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+*** START OF THE PROJECT GUTENBERG EBOOK 77066 ***
+
+
+
+
+
+                   THE EVOLUTION OF THE OIL INDUSTRY
+
+[Illustration: The first oil well drilled near Titusville, Pa., on
+August 27, 1859, by Col. Edwin L. Drake, the pioneer man of the world]
+
+
+
+
+                             THE EVOLUTION
+                                _of the_
+                              OIL INDUSTRY
+
+                                   BY
+                              VICTOR ROSS
+
+                      ILLUSTRATED FROM PHOTOGRAPHS
+
+                       GARDEN CITY      NEW YORK
+                       DOUBLEDAY, PAGE & COMPANY
+                                  1920
+
+
+
+
+                          COPYRIGHT, 1920, BY
+                       DOUBLEDAY, PAGE & COMPANY
+
+ALL RIGHTS RESERVED, INCLUDING THAT OF TRANSLATION INTO FOREIGN
+LANGUAGES, INCLUDING THE SCANDINAVIAN
+
+
+
+
+                                PREFACE
+
+                         BY DR. VAN H. MANNING
+
+_Director of the Division of Technical Research of the American
+Petroleum Institute. 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 industries, whether of the factory or the field, land or sea,
+war or peace. This phenomenon has been almost exclusively a development
+of the past six decades, and the United States of America have been
+the predominant factor in the innumerable changes wrought thereby. The
+narrative confines itself rigidly to historic records and material
+facts, undeniably romantic in themselves. But as the epic unfolds
+itself, it assumes a super-phase, the import of which cannot be
+measured by mere figures--a super-phase with invaluable applications to
+the problems of humanity in an industrial age.
+
+Petroleum, it becomes clear, was the first natural product to
+which the abstract theory of order, as understood by modern social
+philosophers, was applied in a large and general sense. It must be
+accounted good fortune not only for America but for the world at large,
+that this movement, though gradual at the outset, commenced almost
+within a decade of the birth of the modern petroleum industry at
+Titusville, Pa., in 1859. The outcome has tended to influence economic
+thought the world over, especially since war on an unprecedented scale
+put all established systems, traditions, and institutions to the acid
+test.
+
+Foreign observers and critics, friendly or unfriendly, 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 way, organized industry.
+America’s achievements in this domain during the past half century
+have represented incalculable and beneficial advancement beyond the
+industrial conditions of all past centuries. With this record of
+progress, the growth and expansion of the petroleum industry have
+been inseparably associated. The famous pioneers in organizing the
+production, refining and distribution of petroleum have also been
+pioneers in the application of the principle of order to industry;
+which, in essence, means the elimination of waste and misdirected
+energy from human effort.
+
+Organized industry means something entirely different from a system
+aiming at quick and enormous profits. It is based on a definite theory
+of scientific effort, whereby all the possibilities of a given resource
+are developed to their fullest degree, so that waste ceases, the value
+of the worker’s labour is increased with benefits to himself, and
+the consumer receives the blessings of nature’s dower at the lowest
+reasonable cost. As the ensuing chapters show, the accomplishment of
+these objects in the case of petroleum has involved much more than
+the application of the physical sciences to manufacturing processes.
+It has meant the development of systematized methods in discovery and
+location, transportation and distribution, so that from the moment
+oil is “struck,” in say a barren patch of prairie, until any one of
+the many products of crude petroleum is placed in the hands of the
+consumer--here, or in some distant isle of the sea--there shall be no
+waste and no injustice, and that all the hands through which it passes
+shall reap a just benefit.
+
+The far-sighted Americans of the transition period in this country’s
+history, who created the modern petroleum industry, and built up the
+machinery for its continuous expansion, began with the definite aim
+of involving order from chaos. They were from the outset reformers
+of business methods and enemies of waste. The latter had become
+colossal during the unsettled years that were marked by the duration
+and aftermath of civil war. The work of these business pioneers was
+gradual, but it developed an ever-increasing impetus; and as the
+years went on the ethical import of their mission became more and
+more apparent. It would be wide of the facts to say that the element
+of gain played no part in these developments. Little indeed would be
+accomplished in the way of progress were the incentive of personal gain
+in some form or other removed. On this point the Scottish economist,
+Adam Smith, spoke pertinently one hundred and fifty years or more
+ago: “By pursuing his own interest a man frequently promotes that of
+society more effectually than when he really intends to promote it.”
+Nevertheless it is clear that in the case of some of the leaders most
+closely identified with the organization of the petroleum industry,
+personal motive and energy were supplemented by a sincere desire to
+promote the prosperity and welfare of the American people as a whole.
+
+Coming to the larger question of what the principle of order means to
+humanity in the abstract, 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 level. Moderate socialists are
+especially emphatic on this point and it is the key-note of their
+writings. They attribute the great mass of poverty and suffering
+which still exists in this world to lack of order--to the failure of
+mankind, in the individual and in the aggregate, adequately to realize
+its importance. The goal which all enlightened men, of whatever school
+of thought, desire to see attained, is the abolition of poverty; not
+the imaginary poverty of the man who chafes because he cannot have
+everything he desires; but the actual, 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 standards. 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 reached. It is a
+principle that runs like a golden thread through the vast and complex
+system that has grown up around petroleum.
+
+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 potentialities, so
+that all who come in contact with it participate in some measure in the
+benefits. These considerations are obviously of greater importance than
+some others which have been impressed on the public mind in exaggerated
+terms. 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
+operations. It is one of the rooted axioms born of human experience
+that genius of whatever order, so long as it assists civilization, is
+entitled to exceptional rewards. Particularly is it true of that rare
+order of genius which lies back of directing minds. Without their
+leadership the efforts of humanity to advance itself would be in vain.
+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 development, lowered costs for the consumer, and stimulus to
+countless forms of industrial activity.
+
+Thus it can be truthfully maintained that the spirit of coöperation,
+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 large, and
+suggests a solution for many of the ills that beset civilization to-day.
+
+
+
+
+                                CONTENTS
+
+
+                                                            PAGE
+
+  PREFACE                                                      v
+    By Dr. Van H. Manning.
+
+  CHAPTER
+
+       I. PETROLEUM IN HISTORY AND LEGEND                      3
+
+      II. WHAT IS PETROLEUM?                                  11
+
+     III. DAWN OF AMERICA’S PETROLEUM INDUSTRY                30
+
+      IV. FOUNDER OF THE PETROLEUM INDUSTRY                   37
+
+       V. PETROLEUM AS A WORLD INDUSTRY                       44
+
+      VI. LOCATING THE OIL WELL                               57
+
+     VII. DRILLING THE OIL WELL                               65
+
+    VIII. COLLECTING AND TRANSPORTING CRUDE: THE PIPE LINE    76
+
+      IX. REFINING AND MANUFACTURING PETROLEUM PRODUCTS       89
+
+       X. PETROLEUM AND OTHER INDUSTRIES                     106
+
+      XI. PETROLEUM ON THE SEVEN SEAS                        116
+
+     XII. PETROLEUM IN THE GREAT WAR                         129
+
+    XIII. AMERICA’S INVESTMENT IN PETROLEUM                  148
+
+     XIV. PETROLEUM IN THE FUTURE                            160
+
+
+
+
+                         LIST OF ILLUSTRATIONS
+
+
+  The first oil well, drilled near Titusville, Pa.,
+    on August 27, 1859, by Col. Edwin L.
+    Drake                                         _Frontispiece_
+
+                                                     FACING PAGE
+
+  A temporary oil reservoir in Oklahoma                       26
+
+  Early activity; the famous Red Hot Oil Field
+    near Shamburg, Pa.                                        42
+
+  Where Pithole stood                                         43
+
+  The Drader Well in the Moreni Field, Roumania               66
+
+  Burkburnett in Northern Texas                               67
+
+  Big yield well in Mexico flowing into temporary
+    storage pond                                              82
+
+  Laying a pipe line through a Louisiana forest               83
+
+  Lines for loading oil on vessels standing from
+    one to two miles at sea                                   98
+
+  Battery of crude stills at the Bayway Refinery,
+    Linden, N. J.                                             99
+
+  “Look boxes” in the “Still House” where the grades of
+    oil are separated according to gravity                   114
+
+  A modern tanker carrying 4,000,000 gallons of oil          115
+
+  A tanker being loaded with gasoline and oil
+    at a refinery dock at Port Arthur, Texas                 146
+
+  Kansas wells flowing oil into a temporary
+    sump, or earthen reservoir                               147
+
+  Steam stills at a modern refinery                          162
+
+  Storage tank at Cushing, Oklahoma, struck by lightning     163
+
+
+
+
+                   THE EVOLUTION OF THE OIL INDUSTRY
+
+
+
+
+                               CHAPTER I
+
+                    PETROLEUM IN HISTORY AND LEGEND
+
+
+While the petroleum industry is in the fullest sense modern, it has
+been known to, and casually utilized by mankind for centuries. It
+is named in the earliest annals of the race; and allusions to it
+are abundant in the literature of the East, from which much of our
+Western literature had its inspiration. It was applied to the service
+of religion, and was a subject of superstition in times which are
+enshrouded in legend. In the authorized Bible and in the Apocrypha
+there are more than two hundred allusions to it. The legend of Noah
+speaks of his having used pitch to tighten the seams of his ark, which
+certainly indicates a familiarity with the uses of fluid bitumen
+available in the East. In Deuteronomy there is mention of “oil out of
+the flinty rock;” and Biblical students could cite countless other
+instances where the meaning clearly indicates a common use of the
+surface deposits of Western Asia.
+
+It is believed to have been a strong factor in trade between Ancient
+Judea and Persia, which latter country has again in the twentieth
+century become a factor in oil production. It played its part in
+the worship not only of the Hebrews but of other Eastern nations,
+and to the primitive minds of those peoples assumed miraculous
+characteristics. The burning wells of Baku were the objective of
+religious pilgrimages among the prehistoric peoples; and despite the
+colossal waste of past ages these wells still flow and are a factor
+in commerce. The Zoroastrians, or Fire Worshippers, a sect of Persian
+origin, which gained many adherents in ancient India also, regarded
+these wells as the manifestations of a great imprisoned spirit, who was
+supposed to breathe inflammable vapour from his nostrils. Zoroaster
+has a temple at Baku, and students of folk-lore hold that these
+burning wells helped to confirm the belief in a literal Hell of fire,
+common to races of Semitic origin. The Macedonian conqueror of Asia,
+Alexander the Great, witnessed the burning lake of Ectabana in his
+march to the east, centuries before the Christian era. Marco Polo, the
+Italian explorer of the middle ages, among many fables, revealed to
+Europe the truth about the oil resources in Baku, and had sufficient
+of the instincts of a trader to discern their commercial value.
+Well-founded belief in the medicinal properties of petroleum, common to
+all countries where it is found, was also prevalent among the ancient
+peoples.
+
+The reference to its use in the construction of Noah’s ark shows that
+the utility of pitch, as a binding material in building operations, was
+recognized. It is clearly this material that is meant by the “slime”
+which is stated to have been used as mortar for the erection of the
+Tower of Babel; and it is supposed to have played its part in more
+definitely authenticated structures like the palaces of Babylon and
+Nineveh, and the Temple of King Solomon.
+
+Less familiar are the Greek legends relative to petroleum. Plutarch,
+in his life of Alexander the Great, after recording some experiments
+of the Macedonian conqueror with petroleum, in the course of which
+he nearly burned a favorite slave to death, suggests that it was the
+fluid signified in one of the legends of Medea. The story ran that
+Medea, wishing to destroy a successful rival in love, the daughter of
+King Creon, gave her a wreath and crown anointed with some inflammable
+liquid. As her victim approached the altar flame during a religious
+festival, the wreath and veil became ignited and the unfortunate
+princess was burned to ashes.
+
+The ancient Egyptians undoubtedly used petroleum for embalming and
+medicinal purposes, and filled the cavities of dead bodies with
+asphaltum, so that nomadic Arabs in later times have been known to use
+mummies stolen from Egyptian tombs for fuel. 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 time. To
+this extent at least historians and archæologists are indebted to this
+gift to man.
+
+Rome, in her gradual conquest of the Western world, made all known
+oil supplies her own. Consequently allusions which obviously refer to
+petroleum are frequent to the Roman historians; and here once more it
+was applied to the use of religion.
+
+The early records of Russia, the Scythian nation of ancient history,
+are obscure, but it is quite clear that the properties of petroleum
+were known to them for ages. When Igor descended on Greece, his
+vessels were destroyed by a fire that burned on water; which has led
+some modern historians to believe that petroleum entered into the
+composition of “Greek Fire,” the secret of which is lost.
+
+The Greeks, indeed, are said to have made ingenious use of petroleum
+at all times. Those who have read in Gustav Flaubert’s “Salammbo” 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 corps, by sending among them
+swine smeared with petroleum and ignited.
+
+In later days the greatest of Russian Emperors, Peter the Great, showed
+himself alive to the commercial value of the Baku wells. When in
+1723 he obtained from Persia control of the Baku Khanate, he ordered
+the seizure of as much white petroleum as possible, and directed
+that a refining master be sent there. “This,” remarks a historian of
+petroleum, “is the first record of a vacancy for a manager of an oil
+refinery.”
+
+As we go farther east history becomes less exact and legend more
+quaint. In Burma the story of a sweet-smelling deposit of petroleum is
+the subject of a tale more than a thousand years old. It is related
+that King Alsungsithu was making progress through his realms with his
+seven wives and on his magic raft. At one point the ladies went ashore
+and finding sweet-smelling earth, anointed themselves and delayed so
+long that they forgot the hour appointed for their return. The angered
+king issued the decree “let the queens who love scented earth more
+than me, their Lord, be put to death.” The doomed ladies replied “From
+too much love of this fragrant earth we must now die. Let it lose its
+fragrance and become an overflowing stream of foul-smelling oil, and
+let those who collect it pay us honour as their protecting deities.”
+They were executed and became Nats or guardian spirits and belief in
+them is still preserved among workers in the Burmese oil fields. But
+if the legend could be accepted as true the slain women assuredly took
+a sad vengeance, for the only offense that can be charged against so
+beneficent an agent as crude petroleum is its odour, which assuredly
+belies its virtues.
+
+There are the remains of very ancient oil workings in Burma, Japan and
+China. Indeed, China, a pioneer in many arts, was undoubtedly one in
+oil production. Boring in the modern sense was unknown to most of the
+ancient peoples but it was practised in China centuries ago, a fact
+which will come under consideration when we take up the mechanical
+phases of oil production. They had some deep wells at a time when other
+nations were merely utilizing surface accumulations, and eruptions.
+
+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 country. From
+time unknown the red man has gathered and made medicinal use of the
+surface petroleum of the Oil Creek region of Pennsylvania; and its
+utility in more than one respect was known to the Indians of California
+and Mexico. The Senecas imparted to the French Jesuit missionaries--who
+in the seventeenth century, explored not only Eastern Canada but the
+Northern States and the Mississippi Valley--the curative virtues of
+oil; and two hundred years later it was known to the settlers of
+Northern New York State, Pennsylvania and Ohio as “Seneca Oil.” 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 seashore, chiefly for burning purposes. Father
+Acosta, one of the early missionaries to Peru, noted petroleum floating
+in the water off Cape Blanco and, as early as 1692, the Spanish
+Government granted concessions for the collection of Peruvian oil.
+
+In the years immediately prior to our war of Independence, allusions
+to the petroleum resources of what are now the United States became
+frequent; and the commercial value of the product was known to General
+Washington himself. Washington, who was a great believer in the future
+of the country, which was in his day called “the West,” acquired three
+large tracts of land on the Ohio River bottoms. One of these was at
+Point Pleasant, the birthplace of General Grant; a second at Round
+Bottom, later the site of the City of Cincinnati; and a third at the
+mouth of the Kanawha River, rich in coal and oil. 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 industry; for in his will,
+speaking of this third tract, he says: “This tract was taken up by
+General Lewis and myself on account of the bituminous spring which it
+contains, of so inflammable a nature as to burn freely as spirits and
+is nearly as difficult to extinguish.” Certain of its immense future
+value, he requested his heirs not to dispose of this particular tract.
+
+
+
+
+                               CHAPTER II
+
+                           WHAT IS PETROLEUM?
+
+
+Petroleum, or to use its comprehensive colloquial synonym, “oil,” has
+come to play such a widespread part in every-day life that most people,
+the younger generation especially, take its existence for granted
+without further enquiry. Few pause to reflect that this basic essential
+of modern commerce is a comparatively new agent for the service of
+mankind. Its applications are so manifold that it is now recognized as
+indispensable; 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 power. 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 steam. In company
+with electricity, it has effected changes in methods of manufacture,
+and added to the comforts of civilization in ways that it would take
+volumes to relate. It has been a factor in revolutionizing warfare--as
+the recent great conflict proved--and it is essential to the arts of
+peace.
+
+Like electricity, with which its development as a servant of man has
+been coincident, its utility consists in the fact that it is a source
+of light, heat and energy. But unlike electricity it is a passive as
+well as an active agent. For illustration, 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 commodity.
+
+Petroleum is the latest of the earth’s riches which man has learned
+to adapt to his needs. The use of iron, for instance, goes back to
+prehistoric times, and the same is true of nearly all metals, precious
+and otherwise, of salt and many other of our mineral products which the
+chemistry of creation has provided in the crust of this terrestrial
+sphere. But for countless centuries man went his way knowing of the
+existence of petroleum, yet utilizing it only in a sporadic and
+casual manner, until American ingenuity and adaptability--working in
+coöperation with scientists of other lands--made it the marvelous
+agent that it is to-day. And all this has happened since the
+grandfathers of most of the younger generation of the twentieth century
+were born.
+
+The word petroleum comes from two Latin terms signifying “rock” and
+“oil”. “Rock-oil,” which was an early name given it on this continent,
+is accounted for by the fact that certain shales and coals possess oil
+as part of their constituents. It is one of the family of bitumens,
+which even in their natural state assume many forms. In its commercial
+sense the word “petroleum” is a generic term covering the whole
+group of hydro-carbons--the refined or manufactured products as well
+as the crude oil. But as yet scientists are divided in opinion as
+to its origin and the extent of the world’s supply. All we know is
+that it is diffused over almost every section of the earth, and that
+new deposits--on the scientific development of which geologists are
+constantly at work--are ever being discovered.
+
+One school of scientists holds that it is of inorganic origin, derived
+from metallic carbides lying below the porous strata which serve as
+Nature’s reservoirs for the crude product that is “mined” by the
+modern oil producer. But the more widely accepted view is that crude
+petroleum is of organic origin, born of either animal or vegetable
+matter embedded in the earth’s surface, which in the process of
+decay or transmutation has taken this form. Travellers state that in
+the neighbourhood of the Caspian Sea the conversion of such organic
+matter into petroleum is visibly in operation to-day. The British
+scientist, Sir Boverton Redwood, in explaining the natural process
+by which petroleum came into existence, 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 plants, as well as of
+vegetable matter from the land, borne down to the coast by water
+courses. The changes which the world has undergone would result in the
+burial of these accumulations under sedimentary strata, during the
+process of creating land where once was water.
+
+During geological ages different parts of the earth’s surface have
+alternately been raised and submerged. When above sea level they have
+been at times subjected to disintegration and removed by such agencies
+as water, wind, and glaciers, and when submerged the same localities
+have received deposits, as we now see being made under the ocean and
+at the mouths of rivers. 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 water, and as oil is, almost
+without exception, found in these formations, we are able to account
+for the fact that petroleum is frequently discovered in localities
+which are now at a great distance from the sea. 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 States. Many other arguments have been
+adduced supporting a belief in the vegetable origin of petroleum that
+would be worth discussing at length, were this a scientific treatise.
+Much controversy still prevails. 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 experiments; whereas the scientists who hold by the
+organic theory are geologists, who base their contentions on actual
+investigations of the earth’s crust and the records of its changes as
+written in the rocks.
+
+The assumption is that the organic matter, after being imprisoned in
+the sedimentary rock by the processes indicated, under the influence
+of heat and pressure in some cases assumed the form of coal; in other
+instances succumbed to decay; while in other cases it formed crude
+petroleum and gas. 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 gas. The mode of decomposition by which these elements were
+generated is one of Nature’s secrets; and the stage in the history of
+oil-bearing rock in which the necessary chemical transformation took
+place is equally a matter of conjecture. As has been said, the presence
+of salt is a prevalent phenomenon in connection with oil deposits the
+world over. Not only is a strongly saline water commonly present in
+the vicinity of petroliferous rock, but in a number of fields oil is
+closely connected with large masses of rock-salt, gypsum and dolomite.
+
+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 crust; from the earliest
+or Laurentian rocks to the most recent formations of what is known in
+geology as the Quarternary period.
+
+It is, however, evident that oil has often moved from the formations in
+which it was made to other formations, generally loose or porous, which
+have served as natural reservoirs for storing the oil in the earth.
+It is probable that in most instances the migration took place by
+filtration or flowing through fissures or openings from one formation
+to another, while in some cases it is evident that a distillation took
+place and the migration probably was made in the form of vapor, which
+was ultimately condensed in a cooler formation and there stored.
+
+Generally speaking, however, it reveals itself in commercial
+quantities chiefly in the Devonian and carboniferous formations which
+are comparatively old; or in the Tertiary rocks, aeons younger in
+geological evolution. The geographical distribution is as diverse as
+the geological; the deposits in many instances occur along well-defined
+lines and in association with mountain ranges, though this condition is
+by no means axiomatic. It is assumed that in the elevatory processes
+which obviously occurred while the earth’s crust was attaining its
+present characteristics, certain folds were formed which arrested and
+collected the oil in productive belts.
+
+Early misapprehensions with regard to the origin of petroleum are
+indicated by the familiar word “coal-oil,” now used to signify one
+of the most popular products of crude petroleum; 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 obtained. Over a century
+ago miners in Shropshire, England, observed oil trickling from fissures
+in coal veins and assumed that coal was the source of the liquid.
+This belief was intensified by the fact that the earliest discoveries
+in Pennsylvania, which resulted in the creation of the great modern
+petroleum industry of the United States, were in the vicinity of
+vast deposits of bituminous coal. Shortly afterward this belief was
+disproven by the discovery of valuable oil fields in the western part
+of the province of Ontario, Canada, where no coal exists; and other
+discoveries on this continent and elsewhere have furnished abundant
+proof that oil may exist in large volumes independently of coal.
+
+In considering the two primary theories as to the origin of petroleum,
+whether inorganic--that is from chemical action on rocks forming part
+of the earth’s crust, or whether organic, 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 correct. 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 migration. As a rule, the production
+in such formations is small, rarely in commercial quantities, and it is
+probably derived from inorganic sources. This possibility is further
+demonstrated by laboratory experiments.
+
+On the other hand, it is probable that the greatest sources of
+petroleum are due to organic origin, more particularly in the
+carboniferous or the tertiary formations, where coal, cannel-coal,
+lignite, and other similar products are most frequently found.
+Hydro-carbons identical with most of the products of the distillation
+of petroleum, are so commonly obtained from the distillation of coal,
+lignite, and even bituminous shale and peat that in most cases the
+organic theory of the source of petroleum appears to be the correct one.
