleum is gradually raised and with each elevation in temperature a different product is boiled or driven off the mass of liquid until finally nothing remains in the still except a small quantity of black residue which is known as petroleum coke4 ,it remains1 therefore1 to cool and condense these vapours4 ,this is accomplished by an apparatus called a 8condenser0 which is connected to each still4 ,an elementary condenser consists merely of a coil of pipe submerged in a tank of cold water4 ,the vapour leaving the still passes through the submerged coils in which the vapour by cooling is caused to return to a liquid condition4 ,into one end of the condenser coil1 therefore1 the vapour from the still enters and from the other end there flows the condensed liquid4 ,the first and most important step in the process of refining all crude petroleum is conducted in the fashion above described4 ,a refinery of large size will have perhaps #ajj of those crude stills which are generally arranged in groups or batteries1 each battery containing a dozen or more stills4 ,from each still the condenser pipes are led to a 8receiving house0 which is located in some central position4 ,in this manner it becomes possible for a single responsible supervisor to observe and control the operation of a large number of stills4 ,the supervisor is called the 8stillsman0 and upon him rests the responsibility for directing the initial process of separation or sifting by which the crude petroleum received at the refinery is roughly separated into different 8fractions0 or parts1 each of which by further refining becomes a marketable petroleum product4 ,as generally conducted1 this first distillation process separates the crude petroleum oil into four major fractions4 ,the fraction which has the lowest boiling point and is therefore the first to be driven off from the crude petroleum in the still as the latter is heated1 is the naphtha or gasoline fraction4 ,when all the naphtha or gasoline from any particular still has been driven off1 the stillsman1 stationed in the receiving house and able to observe constantly the character of the condensed liquid1 which is delivered by the pipe from the condenser coil to the house1 will change the connections in the receiving house so that the next 8distillate0 to be received will flow to a separate tank4 ,this second distillate which comes into the receiving house and is thus diverted to a separate tank will be the illuminating oil distillate or1 in refinery parlance1 the 8refined oil distillate40 ,it is interesting to note that 8refined oil0 to a petroleum refiner still means kerosene illuminating oil1 since in the original petroleum industry this illuminating product was the only fraction of the crude oil which was highly purified or refined4 ,the entire remainder of the crude petroleum1 including gasoline and the lubricating oils and other products heavier than kerosene1 were either discarded wholly or else sold for whatever they would bring in an unrefined or very poorly refined condition4 ,the next product which is driven off from the crude oil after all of the kerosene has been removed is a somewhat heavy and discoloured1 but free flowing oil1 known as 8gas oil40 ,gas oil is seldom sold at retail and the general public has very little knowledge of it4 ,its main use is for the manufacture of city gas1 auxiliary to coal1 the products of which form the base of city gas4 ,the next product after the gas oil and the last important product of crude petroleum is the lubricating oil distillate1 which is known as 8paraffine distillate0 for the reason that it contains the paraffine wax4 ,with the exception of the gas oil1 which by reason of the uses to which it is put does not usually require any further treatment1 the products thus roughly separated from the crude petroleum each need not only further separation1 but actual chemical purification to prepare them for the market4 ,considering these products in the order in which they are derived from the crude petroleum1 the gasoline or naphtha fraction is often subjected to a second distillation by which it is further 8sifted0 into light1 intermediate and heavy naphthas4 ,it is customary to conduct this second distillation process by steam heat instead of by fire1 since the gasoline or naphtha fraction boils at such a low temperature that it is unnecessary to resort to a furnace and furthermore1 the quality of the product is thought to be better if the second distillation is conducted with steam4 ,following this second distillation the naphtha or gasoline is subjected to chemical purification which involves treatment with sulphuric acid1 with sodium hydrate1 sodium plumate and filtration through ,fuller's ,earth--a species of clay which has been found to have not only a mechanical but probably also a chemical purifying and decolourizing action4 ,there is a considerable variation in the purification or refining method employed by the different refiners1 but the foregoing treatments are the principal ones now in vogue4 ,the marketable products produced from the crude gasoline or naphtha distillate by this re-distillation and purification process are principally as stated--light naphthas1 intermediate naphthas and heavy naphthas4 ,the light naphthas range from petroleum ether1 an exceedingly sweet-smelling and volatile liquid to aviation gasoline1 especially suitable for use in aeroplane motors under extreme conditions of temperature and power development4 ,the intermediate naphtha is the ordinary gasoline of commerce1 principally used as fuel for automobile engines4 ,the heavy naphtha is that often sold under the name of benzine1 cleaners' naphtha1 solvent naphtha or varnish makers' and painters' naphtha4 ,as these names indicate1 the heavy naphtha is principally used in the manufacture of paints and varnishes1 for dry-cleaning and as a solvent in the chemical industries4 ,the second fraction of the crude petroleum1 the kerosene1 illuminating oil1 or 8refined oil10 is likewise ordinarily subjected to a second distilling operation1 the main purpose of which is to separate it from any traces of gasoline which would tend to make it highly explosive and dangerous when used in lamps4 ,this re-distillation is followed by a chemical purification1 producing the kerosene of commerce1 which is not only so safe that it may be heated to a temperature well above #ajj ,f4 without danger of giving off any explosive vapour1 but is also water-white in colour1 crystal clear1 and of such purity that it may be burned in a lamp in a closed room without producing offensive odours or smoke4 ,the third major fraction of the crude petroleum is the gas oil which has previously been referred to4 ,in general this product may be marketed without further treatment4 ,illustration3 ,lines for loading oil on vessels anchored from one to two miles off shore4 ,this is a regular practice in ,mexico where a deep harbour is not available ,illustration3 ,battery of crude stills at the ,bayway ,refinery1 ,linden1 ,n4 ,j4 ,the next and last major fraction is perhaps the most interesting of all4 ,it is from this fraction that the host of lubricating products are obtained and also the paraffine wax which has almost entirely superseded animal and vegetable waxes1 not only for candles1 but for laundry use1 for producing water-proof paper1 for sealing preserve jars and for a multitude of minor uses4 ,the first step in the treatment of this 8paraffine distillate0 or lubricating oil distillate fraction of the crude petroleum is to separate from it the paraffine wax which it carries in solution4 ,this is accomplished by chilling the oil to a very low temperature through the use of refrigerating apparatus4 ,when the oil is thus chilled the dissolved wax therein crystalizes so that the mixture resembles nothing more than slush or mush ice4 ,having caused the dissolved paraffine to freeze and come out in the form of slush in this fashion1 it remains to separate it from the oil4 ,this is accomplished by filtering the mush1 still held at its low temperature1 through canvas cloths4 ,the oily part of the mush passes freely through the cloth while the solidified particles of wax remain on the face of the fabric4 ,the first two products separated by the chilling and filtering processes are therefore a wax-free oil and an impure paraffine wax4 ,the impure paraffine wax is known as 8slack wax0 and is melted and poured in a liquid condition into shallow pans1 where upon cooling1 it solidifies4 ,the pans are then slowly and cautiously heated1 and as the temperature of the wax rises1 the small quantity of oil which it still carries sweats out of the wax1 just as though the wax were actually perspiring4 ,as a result of this sweating operation there is produced 8crude scale wax10 the ordinary wax of commerce4 ,it is yellow to ivory in colour1 contains only a small proportion of oil and is almost odourless and tasteless4 ,the crude scale wax is very commonly further refined by the general methods used throughout the oil industry1 i4e4 by treatment with acid and alkali1 and by filtration1 to produce refined paraffine wax of pure white colour1 free from oil1 and without odour or taste4 ,it is this refined grade of wax which is commonly met with in the retail market4 ,returning to the wax-free oil which passes through the canvas filters1 leaving behind the impure wax1 we find that this is the product from which lubricating oils are obtained4 ,it is an oil of dark brown or amber colour1 considerably heavier than kerosene and has a very greasy feeling which is indicative of its value for lubricating purposes4 ,elaborate methods have been devised for accurately determining and gauging this greasiness or viscosity1 which is the property of the oil upon which its lubricating value is most dependent4 ,in general1 this oil is in part re-distilled1 that is1 it is charged into a still and subjected to a temperature which is sufficient to drive off1 in the form of vapour1 some portion1 though not all of the oil under treatment4 ,this process1 accurately described as 8reducing0 the oil1 serves to concentrate in the residue remaining in the still1 the heavier or more greasy or viscous constituents1 the grade or viscosity of the lubricating oil depending on the extent to which this reduction is carried4 ,as in the case of the other petroleum products1 it is customary to carry out a chemical purification process and to filter the oil subsequent to the re-distillation4 ,as a result of such further chemical purification and filtration1 the colour of the oil is improved1 any suspended solids or dirt which it may contain are removed1 and any chemical constituents which it may contain and which may be detrimental to its use1 are destroyed4 ,the refining process above described is that which is most largely employed in this country1 being a typical process for obtaining gasoline1 kerosene1 gas oil1 lubricating oils and paraffine wax from the grade of crude petroleum produced from the central and central western states of the ,united ,states4 ,the process is considerably varied1 however1 in dealing with crude petroleum of different characteristics4 ,for example--there is produced in ,mexico and imported into this country for refining in the plants located on the ,atlantic ,coast a very large amount of petroleum oil which is little more than thin asphalt4 ,oil of this character is not generally used for the production of lubricating oils or wax1 but is instead merely refined for the production of gasoline1 kerosene1 and fuel oil1 or for gasoline and fuel oil only4 ,it will be understood that the term 8fuel oil0 merely indicates any heavy petroleum oil free from dirt and water1 and fluid enough to be readily pumped through a pipe1 and containing no constituents which would make it apt to give explosive mixtures with air4 ,fuel oil of this description is largely replacing coal as a fuel for steamships4 ,the ,state of ,california produces a considerable quantity of this 8asphalt base0 crude petroleum1 which1 like the crude petroleum from ,mexico1 is subjected to refining processes very much simpler and yielding mainly gasoline1 kerosene and fuel oil4 ,it is usually also from crude petroleum of this character that the artificial asphalts which supplement the supply of natural asphalt for paving material are produced4 ,these artificial asphalts in general represent the heavier constituents of crude petroleums1 such as those of ,mexico and ,california4 ,the term artificial asphalt is perhaps a misnomer1 for1 although the properties of the asphalt are somewhat modified by the refining operation1 the asphalt exists as such in the crude petroleum oil and the main purpose of the refining operation is merely to separate it from the fluid constituents of the oil in which it is dissolved4 ,there is also a large amount of oil produced in the ,united ,states1 mainly in ,pennsylvania1 which is of a character especially suited to the production of high grade lubricants by a simple refining method4 ,with oil of this