+
+Natural gas usually exists in association with oil deposits and in a
+great measure has the same properties, its existence as a gas or a
+liquid being dependent on the temperature and pressure under which it
+is held. In recent years, before it is sold for consumption as natural
+gas, 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 vapor. Another process for extracting
+this gasoline is by absorption, that is, passing the gas under a
+comparatively low pressure through a heavy oil, which takes out a part
+of the gasoline from the gas. In both processes, but especially in the
+high compression system, there is a considerable percentage of very
+volatile gasoline obtained, which is highly explosive and difficult to
+retain as a liquid. Varying in different localities and under different
+conditions, natural gas yields commercially from one-half gallon to
+five gallons of gasoline per thousand cubic feet, although extreme
+cases show much wider range.
+
+Natural gas, in conjunction with hydraulic pressure, is the cause of
+what is known to oil operators as a “gusher” or flowing well. 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 170,000 barrels in a single day. As a general practice, and
+probably due to the weight of overlying strata, the pressure of gas
+encountered in drilling into oil formations is proportional to the
+depth. This pressure is generally known as rock pressure and the flow
+of the wells is in part due to it. 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 porosity.
+
+In some cases, notably in Mexico, the flow seems to be caused by the
+action of water. Here the formations are very porous, opposing little
+obstacle to the flow of the oil and gas through the formation. The
+production from the wells under these conditions is very great and,
+unlike most wells, a gradual decline in the yield is unusual, there
+being little sign of exhaustion until the moment when the well begins
+producing salt water in increasing proportions. After the appearance
+of the salt water the production of oil diminishes rapidly and for
+practical purposes soon ceases, due to the small production of oil and
+the fact that it comes out as an emulsion with the water, which is very
+difficult to utilize.
+
+A characteristic of the Mexican wells is that the oil, and finally
+the salt water which follows it, are generally produced at a high
+temperature--from 115 to 145 degrees. Such gushers originally produced
+another fallacious belief that oil exists in subterranean pools or
+reservoirs; 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 sponge. A typical piece of oil rock examined under the microscope
+reveals millions of tiny interstices between different grains of sand.
+Porous, oil-bearing sandstone may contain one-tenth or one-eighth
+of its bulk in petroleum. The term “oil sands” is common in the oil
+industry and refers to the type of coarse grained porous rock which
+forms the best reservoir for petroleum; but limestone and some of the
+rocks described by geologists as conglomerates sometimes serve the same
+purpose. In every instance the oil-bearing stratum has been covered by
+a layer of non-porous rock, whose impervious qualities keep the oil and
+gas imprisoned until penetrated by the drill. Surface deposits are also
+a well-known phenomenon; and were the only type of deposits known to
+the world until modern times. About them has grown up much interesting
+history and legend which will be dealt with in a subsequent chapter.
+
+The geographical distribution of petroleum is, as has been said,
+world-wide, and the oil prospector, followed by the capitalist, who
+make these discoveries available to the world, are constantly opening
+up new fields. Oil discoveries necessarily mean great commercial
+expansion for the localities in which they occur; and no small part
+of the enormous wealth of the United States has resulted both from
+the abundance of our deposits of crude, and from the manifold uses to
+which they have been applied in the improvement and standardization of
+manufacture. Though the United States is the greatest oil producing
+country in the world, production on modern commercial and scientific
+lines first began across the seas, in the little Kingdom of Roumania.
+There the industry in a modern sense had its birth in 1857. The United
+States entered the field by virtue of the Pennsylvania discoveries
+in 1859, and the original industry has attained enormous proportions
+through later discoveries in such scattered portions of our country as
+California, Oklahoma, Wyoming and Texas. Italy was the third entrant in
+the field of organized production in 1860, but her industry has never
+assumed large proportions. Other countries became producers in the
+following order: Canada, Russia, Galicia (then Austrian, now Polish),
+Japan, Germany, India (Burma), Dutch East Indies, Peru and Mexico.
+The Mexican industry dates back only to 1907 and that country is now
+recognized as one of the world’s greatest fields.
+
+In the United States when we speak of benzine, gasoline and naphtha
+we allude to the more volatile distillates of petroleum. Lamp oil,
+as it is called in England, and kerosene or coal oil, as it is known
+in America, constitutes another product. While petroleum refining is
+conducted primarily for the production of motor fuel, illuminating oil,
+lubricants, wax, gas oil, and fuel oil, of various grades, there are a
+host of specialty products obtained from petroleum which go into use
+in almost every phase of human activity. These include pharmaceutical
+preparations for internal and external use, in the form of medicinal
+oils, ointments, salves, and soaps; cements, including binders for
+briquetted fuels, water-proofing and saturating agents; special
+solvents, used to some extent in all chemical laboratories; and an
+imposing list of rare chemicals, such as higher alcohols of the nature
+of fusel-oil, and a large variety of organic sulphur compounds.
+
+The word “naphtha” comes from Russia, where it is applied to all crude
+petroleum, and was supposedly derived from the Persian, nafata, to
+exude. Early Roman writers like Strabo and Pliny, who were acquainted
+with the burning and lighting properties of the surface oil deposits
+known to the ancients, spoke of it as bitumen and liquidum candidum.
+And other terms in Roman and Greek literature obviously signify the
+same substance.
+
+Additional designations are: Ropa, ropianka, (Galician Polish) pacura
+(Roumanian), Huile de naphte and pétrole brut (French); erdoel, rohoel,
+rohnaphtha (German); yenan (Burmese); sekinoyn (Japanese) shi-yu
+(Chinese); chapapote (Mexican).
+
+There are also a large number of names for such petroleum products as
+paraffine, or mineral wax, of which the Spanish brea is an example; and
+for asphalt, which is really petroleum in a dense form.
+
+Surface indications of petroleum and natural gas are frequent and
+diversified. The most common is in the nature of seepages, which are
+generally found in what are geologically highly disturbed areas,
+underlain with petroleum deposits. These seepages most frequently occur
+where the oil-containing formations have been folded and exposed on
+the surface, either when the folding took place or subsequently through
+the cutting of water courses. From these formations the oil seeps out
+and is shown as a coating on the streams or, in case the quantity is
+great or the oil very heavy, it is shown as asphalt deposits, of which
+there are many in Mexico, and of which the best known are the pitch
+lakes in Trinidad and Venezuela.
+
+It is a common occurrence in oil fields, more particularly those in the
+younger geological formations, to find mud volcanoes, probably caused
+by the escape of gas, bringing with it some water, which reaches the
+surface as mud. 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 acres.
+
+Another evidence of petroleum is found in Galicia in the form of
+ozocerite, which is in many ways similar to paraffin, but has some
+distinctive characteristics. This ozocerite is found on the surface
+or in mines. 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
+water.
+
+[Illustration: A temporary oil reservoir in Oklahoma. 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 composition. In some cases the oil is found almost white
+and varies through all the shades of amber and brown to black. 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 pavements.
+
+It is also interesting to note that the crude oil from different
+localities, and even from different formations in the same locality,
+not only varies greatly in its own properties, but the manufactured
+products derived from different grades have very different properties
+as well. From some crude oils special lubricating oils can be made
+which cannot be manufactured from other oils. The same is true of
+the paraffins derived from different oils, some, for example, being
+especially desirable for one purpose while paraffin derived from
+another crude is more suitable for another purpose, due to its
+different properties and action under treatment. Thus, the refined oils
+from different crudes show a great variety, 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 crudes.
+
+In Roumania and Russia the wells produce enormous quantities of sand
+with the oil, particularly when they first start flowing. The Roumanian
+wells frequently start flowing sand as fine as flour and more like the
+dust of a country road. This sand may hardly smell of oil at first
+and at this stage it covers the ground like a volcanic ash, sometimes
+breaking in the roofs of neighbouring houses.
+
+In the course of a few days the sand begins to show more oil but piles
+up around the mouth of the well, giving it the appearance of a small
+volcano. 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 tanks. Later, the
+percentage of sand becomes less until it is almost negligible.
+
+The action of the sharp sand is similar to that of a sand blast,
+necessitating much ingenuity in changing the pipes and valves for
+handling the well while it is flowing.
+
+The diversity that is characteristic of petroleum in its geological and
+geographical distribution, and in its adaptability to the needs of
+humanity, is also to be found in the nature of the crude oil deposits.
+It differs in colour, density and other qualities in almost every
+field. In America, with which this book chiefly deals, three distinct
+basic types are recognized; the mixed base (paraffine and asphalt in
+combination) found in Ohio, Oklahoma and other States; the paraffine
+base, which is characteristic of the paler crudes of Pennsylvania and
+West Virginia; and the asphalt base common to the fields of California
+and Texas. The special qualities of the crude fix in a large measure,
+the character of the products each yields when subjected to refining
+and manufacturing processes.
+
+
+
+
+                              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 States, discerning minds were
+at work on the best means of turning the bituminous or petrolific
+deposits of this continent to practical commercial uses. 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 possible, and its first executive head. He was its
+earliest influential prophet of the power that was to be born of the
+unlimited natural resources of what was then the “hinterland” of the
+original commonwealth. During the first five decades of the nineteenth
+century there were a considerable number of Americans, less eminent
+than he--explorers, scientists and business men of imagination who
+looked to petroleum as a potential resource of national wealth. And
+speculations of this kind were not confined to the United States.
+In Great Britain and other countries processes were patented for the
+refining of mineral oils. The main purpose in view was the development
+of a substitute for sperm oils in anticipation of the decline of the
+whaling industry, which had become the main source of illuminants and
+lubricants. In America, also, petroleum had its recognized medicinal
+uses, the traditions of which had been acquired from the Indians.
+Thus, in the thirties, “Seneca Oil” produced at Lake Seneca, New York;
+and “American Medicinal Oil,” a Kentucky preparation, were familiar
+household remedies, especially as embrocations for burns, sores and
+rheumatic affections.
+
+The casual use of petroleum as a basis for proprietary medicines had,
+as will be seen, an interesting bearing on the future development of
+the industry; 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 deposits. Had not
+the growing American population been compelled to secure adequate
+quantities of salt by boring and establishing brine wells, it is
+possible that the Pennsylvania oil discoveries, with which the
+real history of the modern petroleum industry begins, might have
+been indefinitely delayed. During the first half of the nineteenth
+century five different states had salt industries based on the boring
+process--Pennsylvania, Ohio, West Virginia, Kentucky and Tennessee. In
+connection with most of these wells petroleum occasionally appeared,
+usually to the annoyance and embarrassment of the operators. 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 property. Nevertheless, 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 discoveries.
+
+The first American salt well of which there is any official record was
+begun in 1806 and completed in January, 1808, on the Great Kanawha
+River in what is now West Virginia. Charlestown, Va., was then the
+nearest town, and in the vicinity of this brine well the first burning
+gas spring had been discovered in 1773. At Tarentum, on the Allegheny
+River, Pennsylvania, salt wells were started in 1810 which also yielded
+petroleum in considerable quantities, and such pioneers as Col.
+Ferris and Samuel M. Kier endeavoured later to turn this by-product
+to commercial account. The first flowing oil well was drilled
+unintentionally in 1818 at the mouth of Troublesome Creek, on the Big
+South Fork of the Cumberland River, twenty-eight miles south-east of
+Monticello, Va., by one Martin Beatty, who was seeking brine. “The
+Devil’s Tar” as he called it, was allowed to flow into the Cumberland
+River and covered its surface for a distance of thirty-five miles.
+The oil became ignited and an enormous conflagration ensued, which
+destroyed trees along the banks of the river, and also the salt works.
+What would to-day be regarded as a piece of stupendous good fortune was
+then accounted a disaster; though this particular well later supplied
+the chief ingredient for “American Medical Oil” a remunerative compound
+bottled at Burkeville, Kentucky.
+
+The most enterprising man in utilizing this unwelcome by-product of
+his salt wells was Samuel M. Kier. Originally a chemist and druggist,
+he resolved in the later forties to ascertain its uses both as a
+medicine and as an illuminant. Experiments at distillation to secure
+a burning fluid for lighting purposes were a success, and his product
+attained some vogue in rivalry to a kerosene which was being extracted
+from oil shales in the province of New Brunswick, Canada. But Mr.
+Kier’s chief business was that of the sale of petroleum for medicinal
+purposes--a compound he named “Kier’s Rock Oil.” He advertised it by
+imitations of an American greenback, 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-issue.
+
+This imitation greenback was destined to influence the course of
+history. A prominent New Haven business man of the day was Mr.
+George H. Bissell, who had become interested in the possibilities of
+petroleum through his acquaintanceship with Prof. Crosby of Dartmouth
+College. The latter had received from a physician at Titusville, Pa.,
+a historical city in connection with the coming industry, a bottle of
+petroleum, sent as a curiosity. Bissell was so interested that he,
+in company with friends, purchased for $5,000 a tract of one hundred
+acres at Titusville, with an oil spring on it. A company was founded,
+known as the Pennsylvania Rock Oil Company, with a nominal capital
+of $500,000 and a tentative start made at collecting the surface
+oil by digging and trenching. Prof. B. Silliman, of New Haven, made
+a favourable report on the fluid as an illuminant but the cost of
+production rendered the project commercially impracticable. Mr. Bissell
+was, therefore, left with the Titusville property on his hands. The
+story runs that one day in the summer of 1857 while in New York he
+saw in the window of a Broadway drug store one of Kier’s imitation
+greenbacks, showing the picture of the derricks at Tarentum, Pa. The
+idea suddenly came to him of developing the Titusville property just as
+salt properties were developed by boring and pumping. Though short of
+capital, he set about obtaining backing for the attempt, and the final
+outcome was that a small syndicate was formed in New Haven, Conn., to
+work the Titusville oil lands. This syndicate engaged Edwin Laurencine
+Drake, the most historic figure in connection with the beginning of the
+American industry, to carry out the work. How he set about his task,
+and how he succeeded will be the subject of a subsequent chapter.
+
+It is necessary to point out that unless the foundations had already
+been laid for refining and marketing the crude petroleum, Drake’s
+discovery would have been almost as valueless as that in 1818, which
+resulted in the conflagration on the Cumberland River. Science,
+however, had been grappling with the problem of extracting from
+the crude a safe burning oil and eliminating the offensive odour.
+This latter was a very important consideration, and for years after
+petroleum began to assume the proportions of a large industry it
+encountered prejudice on this account. By the later ’fifties so much
+progress had been made that the possibilities had been created not
+merely for a large domestic trade in oil, but also for the development
+of an export market. Drake’s discoveries at Titusville in August, 1859,
+may, therefore, be said to have come at the psychological moment.
+
+
+
+
+                               CHAPTER IV
+
+                   FOUNDER OF THE PETROLEUM INDUSTRY
+
+
+On October 4, 1901, a magnificent monument was unveiled at Woodlawn
+Cemetery, Titusville, Pa., to the memory of Edwin Laurencine Drake at
+the expense of the late Henry H. Rogers, of the Standard Oil Company,
+himself a pioneer of the Pennsylvania oil fields in the boom days of
+the sixties. The inscription on the monument not only describes Drake
+as the “Founder of the Petroleum Industry” but gives an explicit review
+of what his services meant, not only to the people of the United States
+but to mankind at large. It runs as follows:-
+
+  Col. E. L. Drake, born at Greenville, N. Y., March 29, 1819; died at
+  Bethlehem, Pennsylvania, November 8, 1884, Founder of the Petroleum
+  Industry, The friend of man.
+
+  Called by circumstances to the solution of a great mining problem,
+  he triumphantly vindicated American skill and near this spot laid
+  the foundation of an industry that has enriched the State, benefited
+  mankind, stimulated mechanic arts, enlarged the pharmacopoeia,
+  and has attained world wide proportions. He sought for himself not
+  wealth nor social distinction. Content to let others follow where he
+  had led, at the threshold of his fame he retired to end his days in
+  quieter pursuits.
+
+  His highest ambition the successful accomplishment of his task, his
+  noble victory the conquest of the rock, bequeathing to posterity the
+  fruits of his labour and his industry. His last days oppressed by
+  ills--To want, no stranger--He died in obscurity.
+
+  This monument is erected by Henry Huttleson Rogers, in grateful
+  recognition and remembrance.
+
+Drake was in his fortieth year when, through friends in New Haven, he
+was appointed director and superintendent of the Titusville properties
+of the Pennsylvania Rock Oil Company and the Seneca Oil Company. As
+a youth he had led a wandering life and his education was such as he
+could pick up at odd moments. He had worked as a commercial traveller
+and hotel clerk, and was a railroad conductor at the time he took
+service with the Bissell syndicate, which had decided to experiment in
+drilling for oil. He himself was so thorough a believer in the project
+that he put all his small savings into it. The salary at which he was
+engaged was a thousand dollars a year, which signified considerably
+more in the later fifties than it does to-day. On reaching Titusville
+early in 1859 he soon realized that he was handicapped by lack of
+practical knowledge of drilling processes, and therefore sent for one
+William Smith, a man of long experience as a driller of brine wells,
+who came with his two sons to assist in the work. The method adopted
+was that of forcing cast iron pipe through the soil at a spot near the
+“old oil spring,”--well known to the farmers of the locality.
+
+Operations were started in February and after many tedious delays rock
+was struck at a depth of thirty-six feet. If they were to go farther
+steam power was necessary, and by August 1st, this had been secured.
+In the meantime the drilling operations had been the joke of the
+countryside, but Drake literally could not afford to fail. 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 feet. No record was kept of the
+exact date, though the New York Tribune a few weeks later fixed it at
+August 23rd. The well was not a free flowing one, but yielded to the
+pumping process.
+
+The discovery, momentous as it was, did not create much excitement
+except in the immediate locality. John Brown’s raid, at Harper’s Ferry,
+and the possibility of the Civil War, which was to ensue within less
+than two years, were the chief topics in the public mind of America.
+Shortly after the discovery a fire wiped out the existing plant but
+kindly neighbours, now satisfied that the experiment was no failure,
+assisted Drake, and when the well was again set in working order its
+flow was more promising than ever. In the view of experts, Drake’s
+achievement as a pioneer may be regarded as limited to one great feat,
+the drilling with steam power of the first cased oil well. He ceased
+to be an active factor in the development of the newborn industry
+with the drilling of this first well. Following his inspiration,
+others organized it and in the course of a few years a great army of
+industrial workers, merchants, financiers and distributors of all
+classes became associated with petroleum and placed it in a foremost
+position among the world’s industries. Drake himself finally left
+the oil regions in 1863 with about $15,000 savings, which he soon
+lost in other forms of speculation. In the stupendous events of the
+national conflict he was almost forgotten. In 1869, ten years after
+his discovery, the older oil men who had known him learned that
+he was sick and penniless, with a wife and family at the point of
+starvation. They raised among themselves a purse of $5,000 and later
+the State Legislature was prevailed upon to grant him an annual pension
+of $1,500, which maintained him in comparative comfort at his home in
+Bethlehem, Pennsylvania, until his death in 1884.
+
+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 1859 was 2000 barrels, in 1869
+it had risen to 4,215,000 barrels. 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 development. As the
+news of the new industry and its possibilities spread, more and more
+wells were sunk along Oil Creek and the Allegheny River; farm lands
+containing oil prospects began to command enormous sums, 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 results. The Civil War undoubtedly
+interrupted development at the outset, and the new oil fields gave
+many a brave soldier to the Northern cause.
+
+The really sensational developments in connection with the oil fields
+began as the Civil War was drawing to a close. Then they commenced to
+assume the romantic and fevered aspect of California in the days of
+the early gold rush a decade or more previous. Unfortunately, the oil
+fields possessed no Bret Harte, as did California, to write the epic
+of good-fortune and ill-fortune. The story of the City of Pithole, not
+far from Titusville, is, however, as romantic as anything in the annals
+of gold discovery. It sprang to full life in 1865, a mushroom city
+with all the vices and excitements of frontier life. Fabulous tales
+have been told of its population, which probably never exceeded 20,000
+but 20,000 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 continent. Gamblers and adventurers flocked there
+in company with many legitimate oil men. In the speculation that ensued
+fortunes were made and lost daily. Then, after a year or two, the wells
+which had shown such riches began to decline and Pithole was quickly
+deserted. 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 mortals. Later still some of the abandoned wells were made
+productive by new processes, but the glory of the mushroom city had
+vanished forever. In other parts of this continent there have been oil
+crazes, but nothing approaching the story of Pithole. And it is famous
+for another reason; it was the scene of the establishment of one of the
+earliest pipe-lines, a system which has been an invaluable auxiliary to
+the growth of the American industry.
+
+[Illustration: Early activity; the famous Red Hot Oil Field near
+Shamburg, Pa., in 1870]
+
+[Illustration: Where Pithole stood--the main street of a Pennsylvania
+oil town, which had a population of 20,000 in 1870, 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 production, but with those of
+conservation, transportation, refining and the development of new uses
+for the various elements of the treated crude, set an example to all
+the world.
+
+From 1870 onward, though Pennsylvania continued to lead, American
+methods were copied in many other countries. The foundations of
+the trade which have made petroleum the most international of all
+commercial undertakings were at that time laid; and this brings us to a
+survey of the industry as a world interest.
+
+
+
+
+                               CHAPTER V
+
+                     PETROLEUM AS A WORLD INDUSTRY
+
+
+The standardization of the petroleum industry which began in America
+during the later sixties naturally excited emulation. Just previous
+to the Pennsylvania discoveries of 1859 something like a systematic
+industry had been established in connection with the Roumanian
+deposits, sixty years later destined to be a military objective of
+vital importance in the World War. But the actual sinking of oil
+wells by the boring process was a later development in Europe. As was
+natural, the first foreign country to profit by Drake’s example was
+our neighbour Canada, which has long been an oil producing country,
+and to a still greater extent, thanks to friendly American initiative,
+an oil-refining country. 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 lands.
+
+The most important are those of Russia, particularly the deposits
+of Baku, which, as has been related, figured in ancient history and
+legend. The unsettled condition of Russia renders an exact statement
+of the condition of its oil industry impossible at the present
+time, but prior to the war the Russian oil-fields had an output of
+approximately 72,000,000 barrels annually, or 15 per cent. of the then
+world’s production. During the past fifty years the Russian fields have
+produced at least 1,650,000,000 barrels; but, though this aggregate
+seems large it represents less than half of the petroleum production of
+the United States during the same period. It is believed, however, that
+Russia possesses great wealth in undeveloped oil fields, particularly
+in the south-western Caucasus. As yet the main part of the production
+of this vast country has come from an area of about 4,000 acres in
+the Baku region, near the Caspian Sea. Prior to 1870 Russia’s output
+of petroleum came from surface pits, dug by hand, rarely more than 50
+feet deep. Boring by steam power after the American method was first
+systematically introduced by Robert Nobel, the famous scientist and
+expert in explosives, who went to Baku in 1873. Even in 1893 the number
+of bored wells in Russia was less than 500, but at the last census in
+1911 wells of this type had increased to over 3,000. The Nobel brothers
+also assisted Russian oil production by introducing improved methods of
+transporting the crude oil, based on American experience, as well as
+improving refining processes through their own ingenuity. Many other
+companies operating in Russia prior to the Bolshevist régime have
+showed some disposition to follow their example, but the progressive
+spirit that has actuated the oil pioneers of North America has been
+lacking. One great obstacle to development which existed long before
+the Russian revolution of 1917 was the intractable character of the
+Russian workmen, encouraged, it must be admitted, by the reactionary
+spirit of the Russian capitalist. In contests between capital and
+labour much loss was sustained through incendiarism, and there are
+recorded instances where in a single night dozens of productive
+oil-wells, which had taken years to “bring in,” owing to the special
+geological difficulties of the Russian fields, were destroyed. Such
+catastrophes of course represent economic loss to the whole people;
+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 unknown.
+
+Roumania, geographically adjacent to Russia, was prior to its
+participation in the great war, producing about 11,000,000 barrels,
+or approximately 1,600,000 tons, of crude petroleum annually. The
+beginnings of her industry, already alluded to, were based on hand dug
+wells, three feet square and walled with horizontal oak planks, into
+which workmen would descend and bring up the oil in wooden buckets or
+bags of leather. Here, too, the oil area is comparatively small, and it
+was not until twenty years ago that mechanical equipment designed on
+the American model was introduced by foreign capitalists. Men trained
+in the oil-fields of this continent found employment there, although,
+when at the end of 1916 the exigencies of war compelled the Allies
+to adopt the policy of destroying the Roumanian wells, in order that
+the Central Empires should not obtain much needed supplies of oil, it
+was by English instructions and officers that the melancholy task was
+accomplished. Roumania has a great petroleum storage port at Constanza,
+fed by a trunk pipe-line of American model connecting it with the
+oil-fields.
+
+Galicia or Austrian Poland, as it was once called, lies in the same
+geographical zone as Roumania, and possesses an oil area 200 miles
+in length and varying from 40 to 60 miles in width, although 90%
+of its production comes from the Boryslaw field. This field, which
+was the chief source of supply for the Central Empires during the
+war, necessarily suffered much in the conflict but ten years ago was
+producing about 1,900,000 tons of crude annually. It is now on the way
+to restoration. The development of the Galician industry on a large
+scale was directly due to the introduction of modern drilling methods
+in 1882. The petroleum wealth of that country lies very deep and wells
+of a depth of 4,000 feet are common.
+
+Though the chief customer of the Galician fields for a considerable
+period, Germany also made efforts at developing a petroleum industry
+of her own, but, as in the case of Italy, her oil-fields, though not
+entirely negligible, do not bulk large in the statistics.
+
+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 needs. This is
+particularly true of Great Britain and France, 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
+industry, who organized a steady supply on an enormous scale.
+
+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 refining, rather than by the
+development of a really important home industry. Thus the United States
+and all oil-producing countries owe a debt of gratitude to Dr. James
+Young of Renfrewshire, Scotland, whose improvements in the processes
+of manufacturing paraffine from shale oil, during the early part of
+the nineteenth century, were of infinite value in developing the uses
+of petroleum after its presence in large quantities was proven by the
+pioneers of Pennsylvania. Great Britain, realizing her own need, also
+helped the world’s oil industry when she built the first oil-tank
+steamers on the River Tyne.
+
+Though Great Britain, with the exception of a small well recently
+drilled, has no deposits of crude so far as known, she is at the
+present time experimenting with processes to distil petroleum from oil
+shales, coal, cannel coals, ironstones, lignite and peat; but more
+important still, she is encouraging the oil industry in various parts
+of her great Empire. Under the British flag, either as autonomous
+parts of that Empire or as countries which she holds a mandate to
+govern, are the important oil-fields in Burma, Persia, Egypt, Trinidad
+and Assam.
+
+The Burma fields have of late years been developed in accordance with
+modern practice, and the producing area, long a subject of quaint
+legend, much extended, so that according to recent estimates the annual
+crude production from this source is upwards of one million tons. The
+Persian oil fields will be a factor to be reckoned with in future, and
+an oil port fed by a pipe line on the American model already exists
+at Abadan on the Persian Gulf. Egypt has also a future as a petroleum
+producing country, for within the past ten years not only “gushers”
+but wells which give evidence of steady flowing qualities have been
+discovered, and plans for development are already well advanced.
+
+Crossing to this hemisphere the name of the British colony Trinidad at
+once suggests itself. Its famous lake of pitch has long been a source
+of supply for that dense form of petroleum which is known as asphalt;
+while other deposits of crude yield surprising percentages of more
+volatile products like motor spirit.
+
+And while on the subject of petroleum under the British flag, reference
+may be made to Canada, although the industry there is very closely
+allied with that of the United States. In Eastern Canada, oil has
+long been produced in limited quantities, 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 realized.
+
+A more distant foreign field, which is gaining importance in the eyes
+of the world, is that of the Dutch Indies in the Far East. There has
+been considerable oil production in Borneo, Java, and Sumatra, 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
+Americans.
+
+Japan’s connection with oil is ancient and it has its own industry
+at Echigo; but like China, which also worked deposits of oil in
+prehistoric days, it is a large importer of American petroleum
+products, especially illuminating oils. 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 country.
+
+Returning to this continent we find that the Mexican oil fields have
+come into prominence more rapidly than those in any other land, for
+there the industry has existed only since 1907. The Mexican pools now
+rank after the United States as the second largest producing area
+in the world. Most of the latter-day sensations in the matter of
+petroleum have been provided by Mexico, where both American and British
+capitalists have acquired large interests. In 1908 the “Dos Bocas”
+gusher in Northern Vera Cruz was drilled. At a depth of 1,800 feet gas
+was encountered which blew out the drilling apparatus and presently,
+through a fissure which developed under the boiler room of the drilling
+plant, an eight-inch column of oil was spouting hundreds of feet into
+the air. Becoming ignited it burned for fifty-eight days, producing a
+column of flame a thousand feet in height and fifty feet in diameter.
+The well then began to produce hot salt water and is still producing
+probably a million barrels of salt water per day. In 1910 another great
+gusher, the “Potrero del Llano” was struck but fire was fortunately
+averted, and the daily flow was estimated at 125,000 barrels.
+Production on so magnificent a scale has never been known in any other
+part of the world. Before this well went to salt water, in 1919, it had
+produced more than 100,000,000 barrels of oil.
+
+Another Latin American republic which has developed a very important
+oil industry in recent years is Peru, and it is supposed that other
+parts of South America will yield their riches in the future.
+
+Despite the petroleum wealth of other lands, however, the United States
+far outdistances them, not only in the output of crude petroleum but
+in the manifold products extracted from it. The magnitude of the
+American industry may be gleaned from the fact that in the past year
+(1919) United States wells produced about 377,000,000 barrels, or over
+65 per cent. of the world’s supply. The lead of Pennsylvania as the
+chief oil-producing state and the pivotal point of the world’s supply
+continued for many years, but has long since been superseded. For a
+number of years this state provided 98 per cent. of the oil production
+of this country. In 1891 the total production of Pennsylvania oil was
+35,839,777 barrels, and in 1897 35,165,990 barrels, so that the maximum
+was reached in 1891. The greatest daily average production was during
+the month of November, 1891, when it reached 135,676 barrels. This
+pioneer territory suffered a gradual decline, and at the present time
+it is estimated that Pennsylvania produces about five per cent. of
+the American supply. Nevertheless, the output is considerably greater
+than in the boom days of the sixties when the phrase “Struck Ile”
+became an accepted synonym for the sudden acquirement of riches. As
+the importance of the industry grew, oil prospectors busied themselves
+in every part of the republic in probing for this source of wealth,
+and are still indefatigable after sixty years. What is known as the
+Mid-Continent fields, which includes such States as Kansas, Oklahoma
+and Wyoming, have developed enormous potentialities, 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 supply. The
+California development is an example of the rapidity with which an oil
+field can become productive on an enormous scale under modern methods.
+The records of achievement there show that it is possible, with the
+modern system of rotary drilling, to get down nearly 4,000 feet below
+the surface within the period of a month, depending on the nature of
+the formations, and the experience in that state demonstrated a finer
+quality of crude at such depths than could be produced from deposits
+nearer to the surface. California too furnishes at certain points an
+illustration of the mechanical ingenuity of the modern oil worker;
+for there are to be seen oil wells sunk in the sea at a considerable
+distance from the shore, the encroachment of sea-water being overcome
+by carrying the casing above high-water mark.
+
+Until a comparatively recent period the California fields held the
+record for production, but in 1918 the young State of Oklahoma forged
+to the front, with a production of more than 100,000,000 barrels in
+one year, and a large undeveloped territory which there is every
+reason to believe will prove rich in petroleum. 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 industry.
+
+There are those who believe that Texas will very shortly attain
+eminence equal to that of both California and Oklahoma as a petroleum
+region. The gulf fields came into prominence about the dawn of the
+present century, and have perhaps witnessed more booms than other
+sections of this continent. Speculative eras in new fields which
+have been brought in by “wildcat” drilling, which term should not
+be confused with wildcat mining speculation, are however regarded
+by sane and conservative oil men as harmful rather than helpful to
+the petroleum industry. They invariably produce false inflation and
+subsequent depression; and involve in reproach one of the greatest
+economic blessings bestowed upon humanity.
+
+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
+production, subsequent treatment and manifold application to the needs
+of present day commerce and civilization.
+
+
+
+
+                               CHAPTER VI
+
+                         LOCATING THE OIL WELL
+
+
+When Edwin Laurencine Drake went to Titusville, in 1859 the first
+question he asked of the natives was the location of “the oil spring”
+known to the Indians and the farmers who succeeded them. The modern oil
+seeker no longer concerns himself with surface indications.
+
+In truth there is little or nothing in the contour of the latter-day
+oil-fields to suggest oil to the eyes of the uninitiated. 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 them. Roughly, the
+theory upon which such operations are based is that the sub-surface
+rocks undulate, and that the presence of oil is most assured at the
+highest points of the undulations. 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
+it. In cases, not infrequent when the lease which conveys the right of
+drilling is limited in area, it is the business of the surveyor to see
+that the site chosen is well within the boundaries of the plot acquired
+for drilling purposes.
+
+On the subject of present-day methods of location a recent contributor
+to “The Lamp,” an American oil journal, provides much interesting data.
+Oil geology, he points out, 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 area. In Oklahoma, for instance,
+geological investigations made within the past five years resulted in
+the discovery of many of the new pools. All drilling is in some sense
+speculative, or to use the oil man’s phrase, a “wild cat,” at the
+outset; 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 invoked. The
+speculative nature of the oil business in its initial stages is
+indicated by the fact that less than one per cent. of the area of the
+oil region of Pennsylvania is producing territory, although it has
+probably been more thoroughly drilled than any field in the world. The
+limited extent of even the permanently productive fields is one of the
+phenomena of petroleum. More than one-half of the production of the
+State of Wyoming is found within an area of not more than six square
+miles. The famous Tepetate-Casiano pool of Mexico, which produced more
+than seventy-five million barrels of oil from 1910 to 1918, is about
+one-half mile wide and three miles long. When we compare the acreage of
+oil areas with that of the continent, the analogy of the needle in the
+haystack at once suggests itself.
+
+The geologist draws the certain deduction that oil migrates through
+some porous formation from its original source and concentrates itself
+in detached “pools” of comparatively small dimensions. It is the oil
+pioneer’s business to find these pools. Again, there may be several
+successive deposits of what are known as “oil sands,” separated from
+each other by hundreds of feet of barren formation. The depth of a
+well in itself means nothing. The operator must know in what strata he
+expects to find the oil. If these beds prove dry, then he abandons the
+test, regardless of whether the drilling has reached 1,000 or 4,000
+feet.
+
+Past experience has taught the geologist that oil-bearing formations
+manifest themselves by certain surface indications, such as gas
+springs, and surface seepages of oil or asphalt. In an untested field
+the expert studies the character of the successive formations along
+such outcroppings. In any mountainous region earthcrust upheavals
+during past ages have exposed a series of formations, similar to those
+which lie deep below the surface of the plains. Thus it is possible to
+predict with a fair degree of accuracy just what the formations will
+be for a considerable depth from geological indications. Geologists
+have also learned to recognize certain types of structures favourable
+to the accumulation of oil pools, known as anticlines, synclines, salt
+domes, monoclines and so forth. Thus it is sometimes possible to make
+in advance of drilling a surprisingly accurate forecast of what these
+operations will reveal.
+
+Because for the most part oil fields exist in rather sparsely populated
+districts, remote from centres of commercial and industrial activity,
+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 discoveries.
+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 field. The hopeful speculative spirit is as ever
+necessary; the capital fulfils an ever-growing function in this source
+of prosperity and employment for the community at large.
+
+In the oil industry any well drilled outside the narrow limits of a
+producing “pool” is regarded as a “wild cat” test. The element of
+a gamble is inevitably present, but has been materially reduced by
+science. An old established company in an important field is constantly
+adding to its land holdings in advance of the trend of development, and
+out of the profits from its developed productions sets aside a certain
+amount to expend for speculative ventures, to protect its investment
+in pipe lines, refineries, etc. The company also continues to drill in
+the vicinity of a producing pool until it is entirely surrounded by dry
+holes, and its limits demonstrated. Consequently, in an established oil
+field development work and prospecting are one and the same thing.
+
+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 enterprise. The pioneer producer must make a very
+substantial financial investment for roads and equipment. He must
+have the courage and grit to continue his efforts, even though he at
+the outset obtains negative and unsatisfactory results; sometimes
+for a period of years. Nor do his troubles end when he has made an
+important discovery, for then land hitherto almost valueless becomes
+much sought after by competitors, and legal complications involving
+titles and taxes are not slow to develop. 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 territory, the approximate depth and character of
+the oil bearing formations, and the possibilities of permanence in the
+wells themselves. The quality of the crude petroleum “mined” may be
+less important than the quantity.
+
+Though it is obvious that the obstacles that confront the pioneer
+operator are not insurmountable, the conditions described show why
+the history of oil discovery is bestrewn with failures. This has been
+particularly true of the Latin American fields of Venezuela, Colombia,
+Argentina and Costa Rica, and of many Asiatic attempts. Even in the
+great gusher field of Mexico the first tests were drilled in 1869, yet
+it was not until 1902 that any important production indicative of the
+great future of that region resulted. More than 50 wells drilled in a
+space of 33 years were failures.
+
+It is, therefore, apparent that detailed, scientific information
+on which to proceed is almost as important in the initial steps as
+strong financial backing, and efficient organization. The methods
+used in the early days of the Appalachian fields of Pennsylvania
+depended absolutely on “fool’s luck” and steadfast optimism. As this
+field extended down into West Virginia and Kentucky, and over into
+Ohio, the ever-increasing number of failures caused the operators to
+cast about for some sort of a working formula in choosing locations.
+From the crude efforts of these early investigators the fundamentals
+of modern oil-geology were developed. The old-fashioned operators’
+creed contained this axiom: “If you wild-cat enough in an oil field,
+you will make money in the long run.” But this no longer is a safe
+working motto. The steadily increased cost of drilling has made it of
+paramount importance to make careful selection beforehand. The modern
+oil operator realizes that Mother Earth provides many clues and hints
+which he cannot afford to disregard. The oil geologist interprets the
+surface indications and such other information relating to a given area
+as is available; and is ever on guard against the over-optimism of the
+promoter.
+
+
+
+
+                              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 difficulties. Drake went about the business of drilling
+the first well by using the traditional methods of boring for salt.
+Improvement was inevitable, however, and the Canadian wells of Western
+Ontario, which came into existence almost contemporaneously with those
+of Pennsylvania, were fruitful of inventions which have influenced
+drilling practices in many parts of the world. If we go back to the
+origins of oil and salt drilling mechanisms we find ourselves in China
+centuries before the Christian era. The Chinese used an auger attached
+to a pole that was held in a vertical position from a cross pole
+supported on a post. 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
+attached. Several coolies jumped from a platform on to the reverse side
+of the board, so that the tool would be jerked up and would plunge
+down and thus deepen the hole with each stroke. The deeper the hole
+became, the more coolies required for the task of “kicking down.”
+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 ground. To-day
+labour-saving machinery plays as great a part in well drilling as in
+other branches of industry.
+
+Let us suppose then that an oil company, or an individual with the
+requisite capital at his back, has advanced through the preliminaries
+which must precede drilling operations; the geologists have made a
+favourable declaration as to the prospective site; the leases and
+royalties have been arranged and the title is secure. When it is
+decided to start drilling, roads are built, water lines laid, and the
+lumber, casing machinery and other equipment are hauled to the location
+(often under very primitive and difficult conditions). The apparatus
+most commonly installed under these circumstances is the Pennsylvania
+cable system, which consists of a standard derrick or rig, built
+of wood or steel, about eighty feet in height, having a twenty-foot
+base and a four-foot top. The strength of the derrick is conditioned
+entirely by the size and depth of the well the operator wishes to
+drill, for nowadays nothing is left to chance. The size of the hole
+necessary in starting a well depends upon the physical formation. If
+it is soft, it is necessary to start with a hole of large diameter, to
+overcome the disabilities produced by caving. It sometimes happens that
+soft formations cave so much that it is necessary to insert several
+columns of casing before the required depth is reached. A hole with a
+large diameter is also used in deep drilling.
+
+[Illustration: The Drader Well in the Moreni field, Roumania. This well
+was producing 20,000 barrels daily when it caught fire]
+
+[Illustration: Burkburnett in northern Texas, showing development since
+August, 1918]
+
+The drilling equipment is called by the oil workers a “string of
+tools.” It consists of a rope socket, a stem or sinker about thirty
+feet long and five inches or more in diameter, depending on the size
+of the hole to be drilled, with a bit at the bottom. Attached to a
+string of tools is a set of what are known as “jars,” which take their
+name from their function of enabling the driller to jar the sinker
+loose. Manila or wire cable is wound upon a large reel known as the
+“bull wheel” 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 “string of tools.” The drilling
+movement is created by a power-driven walking beam which is a heavy
+timber working on an axis. This walking beam rocks up and down, with
+a stroke of three or four feet; thus the tools are raised and dropped
+at regular intervals, their great weight giving them a stroke equal
+in force to a steam hammer. The power used is ordinarily steam and
+the cable is connected with the walking beam by a temper screw, which
+enables the driller to lower the tools and handle them with ease and
+accuracy.
+
+Another method of growing importance is the rotary system, perfected
+within the present century in the Gulf Coast field of Texas and
+Louisiana and which in many sections is coming into common use. Its
+special advantage is speed in soft or caving formations. It consists
+of a perforated fish-tail bit screwed to a string of drill pipe, which
+projects up through the derrick platform and is rotated at the rate
+of about two hundred revolutions per minute by a turn-table. The top
+or “grip” joint of the pipe is usually made square, or hexagonal,
+to supply a good bearing surface for the turn-table. The tools are
+suspended by means of a swivel at the top of the grip joint. This
+swivel also has a hose connection through which thin mud is pumped down
+to the bottom of the hole. The circulation of this mud carries out the
+cuttings made by the fish-tail bit, and also serves to plaster up the
+side of the hole and thus prevent caving. The column of mud in the
+hole exerts a hydrostatic pressure which absolutely prevents quicksand
+from running in and causing the hole to collapse. A rotary appliance
+has been known to drill two hundred feet or more in twelve hours, but
+usually so high a rate of speed is impossible, since the pipe stem has
+to be pulled out at frequent intervals and the bit replaced. The fact
+that the delicate fish-tail bit grows smaller with wear creates this
+necessity.
+
+Another periodical process that must be carried on in the intervals of
+drilling is that of lining the hole with casing, in order that water
+and caving strata may be cased off before the oil sands are reached.
+After a well is operating, the lower part of the casing may rust
+through, causing leakage. To meet this difficulty an inner casing is
+put in place with a casing shoe, on the outside of which is lead or
+other soft material which expands under pressure from above to make a
+snug fit. Not infrequently, it is necessary to decrease the size of
+the hole with packers in this way four or five times, though it is kept
+as large as is practicable all the way down.
+
+When oil is struck it is sometimes suddenly driven to the surface by
+imprisoned gas, and another gusher, a comparatively common phenomenon
+in Mexico, is recorded. But if this condition does not arise,
+tubing and pump are inserted and the oil is drawn to the surface.
+Not infrequently, however, the oil sands at the outset do not yield
+an adequate flow and in a great number of cases what is known as
+“shooting” with nitro-glycerine, an interesting and once dangerous
+process, is resorted to. In the early days before oil production had
+been reduced to scientific formulas the obtaining of crude was often
+attended with serious hazards to life. Ignorance of the properties of
+petroleum also created imaginary dangers for the pioneers. In 1860
+the people of Western Pennsylvania were thrown into a panic by the
+proposal of a stranger, claiming to be a European scientist, to shoot
+a white-hot bolt into the bowels of the earth through an iron pipe
+driven to a great depth for the purpose. 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 oil. The Pennsylvania populace, instead
+of viewing this proposal with the apathy usually accorded to the
+first essays of inventive minds, possessed sufficient imagination to
+picture the possible results, and were so convinced that the alleged
+scientist minimized the possibilities of his project that they selected
+a small but determined committee to lynch him. Because he threatened to
+undermine not merely the foundations of society but the ground on which
+society subsisted, he was taken into custody by the authorities and
+solemnly warned to desist.
+
+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 flow, without noticeable public or physical disturbance.
+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 well. The “oil-shooters” are
+necessarily men of steady nerve and extreme caution. A shot will vary
+from ten quarts to as much as three hundred quarts, as the well to be
+treated may seem to require. For this purpose the nitro-glycerine is
+contained in tin tubes or shells five feet long and two inches or more
+in diameter, pointed at the lower end and having bail handles at the
+top. From five to fifteen shells, as the case may be, are lowered into
+the hole with extreme delicacy, and then the “go-devil”--a five-pound
+pointed shell--is released point downward. Nowadays, it is customary
+to use a nitro-glycerine squib wound with a long fuse more often
+than a “go-devil,” since the lowering of the cans of explosives may
+loosen earth which forms a cushion above the shells. An example of the
+presence of mind of a well shooter was provided a few years ago. Just
+after the first shell had been lowered, the rope suddenly slackened.
+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 mouth. There was no time
+to run and the only thing that could be done this “well shooter” did.
+Bracing himself directly over the well he grasped the shell as it came
+to the surface, and although the impetus with which it had ascended
+threw him across the derrick and dislocated his shoulder, he held it
+free from contact and saved the lives of the entire crew.
+
+Under the careful arrangements now made, 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 explosion.
+
+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 weeks. This decline in production is often as much
+as 50% in the first 30 days. Where wells do not flow naturally, various
+devices can be used to stimulate the output. Gas pressure has much to
+do with the problem. As a general rule the well of low gas pressure
+must be pumped from the beginning. The “gusher” which is the result
+of high gas pressure usually recedes rapidly in the matter of flow
+and becomes what is known as a “pumper,” the name given to wells when
+pumping is resorted to.