character the lubricating constituents do not require distillation to separate them from impurities4 ,the crude petroleum may be directly reduced by distillation1 taking off the three major fractions1 that is1 gasoline1 kerosene and gas oil1 and leaving behind in the still a very good grade of lubricating oil which1 however1 contains paraffine wax4 ,to separate this wax from the lubricating oil1 in which it is dissolved1 an ingenious process called cold settling is resorted to4 ,according to this process1 the mixture of lubricating oil and wax is diluted with gasoline1 enough gasoline being employed to make a very thin liquid1 and the mixture is then chilled to a low temperature4 ,from the chilled mixture the paraffine separates out in the form of a thick grease which settles to the bottom of the chilling tank4 ,this grease is subsequently refined to produce the various grades of petroleum jelly4 ,the lubricating oil diluted with naphtha and separated from the paraffine or grease as described is subjected to re-distillation for the separation of the naphtha and forms a base for the production of a wide variety of high grade lubricants4 ,returning to the analogy by which we compared crude petroleum oil to crude gravel mined from the hillsides1 it will be noted as in the case of the gravel1 the various crude petroleums differ in character considerably1 according to their origin1 and that the refining process must be modified to suit the character of the oil4 ,the analogy may be pursued one step further to explain one of the most interesting developments of the modern petroleum industry1 i4 e41 the manufacture of gasoline not naturally contained in crude petroleum4 ,this process of manufacturing gasoline is called 8cracking40 ,let us assume that we desire to obtain from crude gravel1 mined from the ground1 a maximum amount of fine gravel4 ,we would first use all of the fine gravel which was naturally contained in the crude gravel and then we might pass the remainder of the gravel1 which is too large for our use1 through crushing rollers which would crush or crack it1 thus producing an additional quantity of fine gravel4 ,an analogous process has now been successfully developed for the treatment of petroleum oils4 ,according to this process1 a heavier constituent of the crude petroleum oil1 for example1 kerosene or gas oil1 may be subjected to distillation at high temperatures1 and under high pressure in special stills designed for this process1 thus securing increased quantities of gasoline4 ,in this operation a certain proportion of the heavier oil treated is caused to break down into gasoline4 ,the ,u4 ,s4 ,bureau of ,mines estimates that in #aiai some #ae of the country's total gasoline production was obtained by this process4 ,,chapter ,x ,,petroleum ,,and ,,other ,,industries ,petroleum products not only enter as an essential into great industries2 but their manufacture and distribution have given birth to many allied industries directly connected with the oil business4 ,the plant of a modern refinery1 for instance1 by no means begins and ends with equipment for the distillation and treatment of oil4 ,we have seen that the petroleum industry has given birth to an underground transportation system entirely unique1 which accomplishes something impossible to railroads1 under any conceivable organization4 ,the architectural breadth and completeness of detail which characterize the petroleum industry as now organized1 also extend to many mechanical trades4 ,the modern refinery is a self-contained institution4 ,it goes outside its own organization for little4 ,besides its still hands and other types of oil workers it has its corps of carpenters1 pattern makers1 machinists1 acetylene welders1 boilermakers1 sheet iron workers1 riveters1 blacksmiths and the like4 ,a modern refinery of the large type is a complex industrial unit1 astonishing in its diversity of duties and pursuits4 ,among them this army of workers construct almost everything that is necessary to carry out the work of storage and distribution4 ,steel1 delivered from the rolling mills in immense plates1 emerges in the form of tank wagons1 stills1 condensers1 tanks and all the varied equipment of the refining industry4 ,highly technical and intricate mechanical operations are carried out in connection with the manufacture of these accessories4 ,the lay visitor to such an institution will find himself amazed by the sight of roller shears that cut out half an inch of iron neatly and easily4 ,punching a four inch washer out of solid half-inch steel is a relatively light operation with the power available4 ,by means of the multiple punch a row of holes is cut in a sheet of steel within fewer seconds than it would have taken the village blacksmith of the olden time hours to execute4 ,the hydraulic press pats the steel plates into the required shape with a stroke of several tons4 ,cutting steel with an acetylene flame is a familiar sight1 and the man who operates this torch could cut a hole in the side of a battleship in short order4 ,electric cranes toss beams weighing twenty tons or more about as though they were jack-straws4 ,by such processes a tank capable of holding #ee1jjj barrels of oil comes into being with astonishing expedition4 ,the production of the barrels1 boxes and innumerable subsidiary requirements of a great manufacturing industry are all a part of the plant's activities4 ,refineries also provide a considerable portion of their own fuel4 ,the gas produced in the refining process is collected to run gas engines which provide power for various mechanical operations4 ,although the refinery is self contained1 the various branches of oil production1 transportation and treatment have been a stimulus to many industries4 ,invention has been applied to the construction of improved oil drilling and pumping machinery2 the pump lines themselves are prefaced by mechanical production of the requisite piping4 ,of the petroleum industry was born the tank steamer and the tank car4 ,though the crude reaches the refinery largely by means of its own transportation system1 its various transformations leave by other routes4 ,most of the gasoline and other products that are consumed on this continent find their way from the refinery to the distributing stations in tank cars1 which have become an institution on ,american railways4 ,solid trains of them leave the great refineries every day2 without them it would be impossible to deliver the various petroleum products1 indispensable to industry1 to consumers so expeditiously as now4 ,petroleum's faculty1 as a standardized industry1 of attracting to itself subsidiary trades is1 however1 but a negligible consideration in comparison with its relation to industry and commerce in the larger sense of these terms4 ,the noted ,english publicist1 ,sydney ,brooks1 has drawn a pen picture of the marvellous interpenetration of the world's industrial fabric which has taken place within the past fifty years4 8,to-day0 says ,brooks1 8petroleum enters into our daily life under the guise of at least #bej different and marketable commodities4 ,it lights our lamps and stoves2 it cleans our clothes2 it prepares our varnishes2 it acts as a substitute for turpentine in the printing1 dyeing and painting industries2 it invades our tables in the form of artificial butter1 confectionery and a number of other edibles2 it supplies us with our wax1 our candles1 our chewing gum1 and a vast array of ointments1 salves and drugs2 it furnishes the dressing table with perfumes and the smoking room with matches2 it imparts the final lustre to our collars and shirts2 and the textile trades use enormous quantities of it for finishing soft goods2 it medicates our bodies and gives to preserved fruits their peculiarly toothsome appearance2 it blends with animal and vegetable oils in a range of combinations almost infinite2 its residue can be burned as coke1 or used in the manufacture of electric arc-lights1 or employed in road making as a rival to asphalt2 it lubricates our machinery and drives our motor cars1 our ships1 our aeroplanes1 our locomotives1 our ploughs and tractors4 ,by means of it every form of transportation on land1 in the air1 on the seas and below the sea1 has been immeasurably extended and in many instances revolutionized4 ,there must be at least a hundred trades that now use oil for heat and power purposes where ten or fifteen years ago they used nothing but coal4 ,the demands for it are indeed illimitable40 ,mr4 ,brooks is speaking exclusively of the part that petroleum plays in the industrial and social life of ,great ,britain4 ,in the ,united ,states its applications are wider still4 ,were it necessary1 it would be possible to dilate on the relation of petroleum to agriculture in this country1 where the farmer who operates a large acreage in the middle west or in ,texas and ,california1 by means of tractors finds petroleum an indispensable ally4 ,in this sense petroleum has helped enormously to increase the food supplies of the world and the national wealth of the ,united ,states4 ,one of the greatest1 if not the greatest of modern industries on this continent--the manufacture of motor cars--would to all intents and purposes be non-existent were it not for one offspring of petroleum 7once regarded as almost the least valuable product of the refinery7 gasoline4 ,invention has reacted radically on the oil industry1 from decade to decade1 and especially on its refining phase4 ,until the advent of what is known as the 8internal combustion0 engine1 for instance1 the demand for gasoline was so limited that when produced1 as was inevitable in the distillation of many types of crude1 it represented but a fraction of its present value4 ,to-day this engine1 which lives and functions by gasoline1 has created an ever-increasing demand for that fluid which taxes the energy of all refineries to meet4 ,the internal combustion engine with the assistance of petroleum has indeed exercised such a powerful influence in changing the face of civilization as to demand fuller reference4 ,it not only made the automobile practicable1 but the aeroplane1 the dirigible air-ship1 the submarine and a host of other craft possible4 ,when1 during the autumn of #aiai1 the entire railroad system of ,great ,britain was paralyzed by a general strike1 and the people of its great and overcrowded cities were face to face with starvation1 it was admittedly the internal combustion engine1 operated by gasoline 7commonly known overseas as motor spirit or petrol7--that saved the situation4 ,to understand its appellation the reader should note the fact that the older forms of engines were operated by steam generated in boilers1 heated by external combustion--a process familiar to everyone4 ,the internal combustion engine1 on the contrary1 runs by fuel 7usually gasoline7 which is introduced directly into the contrivance itself4 ,there it is vaporized and mixed with air so as to become an explosive substance with great powers of propulsion4 ,it is not difficult to grasp the immense saving of weight and space which is involved by the elimination of the boiler from the mechanism of an engine4 ,during the war especially1 the minds of all mechanical experts were applied to improvements that would result in an engine being made lighter and lighter with each new model1 while at the same time meeting enormous power demands4 ,without such space-saving contrivances the flying machine would never have reached its modern development1 and the motor car would not have come into general use4 ,the revolution effected by automatic traction alone1 with the co-operation of petroleum1 would have seemed incredible a generation ago4 ,the pioneer users of motor cars bought their gasoline at drug stores4 ,to-day the 8gas0 stations in every country village and in connection with every large garage and auto-livery give testimony to the part a single product of petroleum plays in the social and commercial life of the ,american people4 ,the automobile industry1 which could hardly have been born without petroleum as an auxiliary1 now represents an enormous investment in this and other countries giving employment to innumerable workmen of all classes4 ,oil as a source of power is to all intents and purposes an outgrowth of the twentieth century4 ,its function as a source of light and heat is historical4 ,lighting by means of oil lamps has in itself undergone great improvements since the early days and the use of oil as a fuel in a manner distinct from its application to automobiles1 aeroplanes and other inventions operated by gasoline engines1 is steadily increasing4 ,it is taking its place as a substitute for coal1 not only in the ,united ,states but to a marked extent in other countries4 ,for some of them it may be said to have proved a solution for railroad problems that were at one time almost insuperable4 ,russia1 for instance1 for the last thirty years1 and up to the time when internal conditions disrupted her industrial organization1 utilized her own