+
+The minimum of flow at which a well ceases to be profitable varies
+according to location, and is fixed by many conditions of which
+transportation and quality are the most important. Thus, in Mexico,
+a well yielding only fifty or one hundred barrels per day is usually
+abandoned as uncommercial, whereas in Pennsylvania and West Virginia,
+where the facilities for handling are better, there are thousands of
+old “pumpers” in operation producing a superior grade of oil, many of
+which supply only one-fourth of a barrel per day.
+
+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
+lease. After it has been tested and proven to be satisfactory the
+remainder of the property is drilled as quickly as possible. If the
+field is shallow and the wells are all “pumpers,” a central power
+station operated by gas or gasoline is sometimes installed which
+may provide the energy for pumping as many as a dozen wells. The
+shackle-rods spread out over the field like a spider’s web, and the
+rhythmical “chug-chug” 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 royalties.
+
+It will be clear to the reader that even in the initial process the
+production of crude petroleum under modern standardized processes
+which eliminate, so far as possible, waste of labour or of product,
+involves a considerable capital expenditure. The cost of a well in a
+new district, where the depth is likely to be in the neighbourhood
+of three thousand feet, may amount to considerably more than $50,000
+and a year may pass in the process of drilling. In the case of deep
+wells a permanent derrick is built, but in earlier days, for shallower
+holes a portable drilling machine was used, and with good fortune oil
+was often reached within a short time and the cost kept well within
+a margin of $5,000. It will be remembered that in the original Drake
+well at Titusville, oil was struck at sixty-nine and a half feet and
+that it took seven months to drill the well; a concrete illustration
+of the improvement in methods which has transpired in sixty years. 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 outlay.
+
+
+
+
+                              CHAPTER VIII
+
+            COLLECTING AND TRANSPORTING CRUDE: THE PIPE LINE
+
+
+When a new lease or area proves itself to be commercially productive,
+marketing the product becomes the next consideration. In the earliest
+stages of recovery and storage of petroleum there were great losses
+through lack of facilities, but modern mechanical science has largely
+eliminated the appalling waste of early days.
+
+The crude is pumped into small flow tanks, and from there run either to
+a pipe line station or to a “tank farm.” The problem of saving the flow
+of gushing wells at one time presented serious difficulties; and one
+of the most valuable of the early inventions was the clay underground
+tank. The petroleum is directed into a sump-hole lined (wherever
+possible) with clay, which, because of its close texture, makes an
+absolutely leakage proof reservoir. From the sump-hole it is pumped
+to the tanks, but this is usually but a temporary shift. When the
+gushing process ceases, pumps are installed and direct pipe connection
+with the storage tanks is established. The modern pump which lifts
+the oil from the oil-bearing strata to the surface is a very powerful
+mechanism. One of these will handle a column of oil as high as four
+thousand feet, and deliver it into pipes. As has been mentioned in
+alluding to the California seacoast fields, the intervening ocean
+itself constitutes no obstacle to operations. Not infrequently the
+walking beam, used in the drilling, is brought into commission for
+pumping purposes. It is rather a cumbersome system but has this
+advantage, that it enables the operator to begin production immediately
+and realize cash for his output.
+
+In what is known as the field tank, situated adjacent to the derricks
+and pumps, the oil operator deposits his daily production, which is
+later pumped to the “tank farm” for shipment. The capacity of a tank
+is known to a gallon. So many inches or feet of petroleum in a tank
+represent so many barrels. The gauger drops a steel tape into the oil
+until it touches bottom, and the location of the oil showing on this
+steel is the measure of the contents. Then the valves are opened and
+a portion of the contents flows away to the pump station or “tank
+farm.” A second measurement is taken, and the difference between the
+first and second measurement reveals the quantity of oil drawn off. The
+gauger then issues to the producer a credit certificate or “run ticket”
+representing the quantity of the crude received at that particular time.
+
+There are other complications, however, before the oil reaches the
+market. If the wells are gaseous in any considerable degree, the oil
+must pass through a gas separator before it enters the tanks. The
+gauger must measure and draw off any water present, which, owing to the
+proverbial incompatability of oil and water, is not difficult, and in
+calculating the amount of the credit slip he sees to it that no water
+is inadvertently paid for.
+
+Gas itself is not infrequently an important by-product of an oil lease.
+Almost invariably gas is associated with oil, although oil is not
+always found where gas is available. From many wells immense quantities
+of gas escape while drilling is in progress, and may occasionally
+wreck the machinery. Drillers have become expert in handling these
+difficulties and in casing off the gas and corking it up for future
+use. In many of the oil districts of the South and Middle West, natural
+gas from the producing areas has become the fuel of countless people
+who will never return to the use of coal, so long as this cheap and
+cleanly source of heat and light is available. Some wells yield as much
+as 25,000,000 feet of gas per day.
+
+With gas and water eliminated, the crude oil is pumped from the “field
+tank” to the “tank farm,” 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 refineries. These containers
+are built of sheet steel and have a standard capacity of about 55,000
+barrels in most cases, although some are constructed to contain 80,000
+barrels. They are riveted and must be absolutely proof against leakage.
+Incidentally, 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 prairies. Great
+havoc and waste sometimes result. Another convulsion of nature also
+dreaded by the oil man of the Middle West is the cyclone, which at
+times is especially disastrous to derricks and pumping plants.
+
+There is but one more stage through which the crude petroleum passes on
+its way to the refinery, but this stage is so important and has been
+such a vital factor in the organization of the American oil industry,
+as well as in those of other countries which have emulated the system,
+that it demands extended reference. 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
+industry. It is in reality like the waterworks system which reaches
+under the streets of modern towns and cities, but extending beneath the
+surface of millions of square miles of territory.
+
+When, as a result of the Pennsylvania discoveries, petroleum became a
+commercial commodity, and opened up sources of untold wealth to the
+people of this continent, little thought was at first given to the
+transportation problem. 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
+river. In periods of drought when the water was too low to float such
+craft, oil boats would be assembled on a mill pond near the wells and
+the water dammed back while the loading was in progress. Then the gates
+would be opened, and the fleet, carried on the flood and guided by
+pilots, would be rushed down Oil Creek to the Allegheny River.
+
+As production increased, and new districts without convenient water
+transportation were successfully drilled, it was necessary to devise
+new methods. The production of some wells, inaccessible by water,
+became a drug on the market and in 1862 crude oil prices at such wells
+fell as low as 10 cents a barrel. To meet the difficulty, a system
+of teaming was adopted and great caravans of the oil wagons became a
+familiar sight in inland oil regions. Such a caravan in the days before
+the pipe-lines would sometimes consist of no less than 6,000 wagons
+drawn by two horses each, and carrying from five to seven barrels of
+oil. Travellers of the early sixties encountering this spectacle were
+amazed at the endless stream of vehicles. Work was thus provided for
+a large number of men, who, with a team, could earn from $10 to $25
+per day conveying petroleum from the wells to the nearest point of
+shipment. 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 set, as later events proved.
+
+The inspiration of constructing a pipe-line which would obviate
+teaming, and by which oil could be made to flow direct to the shipping
+point or the refinery, is credited to a Jerseyman named Hutchings, who
+laid a short pipe line from some wells in which he was interested.
+The first test of conveying crude oil in pipes was through a two-inch
+iron pipe in process of being laid February 19, 1863 from the Tarr
+Farm to the Humboldt Refinery at Plumer, Pa., about six miles
+northeast of Oil City, Pa. The distance was two and a half miles.
+The teamsters, forseeing that their earnings would be diminished and
+perhaps disappear, if the system were generally adopted, destroyed the
+line and warned other producers against similar attempts. Hutchings
+was obstinate and built a second line. Again the teamsters completely
+destroyed his work. Undaunted, he tried again, with no better luck,
+and in the end died a broken and penniless man. But his idea did not
+die with him. In 1865 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 tanks. The State authorities,
+however, gave him armed protection and his line was completed. It was
+of two-inch diameter, with a rated daily capacity of 800 barrels.
+
+[Illustration: A big yield well in Mexico flowing into a temporary
+storage pond]
+
+[Illustration: Laying a pipe line through a Louisiana forest]
+
+J. D. Henry, one of the most eminent historians of petroleum, asserts
+that the first commercially successful pipe line was constructed
+in the summer of 1865 by Samuel Van Syckel of Titusville, from the
+mushroom city of Pithole, Pa., to the nearest railway station, Miller
+Farm, a distance of four miles. Van Syckel had the backing of New York
+capital, and the basis of his success, after similar projects had been
+abandoned as visionary, was due to better mechanical arrangements. Van
+Syckel’s line does not appear to have suffered from the lawlessness
+of teamsters. On the completion of Harley’s second line in the same
+neighbourhood, both proved so commercially successful that capitalists
+bought and amalgamated the two. Teamsters continued to give trouble and
+effect damage but protective measures were successful in securing the
+performance of the enterprise.
+
+From that time onward the mileage of pipe-lines has steadily
+multiplied, and by means of them the crude petroleum collected at a
+“tank farm” on the prairies is conveyed to refineries many hundreds of
+miles away. The first pipe-line of considerable length was laid in
+1880 from Butler County, Penn. to Cleveland, Ohio, a distance of over
+100 miles. Almost immediately after trunk lines from Bradford, Pa. to
+the Atlantic seaboard were commenced. By 1893 there were 3,000 miles of
+pipe lines in the Eastern states with storage facilities for 35,000,000
+barrels of oil.
+
+British and French historians of petroleum, viewing the development
+of the industry from the standpoint of impartial observers, regard
+the year 1883 as an epochal one in its history, because it marked the
+initiation of a comprehensive policy with regard to pipe-lines, under
+the inspiration of John D. Rockefeller. Mr. Rockefeller, originally a
+produce merchant, became interested in the oil business as early as
+1862 by the purchase of an interest in a small refinery at Cleveland,
+and by 1865, had become so convinced of the possibilities of the
+petroleum industry that he devoted himself exclusively to the refining
+and shipping business. In 1870 this business became incorporated as the
+Standard Oil Company.
+
+Of the events of 1883 Alfred Lidgett, a noted British oil expert and
+editor of the _Petroleum Times_ (London, England), says in his book
+“Petroleum,” published in 1919: “Then a few master minds came to the
+front, and loyally supported by John D. Rockefeller, they undertook
+the herculean task of practically girdling the United States with a
+system of oil pipe-lines that has no parallel anywhere. They eliminated
+the jaded horses, oil boats, wooden tankage and slow freights,
+tedious methods, and questionable practice of handling petroleum, and
+substituted therefor the steam pump, the iron conduit, the steel tank
+storage, and systematic and business-like methods which soon commanded
+the confidence and respect of all oil-producers. 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 served. The advantages of the modern pipe-line to the
+oil-producer are obvious.”
+
+The pipe-line connection to the producer’s well and tanks ensures
+prompt clearance of the crude and a steady cash market for his output,
+under the system defined in the last chapter. The elimination of waste
+and the reduction of cost in connection with transportation, of course,
+resulted in great material benefits to the consumer of petroleum
+products. 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 large.
+
+In conveying oil through the pipe lines both gravity and pumping are
+used. The pumping station at the “tank farm” forces the crude into
+pipes through which it commences its long journey to the refinery. This
+pumping equipment is in itself a wonderful mechanism and drives the oil
+over heights where gravity cannot assist. The pipe at the field lines
+where the journey starts varies in diameter from 2 to 8 inches and the
+joints are screw threaded. The main trunk lines are from 6 to 12 inches
+in diameter and pumping stations to continue the driving process are
+located at necessary intervals along the route. In some fields the oil
+is heavier than in others and then the stations have to be located
+nearer to each other, while in the case of certain very heavy crudes,
+heat is applied to promote the flow before it enters the pipe-line.
+
+By this system the amount of oil that flows under the soil of the
+United States to distant points exceeds half a million barrels daily.
+Concealed and unobtrusive, these lines do their work so well that
+millions of people whom they serve are unaware of their existence.
+Everyone knows of the freight train that links up the small town
+factory with the central distributing point, and of the grain car which
+carries the farmer’s wheat to the seaboard; but little attention is
+paid to this great but inconspicuous transportation adjunct of American
+industry, the petroleum pipe-line.
+
+As the system has grown, handling in tank cars of anything but refined
+product has become more and more nearly obsolete, for economic reasons.
+Once installed, the pipe-line system is cheap and easily maintained.
+It would, indeed, be quite impossible to conduct the American oil
+industry of to-day by the use of railroads, even though they were
+greatly multiplied. The crude oil which flows daily, east of the Rocky
+Mountains, through pipe-lines would fill over 2,500 tank cars. Since,
+on the average, a barrel of crude travels 1,000 miles before it reaches
+its destination, it would require approximately 75,000 tank cars to
+do the daily work of transportation effected by the pipe-lines, not
+to mention approximately 900 engines which it is estimated would be
+required to move them. Leaving out all the possibilities of congestion
+in stormy weather, it will be seen that such a task is one that
+railroads could not hope to carry out. In its present dimensions
+the oil industry, therefore, owes as much to the pipe-line as to the
+actual existence of oil deposits themselves. The work they perform
+is infinitely more even and uninterrupted than that of any system of
+railroad or water transportation. The pipe-lines run to full capacity,
+winter and summer, day and night, the year round, making possible the
+existence of great central refining plants where the crude can be
+treated in bulk at the lowest possible cost, and where distribution can
+be effected at the lightest impost on the ultimate consumer.
+
+
+
+
+                               CHAPTER IX
+
+             REFINING AND MANUFACTURING PETROLEUM PRODUCTS
+
+
+As has already been intimated, 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
+possibilities. If the reader has followed this narrative he will not
+have failed to note that it was the optimism of experimental chemists,
+who discerned in petroleum the possibilities of an illuminant which
+would take the place of whale oil and other fats, which first suggested
+to pioneer investors like Bissell the idea of developing America’s
+oil fields by the boring system. Certain crude traditional methods
+of refining petroleum had prevailed for centuries in the East, but
+they had not produced an illuminant that would be acceptable to our
+civilization.
+
+The advancement of science, which gradually enabled the early American
+refiners to produce a comparatively odourless, safe, and free-burning
+oil from the crude, gave the necessary stimulus to the new industry.
+The American refining system has since become one of the greatest
+examples of standardized industry, fascinating in its minutiae,
+and amazing in the efficiency and economy of its organization. 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 miles, and which, by treating it in vast
+quantities, are enabled to provide the world with the products of
+petroleum at the lowest possible cost.
+
+It is the purpose of the refining process to produce from the crude
+petroleum marketable products and this involves two stages. First:
+The separation of the crude petroleum into its constituent parts,
+corresponding in general to gasoline, kerosene, lubricating oil, etc.,
+and, subsequently, the purification of each of these roughly separated
+products to bring them into marketable condition.
+
+The process might be best understood by likening the crude petroleum
+to gravel scooped from out of the hillside. Such gravel would consist
+of a mixture of sand, fine gravel, coarse gravel, rocks and boulders.
+In this condition it would be unmarketable, except perhaps to fill up
+marshy land. 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 fuel, at once troublesome and dangerous.
+
+To prepare the freshly mined or “crude” gravel for the market it would
+be sifted through a series of screens which would separate it into its
+component sizes. As a result of the sifting operation there would be
+produced builders’ sand suitable for use in mortar, fine and coarse
+gravel desirable for concrete, rough rock for road foundations, and
+boulders for masonry structures.
+
+The crude petroleum oil is a liquid and cannot be sifted on screens as
+is the crude gravel, but nature has given it properties in consequence
+of which it may be separated into its constituents almost as easily
+as is the gravel. These properties are the different boiling points
+of the several constituents. Thus, when water or any other single
+liquid is heated it continues to increase in temperature until boiling
+begins, after which its temperature remains the same, no matter how
+rapidly the heat is applied, until all of the liquid has been boiled
+away. When petroleum is heated, however, it begins to boil at a very
+low temperature, a temperature hardly hot enough to injure the skin,
+in some cases. It is not the whole of the petroleum which is boiling,
+however, but only the very lightest part of it, that is, the gasoline
+or naphtha. If the temperature were to be held constant for a short
+length of time all of the gasoline would have been boiled off, and
+although the liquid would be just as hot as it was before, the boiling
+would cease entirely. If the heating is now continued, however, and the
+temperature of the oil raised to some higher figure, 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 liquid.
+After a time all of this kerosene will be gone, and as before, the
+liquid, although still at the same temperature at which it has just
+previously been actively boiling, remains quiescent. In this fashion
+the various constituents of the crude petroleum may be separated from
+one another by a “sifting” operation somewhat similar to that used to
+separate sand from gravel and gravel from rock, 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 products, which are successively driven off in this fashion,
+separated from one another.
+
+The apparatus commonly employed for this purpose is called a “still”
+and consists merely of a steel receptacle, usually in the form of a
+horizontal cylinder, much like a simple steam boiler. These stills
+have been developed to large capacity, some of them holding upwards
+of 50,000 wine gallons of oil at one time. The still is mounted over
+a furnace which is usually heated by coal just as an ordinary steam
+boiler. 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 coke.
+
+It remains, therefore, to cool and condense these vapours. This is
+accomplished by an apparatus called a “condenser” which is connected to
+each still. An elementary condenser consists merely of a coil of pipe
+submerged in a tank of cold water. The vapour leaving the still passes
+through the submerged coils in which the vapour by cooling is caused
+to return to a liquid condition. Into one end of the condenser coil,
+therefore, the vapour from the still enters and from the other end
+there flows the condensed liquid.
+
+The first and most important step in the process of refining all crude
+petroleum is conducted in the fashion above described. A refinery
+of large size will have perhaps 100 of those crude stills which are
+generally arranged in groups or batteries, each battery containing
+a dozen or more stills. From each still the condenser pipes are led
+to a “receiving house” which is located in some central position. In
+this manner it becomes possible for a single responsible supervisor
+to observe and control the operation of a large number of stills.
+The supervisor is called the “stillsman” 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 “fractions” or parts, each of which by
+further refining becomes a marketable petroleum product. As generally
+conducted, this first distillation process separates the crude
+petroleum oil into four major fractions.
+
+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 heated, is the naphtha or gasoline fraction. When all the
+naphtha or gasoline from any particular still has been driven off,
+the stillsman, stationed in the receiving house and able to observe
+constantly the character of the condensed liquid, which is delivered
+by the pipe from the condenser coil to the house, will change the
+connections in the receiving house so that the next “distillate” to be
+received will flow to a separate tank. This second distillate which
+comes into the receiving house and is thus diverted to a separate tank
+will be the illuminating oil distillate or, in refinery parlance, the
+“refined oil distillate.” It is interesting to note that “refined oil”
+to a petroleum refiner still means kerosene illuminating oil, since
+in the original petroleum industry this illuminating product was the
+only fraction of the crude oil which was highly purified or refined.
+The entire remainder of the crude petroleum, including gasoline and
+the lubricating oils and other products heavier than kerosene, were
+either discarded wholly or else sold for whatever they would bring in
+an unrefined or very poorly refined condition.
+
+The next product which is driven off from the crude oil after all of
+the kerosene has been removed is a somewhat heavy and discoloured, but
+free flowing oil, known as “gas oil.” Gas oil is seldom sold at retail
+and the general public has very little knowledge of it. Its main use
+is for the manufacture of city gas, auxiliary to coal, the products of
+which form the base of city gas.
+
+The next product after the gas oil and the last important product of
+crude petroleum is the lubricating oil distillate, which is known as
+“paraffine distillate” for the reason that it contains the paraffine
+wax.
+
+With the exception of the gas oil, which by reason of the uses to which
+it is put does not usually require any further treatment, the products
+thus roughly separated from the crude petroleum each need not only
+further separation, but actual chemical purification to prepare them
+for the market.
+
+Considering these products in the order in which they are derived
+from the crude petroleum, the gasoline or naphtha fraction is often
+subjected to a second distillation by which it is further “sifted” into
+light, intermediate and heavy naphthas. It is customary to conduct this
+second distillation process by steam heat instead of by fire, since
+the gasoline or naphtha fraction boils at such a low temperature that
+it is unnecessary to resort to a furnace and furthermore, the quality
+of the product is thought to be better if the second distillation is
+conducted with steam. Following this second distillation the naphtha
+or gasoline is subjected to chemical purification which involves
+treatment with sulphuric acid, with sodium hydrate, 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 action. There is a considerable variation
+in the purification or refining method employed by the different
+refiners, but the foregoing treatments are the principal ones now in
+vogue. The marketable products produced from the crude gasoline or
+naphtha distillate by this re-distillation and purification process
+are principally as stated--light naphthas, intermediate naphthas and
+heavy naphthas. The light naphthas range from petroleum ether, an
+exceedingly sweet-smelling and volatile liquid to aviation gasoline,
+especially suitable for use in aeroplane motors under extreme
+conditions of temperature and power development. The intermediate
+naphtha is the ordinary gasoline of commerce, principally used as fuel
+for automobile engines. The heavy naphtha is that often sold under the
+name of benzine, cleaners’ naphtha, solvent naphtha or varnish makers’
+and painters’ naphtha. As these names indicate, the heavy naphtha
+is principally used in the manufacture of paints and varnishes, for
+dry-cleaning and as a solvent in the chemical industries.
+
+The second fraction of the crude petroleum, the kerosene, illuminating
+oil, or “refined oil,” is likewise ordinarily subjected to a second
+distilling operation, 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 lamps. This re-distillation is followed by
+a chemical purification, producing the kerosene of commerce, which is
+not only so safe that it may be heated to a temperature well above
+100° F. without danger of giving off any explosive vapour, but is also
+water-white in colour, crystal clear, and of such purity that it may be
+burned in a lamp in a closed room without producing offensive odours or
+smoke.
+
+The third major fraction of the crude petroleum is the gas oil which
+has previously been referred to. In general this product may be
+marketed without further treatment.
+
+[Illustration: Lines for loading oil on vessels anchored from one to
+two miles off shore. This is a regular practice in Mexico where a deep
+harbour is not available]
+
+[Illustration: Battery of crude stills at the Bayway Refinery, Linden,
+N. J.]
+
+The next and last major fraction is perhaps the most interesting of
+all. 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 waxes, not only for candles, but for
+laundry use, for producing water-proof paper, for sealing preserve jars
+and for a multitude of minor uses. The first step in the treatment of
+this “paraffine distillate” or lubricating oil distillate fraction of
+the crude petroleum is to separate from it the paraffine wax which
+it carries in solution. This is accomplished by chilling the oil to
+a very low temperature through the use of refrigerating apparatus.
+When the oil is thus chilled the dissolved wax therein crystalizes so
+that the mixture resembles nothing more than slush or mush ice. Having
+caused the dissolved paraffine to freeze and come out in the form of
+slush in this fashion, it remains to separate it from the oil. This is
+accomplished by filtering the mush, still held at its low temperature,
+through canvas cloths. The oily part of the mush passes freely through
+the cloth while the solidified particles of wax remain on the face
+of the fabric. The first two products separated by the chilling
+and filtering processes are therefore a wax-free oil and an impure
+paraffine wax.
+
+The impure paraffine wax is known as “slack wax” and is melted and
+poured in a liquid condition into shallow pans, where upon cooling, it
+solidifies. The pans are then slowly and cautiously heated, and as the
+temperature of the wax rises, the small quantity of oil which it still
+carries sweats out of the wax, just as though the wax were actually
+perspiring.
+
+As a result of this sweating operation there is produced “crude scale
+wax,” the ordinary wax of commerce. It is yellow to ivory in colour,
+contains only a small proportion of oil and is almost odourless and
+tasteless. The crude scale wax is very commonly further refined by the
+general methods used throughout the oil industry, i.e. by treatment
+with acid and alkali, and by filtration, to produce refined paraffine
+wax of pure white colour, free from oil, and without odour or taste. It
+is this refined grade of wax which is commonly met with in the retail
+market.
+
+Returning to the wax-free oil which passes through the canvas filters,
+leaving behind the impure wax, we find that this is the product from
+which lubricating oils are obtained. It is an oil of dark brown or
+amber colour, considerably heavier than kerosene and has a very greasy
+feeling which is indicative of its value for lubricating purposes.
+Elaborate methods have been devised for accurately determining and
+gauging this greasiness or viscosity, which is the property of the
+oil upon which its lubricating value is most dependent. In general,
+this oil is in part re-distilled, that is, it is charged into a still
+and subjected to a temperature which is sufficient to drive off, in
+the form of vapour, some portion, though not all of the oil under
+treatment. This process, accurately described as “reducing” the
+oil, serves to concentrate in the residue remaining in the still,
+the heavier or more greasy or viscous constituents, the grade or
+viscosity of the lubricating oil depending on the extent to which this
+reduction is carried. As in the case of the other petroleum products,
+it is customary to carry out a chemical purification process and to
+filter the oil subsequent to the re-distillation. As a result of such
+further chemical purification and filtration, the colour of the oil
+is improved, any suspended solids or dirt which it may contain are
+removed, and any chemical constituents which it may contain and which
+may be detrimental to its use, are destroyed.
+
+The refining process above described is that which is most largely
+employed in this country, being a typical process for obtaining
+gasoline, kerosene, gas oil, lubricating oils and paraffine wax from
+the grade of crude petroleum produced from the central and central
+western states of the United States. The process is considerably
+varied, however, in dealing with crude petroleum of different
+characteristics. 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 asphalt. Oil of this character is not generally used for the
+production of lubricating oils or wax, but is instead merely refined
+for the production of gasoline, kerosene, and fuel oil, or for gasoline
+and fuel oil only. It will be understood that the term “fuel oil”
+merely indicates any heavy petroleum oil free from dirt and water, and
+fluid enough to be readily pumped through a pipe, and containing no
+constituents which would make it apt to give explosive mixtures with
+air. Fuel oil of this description is largely replacing coal as a fuel
+for steamships.
+
+The State of California produces a considerable quantity of this
+“asphalt base” crude petroleum, which, like the crude petroleum from
+Mexico, is subjected to refining processes very much simpler and
+yielding mainly gasoline, kerosene and fuel oil. 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 produced. These artificial asphalts in general represent the
+heavier constituents of crude petroleums, such as those of Mexico
+and California. The term artificial asphalt is perhaps a misnomer,
+for, although the properties of the asphalt are somewhat modified
+by the refining operation, 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
+dissolved.
+
+There is also a large amount of oil produced in the United States,
+mainly in Pennsylvania, which is of a character especially suited to
+the production of high grade lubricants by a simple refining method.
+With oil of this character the lubricating constituents do not require
+distillation to separate them from impurities. The crude petroleum
+may be directly reduced by distillation, taking off the three major
+fractions, that is, gasoline, kerosene and gas oil, and leaving behind
+in the still a very good grade of lubricating oil which, however,
+contains paraffine wax. To separate this wax from the lubricating oil,
+in which it is dissolved, an ingenious process called cold settling
+is resorted to. According to this process, the mixture of lubricating
+oil and wax is diluted with gasoline, enough gasoline being employed
+to make a very thin liquid, and the mixture is then chilled to a low
+temperature. From the chilled mixture the paraffine separates out in
+the form of a thick grease which settles to the bottom of the chilling
+tank. This grease is subsequently refined to produce the various grades
+of petroleum jelly. 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 lubricants.
+
+Returning to the analogy by which we compared crude petroleum oil to
+crude gravel mined from the hillsides, it will be noted as in the
+case of the gravel, the various crude petroleums differ in character
+considerably, according to their origin, and that the refining process
+must be modified to suit the character of the oil.
+
+The analogy may be pursued one step further to explain one of the most
+interesting developments of the modern petroleum industry, i. e., the
+manufacture of gasoline not naturally contained in crude petroleum.
+This process of _manufacturing gasoline_ is called “cracking.”
+
+Let us assume that we desire to obtain from crude gravel, mined from
+the ground, a maximum amount of fine gravel. 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 gravel, which is too large for
+our use, through crushing rollers which would crush or crack it, thus
+producing an additional quantity of fine gravel. An analogous process
+has now been successfully developed for the treatment of petroleum
+oils. According to this process, a heavier constituent of the crude
+petroleum oil, for example, kerosene or gas oil, may be subjected to
+distillation at high temperatures, and under high pressure in special
+stills designed for this process, thus securing increased quantities
+of gasoline. In this operation a certain proportion of the heavier oil
+treated is caused to break down into gasoline. The U. S. Bureau of
+Mines estimates that in 1919 some 15% of the country’s total gasoline
+production was obtained by this process.
+
+
+
+
+                               CHAPTER X
+
+                     PETROLEUM AND OTHER INDUSTRIES
+
+
+Petroleum products not only enter as an essential into great
+industries; but their manufacture and distribution have given birth
+to many allied industries directly connected with the oil business.
+The plant of a modern refinery, for instance, by no means begins and
+ends with equipment for the distillation and treatment of oil. We have
+seen that the petroleum industry has given birth to an underground
+transportation system entirely unique, which accomplishes something
+impossible to railroads, under any conceivable organization. The
+architectural breadth and completeness of detail which characterize the
+petroleum industry as now organized, also extend to many mechanical
+trades. The modern refinery is a self-contained institution. It goes
+outside its own organization for little. Besides its still hands and
+other types of oil workers it has its corps of carpenters, pattern
+makers, machinists, acetylene welders, boilermakers, sheet iron
+workers, riveters, blacksmiths and the like. A modern refinery of the
+large type is a complex industrial unit, astonishing in its diversity
+of duties and pursuits. Among them this army of workers construct
+almost everything that is necessary to carry out the work of storage
+and distribution. Steel, delivered from the rolling mills in immense
+plates, emerges in the form of tank wagons, stills, condensers, tanks
+and all the varied equipment of the refining industry. Highly technical
+and intricate mechanical operations are carried out in connection
+with the manufacture of these accessories. 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 easily. Punching a four inch
+washer out of solid half-inch steel is a relatively light operation
+with the power available. 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 execute.
+The hydraulic press pats the steel plates into the required shape with
+a stroke of several tons. Cutting steel with an acetylene flame is a
+familiar sight, and the man who operates this torch could cut a hole in
+the side of a battleship in short order. Electric cranes toss beams
+weighing twenty tons or more about as though they were jack-straws. By
+such processes a tank capable of holding 55,000 barrels of oil comes
+into being with astonishing expedition. The production of the barrels,
+boxes and innumerable subsidiary requirements of a great manufacturing
+industry are all a part of the plant’s activities. Refineries also
+provide a considerable portion of their own fuel. The gas produced in
+the refining process is collected to run gas engines which provide
+power for various mechanical operations.
+
+Although the refinery is self contained, the various branches of oil
+production, transportation and treatment have been a stimulus to
+many industries. Invention has been applied to the construction of
+improved oil drilling and pumping machinery; the pump lines themselves
+are prefaced by mechanical production of the requisite piping. Of
+the petroleum industry was born the tank steamer and the tank car.
+Though the crude reaches the refinery largely by means of its own
+transportation system, its various transformations leave by other
+routes. 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 cars, which have become an institution on American
+railways. Solid trains of them leave the great refineries every day;
+without them it would be impossible to deliver the various petroleum
+products, indispensable to industry, to consumers so expeditiously as
+now.
+
+Petroleum’s faculty, as a standardized industry, of attracting to
+itself subsidiary trades is, however, but a negligible consideration
+in comparison with its relation to industry and commerce in the larger
+sense of these terms. The noted English publicist, Sydney Brooks, has
+drawn a pen picture of the marvellous interpenetration of the world’s
+industrial fabric which has taken place within the past fifty years.
+
+“To-day” says Brooks, “petroleum enters into our daily life under
+the guise of at least 250 different and marketable commodities. It
+lights our lamps and stoves; it cleans our clothes; it prepares our
+varnishes; it acts as a substitute for turpentine in the printing,
+dyeing and painting industries; it invades our tables in the form of
+artificial butter, confectionery and a number of other edibles; it
+supplies us with our wax, our candles, our chewing gum, and a vast
+array of ointments, salves and drugs; it furnishes the dressing table
+with perfumes and the smoking room with matches; it imparts the final
+lustre to our collars and shirts; and the textile trades use enormous
+quantities of it for finishing soft goods; it medicates our bodies and
+gives to preserved fruits their peculiarly toothsome appearance; it
+blends with animal and vegetable oils in a range of combinations almost
+infinite; its residue can be burned as coke, or used in the manufacture
+of electric arc-lights, or employed in road making as a rival to
+asphalt; it lubricates our machinery and drives our motor cars, our
+ships, our aeroplanes, our locomotives, our ploughs and tractors. By
+means of it every form of transportation on land, in the air, on the
+seas and below the sea, has been immeasurably extended and in many
+instances revolutionized. 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 coal. The demands for it are indeed illimitable.”
+
+Mr. Brooks is speaking exclusively of the part that petroleum plays
+in the industrial and social life of Great Britain. In the United
+States its applications are wider still. Were it necessary, it would be
+possible to dilate on the relation of petroleum to agriculture in this
+country, where the farmer who operates a large acreage in the middle
+west or in Texas and California, by means of tractors finds petroleum
+an indispensable ally. In this sense petroleum has helped enormously to
+increase the food supplies of the world and the national wealth of the
+United States.
+
+One of the greatest, 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
+(once regarded as almost the least valuable product of the refinery)
+gasoline. Invention has reacted radically on the oil industry, from
+decade to decade, and especially on its refining phase. Until the
+advent of what is known as the “internal combustion” engine, for
+instance, the demand for gasoline was so limited that when produced,
+as was inevitable in the distillation of many types of crude, it
+represented but a fraction of its present value. To-day this engine,
+which lives and functions by gasoline, has created an ever-increasing
+demand for that fluid which taxes the energy of all refineries to meet.
+
+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 reference. It not only made the
+automobile practicable, but the aeroplane, the dirigible air-ship, the
+submarine and a host of other craft possible. When, during the autumn
+of 1919, the entire railroad system of Great Britain was paralyzed by
+a general strike, and the people of its great and overcrowded cities
+were face to face with starvation, it was admittedly the internal
+combustion engine, operated by gasoline (commonly known overseas as
+motor spirit or petrol)--that saved the situation. To understand its
+appellation the reader should note the fact that the older forms of
+engines were operated by steam generated in boilers, heated by external
+combustion--a process familiar to everyone. The internal combustion
+engine, on the contrary, runs by fuel (usually gasoline) which is
+introduced directly into the contrivance itself. There it is vaporized
+and mixed with air so as to become an explosive substance with great
+powers of propulsion. 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 engine. During the war especially, the minds
+of all mechanical experts were applied to improvements that would
+result in an engine being made lighter and lighter with each new model,
+while at the same time meeting enormous power demands. Without such
+space-saving contrivances the flying machine would never have reached
+its modern development, and the motor car would not have come into
+general use. The revolution effected by automatic traction alone,
+with the co-operation of petroleum, would have seemed incredible a
+generation ago. The pioneer users of motor cars bought their gasoline
+at drug stores. To-day the “gas” 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 people. The automobile industry, which
+could hardly have been born without petroleum as an auxiliary, now
+represents an enormous investment in this and other countries giving
+employment to innumerable workmen of all classes.
+
+Oil as a source of power is to all intents and purposes an outgrowth
+of the twentieth century. Its function as a source of light and heat
+is historical. 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 automobiles, aeroplanes and
+other inventions operated by gasoline engines, is steadily increasing.
+It is taking its place as a substitute for coal, not only in the
+United States but to a marked extent in other countries. For some of
+them it may be said to have proved a solution for railroad problems
+that were at one time almost insuperable. Russia, for instance, for
+the last thirty years, and up to the time when internal conditions
+disrupted her industrial organization, utilized her own petroleum
+for fuel. The railroads of Mexico, Argentina, 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 employed. 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 success; in 1919 the amount of fuel oil
+used for this purpose in the United States was approximately 50,000,000
+barrels. 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 engine.
+
+[Illustration: “Look boxes” in the “Still House,” where the grades of
+oil are separated according to gravity, the process being known as the
+separation of “cuts”]
+
+[Illustration: A modern tanker carrying 4,000,000 gallons of oil]
+
+Oil as a domestic fuel is gradually making its way because of the
+advantages it gives in the matter of cleanliness. 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 by. 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 power, the elimination
+of dust and the saving of labour involved are economic factors of first
+importance.
+
+The invention of new devices for the utilization of oil have
+necessarily proven a stimulus to manufacture. Indeed, it would be
+impossible to trace the myriad paths by which petroleum enters into the
+public and domestic economy of the civilized world. So far we have left
+untouched one of its most pregnant applications; its relation to sea
+power and to maritime commerce, which is so wide and important as to
+justify a separate chapter.
+
+
+
+
+                               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
+supply. 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 light. 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 vessels. The relation of petroleum
+to the sea may be approached from several angles. The necessity of
+conveying vast quantities of oil across the oceans of the world has,
+for instance, produced a form of maritime architecture almost as unique
+in its kind as is the pipe-line in land transportation. Then again, oil
+has within recent years tended to revolutionize the fuelling of both
+the merchant marine and the war fleets of this and other countries.
+Petroleum’s relation to naval activity in time of war is so important
+that it will be dealt with in a separate chapter. 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 power.
+
+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 product. American
+petroleum met an ever-growing need. 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 famine. Within two or three years after the sinking of Drake’s
+well, Europe was eagerly seeking to purchase not only the crude but the
+refined products, and the demand has grown apace ever since, despite
+the development of oil fields in other parts of the world. In the
+annals of the oil industry the name of Dr. A. F. Crawford, who in 1861
+was U. S. Consul at Antwerp, holds an honourable place. 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 begun. Great Britain, which had been trying to develop
+Scottish shale oil production, was also quick to avail herself of the
+American discoveries. From the outset the problem of how to carry
+large quantities of petroleum products without waste, danger or injury
+to other cargoes, occupied the minds of shipping men. The earlier
+shipments were in the nature of samples despatched in ordinary cargo
+vessels, usually from the port of Philadelphia.
+
+In November of 1861 Messrs. Peter Wright and Sons, a well known
+shipping firm of that city, chartered a small sailing vessel, the
+_Elizabeth Watts_, to carry oil exclusively and to deliver her cargo
+in London. 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 to;
+and the crew reached London without other disaster than the injury to
+their sensibilities involved. The success of this voyage prompted other
+shipowners to embark in the business, so that by 1864 shipments of oil
+from various Atlantic ports had grown to a very respectable total.
+Casks or barrels were used for transport, entailing a very great
+waste of oil, time and labour. The casks themselves called for a large
+initial outlay and leakages were a source of loss, damage and possible
+danger. In 1863 the thought of carrying oil in bulk in vessels,
+specially designed for that purpose, appears to have occurred almost
+simultaneously to importers in different parts of England. Henry Duncan
+of Bromley, Kent, is generally admitted to have been the father of the
+idea. He chartered a schooner at Chicago, fitted her to carry oil in
+bulk and in her hold and loaded her at Sarnia, Canada, then as now, an
+oil shipping point of inland America. The experiment was ill-fated, for
+the schooner was lost in the Gulf of St. Lawrence before entering on
+the high seas. 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 1878.
+
+The genesis of the modern tanker dates from the launching of the
+_Atlantic_ at St. Peter’s on the Tyne, Yorkshire, in August 1863. In
+the record of this launching it was set forth that the vessel was
+specifically designed to carry petroleum in bulk “without the aid of
+casks” but there is no evidence that she was ever put into commission.
+The real beginning seems to have been made with the Belgian ship,
+the _Charles_, 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 cargo. She was a sailing
+vessel and her capacity has been estimated as high as 7000 barrels in
+bulk. Between 1869 and 1872 she plied between New York and European
+ports. By 1878 the business of carrying oil in iron ships specially
+built for that purpose, or in converted vessels like the _Charles_ had
+become definitely established and barrel-carrying ships had practically
+disappeared from American harbours. At first oil was carried only on
+sailing vessels, owing to the supposed danger of fire; but gradually
+adjustments were made which rendered it feasible to propel oil ships by
+steam.
+
+The growth of the petroleum industry in the ’eighties made it clear
+that the converted oil ship was uneconomical and somewhat dangerous.
+Leakages in such vessels produced gases that sometimes caused
+explosions; and one curious fact was demonstrated, namely, that there
+was greater menace in an empty oil ship than in a full one, for the
+reason that the exposed surface from which explosive gases might
+emanate was infinitely greater. When an oil ship of scientific model
+was filled to capacity the only danger points were the hatches through
+which it had been filled; whereas when empty, especially if there had
+been carelessness in unloading, the explosive area and the possible
+formation of gas-producing deposits was greatly increased. With the
+converted ships the chances of leakage were necessarily many, owing
+to numerous and inaccessible waste spaces outside the tanks. 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
+vessel, and over every emanation of gas given off by that oil. 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 danger.
+
+For a good many years past the construction of oil tankers has been
+one of the important branches of industry in the leading shipbuilding
+countries; and they carry not only the predominating American product,
+but that of all the scattered oil fields of the world. They bring
+crude to our seaboard refineries, but they carry little crude away;
+their business is that of conveying the finished oils to other lands.
+The shipment of the crude product of American wells overseas has long
+since ceased as a result of the stupendous development of our refining
+industry, but Mexico has lately come into prominence as an exporter of
+crude. In comparison with the earlier oil ships the modern tanker shows
+the same ratio of growth which characterizes all phases of petroleum
+development. 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 500 feet in length and correspondingly wide beam. Whereas the
+little Belgian ship, the _Charles_, fifty years ago carried a maximum
+of 295,000 gallons, one of the larger types of modern oil tankers will
+carry more than 4,500,000 gallons.
+
+The greater petroleum organizations do not depend on private shipping
+firms to carry their products, but build their own vessels. 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 home. 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 ago. Many of the American tankers are among
+the largest that fly the Stars and Stripes. Such giant vessels coming
+up the fairway of a foreign port constitute a graphic advertisement
+for the United States, and serve as the symbol of an industrial
+nation standing at the head of the world’s commerce. It is fitting
+that the American flag should have been carried to every port of the
+seven seas in connection with petroleum, the American product which
+has revolutionized the world’s industry. These great vessels carry
+the source of light, heat and industrial energy to peoples of every
+language and every colour. Great progress has been made in economizing
+time and labour in connection with cargoes. Where but a few years ago
+it required days to load or unload a ten-thousand ton ship, the task is
+now performed in a few hours. The oil is handled by the use of powerful
+pumps or by gravity, when possible. Owing to the speed with which oil
+cargoes are handled no other ships on the ocean do so much sailing, or
+spend so little time in port as the oil tanker.
+
+So far in this chapter we have dealt solely with the development of the
+sea-transportation of oil itself; but even larger vistas are opened
+when we come to its growing relation to all forms of maritime commerce
+and naval activity. This arises from the rapidly increasing use of oil
+as a marine fuel. In that respect it holds very high potentialities for
+America’s seaborne trade. The oil tankers we have been describing are
+oil burning, and the same system is being applied to many other types
+of vessels which constitute the arteries of the world’s trade. 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 Swansea, Wales. But the
+definite advantages of oil as a fuel for the navigation of steamships
+are changing the whole maritime equilibrium. As an English writer has
+said, the position that oil has captured for itself in this respect has
+been fairly won on its merits. Oil fuel has one and a half times the
+heating power of steam coal, so that weight for weight carried, the
+radius of action is extended fifty per cent. A vessel equipped with a
+modern internal combustion engine consuming fuel oil may make a voyage
+of fifty-seven days without replenishment, 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 days. In 1912 an Oil
+Congress was held in London, England, when statistics were presented
+containing a comparison between coal and fuel oil on the great Cunard
+Liner the _Mauretania_. It was shown that for the round trip from
+Liverpool to New York and back there would be a saving of at least 5000
+tons of fuel and that the force of stokers required could be reduced
+from 300 to 30 men working under much less difficult conditions. The
+resultant increase in available space for cargo and passengers is of
+enormous importance to ship-owners. The relative values of oil and coal
+for marine use are not limited to the superiority of oil engines over
+the old-fashioned steam engines. The caloric or steam-raising power
+of oil is so much greater than that of coal as to produce a fifty per
+cent. superiority. Another factor is that of cleanliness. Coal is not
+merely bulky and prolific of many inconveniences in the confined space
+of a ship, but it is unquestionably dirty, as every harbour bears ample
+testimony. Oil is clean, smokeless and leaves no ashes and clinkers.
+It can be pumped on board from a tender while both ships are making
+considerable speed. The late war furnished innumerable demonstrations
+of the superiority of oil as a source of motive power at sea, which
+will be presently dealt with; as an aid to peaceful commerce its
+influence during the next few years is certain to be revolutionary and
+incalculable in its benefits.
+
+The future of the oil-burning ship depends directly upon the supply of
+fuel, a question that at the moment is giving both the oil men and the
+steamship operators a good deal of concern. In recent months, owing
+principally to the changes effected by the intrusion of salt water in
+the Mexican fields, it has been a difficult matter for vessels not
+protected by contracts to obtain fuel oil. The advantages of this
+method of raising steam are so considerable that it will prove a great
+economic loss if, through failing supplies, it becomes necessary for
+oil-burning ships to revert to coal.
+
+It would be a mistake to think that other great commercial powers
+are not alive to the possibilities of oil on the seven seas, 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 industry. 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 past. Although displacement of coal
+by oil in any wide measure is perhaps the most recent development in
+the story of petroleum; and the construction of oil-burning in place
+of coal-burning ships is the latest phase of maritime architecture,
+American oil producers have already anticipated the change in events
+by establishing oil-bunkering stations in various parts of the world.
+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 call. It is highly important that
+vessels under the Stars and Stripes should not be wholly dependent upon
+foreign agencies for filling their tanks. 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 world.
+
+A glance at the list of such stations as it stood at the end of the
+year 1919 shows how much petroleum has done to extend the influence
+of the United States of America on the sea. Exclusive of the domestic
+establishments on the Atlantic seaboard and in the Gulf of Mexico,
+bunkering stations have been established by American initiative at all
+the chief ports of Canada, whether on the Atlantic or on the Pacific
+Coast, the Great Lakes, or the Gulf of St. Lawrence, in South America,
+at Rio de Janeiro, Brazil; Montevideo, Uruguay; Campana and Buenos
+Aires, Argentina; at Valparaiso and five other ports on the long coast
+line of Chile; and at three ports in Peru. Bunkering facilities have
+also been established at both approaches to the Panama Canal and at
+many points in the West Indies, including Bermuda. There are nine such
+stations in Great Britain; three in Norway; two in Sweden and three in
+Denmark, covering effectively the North Sea and the Baltic. Those on
+the Mediterranean include five in Italy; one in Tunis (Bizerta) and one
+in Egypt (Port Said).