petroleum for fuel4 ,the railroads of ,mexico1 ,argentina1 ,brazil and other ,latin ,american countries as well as in ,roumania are now served by oil burning locomotives where a decade or so ago coal or wood was employed4 ,in this country the ,southern ,pacific ,railroad and other well known transportation corporations have demonstrated that the locomotive run by liquid fuel is an economic success2 in #aiai the amount of fuel oil used for this purpose in the ,united ,states was approximately #ej1jjj1jjj barrels4 ,railroad experts have discovered that the steaming capacity of a locomotive running on fuel oil is so materially increased that it is possible to haul with it a greater tonnage at a much increased speed than would be possible with a coal fired engine4 ,illustration3 8,look boxes0 in the 8,still ,house10 where the grades of oil are separated according to gravity1 the process being known as the separation of 8cuts0 ,illustration3 ,a modern tanker carrying #d1jjj1jjj gallons of oil ,oil as a domestic fuel is gradually making its way because of the advantages it gives in the matter of cleanliness4 ,even the time-honoured oil stove has been subjected to such improvements as to be a vastly more acceptable inmate of the home than it was in days gone by4 ,the use of petroleum as a fuel for stationary engines in manufacturing plants has also kept pace with its employment in other directions and here again its superior heating power1 the elimination of dust and the saving of labour involved are economic factors of first importance4 ,the invention of new devices for the utilization of oil have necessarily proven a stimulus to manufacture4 ,indeed1 it would be impossible to trace the myriad paths by which petroleum enters into the public and domestic economy of the civilized world4 ,so far we have left untouched one of its most pregnant applications2 its relation to sea power and to maritime commerce1 which is so wide and important as to justify a separate chapter4 ,,chapter ,,xi ,,petroleum ,,on ,,the ,,seven ,,seas ,the intimate connection between petroleum and maritime commerce became assured from the day it was recognized that the ,united ,states had resources destined to make her the chief reservoir of the world's supply4 ,an interesting discourse could be written on the manner in which the people of many nations have for centuries depended on ships and seamen for light4 ,the function of the old whaling ships in the world's economy is now performed by the modern oil-tankers--although carrying the means of light to other lands is but a minor part of the service of these latter day vessels4 ,the relation of petroleum to the sea may be approached from several angles4 ,the necessity of conveying vast quantities of oil across the oceans of the world has1 for instance1 produced a form of maritime architecture almost as unique in its kind as is the pipe-line in land transportation4 ,then again1 oil has within recent years tended to revolutionize the fuelling of both the merchant marine and the war fleets of this and other countries4 ,petroleum's relation to naval activity in time of war is so important that it will be dealt with in a separate chapter4 ,as a stimulus to international relations it has played a stupendous part in the evolution of the ,united ,states from a great but isolated nation into a world power4 ,one of the most important factors in the early development of the petroleum industry in ,america was the realization that there existed an almost limitless market overseas awaiting this new product4 ,american petroleum met an ever-growing need4 ,owing to the decline in the annual catch of whales the world was being searched for substitutes for whale oil and in the matter of lubricants for machinery there was something like famine4 ,within two or three years after the sinking of ,drake's well1 ,europe was eagerly seeking to purchase not only the crude but the refined products1 and the demand has grown apace ever since1 despite the development of oil fields in other parts of the world4 ,in the annals of the oil industry the name of ,dr4 ,a4 ,f4 ,crawford1 who in #ahfa was ,u4 ,s4 ,consul at ,antwerp1 holds an honourable place4 ,in that year he arranged that a shipment of forty barrels of refined oil should be sent to the industrial country of ,belgium and thus export to the continent of ,europe was begun4 ,great ,britain1 which had been trying to develop ,scottish shale oil production1 was also quick to avail herself of the ,american discoveries4 ,from the outset the problem of how to carry large quantities of petroleum products without waste1 danger or injury to other cargoes1 occupied the minds of shipping men4 ,the earlier shipments were in the nature of samples despatched in ordinary cargo vessels1 usually from the port of ,philadelphia4 ,in ,november of #ahfa ,messrs4 ,peter ,wright and ,sons1 a well known shipping firm of that city1 chartered a small sailing vessel1 the ,elizabeth ,watts1 to carry oil exclusively and to deliver her cargo in ,london4 ,so great was the apprehension among sailors of the dangers of sailing on an oil-ship that to get a crew the old-fashioned plan of kidnapping seamen under the influence of drink was resorted to2 and the crew reached ,london without other disaster than the injury to their sensibilities involved4 ,the success of this voyage prompted other shipowners to embark in the business1 so that by #ahfd shipments of oil from various ,atlantic ports had grown to a very respectable total4 ,casks or barrels were used for transport1 entailing a very great waste of oil1 time and labour4 ,the casks themselves called for a large initial outlay and leakages were a source of loss1 damage and possible danger4 ,in #ahfc the thought of carrying oil in bulk in vessels1 specially designed for that purpose1 appears to have occurred almost simultaneously to importers in different parts of ,england4 ,henry ,duncan of ,bromley1 ,kent1 is generally admitted to have been the father of the idea4 ,he chartered a schooner at ,chicago1 fitted her to carry oil in bulk and in her hold and loaded her at ,sarnia1 ,canada1 then as now1 an oil shipping point of inland ,america4 ,the experiment was ill-fated1 for the schooner was lost in the ,gulf of ,st4 ,lawrence before entering on the high seas4 ,but the scheme of carrying oil in the holds of wooden ships in bulk was later successfully adopted by other shipowners and continued in practice until #ahgh4 ,the genesis of the modern tanker dates from the launching of the ,atlantic at ,st4 ,peter's on the ,tyne1 ,yorkshire1 in ,august #ahfc4 ,in the record of this launching it was set forth that the vessel was specifically designed to carry petroleum in bulk 8without the aid of casks0 but there is no evidence that she was ever put into commission4 ,the real beginning seems to have been made with the ,belgian ship1 the ,charles1 which is believed to have been the first ocean going ship to be fitted with iron tanks for the transport of petroleum and to be equipped with pumps for unloading the cargo4 ,she was a sailing vessel and her capacity has been estimated as high as #gjjj barrels in bulk4 ,between #ahfi and #ahgb she plied between ,new ,york and ,european ports4 ,by #ahgh the business of carrying oil in iron ships specially built for that purpose1 or in converted vessels like the ,charles had become definitely established and barrel-carrying ships had practically disappeared from ,american harbours4 ,at first oil was carried only on sailing vessels1 owing to the supposed danger of fire2 but gradually adjustments were made which rendered it feasible to propel oil ships by steam4 ,the growth of the petroleum industry in the 'eighties made it clear that the converted oil ship was uneconomical and somewhat dangerous4 ,leakages in such vessels produced gases that sometimes caused explosions2 and one curious fact was demonstrated1 namely1 that there was greater menace in an empty oil ship than in a full one1 for the reason that the exposed surface from which explosive gases might emanate was infinitely greater4 ,when an oil ship of scientific model was filled to capacity the only danger points were the hatches through which it had been filled2 whereas when empty1 especially if there had been carelessness in unloading1 the explosive area and the possible formation of gas-producing deposits was greatly increased4 ,with the converted ships the chances of leakage were necessarily many1 owing to numerous and inaccessible waste spaces outside the tanks4 ,this led shippers to insist on improved tankers built in such a way that absolute control could be exercised over every drop of oil on board the vessel1 and over every emanation of gas given off by that oil4 ,much ingenuity was displayed by ship-builders in meeting this requirement and the modern tanker has the two great merits of being absolutely free from the risks of waste and danger4 ,for a good many years past the construction of oil tankers has been one of the important branches of industry in the leading shipbuilding countries2 and they carry not only the predominating ,american product1 but that of all the scattered oil fields of the world4 ,they bring crude to our seaboard refineries1 but they carry little crude away2 their business is that of conveying the finished oils to other lands4 ,the shipment of the crude product of ,american wells overseas has long since ceased as a result of the stupendous development of our refining industry1 but ,mexico has lately come into prominence as an exporter of crude4 ,in comparison with the earlier oil ships the modern tanker shows the same ratio of growth which characterizes all phases of petroleum development4 ,the place of the tiny craft of the 'sixties and 'seventies has been taken to-day by the tanker which runs to dimensions of more than #ejj feet in length and correspondingly wide beam4 ,whereas the little ,belgian ship1 the ,charles1 fifty years ago carried a maximum of #bie1jjj gallons1 one of the larger types of modern oil tankers will carry more than #d1ejj1jjj gallons4 ,the greater petroleum organizations do not depend on private shipping firms to carry their products1 but build their own vessels4 ,the great ,american tankers of to-day are equipped with ample deck space so that the officers and sailors have more freedom of movement than do many city-dwellers in their own home4 ,the impulse that the petroleum industry has given to the ,american merchant marine as a whole is developing a seafaring spirit among ,american youths that was non-existent a generation ago4 ,many of the ,american tankers are among the largest that fly the ,stars and ,stripes4 ,such giant vessels coming up the fairway of a foreign port constitute a graphic advertisement for the ,united ,states1 and serve as the symbol of an industrial nation standing at the head of the world's commerce4 ,it is fitting that the ,american flag should have been carried to every port of the seven seas in connection with petroleum1 the ,american product which has revolutionized the world's industry4 ,these great vessels carry the source of light1 heat and industrial energy to peoples of every language and every colour4 ,great progress has been made in economizing time and labour in connection with cargoes4 ,where but a few years ago it required days to load or unload a ten-thousand ton ship1 the task is now performed in a few hours4 ,the oil is handled by the use of powerful pumps or by gravity1 when possible4 ,owing to the speed with which oil cargoes are handled no other ships on the ocean do so much sailing1 or spend so little time in port as the oil tanker4 ,so far in this chapter we have dealt solely with the development of the sea-transportation of oil itself2 but even larger vistas are opened when we come to its growing relation to all forms of maritime commerce and naval activity4 ,this arises from the rapidly increasing use of oil as a marine fuel4 ,in that respect it holds very high potentialities for ,america's seaborne trade4 ,the oil tankers we have been describing are oil burning1 and the same system is being applied to many other types of vessels which constitute the arteries of the world's trade4 ,until quite recently the supremacy of ,great ,britain in maritime commerce was in a considerable measure due to her plentiful supplies of bunker coal obtainable at low cost in ports like ,swansea1 ,wales4 ,but the definite advantages of oil as a fuel for the navigation of steamships are changing the whole maritime equilibrium4 ,as an ,english writer has said1 the position that oil has captured for itself in this respect has been fairly won on its merits4 ,oil fuel has one and a half times the heating power of steam coal1 so that weight for weight carried1 the radius of action is extended fifty per cent4 ,a vessel equipped with a modern internal combustion engine consuming fuel oil may make a voyage of fifty-seven days without replenishment1 whereas the same vessel operated by the old type of coal-fuelled steam engine would be obliged to