+
+These stations are designed to promote those peaceful and happy
+relations which should follow on the development of international
+trade, and to assure facilities for America’s expanding seaborne
+commerce.
+
+
+
+
+                              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 war. It was inevitable
+that in a crisis where all the scientific, mechanical and organizing
+genius of the leading nations was concentrated on instrumentalities
+to strengthen themselves and weaken or destroy the foe, a product of
+so many applications should prove a tremendous factor. It would be
+indeed possible to write a lengthy volume on the influence of petroleum
+on history, based on actual deductions drawn from the incidents of
+that greatest of conflicts. It was an indispensable factor in the new
+methods of warfare that were developed; it influenced the military
+and diplomatic strategy of all belligerents; it was a stupendous
+contributor to the victory of the Allied and Associated powers. Earl
+Curzon of Kedleston, a member of the British War Cabinet, stated
+the fact tersely when he said, shortly after the signing of the
+armistice--“The Allies floated to victory on a sea of oil.”
+
+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 contribution.
+
+In the preceding chapter the growing maritime importance of petroleum
+has been shown, 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 effort. 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 nations.
+Without petroleum the submarine as an effective agent in war could not
+have come into existence, and the whole story of the conflict from
+the winter of 1915 onward would have been different. Again, without
+petroleum no air-craft could have left terra firma, and military
+tactics based on the powers of observation provided by these “eyes of
+the army” would not have come into existence. It must also be admitted
+that the toll of destruction both on land and sea would not have been
+so great. It would not have been possible for any country to embark on
+a diabolical policy of destroying unarmed ships and unfortified cities,
+and wreaking vengeance on helpless non-combatants. But these crimes
+cannot be charged against petroleum itself, but rather against the
+ingenuity of men bent on destruction.
+
+These were but two instances of the part petroleum played in the war.
+It is no exaggeration to say that there was no phase of belligerent
+activity in which it was not an active agent. From the very outset of
+hostilities in August, 1914, discerning men in Allied countries foresaw
+that victory must rest with the side which commanded the greater
+reserves of petroleum. Thus from the beginning America, as the chief
+source of the world’s supply, was recognized as a factor of inestimable
+importance in the ultimate decision. Germany was as fully alive to
+this circumstance as her enemies. The high commands of the warring
+nations, from the very outset, took into consideration the desirability
+of securing possession of the oil fields in other lands. 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 Hemisphere.
+Later, 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 purchase,
+petroleum products were regarded as the most important items in the
+extended list of contraband of war.
+
+On land, oil constantly influenced the thoughts of generals. 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 region. The long drawn out diplomatic embroglio with regard to
+Roumania all centred around the oil fields of that country. Germany
+was determined that Roumania should be forced into the war, either as
+an ally or an enemy; for in either case it would give her a pretext to
+seize the oil fields. In the end a British military mission destroyed
+the wells to prevent their utilization by the German invaders. In the
+operations of Turkey against Russia the oil wells of Baku were the
+objective. 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 outlet. 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 action.
+
+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 war.
+The conflict had not been in progress for more than a few months,
+however, 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 Paris. It was then that the friendship of the American
+people for the Allied cause made itself felt in practical form. Had
+American oil interests then proved hostile or indifferent; had the
+Government of this country yielded to Germanic pressure and placed
+an embargo on oil shipments, the cause of the Allies would have been
+doomed. In 1917 it was admitted in the British House of Commons that
+adequate supplies of petroleum products were quite as essential as men
+and munitions. This was almost an understatement, because without the
+aid of petroleum the necessary maximum of effort in other respects
+would have been impossible.
+
+Apart from naval and aerial needs, a reminiscent picture of the
+Western Front during the three or four years of trench warfare reveals
+the predominant importance of petroleum. It proved a decisive factor as
+early as the Battle of the Marne. 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 Paris. Thus,
+petrol transport hastily improvised saved Paris and turned the scale
+of the 1914 campaign against the Germans. It will be recalled that the
+conflict then settled down to a prolonged era of trench warfare. The
+Allies commenced the construction of strategic railways to support
+the armies of the line, but between the railheads and the actual
+battlefront in the long stretch from the North Sea to the borders of
+Switzerland, transport was almost wholly dependent on motor spirit
+or gasoline. Innumerable heavy motor lorries carried food, guns and
+ammunition to the fighting forces. But the function of petroleum
+products on land did not end in its association with commissariat and
+supply. It was an aggressive instrument. The greatest new factor in
+land fighting that the war developed was the “tank”--a land battle
+cruiser, first introduced by the British at the Battle of the Somme
+in July, 1916, and afterwards adopted by all armies. This great
+instrument of war was wholly dependent on petroleum products for its
+power of movement. Without the internal combustion engine operated by
+gasoline it would have been an immobile toy. Again, when liquid fire
+came into use petroleum was the basis; and in another great destructive
+agent--the explosive, known as T. N. T.--toluol, which is found in some
+of the heavier grades of petroleum, was a basic constituent.
+
+Though petroleum in the hands of inventors became an agent of terrible
+destruction, it had its beneficent uses in battle as well as in periods
+of tranquility. Armies organized on so vast a scale could not have been
+fed without it. 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 gasoline. And when darkness had
+fallen on the fray the oil lamp and the paraffine candle were lighted
+to cheer the tired soldiers. An English writer who visited the front in
+1917 wrote of the all-pervading uses of petroleum: “It was to be found
+wherever there was a vestige of life in those zones of battle; the
+soldiers in their, at times, lonely dug-outs, used oil for cooking as
+well as light, and all traffic was guided from disaster along the roads
+by the use of oil, which also offered the only source of artificial
+light in the Red Cross vehicles. What an immense organization it was
+which depended for its ceaseless activities upon the products of
+petroleum.”
+
+The British established a petroleum depot at Calais of an immensity
+previously unprecedented, where all products required for the
+organization of transport were stored; and it must be noted that
+lubricants of all kinds were as essential as gasoline itself, to keep
+moving the wheels of the innumerable motors that were employed by the
+various arms of the service.
+
+If petroleum was the life blood of activity in the battle areas, it was
+not less so of the munition factories where the means of offense were
+fabricated. 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 catastrophe. Though the Allies, once they really awakened
+to the dangers of the situation, 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 apprehension; and when in April, 1917, the United States
+entered the war, reserve supplies had fallen dangerously low.
+
+If only because it placed the entire oil resources of America at
+the disposal of the Allies, the entry of the United States into the
+conflict proved the salvation of their cause; 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
+war. After the armistice, Marshal Foch summarized that achievement in
+these words: “No military operation of the Allies on sea, on land,
+under sea or in the air was ever interrupted by the lack of petroleum
+supplies.”
+
+Unquestionably one of the motives which actuated Germany when, in
+February 1917, she decreed unrestricted submarine warfare and ordered
+the Stars and Stripes off the seas, was the hope of cutting off the
+petroleum supplies of her foes. Even before President Wilson declared
+war, several American tankers had been sunk by German U-boats. 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 “German Peace,” for which
+they had long been manoeuvring, would have been accomplished. When
+activity was keenest on the Western front eighty per cent. of the oil
+and oil fuel used by the Allies came from the United States. After the
+war was over it was revealed that forty-eight per cent. 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 crash.
+
+It is now admitted that in the Spring of 1917 the Allies were closer to
+disaster than was known to any, save a few men at the head of affairs.
+It was a turning point in the world’s history. Next to man-power and
+munitions the resources needed above all others were petroleum and its
+products. The French coal fields had been lost. There was a labour
+shortage in Great Britain; Russian, Roumanian and Galician sources of
+supply were now definitely in the hands of the enemy. The Mediterranean
+Sea, through which the Far Eastern supplies must come, was a hot-bed of
+submarines; 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 command.
+
+An exchange of confidence between the Allies and the United States
+naturally followed the decision of this country to defend the freedom
+of the seas. Immediately after President Wilson’s declaration of war,
+urgent despatches from Great Britain warned our government that reserve
+supplies of petroleum in Europe were so low that unless immediate
+assistance were rendered, a partial demobilization of the British fleet
+must ensue. “We must have oil” said Marshal Foch, whose prescience had
+not yet been rewarded by elevation to the Supreme Command, “or we shall
+lose the war.” Italy was in no better position, fuel oil, aviation
+naphtha, gasoline and lubricants had been so seriously depleted.
+
+When the secret of the situation was confidentially communicated to the
+leaders of the American oil industry, there was an instant response.
+The National Petroleum War Service Committee was formed, with Mr. A. C.
+Bedford, Chairman of the Board of the Standard Oil Company, (N. J.) as
+its presiding officer. The organization embraced all the oil companies
+of the United States. Those who had been life-long keen business rivals
+joined hands to keep the great war machine in Europe in action.
+Profits became a minor consideration. Agreements to stabilize prices
+and curb speculation were formulated and observed. Production on a
+scale previously unprecedented in this land of enormous oil production
+was organized. Soon it was recognized that the work of the National
+Petroleum War Service Committee, though unostentatiously performed,
+was the most efficient and the most fruitful in results for the cause
+of democracy of any industrial institution in the war. It achieved the
+remarkable feat of meeting every war demand for petroleum products of
+all kinds, of conveying these products across the Atlantic, despite
+the submarine scourge. 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 history. These results were achieved by the voluntary efforts
+of thousands of men serving in every phase of the oil industry, crude
+production, refining and transportation. After the armistice the
+Government of France, in recognition of what had been accomplished,
+conferred on Mr. Bedford the Cross of the Legion of Honour.
+
+Co-ordination having been arranged, the problems to be dealt with came
+under two heads, (1) Increased production; (2) Sea-transport. The first
+constitutes a record of highly organized endeavour never surpassed in
+the history of industry; the second one of actual heroism.
+
+Plans for increased production were well under way by the summer
+of 1917 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 supplied. The thoughts of
+all were fixed on the great blows which were to end the war in 1918.
+When the winter of 1917–8 arrived it seemed as though the elements were
+fighting on the side of the Hohenzollerns. The extraordinary severity
+of that winter, complicated by a coal shortage, all but paralyzed
+railroad traffic. Thus, 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 Committee.
+Yet somehow or other it performed its task and the refineries trebled
+their pre-war output, expanding their capacities like an accordion.
+In addition to the vast quantities consumed at home, shipments abroad
+arose to stupendous figures. In the year 1918, 2,628,961 tons of
+fuel oil alone were shipped from the Eastern seaboard for the use of
+allied navies; and in the same year more than one million tons of high
+distillates and other petroleum products also crossed the Atlantic,
+entailing more than 500 tank steamer loadings.
+
+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 cargoes. 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 nation.
+The great value to civilization of the fleet of tank steamers built
+up by American oil exporters was also demonstrated. When President
+Wilson declared war one great company had already lost three big
+vessels through submarine attack, and during the war these losses
+were augmented by seven more, representing a loss of more than 75,000
+deadweight tons and a toll of many lives. To meet its losses this
+particular company undertook to build a new ship for each sunk, and
+so efficiently was this policy carried out that its fleet, which had
+totalled 445,975 tons at the commencement of unrestricted submarine
+warfare in February, 1917, had grown to 492,080 tons under the American
+flag when the armistice was signed in November, 1918. Nor was the
+problem of shipping limited to that of carrying petroleum across the
+Atlantic. Much was required for coastwise trade in North and South
+America.
+
+The resourcefulness of the oil men of America was not confined to
+mastering the seemingly insuperable problems of increased production
+and transport. 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 water. This work was carried out by Mr. Forrest M. Towl,
+President of the Southern and other pipe line companies, and was in
+full operation shortly before the armistice was signed. In this work
+both the American navy and the British Admiralty coöperated.
+
+Even apart from its wonderful assistance to belligerent action on
+land, it is clear that petroleum played a vital part in winning the
+war at sea. The following succinct statement of what it accomplished
+was given by a well-known oil man conversant with all phases of the
+subject, shortly after the armistice.
+
+“Oil and internal combustion engine made possible the submarine,
+enabling Germany to stave off defeat as long as she did, but oil burned
+under boilers gave us the increased efficiency of the destroyer, which
+conquered the submarine. It was the ability of the Allies to obtain a
+constant, 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 war.
+
+“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 practice. It took some time to bring the
+number of destroyers up to the work laid out for them by Germany’s
+early advantage, but the fate of the undersea boat was sealed with
+the arrival of the first oil-fired destroyer in the waters where the
+submarine preyed. The original fleet of war vessels which the United
+States despatched to convey merchant vessels and hunt U-boats were all
+16,250 horse power, which at top speed could show 32 to 35 knots an
+hour. Later on we had destroyers developing 27,000 horse power but the
+small boats had already proved the case for oil fuel in war.
+
+“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 sea.
+The American flotilla had a tank supply vessel stationed at longitude
+36 degrees West, from which oil was taken on by the destroyers at
+the rate of 40,000 gallons an hour, without interruption even in the
+roughest weather. Indeed, there were times when bunkering was done with
+both vessels travelling at six knots an hour. Similarly oil gave the
+larger warships increased speed and independence in the matter of fuel
+stations.
+
+“The British battle cruisers with which Admiral Sturdee destroyed the
+German fleet at the Falkland Islands were oil burners. To-day, modern
+war vessels are using liquid fuel almost exclusively, the United States
+having definitely abandoned coal-fired boilers in its construction
+plans some time ago.”
+
+In addition to other advantages it carried, the use of oil fuel in the
+War was of great practical value, for the following principal reasons:
+
+A lesser tonnage of oil replaced the amount of coal required for the
+same steaming radius, or an equal tonnage of oil gave the men-of-war a
+greatly increased steaming radius.
+
+Boilers fired by oil have a much greater steaming capacity than with
+coal, so that the actual speed of a ship converted to use oil fuel is
+materially increased without any change in boilers or engines.
+
+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 admitted. This results in a heavy bank of smoke which
+destroyers throw out to hide the larger ships from the enemy, or which
+merchant ships produce to conceal their whereabouts from submarines.
+
+Petroleum thus proved an indispensable factor in saving the world from
+autocratic domination, just as during the previous half century it had
+become an incalculable influence in the arts of civilization, and had
+effected a beneficent revolution not only in the industrial but the
+social life of countless communities. By American methods of business
+organization it has been made to yield its highest potentialities
+for the good of humanity, both in peace and war. 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 purpose.
+
+[Illustration: A tanker being loaded with gasoline and oil at a
+refinery dock at Port Arthur, Texas, one of the large Gulf oil ports]
+
+[Illustration: Kansas wells flowing oil into a temporary sump, 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-mining, where a man may find a pocket of nuggets, wash
+them in his pan, and thus become possessed of sudden wealth. This used
+to be the popular impression in the days when the phrase “Struck Ile”
+was synonymous with a sudden stroke of luck. Undoubtedly the man who
+chances to own lands on which oil in paying quantities is discovered is
+blessed with good fortune, especially under modern conditions whereby
+fair and generous treatment is assured to him. But he contributes
+nothing to the expensive processes by which the precious liquid is
+extracted from mother earth, and risks no capital in the experiment.
+
+Perhaps more prevalent and fraught with infinitely greater
+possibilities in loss and disappointment is the delusion that oil is
+a speculator’s game; that the very words “oil” or “petroleum” in a
+promoter’s advertisement are a guarantee of large dividends and soaring
+values. 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 business. Countless people of a speculative
+tendency have loosely associated oil with great riches, and cherished
+the theory that whoever became associated with the production or
+refining of petroleum was necessarily, as if by magic, assured of large
+and easily acquired profits. The oil fortunes loom large in the public
+mind because they have been concentrated in comparatively few hands;
+and the fact is overlooked that these fortunes have been based not
+merely on the raw product, but on progressive methods of distribution
+and the elimination of waste. 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 sales, the financial returns are not spectacular.
+For every man who has made a fortune in oil, there are dozens who have
+earned but a bare subsistence from it, and others who have failed even
+in that, for they have sacrificed all in efforts to locate new wells.
+
+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 described. It should be borne in mind that
+more often than not these labours are unproductive. Oil does not bubble
+forth from springs; it conceals itself in the bowels of the earth and
+it is rarely that it even betrays its presence unmistakably by surface
+indications. When the subsequent outlay in handling the product of
+even a gusher is considered, the vast capital outlay involved can be
+visualized. 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 leases,
+construction, drilling and plant exceeds the gross value of the oil
+that has been obtained or can ever be forthcoming from these fields.
+
+Many millions of dollars during recent months have been poured into
+oil company flotations that in all likelihood will never yield any
+return whatever. Even well-organized companies, directed by men of
+experience, seldom prove bonanzas in a day when leases command very
+high prices; the exception arising where the company happens to be the
+first comer in the field that later develops important production.
+The oil business partakes of the nature of most other industries; it
+yields profits when fortunately located and economically operated. But
+there is no certainty that even the company which possesses leases in
+established fields will prove profitable. Under the circumstances it is
+ridiculous to assume that mushroom promotions, by men with no actual
+experience in the oil business, and whose talents lie rather in the
+direction of writing advertisements, can yield profits to those foolish
+enough to invest in them.
+
+The experience of one of the large producing companies, operating in
+the best fields of this country, financed exclusively by oil men and
+directed by some of the ablest men in the business, may be cited as an
+instance of the uncertainty of profits. This company produced about
+five million barrels of crude oil in 1919 and sold at the relatively
+high prices then being obtained. Nevertheless, the company’s profit
+and loss statement for the year showed a net loss of approximately
+$1,000,000. This does not mean, of course, that this company is a
+liability to its owners. It may have expended in work that could not
+properly be capitalized, large sums of money that will eventually
+be repaid out of production. It is easily conceivable that without
+any material increase in its investment its yield of oil might be so
+augmented by 1921 as to make its business show a very handsome profit.
+What this case does prove is that something more than good leases,
+experienced men and ample capital is needed to insure large returns
+from money put into oil promotions.
+
+People who clamour against the prices exacted by producers of crude
+oil overlook the fact that wells have an unfailing habit of playing
+out. This means that a producing company must never cease drilling and
+exploring. To do so would mean an early decline in its production and
+eventual failure even of its best wells. 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 holes, abandoned after large
+expenditures.
+
+Production in the United States is only kept up by the work of the
+“wild-catter” in locating new pools and by more intensive drilling of
+the old fields. Both involve heavy costs. There were drilled in this
+country last year no fewer than twenty-nine thousand new wells, but the
+net increase in production over 1918 was but twenty-two million barrels
+of crude. The declining yield of wells necessitates amortization to
+cover the cost of new wells to take their place.
+
+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 estimates. It is not possible to
+obtain detailed statistics covering the cost of drilling that has gone
+for naught; but an approximately accurate estimate can be reached by
+striking an average based on the experience of leading companies.
+
+It is fair to estimate production at $1,000 per barrel of daily yield,
+multiplied by the current price for that grade of crude. On this basis
+Oklahoma leads all other fields with production valued at $958,517,000.
+The fields in north and central Texas are worth on this basis
+$617,690,000 while California is third with a total of $456,443,000.
+On the basis of the country’s production in February, 1920, California
+produced almost exactly the amount of crude derived from Oklahoma,
+274,966 barrels per day, in the one case, as against 273,862 in the
+other, but the posted price of Oklahoma crude was $3.50 per barrel as
+compared with $1.66 for the lower grade California product. The daily
+average production in February, taking the country as a whole, was
+1,130,759 barrels, and the value of that oil at the current price was
+$3,541,511. This would give an approximate valuation of the country’s
+production, on the basis assumed, of $3,541,511,000.
+
+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
+capacity. Oftentimes, 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
+production. These lines in the different fields are known as gathering
+pipe-lines. They are connected with main trunk pipe-lines running
+to the various refining centres. According to the Bureau of Mines,
+there are at this time approximately thirty-two thousand miles of
+trunk pipe-lines and eleven thousand five hundred miles of gathering
+lines. At the present day replacement cost, this mileage is worth,
+respectively, $360,000,000 and $40,000,000, a total of $400,000,000.
+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 costs, but it
+is a safe assumption that the pipe line system represents an actual
+investment of not less than $300,000,000.
+
+The United States is over-equipped with refineries, measured by
+their ability to obtain the necessary crude oil to operate them to
+capacity, but it is not over-supplied from the standpoint of the
+potential demand for refined products. On the first of January,
+1920 there were three hundred and seventy-three refineries, with a
+daily capacity of 1,530,565 barrels. Since that date there have been
+completed ninety-nine more refineries, adding 263,500 barrels to the
+daily capacity. Even before the completion of these new refineries,
+it was estimated in the report made by the United States Geological
+Survey that the country had a surplus refining capacity of 177,000
+barrels per day over the production and importation of crude oil. Since
+that time the surplus capacity has been increased to about 500,000
+barrels daily. Averaging the cost of the complete refineries with
+those of the much less costly skimming plants, the refineries of the
+United States represent a total investment of about $1,795,000,000.
+This total includes real estate and much equipment not ordinarily
+associated in the public’s mind with the business of refining. There
+is, for instance, at several of the larger refineries valuable wharf
+and railroad terminal property, extensive manufacturing plants for the
+production of tin containers, factories for the manufacturing of steel
+and wooden barrels, foundries, machine shops, pattern shops, etc.
+
+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 lines, this stock varying
+greatly according to the demands of the refineries and the rate of
+production in the fields. In April, 1920, the crude stocks on hand
+totalled 124,873,000 barrels, which was worth at the prices quoted in
+the different fields at that time, $393,724,580. In addition, there
+were large quantities of refined stocks in the course of treatment at
+the plants. The gasoline alone reported on hand March 31st was valued
+at more than $125,000,000, while the kerosene on hand as of the same
+date was worth approximately $35,000,000. Lubricating oils, fuel and
+gas oil, wax, coke, asphalt, crude oil awaiting distillation and
+miscellaneous products on hand brought the total value of the refinery
+stocks up to $370,000,000.
+
+There is, of course, 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 world. On January 1,
+1920, there were six hundred and seventy-eight tankers engaged either
+in the oil business or as supply ships for the navies of the world,
+and of these, three hundred and ninety-four, with a deadweight tonnage
+of approximately 1,500,000, were under the American flag. This fleet
+represents an investment of $250,000,000.
+
+The minor phases of oil marketing are represented by the multitude
+of stations, warehouses, bulk barges, tugs, motor trucks and tank
+wagons, tank cars, private railroad sidings, storage tanks, etc. in
+all parts of the United States. It is customary to allow an investment
+of $4.00 per barrel for the real estate and equipment needed to do
+a retail marketing business, and $1.00 per barrel for the tanks and
+docks required in the fuel oil department. On this basis the domestic
+marketing equipment for the country represents a total investment of
+approximately $660,000,000.