re-fill its bunkers at the end of fifteen days4 ,in #aiab an ,oil ,congress was held in ,london1 ,england1 when statistics were presented containing a comparison between coal and fuel oil on the great ,cunard ,liner the ,mauretania4 ,it was shown that for the round trip from ,liverpool to ,new ,york and back there would be a saving of at least #ejjj tons of fuel and that the force of stokers required could be reduced from #cjj to #cj men working under much less difficult conditions4 ,the resultant increase in available space for cargo and passengers is of enormous importance to ship-owners4 ,the relative values of oil and coal for marine use are not limited to the superiority of oil engines over the old-fashioned steam engines4 ,the caloric or steam-raising power of oil is so much greater than that of coal as to produce a fifty per cent4 superiority4 ,another factor is that of cleanliness4 ,coal is not merely bulky and prolific of many inconveniences in the confined space of a ship1 but it is unquestionably dirty1 as every harbour bears ample testimony4 ,oil is clean1 smokeless and leaves no ashes and clinkers4 ,it can be pumped on board from a tender while both ships are making considerable speed4 ,the late war furnished innumerable demonstrations of the superiority of oil as a source of motive power at sea1 which will be presently dealt with2 as an aid to peaceful commerce its influence during the next few years is certain to be revolutionary and incalculable in its benefits4 ,the future of the oil-burning ship depends directly upon the supply of fuel1 a question that at the moment is giving both the oil men and the steamship operators a good deal of concern4 ,in recent months1 owing principally to the changes effected by the intrusion of salt water in the ,mexican fields1 it has been a difficult matter for vessels not protected by contracts to obtain fuel oil4 ,the advantages of this method of raising steam are so considerable that it will prove a great economic loss if1 through failing supplies1 it becomes necessary for oil-burning ships to revert to coal4 ,it would be a mistake to think that other great commercial powers are not alive to the possibilities of oil on the seven seas1 but ,americans may take pride in the fact that their own business men are playing a foremost part in the sea-chapters of the wonderful epic of the petroleum industry4 ,through their foresight and enterprise the oil bunkering station is being established at home and abroad to perform the same function that coaling stations have performed for the world's maritime commerce in the past4 ,although displacement of coal by oil in any wide measure is perhaps the most recent development in the story of petroleum2 and the construction of oil-burning in place of coal-burning ships is the latest phase of maritime architecture1 ,american oil producers have already anticipated the change in events by establishing oil-bunkering stations in various parts of the world4 ,here again ,american enterprise has shown itself alive to the needs of international trade by providing supply depots at ports where ,american oil-bunkering ships are likely to call4 ,it is highly important that vessels under the ,stars and ,stripes should not be wholly dependent upon foreign agencies for filling their tanks4 ,the ,united ,states ,shipping ,board has shown much interest in the development of an organized plan whereby bunkering facilities shall exist to render ,american ships independent of the vexatious restrictions sometimes imposed by governments in other parts of the world4 ,a glance at the list of such stations as it stood at the end of the year #aiai shows how much petroleum has done to extend the influence of the ,united ,states of ,america on the sea4 ,exclusive of the domestic establishments on the ,atlantic seaboard and in the ,gulf of ,mexico1 bunkering stations have been established by ,american initiative at all the chief ports of ,canada1 whether on the ,atlantic or on the ,pacific ,coast1 the ,great ,lakes1 or the ,gulf of ,st4 ,lawrence1 in ,south ,america1 at ,rio de ,janeiro1 ,brazil2 ,montevideo1 ,uruguay2 ,campana and ,buenos ,aires1 ,argentina2 at ,valparaiso and five other ports on the long coast line of ,chile2 and at three ports in ,peru4 ,bunkering facilities have also been established at both approaches to the ,panama ,canal and at many points in the ,west ,indies1 including ,bermuda4 ,there are nine such stations in ,great ,britain2 three in ,norway2 two in ,sweden and three in ,denmark1 covering effectively the ,north ,sea and the ,baltic4 ,those on the ,mediterranean include five in ,italy2 one in ,tunis 7,bizerta7 and one in ,egypt 7,port ,said74 ,these stations are designed to promote those peaceful and happy relations which should follow on the development of international trade1 and to assure facilities for ,america's expanding seaborne commerce4 ,,chapter ,,xii ,,petroleum ,,in ,,the ,,great ,,war ,no survey of the place that petroleum holds in the social and industrial organization of the world would be complete without some reference of the role it played in the late war4 ,it was inevitable that in a crisis where all the scientific1 mechanical and organizing genius of the leading nations was concentrated on instrumentalities to strengthen themselves and weaken or destroy the foe1 a product of so many applications should prove a tremendous factor4 ,it would be indeed possible to write a lengthy volume on the influence of petroleum on history1 based on actual deductions drawn from the incidents of that greatest of conflicts4 ,it was an indispensable factor in the new methods of warfare that were developed2 it influenced the military and diplomatic strategy of all belligerents2 it was a stupendous contributor to the victory of the ,allied and ,associated powers4 ,earl ,curzon of ,kedleston1 a member of the ,british ,war ,cabinet1 stated the fact tersely when he said1 shortly after the signing of the armistice--8,the ,allies floated to victory on a sea of oil40 ,this was intended as a direct commentary on the assistance rendered by the ,united ,states to that cause and was a just acknowledgment of one phase of this country's contribution4 ,in the preceding chapter the growing maritime importance of petroleum has been shown1 and it was therefore inevitable that in a conflict in which sea power was so decisive an influence that it should have been closely related to naval effort4 ,even if the uses of petroleum had been confined to one instrument of warfare merely--the submarine--it would have influenced the course of history and the fate of nations4 ,without petroleum the submarine as an effective agent in war could not have come into existence1 and the whole story of the conflict from the winter of #aiae onward would have been different4 ,again1 without petroleum no air-craft could have left terra firma1 and military tactics based on the powers of observation provided by these 8eyes of the army0 would not have come into existence4 ,it must also be admitted that the toll of destruction both on land and sea would not have been so great4 ,it would not have been possible for any country to embark on a diabolical policy of destroying unarmed ships and unfortified cities1 and wreaking vengeance on helpless non-combatants4 ,but these crimes cannot be charged against petroleum itself1 but rather against the ingenuity of men bent on destruction4 ,these were but two instances of the part petroleum played in the war4 ,it is no exaggeration to say that there was no phase of belligerent activity in which it was not an active agent4 ,from the very outset of hostilities in ,august1 #aiad1 discerning men in ,allied countries foresaw that victory must rest with the side which commanded the greater reserves of petroleum4 ,thus from the beginning ,america1 as the chief source of the world's supply1 was recognized as a factor of inestimable importance in the ultimate decision4 ,germany was as fully alive to this circumstance as her enemies4 ,the high commands of the warring nations1 from the very outset1 took into consideration the desirability of securing possession of the oil fields in other lands4 ,it was one of the aims of the ,british navy in driving ,german ships from the seas to prevent oil reaching the ,central ,empires from the ,western ,hemisphere4 ,later1 when the blockade of ,germany was definitely established and pressure was brought to bear against countries suspected of enabling ,germany to obtain various classes of supplies by indirect purchase1 petroleum products were regarded as the most important items in the extended list of contraband of war4 ,on land1 oil constantly influenced the thoughts of generals4 ,the great and lengthy ,russian offensive against ,lemberg in ,galicia aimed at cutting off ,germany and ,austria from recourse to the oil fields of that region4 ,the long drawn out diplomatic embroglio with regard to ,roumania all centred around the oil fields of that country4 ,germany was determined that ,roumania should be forced into the war1 either as an ally or an enemy2 for in either case it would give her a pretext to seize the oil fields4 ,in the end a ,british military mission destroyed the wells to prevent their utilization by the ,german invaders4 ,in the operations of ,turkey against ,russia the oil wells of ,baku were the objective4 ,the early ,british operations in ,mesopotamia were chiefly intended as a precautionary measure for the protection of oil fields of which the ,persian ,gulf is the outlet4 ,citations such as these from the history of the war on all fronts could be multiplied to show how closely the petroleum question was interlocked with belligerent action4 ,it is admitted by candid historians that at the outset of the war the ,british ,government did not appear sufficiently to appreciate the grave importance of petroleum products in the prosecution of war4 ,the conflict had not been in progress for more than a few months1 however1 when the disruption of the ,european fields and the obstacles to obtaining regular supplies from the far ,east caused grave alarm both in ,london and ,paris4 ,it was then that the friendship of the ,american people for the ,allied cause made itself felt in practical form4 ,had ,american oil interests then proved hostile or indifferent2 had the ,government of this country yielded to ,germanic pressure and placed an embargo on oil shipments1 the cause of the ,allies would have been doomed4 ,in #aiag it was admitted in the ,british ,house of ,commons that adequate supplies of petroleum products were quite as essential as men and munitions4 ,this was almost an understatement1 because without the aid of petroleum the necessary maximum of effort in other respects would have been impossible4 ,apart from naval and aerial needs1 a reminiscent picture of the ,western ,front during the three or four years of trench warfare reveals the predominant importance of petroleum4 ,it proved a decisive factor as early as the ,battle of the ,marne4 ,it will be recalled that one of the greatest factors in ,marshal ,joffre's victory was the feat of ,general ,gallieni in transporting a fresh army from the ,paris area to the front by commandeering nearly every motor car and taxicab in ,paris4 ,thus1 petrol transport hastily improvised saved ,paris and turned the scale of the #aiad campaign against the ,germans4 ,it will be recalled that the conflict then settled down to a prolonged era of trench warfare4 ,the ,allies commenced the construction of strategic railways to support the armies of the line1 but between the railheads and the actual battlefront in the long stretch from the ,north ,sea to the borders of ,switzerland1 transport was almost wholly dependent on motor spirit or gasoline4 ,innumerable heavy motor lorries carried food1 guns and ammunition to the fighting forces4 ,but the function of petroleum products on land did not end in its association with commissariat and supply4 ,it was an aggressive instrument4 ,the greatest new factor in land fighting that the war developed was the 8tank0--a land battle cruiser1 first introduced by the ,british at the ,battle of the ,somme in ,july1 #aiaf1 and afterwards adopted by all armies4 ,this great instrument of war was wholly dependent on petroleum products for its power of movement4 ,without the internal combustion engine operated by gasoline it would have been an immobile toy4 ,again1 when liquid fire came into use petroleum was the basis2 and in another great destructive agent--the explosive1 known as ,t4 ,n4 ,t4--toluol1 which is found in some of the heavier grades of petroleum1 was a basic constituent4 ,though petroleum in the hands of inventors became an agent of terrible destruction1 it had its beneficent uses in battle as well as in periods of tranquility4 ,armies organized on so vast a scale could not have been fed without it4 ,when the battle raged the ,red ,cross vehicles which performed the work of transporting the wounded to the dressing stations and field hospitals were propelled by gasoline4 ,and when darkness had fallen on the fray the oil lamp and the paraffine candle were lighted to cheer the tired soldiers4 ,an ,english writer who visited the front in #aiag wrote of the all-pervading uses of petroleum3 8,it was to be found wherever there was a vestige of life in those zones of battle2 the soldiers in their1 at times1 lonely dug-outs1 used oil for cooking as well as light1 and all traffic was guided from disaster along the roads by the use of oil1 which also offered the only source of artificial light in the ,red ,cross vehicles4 ,what an immense organization it was which depended for its ceaseless activities upon the products of petroleum40 ,the ,british established a petroleum depot at ,calais of an immensity previously unprecedented1 where all products required for the organization of transport were stored2 and it must be noted that lubricants of all kinds were as essential as gasoline itself1 to keep moving the wheels of the innumerable motors that were employed by the various arms of the service4 ,if petroleum was the life blood of activity in the battle areas1 it was not less so of the munition factories where the means of offense were fabricated4 ,had a real petroleum famine arisen during the days when factories in ,britain and ,france were straining every effort to keep their armies supplied with the means of combat it would have been an incalculable catastrophe4 ,though the ,allies1 once they really awakened to the dangers of the situation1 had pursued the policy of piling up reserves of petroleum products there were times when the failure of a single tanker to arrive on schedule time from this side of the ,atlantic caused grave apprehension2 and when in ,april1 #aiag1 the ,united ,states entered the war1 reserve supplies had fallen dangerously low4 ,if only because it placed the entire oil resources of ,america at the disposal of the ,allies1 the entry of the ,united ,states into the conflict proved the salvation of their cause2 and the story of what the oil interests of this country did to strengthen the hands of the fighting men is one of the brightest chapters in the history of the war4 ,after the armistice1 ,marshal ,foch summarized that achievement in these words3 8,no military operation of the ,allies on sea1 on land1 under sea or in the air was ever interrupted by the lack of petroleum supplies40 ,unquestionably one of the motives which actuated ,germany when1 in ,february #aiag1 she decreed unrestricted submarine warfare and ordered the ,stars and ,stripes off the seas1 was the hope of cutting off the petroleum supplies of her foes4 ,even before ,president ,wilson declared war1 several ,american tankers had been sunk by ,german ,u-boats4 ,the ,german ,government fully understood that a cessation of oil shipments from ,american ports would mean an almost immediate paralysis of belligerent effectiveness in her foes and the 8,german ,peace10 for which they had long been manoeuvring1 would have been accomplished4 ,when activity was keenest on the ,western front eighty per cent4 of the oil and oil fuel used by the ,allies came from the ,united ,states4 ,after the war was over it was revealed that forty-eight per cent4 of the fighting force of the ,british navy was dependent on oil for fuel and any delay in the supply would have brought the ,allies down with a crash4 ,it is now admitted that in the ,spring of #aiag the ,allies were closer to disaster than was known to any1 save a few men at the head of affairs4 ,it was a turning point in the world's history4 ,next to man-power and munitions the resources needed above all others were petroleum and its products4 ,the ,french coal fields had been lost4 ,there was a labour shortage in ,great ,britain2 ,russian1 ,roumanian and ,galician sources of supply were now definitely in the hands of the enemy4 ,the ,mediterranean ,sea1 through which the ,far ,eastern supplies must come1 was a hot-bed of submarines2 and indeed losses of oil steamers in all dangerous waters were so great as to show that they had been named as special targets by the ,german high command4 ,an exchange of confidence between the ,allies and the ,united ,states naturally followed the decision of this country to defend the freedom of the seas4 ,immediately after ,president ,wilson's declaration of war1 urgent despatches from ,great ,britain warned our government that reserve supplies of petroleum in ,europe were so low that unless immediate assistance were rendered1 a partial demobilization of the ,british fleet must ensue4 8,we must have oil0 said ,marshal ,foch1 whose prescience had not yet been rewarded by elevation to the ,supreme ,command1 8or we shall lose the war40 ,italy was in no better position1 fuel oil1 aviation naphtha1 gasoline and lubricants had been so seriously depleted4 ,when the secret of the situation was confidentially communicated to the leaders of the ,american oil industry1 there was an instant response4 ,the ,national ,petroleum ,war ,service ,committee was formed1 with ,mr4 ,a4 ,c4 ,bedford1 ,chairman of the ,board of the ,standard ,oil ,company1 7,n4 ,j47 as its presiding officer4 ,the organization embraced all the oil companies of the ,united ,states4 ,those who had been life-long keen business rivals joined hands to keep the great war machine in ,europe in action4 ,profits became a minor consideration4 ,agreements to stabilize prices and curb speculation were formulated and observed4 ,production on a scale previously unprecedented in this land of enormous oil production was organized4 ,soon it was recognized that the work of the ,national ,petroleum ,war ,service ,committee1 though unostentatiously performed1 was the most efficient and the most fruitful in results for the cause of democracy of any industrial institution in the war4 ,it achieved the remarkable feat of meeting every war demand for petroleum products of all kinds1 of conveying these products across the ,atlantic1 despite the submarine scourge4 ,when the war came to an end there were larger stocks on hand in ,great ,britain and ,european countries for the use of the armies and navies of ,america and her allies than at any previous time in history4 ,these results were achieved by the voluntary efforts of thousands of men serving in every phase of the oil industry1 crude production1 refining and transportation4 ,after the armistice the ,government of ,france1 in recognition of what had been accomplished1 conferred on ,mr4 ,bedford the ,cross of the ,legion of ,honour4 ,co-ordination having been arranged1 the problems to be dealt with came under two heads1 7#a7 ,increased production2 7#b7 ,sea-transport4 ,the first constitutes a record of highly organized endeavour never surpassed in the history of industry2 the second one of actual heroism4 ,plans for increased production were well under way by the summer of #aiag and it must be remembered that the entrance of the ,united ,states into the war and our resolve to create an immense and fully equipped army greatly increased domestic necessities in addition to the obligation to keep our allies in ,europe supplied4 ,the thoughts of all were fixed on the great blows which were to end the war in #aiah4 ,when the winter of #aiag-h arrived it seemed as though the elements were fighting on the side of the ,hohenzollerns4 ,the extraordinary severity of that winter1 complicated by a coal shortage1 all but paralyzed railroad traffic4 ,thus1 deliveries of the finished products necessary to war industry and belligerent activity were embarrassed in a degree that caused the greatest anxiety to the ,national ,petroleum ,committee4 ,yet somehow or other it performed its task and the refineries trebled their pre-war output1 expanding their capacities like an accordion4 ,in addition to the vast quantities consumed at home1 shipments abroad arose to stupendous figures4 ,in the year #aiah1 #b1fbh1ifa tons of fuel oil alone were shipped from the ,eastern seaboard for the use of allied navies2 and in the same year more than one million tons of high distillates and other petroleum products also crossed the ,atlantic1 entailing more than #ejj tank steamer loadings4 ,this was accomplished in the face of a shipping shortage that appalled those in the secret of its extent and in the face of the submarine activity virulently directed against oil cargoes4 ,it was in this matter that the sailors of the ,american merchant marine showed a heroism not excelled by soldiers in the field or the seamen of any nation4 ,the great value to civilization of the fleet of tank steamers built up by ,american oil exporters was also demonstrated4 ,when ,president ,wilson declared war one great company had already lost three big vessels through submarine attack1 and during the war these losses were augmented by seven more1 representing a loss of more than #ge1jjj deadweight tons and a toll of many lives4 ,to meet its losses this particular company undertook to build a new ship for each sunk1 and so efficiently was this policy carried out that its fleet1 which had totalled #dde1ige tons at the commencement of unrestricted submarine warfare in ,february1 #aiag1 had grown to #dib1jhj tons under the ,american flag when the armistice was signed in ,november1 #aiah4 ,nor was the problem of shipping limited to that of carrying petroleum across the ,atlantic4 ,much was required for coastwise trade in ,north and ,south ,america4 ,the resourcefulness of the oil men of ,america was not confined to mastering the seemingly insuperable problems of increased production and transport4 ,a minor contribution to the efficient prosecution of the war was the construction of a pipe line across ,scotland to supply the ,british and ,american navies in the ,north ,sea and avoid sending tank steamers through the dangerous sea routes leading to the naval bases on that body of water4 ,this work was carried out by ,mr4 ,forrest ,m4 ,towl1 ,president of the ,southern and other pipe line companies1 and was in full operation shortly before the armistice was signed4 ,in this work both the ,american navy and the ,british ,admiralty coperated4 ,even apart from its wonderful assistance to belligerent action on land1 it is clear that petroleum played a vital part in winning the war at sea4 ,the following succinct statement of what it accomplished was given by a well-known oil man conversant with all phases of the subject1 shortly after the armistice4 8,oil and internal combustion engine made possible the submarine1 enabling ,germany to stave off defeat as long as she did1 but oil burned under boilers gave us the increased efficiency of the destroyer1 which conquered the submarine4 ,it was the ability of the ,allies to obtain a constant1 ample supply of oil and the superiority of oil over coal as fuel for naval operations that finally turned the tide of battle and proved a decisive factor in the war4 8,the destroyers that broke down the morale of ,germany's undersea crews were oil burners of such remarkable flexibility and speed as to bring about a sharp change in naval practice4 ,it took some time to bring the number of destroyers up to the work laid out for them by ,germany's early advantage1 but the fate of the undersea boat was sealed with the arrival of the first oil-fired destroyer in the waters where the submarine preyed4 ,the original fleet of war vessels which the ,united ,states despatched to convey merchant vessels and hunt ,u-boats were all #af1bej horse power1 which at top speed could show #cb to #ce knots an hour4 ,later on we had destroyers developing #bg1jjj horse power but the small boats had already proved the case for oil fuel in war4 8,one of the reasons for the success of the destroyer in keeping the lanes of travel reasonably free from the undersea menace was the ability of the oil-fired warships to take on fuel in the open sea4 ,the ,american flotilla had a tank supply vessel stationed at longitude #cf degrees ,west1 from which oil was taken on by the destroyers at the rate of #dj1jjj gallons an hour1 without interruption even in the roughest weather4 ,indeed1 there were times when bunkering was done with both vessels travelling at six knots an hour4 ,similarly oil gave the larger warships increased speed and independence in the matter of fuel stations4 8,the ,british battle cruisers with which ,admiral ,sturdee destroyed the ,german fleet at the ,falkland ,islands were oil burners4 ,to-day1 modern war vessels are using liquid fuel almost exclusively1 the ,united ,states having definitely abandoned coal-fired boilers in its construction plans some time ago40 ,in addition to other advantages it carried1 the use of oil fuel in the ,war was of great practical value1 for the following principal reasons3 ,a lesser tonnage of oil replaced the amount of coal required for the same steaming radius1 or an equal tonnage of oil gave the men-of-war a greatly increased steaming radius4 ,boilers fired by oil have a much greater steaming capacity than with coal1 so that the actual speed of a ship converted to use oil fuel is materially increased without any