+
+No attempt has been made here to bring in the investment by American
+oil companies in other lands. The principal item under this head is,
+of course, the huge sums that have been expended in drilling and the
+acquisition of producing properties, leases for development and for
+surveys, etc., in Canada, Mexico, South America, Roumania, and other
+countries. 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 abroad.
+
+We have here an aggregate investment in the production, transportation,
+refining, and distribution of petroleum and its products of
+$7,310,000,000. With this equipment, the United States last year
+produced 377,000,000 barrels of crude oil from within its borders and
+imported 55,000,000 barrels more, chiefly from Mexico. We exported
+366,000,000 gallons of gasoline, 965,000,000 gallons of kerosene,
+1,175,000,000 gallons of gas and fuel oil and 276,000,000 gallons of
+lubricating oil. Against that may be set our domestic consumption,
+showing that while we produced in this country more than two-thirds
+of all of the world’s petroleum, we consume in almost the same ratio.
+There was marketed in the United States last year 3,426,000,000
+gallons of gasoline, 1,397,000,000 gallons of kerosene, 6,290,000,000
+gallons of gas and fuel oil, and 568,000,000 gallons of lubricating oil.
+
+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 for. Clearly it is no speculator’s game, but one in which the
+most expert knowledge and economic discretion are entailed if it is to
+yield profits at all.
+
+
+
+
+                              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 structure. Having attempted
+to portray the part it plays in the arts of war and peace, and its
+intimate relation to civilization as now organized, it is fitting that
+something should be said as to the future of petroleum.
+
+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 problem. The course of events in connection with the world
+industry may even be said to have a paradoxical aspect. American
+petroleum became an international institution when, shortly after the
+Pennsylvania discoveries, the eagerness of other nations to secure it
+was evinced. The increase of production was so rapid that for years
+the supply far exceeded the domestic demand, and made the creation of
+foreign markets necessary to the American oil interests. These foreign
+markets have contributed materially to American national wealth and
+are now an important factor in the country’s favourable trade balance;
+exports of petroleum products from the United States for the year 1919
+representing a value of $343,776,385, and ranking fourth in order of
+importance of the country’s exports.
+
+Our oil companies have been international traders for several decades,
+but their operations have been entirely based on private initiative
+and have rarely benefitted by official coöperation. The phenomenal
+growth of inventions and manufactures pivoting on the products of
+petroleum, which has transpired during the twentieth century, has,
+however, entirely reversed the situation that existed in the year 1900.
+Though the United States provides almost seventy per cent. of the
+world’s production from wells on her own soil, she is to-day actually
+an importer of crude oil to meet the needs of the domestic market,
+combined with those of the foreign market for the manufactured products
+of petroleum, which yield vast revenues to American wage-earners
+engaged in their creation.
+
+To the American people, who use six times as much petroleum per capita
+as the citizens of any other country, and who own ninety per cent. of
+the motor vehicles in operation in the world to-day, the question of
+future supplies is vital. 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
+requirements. Statisticians and scientists differ as to how long the
+stores of petroleum still lying untapped in our own soil may last,
+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 enterprise. Petroleum is therefore a problem
+about which the man on the street and not merely the oil merchant must
+perforce think internationally. 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 character; and in
+some instances they have shown themselves very active.
+
+[Illustration: Steam stills at a modern refinery]
+
+[Illustration: Storage tank at Cushing, Oklahoma, struck by
+lightning--not an infrequent occurrence. 55,000 barrels of crude oil
+being consumed]
+
+In an exceedingly able paper presented by Mr. David White, Chief of the
+United States Geological Survey, to the Society of Automotive Engineers
+in February, 1919, that authority drew attention to “the widening
+angle between the flattening curve of production and the rising curve
+of consumption,” and announced that after a most exhaustive survey of
+American oil potentialities, in which many experts coöperated, the
+conclusions had been reached that the available oil in the ground
+at the end of 1918 approximated 6,740,000,000 barrels. The total
+production of crude from the United States wells from 1858 to the end
+of 1918 was approximately 4,598,000,000 barrels, 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 Survey. To
+understand fully the significance of these figures it must be realized
+that the rate of production has enormously increased during the past
+decade. Mr. White’s figures placed the oil produced from United States
+wells in 1918 at 345,500,000 barrels. Production, if continued on like
+scale annually, would exhaust the estimated supply in America in less
+than twenty years. Moreover, despite its vast extent, 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 27,000,000 barrels, and it was necessary to supplement
+the home supply with a net importation of 31,000,000 barrels, chiefly
+from Mexico. The year 1918 was a war year but in 1919, despite peace,
+production in the United States rose to 377,000,000 barrels. Thus
+an ever-increasing demand--especially for gasoline--is producing a
+pressure on crude supplies greater than in war time.
+
+It does not follow that all the estimated available crude reserves in
+American territory can be reached in even the near future. American
+oil wells will undoubtedly be producing at least seventy-five years
+hence, for the very good reason that all the hidden pools cannot be
+discovered forthwith or immediately made productive, even when located.
+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 reached, an event that may transpire this year or
+next, or may be delayed for a decade.
+
+Mr. White’s paper, which had the effect of enlightening many as to the
+changing phases of the oil industry, also emphasized the possibilities
+of the development of shale oil, a potential resource which might
+prove a suitable substitute. But since this product is still in the
+experimental stage, and since it has never been claimed for it that
+it could develop the manifold richness and varied utility of crude
+petroleum, it is not necessary to discuss its possibilities in a book
+devoted to the latter product. Whatever the future of shale oil, it
+cannot alter the plain circumstance that if it is to be maintained at
+its present level for any extended period, the American oil industry
+must look for reserves abroad.
+
+A glance at the world’s production for the year 1917 proves that the
+United States has more at stake in this matter than all the other
+nations combined. The production was distributed as follows:
+
+    United States       66.2 per cent.
+    Russia              13.6  ”    ”
+    Mexico              10.9  ”    ”
+    Dutch East Indies    2.6  ”    ”
+    Other countries      6.7  ”    ”
+
+Since then the proportion has been altered, Russia dropping to third
+place and Mexico rising to second, the relation of the United States to
+total production remaining probably unchanged.
+
+The predominating importance of the petroleum industry to the American
+people was indicated in a speech delivered by Sir Auckland Geddes,
+British Ambassador to the United States, at New York in May of the
+present year (1920) when he said that this country controlled 82 per
+cent of the present visible world supply.
+
+This estimate of course embraces not only domestic fields but foreign
+fields developed by American private enterprise. 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 purposes, the
+founders of the industry.
+
+As has been set forth elsewhere in this book, the importance of
+petroleum to countries of maritime aspirations, either naval or
+commercial, is inestimable, and it is on that phase of the question
+that the minds of British statesmen have, within the past five years,
+become concentrated. So far as Great Britain is concerned, this is
+a new development, born of the great war. Sir John Cowans, G. C. B.,
+Quartermaster General of the British Army throughout the decisive
+period of the conflict, has said “Great Britain was, when the war broke
+out, between twenty and thirty years behind the American and Dutch
+nations in its knowledge of oil.” He and other eminent Englishmen have
+emphasized the difficulty of making up that leeway, one obstacle being
+that at least eight or ten years was required for the education of
+an oil expert. In seeking a trained personnel to handle the problem,
+Great Britain, like most other countries, must for the time being at
+any rate look to the United States. But though the awakening of the
+British to the importance of petroleum was belated, it is real. Not
+only their Admiralty, but their Army authorities are insisting on the
+importance of adequate reserves. Controlling as they do the destinies
+of a vast maritime Empire, the growing dominance of oil-burning
+ships, and the necessity of providing for their fuelling, has become
+an ever-present thought in the minds of British public men at a
+time when the American Government, relying perhaps on a factitious
+belief in the inexhaustibility of our native oil resources, remained
+indifferent. There is no reason to doubt that the aim of Great Britain
+is her own national and Imperial security, rather than aggression.
+The British Ambassador, in the address referred to, gave the most
+absolute assurance on that point, but the fact is patent that, through
+governmental coöperation, British oil men have secured distinctive
+advantages in foreign fields, advantages which, with similar
+coöperation, might have been available to American oil interests--whose
+leaders may be accepted as equal to foreign business men in foresight,
+courage and enterprise.
+
+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 reader. 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 seas, she now
+aims to preserve that prestige by oil bunkering stations advantageously
+placed. The situation might conceivably arise whereby (despite our vast
+home production), the American merchant marine when at sea would find
+itself dependent on the bunkering stations of foreign powers. No one
+will question the right of Great Britain to protect and maintain her
+trade routes by reserves of the new maritime fuel, and her Government
+deserves praise rather than censure for backing British enterprise in
+measures directed to that end. The point to be borne in mind is that
+American oil men, the real creators of the industry, have accomplished
+what they have in the foreign field virtually _without_ governmental
+support or co-operation. 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 reserves. Thus, there has lately arisen
+a demand for constructive legislation which will permit governmental
+coöperation 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
+supply. Disinterested public men who have made a study of the problem
+are of the opinion that in the national interest, and entirely without
+reference to the advantages that might or might not accrue to this or
+that individual, American petroleum companies should be encouraged by
+all the power and influence their Government can exert to acquire
+foreign sources of supply wherever available.
+
+A glimpse at the facts with regard to the oil bunkering situation shows
+how closely petroleum and national aspiration are allied. The estimated
+requirements for the U. S. Navy for the fiscal year of 1919–20 were
+about six million barrels. In the undesired event of war this estimate
+would be vastly increased. With regard to the American merchant marine,
+it is worth noting that about one half of the vessels constructed in
+1919, representing approximately three million deadweight tons, were of
+oil-burning design. On the Pacific Ocean, where satisfactory grades of
+steam coal are not so generally available as on the Atlantic, oil has
+come into general use as fuel. American companies furnish most of the
+fuel oil which is supplied at ports outside the United States and the
+United Kingdom, the total number of such foreign bunker installations,
+owned by American companies, being 88 in a total of 114. But the
+possession of such foreign facilities for American shipping will prove
+of little value unless Americans have sufficient oil, from either
+home or foreign fields, to furnish adequate supplies at competitive
+prices. With an increasing shortage of oil for domestic consumption,
+bunker fuel oil supplies can only be maintained through the control of
+production in advantageously located foreign fields.
+
+Among the rivals to American enterprise which have arisen, the most
+important is the Royal Dutch Shell combination, which, though of
+Holland registration, has been a partner with the British Government in
+petroleum enterprises, and is to-day the leading factor in the Far East
+and in Australia in this vital matter of bunker supply. It is acquiring
+potential petroleum fields in Mexico, South America and the United
+States itself. 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 world; 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 fuel.
+
+In order that the reader may clearly visualize the situation with
+regard to the prospects of augmenting home supplies, it is necessary to
+speak once more of certain foreign fields mentioned in the geographical
+survey that constituted an earlier chapter. The nearest field and the
+one to which Americans must naturally look, because for an indefinite
+period it will continue to produce oil far in excess of the needs of
+its own people, is Mexico. Unbacked by governmental coöperation in
+any form, American private enterprise has done much in an endeavour
+to develop permanent supplies in that country, and has paid its way
+generously. Fortunately, 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 provinces, but
+precious lives have been lost, and considerable property destroyed
+without redress. 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 where, for geographical reasons alone, it has a claim to first
+consideration. The patriotism of an American citizen, Mr. E. L. Doheny,
+controlling owner of the Mexican Petroleum Company, has been more
+potent than that of the public authorities in safeguarding the future
+of our interests in that country. Mr. Doheny received a handsome offer
+from the Royal Dutch Shell Company for his interests; but he refused
+it on the ground that for the future welfare of the United States, his
+properties should remain under an American control. 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 bidder.
+While a recent Mexican administration proposed to “nationalize”
+petroleum there have been many attacks in other forms upon the rights
+of American oil companies, but so far these companies have escaped
+absolute confiscation of their properties. 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 secure.
+
+The next closest field to which Americans must naturally look is the
+Caribbean Region--the Central American and West Indian Republics,
+Colombia and Venezuela. Their importance lies almost wholly in their
+future possibilities, but they undoubtedly have oil potentialities of
+considerable value. Therefore, the control of concessions is of very
+grave importance in view of the need for acquiring extra territorial
+oil reserves. Fortunately, Americans are here first in the field,
+though enterprise has not gone very far beyond the securing of
+concessions. Such privileges obtained in Colombia, Panama, Nicaragua,
+Honduras, and Costa Rica are held by various American syndicates. A
+Venezuelan concession originally American-owned is at this writing in
+British hands, and British capital is also interested in Honduras oil
+development. It is obvious that the sympathetic coöperation of the
+authorities at Washington, is necessary in the Caribbean area if the
+United States is to render secure an ascendancy there.
+
+In South America the rivals of the United States interests are also
+active but have not outstripped them, and with a progressive policy on
+the part of their government Americans may hopefully look for reserve
+supplies from that vast continent, though their development, owing to
+the mechanical and speculative conditions of modern oil production,
+cannot be rapid. Argentina, which already has two producing fields,
+operates them as state enterprises and has as yet granted no foreign
+concessions. Peru is already a large producer of crude petroleum and
+has opened her gates to American oil interests, but here, as elsewhere,
+the need of diplomatic backing is present. Generally speaking,
+though the real potentialities of South America are unknown, it is a
+territory in which the United States, if it is to safeguard its future
+interests, cannot afford to remain indifferent.
+
+The world-wide British Empire includes many countries containing oil
+potentialities, though the total production is inconsiderable in
+comparison with that of a single American state like California or
+Texas. According to the statistics put forth by Sir Auckland Geddes,
+production under the British flag in 1919 represented but five per
+cent. of the world’s petroleum output. 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 capital. In
+the important oil territory at Burma these restrictions are absolute;
+though in self-governing Dominions, like Canada, they do not obtain.
+In all Crown colonies the British Government retains the right of
+pre-emption at need. Quite as severe are the laws covering oil deposits
+or potential oil deposits in French colonial possessions. The Dutch
+East Indies, a comparatively promising field, are closed to all but
+subjects of Holland, or to companies which have a majority of Dutch
+subjects on their directorate; under the latter provision British
+capital dominates the oil production of Borneo.
+
+Outside the Western hemisphere the only fields where the United
+States may look for reserves, (which, as has been explained, are of
+especial importance in connection with bunkering stations,) lie in
+what are respectively known as the Near East and the Far East. China
+has undoubtedly oil potentialities, though data on the subject is
+vague, and it is presumed that the Chinese government, which holds a
+monopoly of them, will one day admit foreigners into partnership in the
+working of them under some sort of special contract. Japan already has
+a somewhat similar arrangement. In demonstrated possibilities the Near
+East is of much more promise. The importance of the Roumanian field has
+been spoken of elsewhere and prior to the war American interests were
+established there. Later in its reconstruction policies Roumania is
+contemplating changes in its petroleum program not formulated at this
+writing. It is reported that French and British interests, supported
+by their respective governments, are making every effort to secure
+important holdings in the Galician oil fields, formerly situated in
+Austria, but now coming within the boundaries of the new Republic
+of Poland. The future administration of the Russian fields is still
+problematical. At the moment they are occupied by the Bolsheviki. The
+Persian field, by an arrangement dating back to 1901, is operated by
+British interests. The potential fields of Mesopotamia and Palestine
+are under control of Britain by mandate of the League of Nations; but
+that country expressly disclaims any special authority to exclude
+other nations from participation in petroleum development in these
+territories. It must be plain to the most inexperienced reader that
+in the case of Asiatic and East-European fields, however, American
+oil interests are powerless to achieve influence and obtain due
+recognition without the diplomatic assistance and coöperation of their
+home government. It is necessary, if they are to secure equal rights
+under international law that will serve not merely as a check upon any
+possible unfair discrimination, but enable them to secure workable
+international arrangements. These should redound to the interest of
+all countries for the United States is the motherland of the science
+of oil production. 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 labours, without creating serious disputes or
+international entanglements. In the words of Thomas A. O’Donnell,
+President of the American Petroleum Institute, with which most of the
+leading petroleum producing and manufacturing companies of the country
+are associated:
+
+  The American oil industry asks only the support of the nation in
+  giving it an equal status, 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 nation.
+
+With the Government at their back to secure for them fair play,
+American oil interests could face the future with confidence, if not
+with certainty; lacking such coöperation, the future is fraught with
+hazard to an industry that stands as a monument to American organizing
+genius.
+
+                                THE END
+
+             THE COUNTRY LIFE PRESS, GARDEN CITY, NEW YORK
+
+
+
+
+                           Transcriber’s Note
+
+
+Some inconsistencies in spelling, hyphenation, and punctuation have
+been retained.
+
+This file uses _underscores_ to indicate italic text. Small capitals
+changed to all capitals.
+
+p. xv: changed “Rumania” to “Roumania” (Moreni Field, Roumania)
+
+p. 50: changed “Egpyt” to “Egypt” (Egypt has also a future)
+
+p. 69: changed “fish-tale” to “fish-tail” (the delicate fish-tail bit)
+
+p. 74: changed “rythmical” to “rhythmical” (the rhythmical “chug-chug”)
+
+p. 83: changed “Samual” to “Samuel” (Samuel Van Syckel of Titusville)
+
+On pp. 35, 37, and 57 appears “Edwin Laurencine Drake.” Modern sources
+differ in spelling (Laurentine). This name was left as originally
+printed.
+
+
+
+*** END OF THE PROJECT GUTENBERG EBOOK 77066 ***
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+      The Evolution of the Oil Industry | Project Gutenberg
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+<body>
+<div style='text-align:center'>*** START OF THE PROJECT GUTENBERG EBOOK 77066 ***</div>
+
+<p><span class="pagenum" id="Page_i">[Pg i]</span></p>
+
+<h1>
+THE EVOLUTION OF THE<br>
+OIL INDUSTRY
+</h1>
+
+<p><span class="pagenum" id="Page_ii">[Pg ii]</span></p>
+
+<figure class="figcenter illowp48" id="i_f004" style="max-width: 111.8125em;">
+  <img class="w100" src="images/i_f004.jpg" alt="">
+  <figcaption>
+      <p>The first oil well drilled near Titusville, <abbr title="Pennsylvania">Pa.</abbr>, on August 27,
+    1859, by <abbr title="Colonel">Col.</abbr> Edwin L. Drake, the pioneer man of the world</p>
+  </figcaption>
+</figure>
+
+<div class="title-outer">
+<div class="title-inner">
+<p><span class="pagenum" id="Page_iii">[Pg iii]</span></p>
+
+<p class="center noindent title-xl">THE EVOLUTION<br>
+<i>of the</i><br>
+OIL INDUSTRY</p>
+
+<p class="center noindent p2">BY<br>
+<span class="center title-l">VICTOR ROSS</span></p>
+
+<figure class="figcenter illowe6" id="i_publisher_logo">
+  <img class="w100" src="images/i_publisher_logo.png" alt="" data-role="presentation">
+</figure>
+
+<p class="center noindent p2">ILLUSTRATED<br>
+FROM<br>
+PHOTOGRAPHS</p>
+
+<p class="center noindent p2">GARDEN CITY<span class="title-hspace">NEW YORK</span><br>
+<span class="center title-l">DOUBLEDAY, PAGE &amp; COMPANY</span><br>
+1920</p>
+</div>
+</div>
+
+<p><span class="pagenum" id="Page_iv">[Pg iv]</span></p>
+
+<p class="center title-xs noindent p4 pagebreak">COPYRIGHT, 1920, BY<br>
+DOUBLEDAY, PAGE &amp; COMPANY</p>
+
+<p class="center noindent title-xs">ALL RIGHTS RESERVED, INCLUDING THAT OF TRANSLATION
+INTO FOREIGN LANGUAGES, INCLUDING THE SCANDINAVIAN</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_v">[Pg v]</span></p>
+
+<h2 class="nobreak" id="PREFACE">
+PREFACE<br>
+<span class="smcap">By Dr. Van H. Manning</span>
+</h2>
+
+<p class="noindent center" style="margin:0 10%;font-size:100%"><i>Director of the Division of Technical Research of the
+American Petroleum Institute. Formerly Director of
+the Bureau of Mines of the Department of the Interior</i>
+</p>
+</div>
+
+<p class="p2"><span class="smcap">A glance</span> 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 industries, whether of the factory or the
+field, land or sea, war or peace. This phenomenon
+has been almost exclusively a development of the
+past six decades, and the United States of America
+have been the predominant factor in the innumerable
+changes wrought thereby. The narrative confines
+itself rigidly to historic records and material
+facts, undeniably romantic in themselves. But as
+the epic unfolds itself, it assumes a super-phase, the
+import of which cannot be measured by mere figures—a
+super-phase with invaluable applications to the
+problems of humanity in an industrial age.</p>
+
+<p>Petroleum, it becomes clear, was the first natural
+<span class="pagenum" id="Page_vi">[Pg vi]</span>product to which the abstract theory of order, as
+understood by modern social philosophers, was applied
+in a large and general sense. It must be accounted
+good fortune not only for America but for
+the world at large, that this movement, though
+gradual at the outset, commenced almost within a
+decade of the birth of the modern petroleum industry
+at Titusville, <abbr title="Pennsylvania">Pa.</abbr>, in 1859. The outcome has
+tended to influence economic thought the world over,
+especially since war on an unprecedented scale put all
+established systems, traditions, and institutions to
+the acid test.</p>
+
+<p>Foreign observers and critics, friendly or unfriendly,
+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 way,
+organized industry. America’s achievements in this
+domain during the past half century have represented
+incalculable and beneficial advancement beyond
+the industrial conditions of all past centuries.