change in boilers or engines4 ,in war operations the oil burners can lay down a heavy smoke screen at will by turning more oil into the burners than can be consumed with the air supply admitted4 ,this results in a heavy bank of smoke which destroyers throw out to hide the larger ships from the enemy1 or which merchant ships produce to conceal their whereabouts from submarines4 ,petroleum thus proved an indispensable factor in saving the world from autocratic domination1 just as during the previous half century it had become an incalculable influence in the arts of civilization1 and had effected a beneficent revolution not only in the industrial but the social life of countless communities4 ,by ,american methods of business organization it has been made to yield its highest potentialities for the good of humanity1 both in peace and war4 ,if this little book brings to any reader a fuller knowledge of the romance and all-penetrating importance of this great birth-right of the ,american people it will have served its purpose4 ,illustration3 ,a tanker being loaded with gasoline and oil at a refinery dock at ,port ,arthur1 ,texas1 one of the large ,gulf oil ports ,illustration3 ,kansas wells flowing oil into a temporary sump1 or earthen reservoir ,,chapter ,,xiii ,,america',s ,,investment ,,in ,,petroleum ,a perusal of the foregoing chapters should correct any vague impression in the mind of the reader that the oil business is a lucky adventurer's game like placer-mining1 where a man may find a pocket of nuggets1 wash them in his pan1 and thus become possessed of sudden wealth4 ,this used to be the popular impression in the days when the phrase 8,struck ,ile0 was synonymous with a sudden stroke of luck4 ,undoubtedly the man who chances to own lands on which oil in paying quantities is discovered is blessed with good fortune1 especially under modern conditions whereby fair and generous treatment is assured to him4 ,but he contributes nothing to the expensive processes by which the precious liquid is extracted from mother earth1 and risks no capital in the experiment4 ,perhaps more prevalent and fraught with infinitely greater possibilities in loss and disappointment is the delusion that oil is a speculator's game2 that the very words 8oil0 or 8petroleum0 in a promoter's advertisement are a guarantee of large dividends and soaring values4 ,this delusion has no doubt been nourished by the fact that some large private fortunes in the ,united ,states have been accumulated almost entirely in the oil business4 ,countless people of a speculative tendency have loosely associated oil with great riches1 and cherished the theory that whoever became associated with the production or refining of petroleum was necessarily1 as if by magic1 assured of large and easily acquired profits4 ,the oil fortunes loom large in the public mind because they have been concentrated in comparatively few hands2 and the fact is overlooked that these fortunes have been based not merely on the raw product1 but on progressive methods of distribution and the elimination of waste4 ,it is obvious that when the vast scope of the industry is considered and the fortunes arising from it are set off against the volume of sales1 the financial returns are not spectacular4 ,for every man who has made a fortune in oil1 there are dozens who have earned but a bare subsistence from it1 and others who have failed even in that1 for they have sacrificed all in efforts to locate new wells4 ,in previous chapters the arduous and costly labours which precede the process of distribution that begins with the conveyance of oil into the pipe-lines have been described4 ,it should be borne in mind that more often than not these labours are unproductive4 ,oil does not bubble forth from springs2 it conceals itself in the bowels of the earth and it is rarely that it even betrays its presence unmistakably by surface indications4 ,when the subsequent outlay in handling the product of even a gusher is considered1 the vast capital outlay involved can be visualized4 ,the investment required by initial measures for locating and producing crude petroleum is so great that competent authorities can name more than one locality in which the money put into leases1 construction1 drilling and plant exceeds the gross value of the oil that has been obtained or can ever be forthcoming from these fields4 ,many millions of dollars during recent months have been poured into oil company flotations that in all likelihood will never yield any return whatever4 ,even well-organized companies1 directed by men of experience1 seldom prove bonanzas in a day when leases command very high prices2 the exception arising where the company happens to be the first comer in the field that later develops important production4 ,the oil business partakes of the nature of most other industries2 it yields profits when fortunately located and economically operated4 ,but there is no certainty that even the company which possesses leases in established fields will prove profitable4 ,under the circumstances it is ridiculous to assume that mushroom promotions1 by men with no actual experience in the oil business1 and whose talents lie rather in the direction of writing advertisements1 can yield profits to those foolish enough to invest in them4 ,the experience of one of the large producing companies1 operating in the best fields of this country1 financed exclusively by oil men and directed by some of the ablest men in the business1 may be cited as an instance of the uncertainty of profits4 ,this company produced about five million barrels of crude oil in #aiai and sold at the relatively high prices then being obtained4 ,nevertheless1 the company's profit and loss statement for the year showed a net loss of approximately #a1jjj1jjj4 ,this does not mean1 of course1 that this company is a liability to its owners4 ,it may have expended in work that could not properly be capitalized1 large sums of money that will eventually be repaid out of production4 ,it is easily conceivable that without any material increase in its investment its yield of oil might be so augmented by #aiba as to make its business show a very handsome profit4 ,what this case does prove is that something more than good leases1 experienced men and ample capital is needed to insure large returns from money put into oil promotions4 ,people who clamour against the prices exacted by producers of crude oil overlook the fact that wells have an unfailing habit of playing out4 ,this means that a producing company must never cease drilling and exploring4 ,to do so would mean an early decline in its production and eventual failure even of its best wells4 ,the monetary return from a big producer must not only offset the cost of that well but repay the owner the cost of drilling a large number of dry holes1 abandoned after large expenditures4 ,production in the ,united ,states is only kept up by the work of the 8wild-catter0 in locating new pools and by more intensive drilling of the old fields4 ,both involve heavy costs4 ,there were drilled in this country last year no fewer than twenty-nine thousand new wells1 but the net increase in production over #aiah was but twenty-two million barrels of crude4 ,the declining yield of wells necessitates amortization to cover the cost of new wells to take their place4 ,figures purporting to show the aggregate by which the investors of the ,united ,states have enabled this country to become the dominant factor in world production must be considered in light of the fact that such totals are in a large measure merely estimates4 ,it is not possible to obtain detailed statistics covering the cost of drilling that has gone for naught2 but an approximately accurate estimate can be reached by striking an average based on the experience of leading companies4 ,it is fair to estimate production at #a1jjj per barrel of daily yield1 multiplied by the current price for that grade of crude4 ,on this basis ,oklahoma leads all other fields with production valued at #ieh1eag1jjj4 ,the fields in north and central ,texas are worth on this basis #fag1fij1jjj while ,california is third with a total of #def1ddc1jjj4 ,on the basis of the country's production in ,february1 #aibj1 ,california produced almost exactly the amount of crude derived from ,oklahoma1 #bgd1iff barrels per day1 in the one case1 as against #bgc1hfb in the other1 but the posted price of ,oklahoma crude was #c4ej per barrel as compared with #a4ff for the lower grade ,california product4 ,the daily average production in ,february1 taking the country as a whole1 was #a1acj1gei barrels1 and the value of that oil at the current price was #c1eda1eaa4 ,this would give an approximate valuation of the country's production1 on the basis assumed1 of #c1eda1eaa1jjj4 ,discovery of a new pool means a race to lay pipe-lines in the field to relieve the temporary storage tanks which are generally of limited capacity4 ,oftentimes1 a considerable investment made in anticipation of large production is rendered almost valueless by the early exhaustion of new wells or by their failure to maintain anything like their flush production4 ,these lines in the different fields are known as gathering pipe-lines4 ,they are connected with main trunk pipe-lines running to the various refining centres4 ,according to the ,bureau of ,mines1 there are at this time approximately thirty-two thousand miles of trunk pipe-lines and eleven thousand five hundred miles of gathering lines4 ,at the present day replacement cost1 this mileage is worth1 respectively1 #cfj1jjj1jjj and #dj1jjj1jjj1 a total of #djj1jjj1jjj4 ,the money actually invested for the existing pipe-lines is probably considerably less than this sum by reason of the fact that a great deal of mileage was built prior to the present era of high costs1 but it is a safe assumption that the pipe line system represents an actual investment of not less than #cjj1jjj1jjj4 ,the ,united ,states is over-equipped with refineries1 measured by their ability to obtain the necessary crude oil to operate them to capacity1 but it is not over-supplied from the standpoint of the potential demand for refined products4 ,on the first of ,january1 #aibj there were three hundred and seventy-three refineries1 with a daily capacity of #a1ecj1efe barrels4 ,since that date there have been completed ninety-nine more refineries1 adding #bfc1ejj barrels to the daily capacity4 ,even before the completion of these new refineries1 it was estimated in the report made by the ,united ,states ,geological ,survey that the country had a surplus refining capacity of #agg1jjj barrels per day over the production and importation of crude oil4 ,since that time the surplus capacity has been increased to about #ejj1jjj barrels daily4 ,averaging the cost of the complete refineries with those of the much less costly skimming plants1 the refineries of the ,united ,states represent a total investment of about #a1gie1jjj1jjj4 ,this total includes real estate and much equipment not ordinarily associated in the public's mind with the business of refining4 ,there is1 for instance1 at several of the larger refineries valuable wharf and railroad terminal property1 extensive manufacturing plants for the production of tin containers1 factories for the manufacturing of steel and wooden barrels1 foundries1 machine shops1 pattern shops1 etc4 ,as a reserve between the current daily production and the refineries' consumption there is always above ground a stock of crude petroleum awaiting its turn to pass through the pipe lines1 this stock varying greatly according to the demands of the refineries and the rate of production in the fields4 ,in ,april1 #aibj1 the crude stocks on hand totalled #abd1hgc1jjj barrels1 which was worth at the prices quoted in the different fields at that time1 #cic1gbd1ehj4 ,in addition1 there were large quantities of refined stocks in the course of treatment at the plants4 ,the gasoline alone reported on hand ,march #cast was valued at more than #abe1jjj1jjj1 while the kerosene on hand as of the same date was worth approximately #ce1jjj1jjj4 ,lubricating oils1 fuel and gas oil1 wax1 coke1 asphalt1 crude oil awaiting distillation and miscellaneous products on hand brought the total value of the refinery stocks up to #cgj1jjj1jjj4 ,there is1 of course1 a very large investment in the fleets required both for bringing crude oil to the refineries in this country and for carrying finished products to the markets of the world4 ,on ,january #a1 #aibj1 there were six hundred and seventy-eight tankers engaged either in the oil business or as supply ships for the navies of the world1 and of these1 three hundred and ninety-four1 with a deadweight tonnage of approximately #a1ejj1jjj1 were under the ,american flag4 ,this fleet represents an investment of #bej1jjj1jjj4 ,the minor phases of oil marketing are represented by the multitude of stations1 warehouses1 bulk barges1 tugs1 motor trucks and tank wagons1 tank cars1 private railroad sidings1 storage tanks1 etc4 in all parts of the ,united ,states4 ,it is customary to allow an investment of #d4jj per barrel for the real estate and equipment needed to do a retail marketing business1 and #a4jj per barrel for the tanks and docks required in the fuel oil department4 ,on this basis the domestic marketing equipment for the country represents a total investment of approximately #ffj1jjj1jjj4 ,no attempt has been made here to bring in the investment by ,american oil companies in other lands4 ,the principal item under this head is1 of course1 the huge sums that have been expended in drilling and the acquisition of producing properties1 leases for development and for surveys1 etc41 in ,canada1 ,mexico1 ,south ,america1 ,roumania1 and other countries4 ,the value of the tankers used for foreign service has been estimated but no allowance is included for stations and other equipment to handle petroleum products abroad4 ,we have here an aggregate investment in the production1 transportation1 refining1 and distribution of petroleum and its products of #g1caj1jjj1jjj4 ,with this equipment1 the ,united ,states last year produced #cgg1jjj1jjj barrels of crude oil from within its borders and imported #ee1jjj1jjj barrels more1 chiefly from ,mexico4 ,we exported #cff1jjj1jjj gallons of gasoline1 #ife1jjj1jjj gallons of kerosene1 #a1age1jjj1jjj gallons of gas and fuel oil and #bgf1jjj1jjj gallons of lubricating oil4 ,against that may be set our domestic consumption1 showing that while we produced in this country more than two-thirds of all of the world's petroleum1 we consume in almost the same ratio4 ,there was marketed in the ,united ,states last year #c1dbf1jjj1jjj gallons of gasoline1 #a1cig1jjj1jjj gallons of kerosene1 #f1bij1jjj1jjj gallons of gas and fuel oil1 and #efh1jjj1jjj gallons of lubricating oil4 ,these figures show not only the immensity of the oil industry but also make clear the vast extent and variety of the auxiliary investment it calls for4 ,clearly it is no speculator's game1 but one in which the most expert knowledge and economic discretion are entailed if it is to yield profits at all4 ,,chapter ,,xiv ,,petroleum ,,in ,,the ,,future ,in these chapters an effort has been made to place before the reader the story of the development of petroleum from a negligible and unappreciated product to its present basic and essential position in the world's industrial and economic structure4 ,having attempted to portray the part it plays in the arts of war and peace1 and its intimate relation to civilization as now organized1 it is fitting that something should be said as to the future of petroleum4 ,to those who have read the preceding chapters--particularly those relating to shipping and all other classes of transportation--it will be clear that this constitutes an international as well as a national problem4 ,the course of events in connection with the world industry may even be said to have a paradoxical aspect4 ,american petroleum became an international institution when1 shortly after the ,pennsylvania discoveries1 the eagerness of other nations to secure it was evinced4 ,the increase of production was so rapid that for years the supply far exceeded the domestic demand1 and made the creation of foreign markets necessary to the ,american oil interests4 ,these foreign markets have contributed materially to ,american national wealth and are now an important factor in the country's favourable trade balance2 exports of petroleum products from the ,united ,states for the year #aiai representing a value of #cdc1ggf1che1 and ranking fourth in order of importance of the country's exports4 ,our oil companies have been international traders for several decades1 but their operations have been entirely based on private initiative and have rarely benefitted by official coperation4 ,the phenomenal growth of inventions and manufactures pivoting on the products of petroleum1 which has transpired during the twentieth century1 has1 however1 entirely reversed the situation that existed in the year #aijj4 ,though the ,united ,states provides almost seventy per cent4 of the world's production from wells on her own soil1 she is to-day actually an importer of crude oil to meet the needs of the domestic market1 combined with those of the foreign market for the manufactured products of petroleum1 which yield vast revenues to ,american wage-earners engaged in their creation4 ,to the ,american people1 who use six times as much petroleum per capita as the citizens of any other country1 and who own ninety per cent4 of the motor vehicles in operation in the world to-day1 the question of future supplies is vital4 ,in the face of an ever-increasing demand for petroleum and its products--through the many channels that have been described in this book--the ratio of production to consumption has become so altered that it is apparent that the ,united ,states must in a steadily expanding degree look to other lands for its future requirements4 ,statisticians and scientists differ as to how long the stores of petroleum still lying untapped in our own soil may last1 but are agreed that at the present rate of consumption the ,american fields will have been practically exhausted before the dawn of another century and that adequate foreign reserves to supplement them must be made available by ,american enterprise4 ,petroleum is therefore a problem about which the man on the street and not merely the oil merchant must perforce think internationally4 ,the people of other countries are to-day wide awake to the necessity of securing petroleum reserves for themselves in regions of potential oil-bearing character2 and in some instances they have shown themselves very active4 ,illustration3 ,steam stills at a modern refinery ,illustration3 ,storage tank at ,cushing1 ,oklahoma1 struck by lightning--not an infrequent occurrence4 #ee1jjj barrels of crude oil being consumed ,in an exceedingly able paper presented by ,mr4 ,david ,white1 ,chief of the ,united ,states ,geological ,survey1 to the ,society of ,automotive ,engineers in ,february1 #aiai1 that authority drew attention to 8the widening angle between the flattening curve of production and the rising curve of consumption10 and announced that after a most exhaustive survey of ,american oil potentialities1 in which many experts coperated1 the conclusions had been reached that the available oil in the ground at the end of #aiah approximated #f1gdj1jjj1jjj barrels4 ,the total production of crude from the ,united ,states wells from #aheh to the end of #aiah was approximately #d1eih1jjj1jjj barrels1 more than two-thirds as much as the total remaining in the ground according to the estimates of the ,mineral ,resources ,division of the ,geological ,survey4 ,to understand fully the significance of these figures it must be realized that the rate of production has enormously increased during the past decade4 ,mr4 ,white's figures placed the oil produced from ,united ,states wells in #aiah at #cde1ejj1jjj barrels4 ,production1 if continued on like scale annually1 would exhaust the estimated supply in ,america in less than twenty years4 ,moreover1 despite its vast extent1 the curve of actual production in that year fell so far short of the requirements of domestic consumption that the amount of oil in storage was reduced to the extent of #bg1jjj1jjj barrels1 and it was necessary to supplement the home supply with a net importation of #ca1jjj1jjj barrels1 chiefly from ,mexico4 ,the year #aiah was a war year but in #aiai1 despite peace1 production in the ,united ,states rose to #cgg1jjj1jjj barrels4 ,thus an ever-increasing demand--especially for gasoline--is producing a pressure on crude supplies greater than in war time4 ,it does not follow that all the estimated available crude reserves in ,american territory can be reached in even the near future4 ,american oil wells will undoubtedly be producing at least seventy-five years hence1 for the very good reason that all the hidden pools cannot be discovered forthwith or immediately made productive1 even when located4 ,but the condition the ,american nation must face in connection with its own wells is the probability of a gradual decline after the peak of production has been reached1 an event that may transpire this year or next1 or may be delayed for a decade4 ,mr4 ,white's paper1 which had the effect of enlightening many as to the changing phases of the oil industry1 also emphasized the possibilities of the development of shale oil1 a potential resource which might prove a suitable substitute4 ,but since this product is still in the experimental stage1 and since it has never been claimed for it that it could develop the manifold richness and varied utility of crude petroleum1 it is not necessary to discuss its possibilities in a book devoted to the latter product4 ,whatever the future of shale oil1 it cannot alter the plain circumstance that if it is to be maintained at its present level for any extended period1 the ,american oil industry must look for reserves abroad4 ,a glance at the world's production for the year #aiag proves that the ,united ,states has more at stake in this matter than all the other nations combined4 ,the production was distributed as follows3 ,united ,states #ff4b per cent4 ,russia #ac4f 0 0 ,mexico #aj4i 0 0 ,dutch ,east ,indies #b4f 0 0 ,other countries #f4g 0 0 ,since then the proportion has been altered1 ,russia dropping to third place and ,mexico rising to second1 the relation of the ,united ,states to total production remaining probably unchanged4 ,the predominating importance of the petroleum industry to the ,american people was indicated in a speech delivered by ,sir ,auckland ,geddes1 ,british ,ambassador to the ,united ,states1 at ,new ,york in ,may of the present year 7#aibj7 when he said that this country controlled #hb per cent of the present visible world supply4 ,this estimate of course embraces not only domestic fields but foreign fields developed by ,american private enterprise4 ,it demonstrated completely the claim of the ,united ,states to leadership in dealing with so vital an international question as the world's petroleum supply--not only as the chief consumers but to all intents and purposes1 the founders of the industry4 ,as has been set forth elsewhere in this book1 the importance of petroleum to countries of maritime aspirations1 either naval or commercial1 is inestimable1 and it is on that phase of the question that the minds of ,british statesmen have1 within the past five years1 become concentrated4 ,so far as ,great ,britain is concerned1 this is a new development1 born of the great war4 ,sir ,john ,cowans1 ,g4 ,c4 ,b41 ,quartermaster ,general of the ,british ,army throughout the decisive period of the conflict1 has said 8,great ,britain was1 when the war broke out1 between twenty and thirty years behind the ,american and ,dutch nations in its knowledge of oil40 ,he and other eminent ,englishmen have emphasized the difficulty of making up that leeway1 one obstacle being that at least eight or ten years was required for the education of an oil expert4 ,in seeking a trained personnel to handle the problem1 ,great ,britain1 like most other countries1 must for the time being at any rate look to the ,united ,states4 ,but though the awakening of the ,british to the importance of petroleum was belated1 it is real4 ,not only their ,admiralty1 but their ,army authorities are insisting on the importance of adequate reserves4 ,controlling as they do the destinies of a vast maritime ,empire1 the growing dominance of oil-burning ships1 and the necessity of providing for their fuelling1 has become an ever-present thought in the minds of ,british public men at a time when the ,american ,government1 relying perhaps on a factitious belief in the inexhaustibility of our native oil resources1 remained indifferent4 ,there is no reason to doubt that the aim of ,great ,britain is her own national and ,imperial security1 rather than aggression4 ,the ,british ,ambassador1 in the address referred to1 gave the most absolute assurance on that point1 but the fact is patent that1 through governmental coperation1 ,british oil men have secured distinctive advantages in foreign fields1 advantages which1 with similar coperation1 might have been available to ,american oil interests--whose leaders may be accepted as equal to foreign business men in foresight1 courage and enterprise4 ,the relation of the foreign petroleum situation to the re-born ,american ambition to possess a merchant marine that shall carry ,american wares in ,american ships must be clear to every reader4 ,just as ,great ,britain owes her far-famed sea power to her policy of maintaining coaling stations at the best available locations on the seven seas1 she now aims to preserve that prestige by oil bunkering stations advantageously placed4 ,the situation might conceivably arise whereby 7despite our vast home production71 the ,american merchant marine when at sea would find itself dependent on the bunkering stations of foreign powers4 ,no one will question the right of ,great ,britain to protect and maintain her trade routes by reserves of the new maritime fuel1 and her ,government deserves praise rather than censure for backing ,british enterprise in measures directed to that end4 ,the point to be borne in mind is that ,american oil men1 the real creators of the industry1 have accomplished what they have in the foreign field virtually without governmental support or co-operation4 ,it is hardly overstating the facts to add that they have been harassed and interfered with in their efforts to maintain the future security of their industry and of their nation in this matter of petroleum reserves4 ,thus1 there has lately arisen a demand for constructive legislation which will permit governmental coperation and diplomatic action that will place ,american oil interests on something like an equal footing with those of ,britain and other countries in securing a necessary augmentation of the home supply4 ,disinterested public men who have made a study of the problem are of the opinion that in the national interest1 and entirely without reference to the advantages that might or might not accrue to this or that individual1 ,american petroleum companies should be encouraged by all the power and influence their ,government can exert to acquire foreign sources of supply wherever available4 ,a glimpse at the facts with regard to the oil bunkering situation shows how closely petroleum and national aspiration are allied4 ,the estimated requirements for the ,u4 ,s4 ,navy for the fiscal year of #aiai-bj were about six million barrels4 ,in the undesired event of war this estimate would be vastly increased4 ,with regard to the ,american merchant marine1 it is worth noting that about one half of the vessels constructed in #aiai1 representing approximately three million deadweight tons1 were of oil-burning design4 ,on the ,pacific ,ocean1 where satisfactory grades of steam coal are not so generally available as on the ,atlantic1 oil has come into general use as fuel4 ,american companies furnish most of the fuel oil which is supplied at ports outside the ,united ,states and the ,united ,kingdom1 the total number of such foreign bunker installations1 owned by ,american companies1 being #hh in a total of #aad4 ,but the possession of such foreign facilities for ,american shipping will prove of little value unless ,americans have sufficient oil1 from either home or foreign fields1 to furnish adequate supplies at competitive prices4 ,with an increasing shortage of oil for domestic consumption1 bunker fuel oil supplies can only be maintained through the control of production in advantageously located foreign fields4 ,among the rivals to ,american enterprise which have arisen1 the most important is the ,royal ,dutch ,shell combination1 which1 though of ,holland registration1 has been a partner with the ,british ,government in petroleum enterprises1 and is to-day the leading factor in the ,far ,east and in ,australia in this vital matter of bunker supply4 ,it is acquiring potential petroleum fields in ,mexico1 ,south ,america and the ,united ,states itself4 ,the ,british ,ambassador's statements tend to allay fears that there is any deliberate attempt to discriminate against the ,united ,states in any part of the world2 yet it is a fact that this country is likely to be seriously handicapped in its efforts to obtain its share of the world's carrying trade if its ships abroad are eventually compelled to rely on foreign companies for fuel4 ,in order that the reader may clearly visualize the situation with regard to the prospects of augmenting home supplies1 it is necessary to speak once more of certain foreign fields mentioned in the geographical survey that constituted an earlier chapter4 ,the nearest field and the one to which ,americans must naturally look1 because for an indefinite period it will continue to produce oil far in excess of the needs of its own people1 is ,mexico4 ,unbacked by governmental coperation in any form1 ,american private enterprise has done much in an endeavour to develop permanent supplies in that country1 and has paid its way generously4 ,fortunately1 the internecine warfare which has paralyzed the maintenance of law and order in many parts of that country has been less serious in the oil regions than in some other provinces1 but precious lives have been lost1 and considerable property destroyed without redress4 ,still more serious is the fact that in the face of the activities of foreign powers anxious to secure ,american holdings of great potential value the ,american ,government has been inert in a field where1 for geographical reasons alone1 it has a claim to first consideration4 ,the patriotism of an ,american citizen1 ,mr4 ,e4 ,l4 ,doheny1 controlling owner of the ,mexican ,petroleum ,company1 has been more potent than that of the public authorities in safeguarding the future of our interests in that country4 ,mr4 ,doheny received a handsome offer from the ,royal ,dutch ,shell ,company for his interests2 but he refused it on the ground that for the future welfare of the ,united ,states1 his properties should remain under an ,american control4 ,undeniably the lot of the ,american capitalist in the ,mexican oil fields has been rendered so difficult that any man might be tempted to sell to the first bidder4 ,while a recent ,mexican administration proposed to 8nationalize0 petroleum there have been many attacks in other forms upon the rights of ,american oil companies1 but so far these companies have escaped absolute confiscation of their properties4 ,here is obviously a field in which ,american interests must have the same sort of diplomatic assistance which ,great ,britain extends to its nationals if the future is to be secure4 ,the next closest field to which ,americans must naturally look is the ,caribbean ,region--the ,central ,american and ,west ,indian ,republics1 ,colombia and ,venezuela4 ,their importance lies almost wholly in their future possibilities1 but they undoubtedly have oil potentialities of considerable value4 ,therefore1 the control of concessions is of very grave importance in view of the need for acquiring extra territorial oil reserves4 ,fortunately1 ,americans are here first in the field1 though enterprise has not gone very far beyond the securing of concessions4 ,such privileges obtained in ,colombia1 ,panama1 ,nicaragua1 ,honduras1 and ,costa ,rica are held by various ,american syndicates4 ,a ,venezuelan concession originally ,american-owned is at this writing in ,british hands1 and ,british capital is also interested in ,honduras oil development4 ,it is obvious that the sympathetic coperation of the authorities at ,washington1 is necessary in the ,caribbean area if the ,united ,states is to render secure an ascendancy there4 ,in ,south ,america the rivals of the ,united ,states interests are also active but have not outstripped them1 and with a progressive policy on the part of their government ,americans may hopefully look for reserve supplies from that vast continent1 though their development1 owing to the mechanical and speculative conditions of modern oil production1 cannot be rapid4 ,argentina1 which already has two producing fields1 operates them as state enterprises and has as yet granted no foreign concessions4 ,peru is already a large producer of crude petroleum and has opened her gates to ,american oil interests1 but here1 as elsewhere1 the need of diplomatic backing is present4 ,generally speaking1 though the real potentialities of ,south ,america are unknown1 it is a territory in which the ,united ,states1 if it is to safeguard its future interests1 cannot afford to remain indifferent4 ,the world-wide ,british ,empire includes many countries containing oil potentialities1 though the total production is inconsiderable in comparison with that of a single ,american state like ,california or ,texas4 ,according to the statistics put forth by ,sir ,auckland ,geddes1 production under the ,british flag in #aiai represented but five per cent4 of the world's petroleum output4 ,but there is no certainty as to what the future may bring forth and the general policy in all parts of the ,empire seems to be to keep oil development in the hands of ,british nationals and to restrict operations by foreign capital4 ,in the important oil territory at ,burma these restrictions are absolute2 though in self-governing ,dominions1 like ,canada1 they do not obtain4 ,in all ,crown colonies the ,british ,government retains the right of pre-emption at need4 ,quite as severe are the laws covering oil deposits or potential oil deposits in ,french colonial possessions4 ,the ,dutch ,east ,indies1 a comparatively promising field1 are closed to all but subjects of ,holland1 or to companies which have a majority of ,dutch subjects on their directorate2 under the latter provision ,british capital dominates the oil production of ,borneo4 ,outside the ,western hemisphere the only fields where the ,united ,states may look for reserves1 7which1 as has been explained1 are of especial importance in connection with bunkering stations17 lie in what are respectively known as the ,near ,east and the ,far ,east4 ,china has undoubtedly oil potentialities1 though data on the subject is vague1 and it is presumed that the ,chinese government1 which holds a monopoly of them1 will one day admit foreigners into partnership in the working of them under some sort of special contract4 ,japan already has a somewhat similar arrangement4 ,in demonstrated possibilities the ,near ,east is of much more promise4 ,the importance of the ,roumanian field has been spoken of elsewhere and prior to the war ,american interests were established there4 ,later in its reconstruction policies ,roumania is contemplating changes in its petroleum program not formulated at this writing4 ,it is reported that ,french and ,british interests1 supported by their respective governments1 are making every effort to secure important holdings in the ,galician oil fields1 formerly situated in ,austria1 but now coming within the boundaries of the new ,republic of ,poland4 ,the future administration of the ,russian fields is still problematical4 ,at the moment they are occupied by the ,bolsheviki4 ,the ,persian field1 by an arrangement dating back to #aija1 is operated by ,british interests4 ,the potential fields of ,mesopotamia and ,palestine are under control of ,britain by mandate of the ,league of ,nations2 but that country expressly disclaims any special authority to exclude other nations from participation in petroleum development in these territories4 ,it must be plain to the most inexperienced reader that in the case of ,asiatic and ,east-,european fields1 however1 ,american oil interests are powerless to achieve influence and obtain due recognition without the diplomatic assistance and coperation of their home government4 ,it is necessary1 if they are to secure equal rights under international law that will serve not merely as a check upon any possible unfair discrimination1 but enable them to secure workable international arrangements4 ,these should redound to the interest of all countries for the ,united ,states is the motherland of the science of oil production4 ,the prestige of this country is such that in many cases a mere diplomatic protest would be sufficient to rectify many disabilities under which the ,american oil company seeking foreign reserves at present labours1 without creating serious disputes or international entanglements4 ,in the words of ,thomas ,a4 ,o',donnell1 ,president of the ,american ,petroleum ,institute1 with which most of the leading petroleum producing and manufacturing companies of the country are associated3 ,the ,american oil industry asks only the support of the nation in giving it an equal status1 putting it upon an equal footing with the nationals of other countries in the development of the world's petroleum resources--and it asks this in the interest of the nation4 ,with the ,government at their back to secure for them fair play1 ,american oil interests could face the future with confidence1 if not with certainty2 lacking such coperation1 the future is fraught with hazard to an industry that stands as a monument to ,american organizing genius4 ,,the ,,end ,,the ,,country ,,life ,,press1 ,,garden ,,city1 ,,new ,,york ,transcriber's ,note ,some inconsistencies in spelling1 hyphenation1 and punctuation have been retained4 ,this file uses underscores to indicate italic text4 ,small capitals changed to all capitals4 p4 xv3 changed 8,rumania0 to 8,roumania0 7,moreni ,field1 ,roumania7 p4 #ej3 changed 8,egpyt0 to 8,egypt0 7,egypt has also a future7 p4 #fi3 changed 8fish-tale0 to 8fish-tail0 7the delicate fish-tail bit7 p4 #gd3 changed 8rythmical0 to 8rhythmical0 7the rhythmical 8chug-chug07 p4 #hc3 changed 8,samual0 to 8,samuel0 7,samuel ,van ,syckel of ,titusville7 ,on pp4 #ce1 #cg1 and #eg appears 8,edwin ,laurencine ,drake40 ,modern sources differ in spelling 7,laurentine74 ,this name was left as originally printed4