+With this record of progress, the growth and expansion
+of the petroleum industry have been inseparably
+associated. The famous pioneers in organizing
+the production, refining and distribution of
+<span class="pagenum" id="Page_vii">[Pg vii]</span>petroleum have also been pioneers in the application
+of the principle of order to industry; which, in
+essence, means the elimination of waste and misdirected
+energy from human effort.</p>
+
+<p>Organized industry means something entirely different
+from a system aiming at quick and enormous
+profits. It is based on a definite theory of scientific
+effort, whereby all the possibilities of a given resource
+are developed to their fullest degree, so that
+waste ceases, the value of the worker’s labour is increased
+with benefits to himself, and the consumer
+receives the blessings of nature’s dower at the lowest
+reasonable cost. As the ensuing chapters show, the
+accomplishment of these objects in the case of petroleum
+has involved much more than the application
+of the physical sciences to manufacturing
+processes. It has meant the development of systematized
+methods in discovery and location, transportation
+and distribution, so that from the moment
+oil is “struck,” in say a barren patch of prairie,
+until any one of the many products of crude petroleum
+is placed in the hands of the consumer—here,
+or in some distant isle of the sea—there shall be no
+waste and no injustice, and that all the hands through
+which it passes shall reap a just benefit.</p>
+
+<p><span class="pagenum" id="Page_viii">[Pg viii]</span></p>
+
+<p>The far-sighted Americans of the transition period
+in this country’s history, who created the modern
+petroleum industry, and built up the machinery for
+its continuous expansion, began with the definite aim
+of involving order from chaos. They were from the
+outset reformers of business methods and enemies
+of waste. The latter had become colossal during the
+unsettled years that were marked by the duration
+and aftermath of civil war. The work of these business
+pioneers was gradual, but it developed an ever-increasing
+impetus; and as the years went on the
+ethical import of their mission became more and
+more apparent. It would be wide of the facts to say
+that the element of gain played no part in these
+developments. Little indeed would be accomplished
+in the way of progress were the incentive of personal
+gain in some form or other removed. On this point
+the Scottish economist, Adam Smith, spoke pertinently
+one hundred and fifty years or more ago:
+“By pursuing his own interest a man frequently promotes
+that of society more effectually than when he
+really intends to promote it.” Nevertheless it is
+clear that in the case of some of the leaders most
+closely identified with the organization of the
+petroleum industry, personal motive and energy were
+<span class="pagenum" id="Page_ix">[Pg ix]</span>supplemented by a sincere desire to promote the
+prosperity and welfare of the American people as a
+whole.</p>
+
+<p>Coming to the larger question of what the principle
+of order means to humanity in the abstract, 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 level. Moderate socialists
+are especially emphatic on this point and it is the
+key-note of their writings. They attribute the great
+mass of poverty and suffering which still exists in this
+world to lack of order—to the failure of mankind,
+in the individual and in the aggregate, adequately to
+realize its importance. The goal which all enlightened
+men, of whatever school of thought, desire
+to see attained, is the abolition of poverty; not the
+imaginary poverty of the man who chafes because
+he cannot have everything he desires; but the actual,
+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 standards. It
+is to the eternal credit of the leaders of the petroleum
+<span class="pagenum" id="Page_x">[Pg x]</span>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
+reached. It is a principle that runs like a golden
+thread through the vast and complex system that
+has grown up around petroleum.</p>
+
+<p>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 potentialities,
+so that all who come in contact with it participate
+in some measure in the benefits. These considerations
+are obviously of greater importance than some
+others which have been impressed on the public
+mind in exaggerated terms. 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 operations.
+It is one of the rooted axioms born of human experience
+that genius of whatever order, so long as it
+assists civilization, is entitled to exceptional rewards.
+Particularly is it true of that rare order of
+genius which lies back of directing minds. Without
+<span class="pagenum" id="Page_xi">[Pg xi]</span>their leadership the efforts of humanity to advance
+itself would be in vain. 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
+development, lowered costs for the consumer, and
+stimulus to countless forms of industrial activity.</p>
+
+<p>Thus it can be truthfully maintained that the
+spirit of coöperation, 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 large, and suggests a solution for
+many of the ills that beset civilization to-day.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum"><a id="Page_xii"></a><a id="Page_xiii"></a>[Pg xiii]</span></p>
+
+<h2 class="nobreak" id="CONTENTS">
+CONTENTS
+</h2>
+</div>
+
+<table class="autotable">
+<tr>
+<td class="tdr" colspan="3"><span class="smcap">page</span></td>
+</tr>
+<tr>
+<td class="tdl" colspan="2"><span class="smcap">Preface</span><br>
+<span class="table1">By Dr. Van H. Manning.</span></td>
+<td class="tdr"><a href="#Page_v">v</a></td>
+</tr>
+<tr>
+<td class="tdl" colspan="3"><span class="smcap">chapter</span></td>
+</tr>
+<tr>
+<td class="tdr vatop">I.</td>
+<td class="tdl"><span class="smcap">Petroleum in History and Legend</span></td>
+<td class="tdr vabot"><a href="#Page_3">3</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">II.</td>
+<td class="tdl"><span class="smcap">What is Petroleum?</span></td>
+<td class="tdr vabot"><a href="#Page_11">11</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">III.</td>
+<td class="tdl"><span class="smcap">Dawn of America’s Petroleum Industry</span></td>
+<td class="tdr vabot"><a href="#Page_30">30</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">IV.</td>
+<td class="tdl"><span class="smcap">Founder of the Petroleum Industry</span></td>
+<td class="tdr vabot"><a href="#Page_37">37</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">V.</td>
+<td class="tdl"><span class="smcap">Petroleum as a World Industry</span></td>
+<td class="tdr vabot"><a href="#Page_44">44</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">VI.</td>
+<td class="tdl"><span class="smcap">Locating the Oil Well</span></td>
+<td class="tdr vabot"><a href="#Page_57">57</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">VII.</td>
+<td class="tdl"><span class="smcap">Drilling the Oil Well</span></td>
+<td class="tdr vabot"><a href="#Page_65">65</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">VIII.</td>
+<td class="tdl"><span class="smcap">Collecting and Transporting Crude: The Pipe Line</span></td>
+<td class="tdr vabot"><a href="#Page_76">76</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">IX.</td>
+<td class="tdl"><span class="smcap">Refining and Manufacturing Petroleum Products</span></td>
+<td class="tdr vabot"><a href="#Page_89">89</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">X.</td>
+<td class="tdl"><span class="smcap">Petroleum and Other Industries</span></td>
+<td class="tdr vabot"><a href="#Page_106">106</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">XI.</td>
+<td class="tdl"><span class="smcap">Petroleum on the Seven Seas</span></td>
+<td class="tdr vabot"><a href="#Page_116">116</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">XII.</td>
+<td class="tdl"><span class="smcap">Petroleum in the Great War</span></td>
+<td class="tdr vabot"><a href="#Page_129">129</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">XIII.</td>
+<td class="tdl"><span class="smcap">America’s Investment in Petroleum</span></td>
+<td class="tdr vabot"><a href="#Page_148">148</a></td>
+</tr>
+<tr>
+<td class="tdr vatop">XIV.</td>
+<td class="tdl"><span class="smcap">Petroleum in the Future</span></td>
+<td class="tdr vabot"><a href="#Page_160">160</a></td>
+</tr>
+</table>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum"><a id="Page_xiv"></a><a id="Page_xv"></a>[Pg xv]</span></p>
+
+<h2 class="nobreak" id="LIST_OF_ILLUSTRATIONS">
+LIST OF ILLUSTRATIONS
+</h2>
+</div>
+
+<table class="autotable">
+<tr>
+<td class="tdl">
+The first oil well, drilled near Titusville, <abbr title="Pennsylvania">Pa.</abbr>,
+on August 27, 1859, by <abbr title="Colonel">Col.</abbr> Edwin L.
+Drake</td>
+<td class="tdr vabot"><a href="#Page_ii"><i>Frontispiece</i></a></td>
+</tr>
+<tr>
+<td colspan="2" class="tdr"><span class="smcap">facing page</span></td>
+</tr>
+<tr>
+<td class="tdl">A temporary oil reservoir in Oklahoma</td>
+<td class="tdr vabot"><a href="#i_p026a">26</a></td>
+</tr>
+<tr>
+<td class="tdl">Early activity; the famous Red Hot Oil Field
+near Shamburg, <abbr title="Pennsylvania">Pa.</abbr></td>
+<td class="tdr vabot"><a href="#i_p042a">42</a></td>
+</tr>
+<tr>
+<td class="tdl">Where Pithole stood</td>
+<td class="tdr vabot"><a href="#i_p042b">43</a></td>
+</tr>
+<tr>
+<td class="tdl">The Drader Well in the Moreni Field, Roumania</td>
+<td class="tdr vabot"><a href="#i_p066a">66</a></td>
+</tr>
+<tr>
+<td class="tdl">Burkburnett in Northern Texas</td>
+<td class="tdr vabot"><a href="#i_p066b">67</a></td>
+</tr>
+<tr>
+<td class="tdl">Big yield well in Mexico flowing into temporary
+storage pond</td>
+<td class="tdr vabot"><a href="#i_p082a">82</a></td>
+</tr>
+<tr>
+<td class="tdl">Laying a pipe line through a Louisiana forest</td>
+<td class="tdr vabot"><a href="#i_p082b">83</a></td>
+</tr>
+<tr>
+<td class="tdl">Lines for loading oil on vessels standing from
+one to two miles at sea</td>
+<td class="tdr vabot"><a href="#i_p098a">98</a></td>
+</tr>
+<tr>
+<td class="tdl">Battery of crude stills at the Bayway Refinery,
+Linden, <abbr title="New Jersey">N. J.</abbr></td>
+<td class="tdr vabot"><a href="#i_p098b">99</a></td>
+</tr>
+<tr>
+<td class="tdl">“Look boxes” in the “Still House” where the
+grades of oil are separated according to
+gravity</td>
+<td class="tdr vabot"><a href="#i_p114a">114</a></td>
+</tr>
+<tr>
+<td class="tdl"><span class="pagenum" id="Page_xvi">[Pg xvi]</span>
+A modern tanker carrying 4,000,000 gallons of oil</td>
+<td class="tdr vabot"><a href="#i_p114b">115</a></td>
+</tr>
+<tr>
+<td class="tdl">A tanker being loaded with gasoline and oil
+at a refinery dock at Port Arthur, Texas</td>
+<td class="tdr vabot"><a href="#i_p146a">146</a></td>
+</tr>
+<tr>
+<td class="tdl">Kansas wells flowing oil into a temporary
+sump, or earthen reservoir</td>
+<td class="tdr vabot"><a href="#i_p146b">147</a></td>
+</tr>
+<tr>
+<td class="tdl">Steam stills at a modern refinery</td>
+<td class="tdr vabot"><a href="#i_p162a">162</a></td>
+</tr>
+<tr>
+<td class="tdl">Storage tank at Cushing, Oklahoma, struck
+by lightning</td>
+<td class="tdr vabot"><a href="#i_p162b">163</a></td>
+</table>
+
+<div class="pagebreak"></div>
+
+<p><span class="pagenum" id="Page_1">[Pg 1]</span></p>
+
+<p class="p4 noindent center title-l">THE EVOLUTION OF THE<br>
+OIL INDUSTRY</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum"><a id="Page_2"></a><a id="Page_3"></a>[Pg 3]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_I">
+CHAPTER I<br>
+<span class="subtitle">PETROLEUM IN HISTORY AND LEGEND</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">While</span> the petroleum industry is in the fullest
+sense modern, it has been known to, and
+casually utilized by mankind for centuries.
+It is named in the earliest annals of the race; and
+allusions to it are abundant in the literature of the
+East, from which much of our Western literature
+had its inspiration. It was applied to the service
+of religion, and was a subject of superstition in
+times which are enshrouded in legend. In the
+authorized Bible and in the Apocrypha there are
+more than two hundred allusions to it. The legend
+of Noah speaks of his having used pitch to tighten
+the seams of his ark, which certainly indicates a
+familiarity with the uses of fluid bitumen available
+in the East. In Deuteronomy there is mention of
+“oil out of the flinty rock;” and Biblical students
+could cite countless other instances where the
+meaning clearly indicates a common use of the surface
+deposits of Western Asia.</p>
+
+<p><span class="pagenum" id="Page_4">[Pg 4]</span></p>
+
+<p>It is believed to have been a strong factor in trade
+between Ancient Judea and Persia, which latter
+country has again in the twentieth century become a
+factor in oil production. It played its part in the
+worship not only of the Hebrews but of other Eastern
+nations, and to the primitive minds of those peoples
+assumed miraculous characteristics. The burning
+wells of Baku were the objective of religious pilgrimages
+among the prehistoric peoples; and despite
+the colossal waste of past ages these wells still flow
+and are a factor in commerce. The Zoroastrians,
+or Fire Worshippers, a sect of Persian origin, which
+gained many adherents in ancient India also, regarded
+these wells as the manifestations of a great
+imprisoned spirit, who was supposed to breathe inflammable
+vapour from his nostrils. Zoroaster has a
+temple at Baku, and students of folk-lore hold that
+these burning wells helped to confirm the belief in
+a literal Hell of fire, common to races of Semitic
+origin. The Macedonian conqueror of Asia, Alexander
+the Great, witnessed the burning lake of
+Ectabana in his march to the east, centuries before
+the Christian era. Marco Polo, the Italian explorer
+of the middle ages, among many fables, revealed
+to Europe the truth about the oil resources in
+<span class="pagenum" id="Page_5">[Pg 5]</span>Baku, and had sufficient of the instincts of a trader
+to discern their commercial value. Well-founded
+belief in the medicinal properties of petroleum, common
+to all countries where it is found, was also prevalent
+among the ancient peoples.</p>
+
+<p>The reference to its use in the construction of
+Noah’s ark shows that the utility of pitch, as a
+binding material in building operations, was recognized.
+It is clearly this material that is meant by the
+“slime” which is stated to have been used as mortar
+for the erection of the Tower of Babel; and it is
+supposed to have played its part in more definitely
+authenticated structures like the palaces of Babylon
+and Nineveh, and the Temple of King Solomon.</p>
+
+<p>Less familiar are the Greek legends relative to
+petroleum. Plutarch, in his life of Alexander the
+Great, after recording some experiments of the
+Macedonian conqueror with petroleum, in the
+course of which he nearly burned a favorite slave to
+death, suggests that it was the fluid signified in one
+of the legends of Medea. The story ran that Medea,
+wishing to destroy a successful rival in love, the
+daughter of King Creon, gave her a wreath and crown
+anointed with some inflammable liquid. As her
+victim approached the altar flame during a religious
+<span class="pagenum" id="Page_6">[Pg 6]</span>festival, the wreath and veil became ignited and the
+unfortunate princess was burned to ashes.</p>
+
+<p>The ancient Egyptians undoubtedly used petroleum
+for embalming and medicinal purposes, and
+filled the cavities of dead bodies with asphaltum, so
+that nomadic Arabs in later times have been known
+to use mummies stolen from Egyptian tombs for fuel.
+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
+time. To this extent at least historians and archæologists
+are indebted to this gift to man.</p>
+
+<p>Rome, in her gradual conquest of the Western
+world, made all known oil supplies her own. Consequently
+allusions which obviously refer to petroleum
+are frequent to the Roman historians; and
+here once more it was applied to the use of religion.</p>
+
+<p>The early records of Russia, the Scythian nation
+of ancient history, are obscure, but it is quite clear
+that the properties of petroleum were known to them
+for ages. When Igor descended on Greece, his vessels
+were destroyed by a fire that burned on water;
+which has led some modern historians to believe that
+petroleum entered into the composition of “Greek
+Fire,” the secret of which is lost.</p>
+
+<p><span class="pagenum" id="Page_7">[Pg 7]</span></p>
+
+<p>The Greeks, indeed, are said to have made ingenious
+use of petroleum at all times. Those who
+have read in Gustav Flaubert’s “Salammbo” 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 corps, by sending among them
+swine smeared with petroleum and ignited.</p>
+
+<p>In later days the greatest of Russian Emperors,
+Peter the Great, showed himself alive to the commercial
+value of the Baku wells. When in 1723 he
+obtained from Persia control of the Baku Khanate,
+he ordered the seizure of as much white petroleum
+as possible, and directed that a refining master be
+sent there. “This,” remarks a historian of petroleum,
+“is the first record of a vacancy for a manager
+of an oil refinery.”</p>
+
+<p>As we go farther east history becomes less exact
+and legend more quaint. In Burma the story of a
+sweet-smelling deposit of petroleum is the subject
+of a tale more than a thousand years old. It is
+related that King Alsungsithu was making progress
+through his realms with his seven wives and on his
+magic raft. At one point the ladies went ashore and
+finding sweet-smelling earth, anointed themselves
+<span class="pagenum" id="Page_8">[Pg 8]</span>and delayed so long that they forgot the hour appointed
+for their return. The angered king issued
+the decree “let the queens who love scented earth
+more than me, their Lord, be put to death.” The
+doomed ladies replied “From too much love of this
+fragrant earth we must now die. Let it lose its
+fragrance and become an overflowing stream of
+foul-smelling oil, and let those who collect it pay
+us honour as their protecting deities.” They were
+executed and became Nats or guardian spirits and
+belief in them is still preserved among workers in the
+Burmese oil fields. But if the legend could be accepted
+as true the slain women assuredly took a sad
+vengeance, for the only offense that can be charged
+against so beneficent an agent as crude petroleum
+is its odour, which assuredly belies its virtues.</p>
+
+<p>There are the remains of very ancient oil workings
+in Burma, Japan and China. Indeed, China, a
+pioneer in many arts, was undoubtedly one in oil
+production. Boring in the modern sense was unknown
+to most of the ancient peoples but it was
+practised in China centuries ago, a fact which will
+come under consideration when we take up the
+mechanical phases of oil production. They had
+some deep wells at a time when other nations were
+<span class="pagenum" id="Page_9">[Pg 9]</span>merely utilizing surface accumulations, and eruptions.</p>
+
+<p>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 country. From
+time unknown the red man has gathered and made
+medicinal use of the surface petroleum of the Oil
+Creek region of Pennsylvania; and its utility in more
+than one respect was known to the Indians of
+California and Mexico. The Senecas imparted to the
+French Jesuit missionaries—who in the seventeenth
+century, explored not only Eastern Canada but the
+Northern States and the Mississippi Valley—the
+curative virtues of oil; and two hundred years later
+it was known to the settlers of Northern New York
+State, Pennsylvania and Ohio as “Seneca Oil.”
+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 seashore, chiefly for burning purposes.
+Father Acosta, one of the early missionaries
+to Peru, noted petroleum floating in the water off
+Cape Blanco and, as early as 1692, the Spanish
+Government granted concessions for the collection
+of Peruvian oil.</p>
+
+<p><span class="pagenum" id="Page_10">[Pg 10]</span></p>
+
+<p>In the years immediately prior to our war of
+Independence, allusions to the petroleum resources
+of what are now the United States became frequent;
+and the commercial value of the product was known
+to General Washington himself. Washington, who
+was a great believer in the future of the country,
+which was in his day called “the West,” acquired
+three large tracts of land on the Ohio River bottoms.
+One of these was at Point Pleasant, the birthplace of
+General Grant; a second at Round Bottom, later the
+site of the City of Cincinnati; and a third at the
+mouth of the Kanawha River, rich in coal and oil.
+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 industry; for in his
+will, speaking of this third tract, he says: “This
+tract was taken up by General Lewis and myself on
+account of the bituminous spring which it contains,
+of so inflammable a nature as to burn freely as spirits
+and is nearly as difficult to extinguish.” Certain of
+its immense future value, he requested his heirs not
+to dispose of this particular tract.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_11">[Pg 11]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_II">
+CHAPTER II<br>
+<span class="subtitle">WHAT IS PETROLEUM?</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">Petroleum</span>, or to use its comprehensive
+colloquial synonym, “oil,” has come to play
+such a widespread part in every-day life
+that most people, the younger generation especially,
+take its existence for granted without further
+enquiry. Few pause to reflect that this basic essential
+of modern commerce is a comparatively new
+agent for the service of mankind. Its applications
+are so manifold that it is now recognized as indispensable;
+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 power. 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 steam. In company
+with electricity, it has effected changes in methods
+of manufacture, and added to the comforts of
+<span class="pagenum" id="Page_12">[Pg 12]</span>civilization in ways that it would take volumes to
+relate. It has been a factor in revolutionizing warfare—as
+the recent great conflict proved—and it is
+essential to the arts of peace.</p>
+
+<p>Like electricity, with which its development as a
+servant of man has been coincident, its utility consists
+in the fact that it is a source of light, heat and
+energy. But unlike electricity it is a passive as well
+as an active agent. For illustration, 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 commodity.</p>
+
+<p>Petroleum is the latest of the earth’s riches
+which man has learned to adapt to his needs. The
+use of iron, for instance, goes back to prehistoric
+times, and the same is true of nearly all metals,
+precious and otherwise, of salt and many other of our
+mineral products which the chemistry of creation
+has provided in the crust of this terrestrial sphere.
+But for countless centuries man went his way knowing
+of the existence of petroleum, yet utilizing it only
+in a sporadic and casual manner, until American
+ingenuity and adaptability—working in coöperation
+with scientists of other lands—made it the marvelous
+<span class="pagenum" id="Page_13">[Pg 13]</span>agent that it is to-day. And all this has happened
+since the grandfathers of most of the younger
+generation of the twentieth century were born.</p>
+
+<p>The word petroleum comes from two Latin terms
+signifying “rock” and “oil”. “Rock-oil,” which
+was an early name given it on this continent, is accounted
+for by the fact that certain shales and coals
+possess oil as part of their constituents. It is one
+of the family of bitumens, which even in their natural
+state assume many forms. In its commercial
+sense the word “petroleum” is a generic term covering
+the whole group of hydro-carbons—the refined
+or manufactured products as well as the crude oil.
+But as yet scientists are divided in opinion as to its
+origin and the extent of the world’s supply. All we
+know is that it is diffused over almost every section
+of the earth, and that new deposits—on the scientific
+development of which geologists are constantly at
+work—are ever being discovered.</p>
+
+<p>One school of scientists holds that it is of inorganic
+origin, derived from metallic carbides lying
+below the porous strata which serve as Nature’s
+reservoirs for the crude product that is “mined”
+by the modern oil producer. But the more widely
+accepted view is that crude petroleum is of organic
+<span class="pagenum" id="Page_14">[Pg 14]</span>origin, born of either animal or vegetable matter
+embedded in the earth’s surface, which in the process
+of decay or transmutation has taken this form.
+Travellers state that in the neighbourhood of the
+Caspian Sea the conversion of such organic matter
+into petroleum is visibly in operation to-day. The
+British scientist, Sir Boverton Redwood, in explaining
+the natural process by which petroleum came into
+existence, 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 plants, as well as of
+vegetable matter from the land, borne down to the
+coast by water courses. The changes which the
+world has undergone would result in the burial of
+these accumulations under sedimentary strata, during
+the process of creating land where once was
+water.</p>
+
+<p>During geological ages different parts of the
+earth’s surface have alternately been raised and
+submerged. When above sea level they have been
+at times subjected to disintegration and removed
+by such agencies as water, wind, and glaciers, and
+when submerged the same localities have received
+<span class="pagenum" id="Page_15">[Pg 15]</span>deposits, as we now see being made under the ocean
+and at the mouths of rivers. 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 water, and as oil is,
+almost without exception, found in these formations,
+we are able to account for the fact that
+petroleum is frequently discovered in localities
+which are now at a great distance from the sea.
+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 States. Many
+other arguments have been adduced supporting a
+belief in the vegetable origin of petroleum that would
+be worth discussing at length, were this a scientific
+treatise. Much controversy still prevails. 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 experiments; whereas the
+scientists who hold by the organic theory are geologists,
+who base their contentions on actual investigations
+of the earth’s crust and the records of its
+changes as written in the rocks.</p>
+
+<p><span class="pagenum" id="Page_16">[Pg 16]</span></p>
+
+<p>The assumption is that the organic matter, after
+being imprisoned in the sedimentary rock by the
+processes indicated, under the influence of heat and
+pressure in some cases assumed the form of coal;
+in other instances succumbed to decay; while in
+other cases it formed crude petroleum and gas. 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 gas. The mode
+of decomposition by which these elements were
+generated is one of Nature’s secrets; and the
+stage in the history of oil-bearing rock in which the
+necessary chemical transformation took place is
+equally a matter of conjecture. As has been said,
+the presence of salt is a prevalent phenomenon in
+connection with oil deposits the world over. Not
+only is a strongly saline water commonly present in
+the vicinity of petroliferous rock, but in a number of
+fields oil is closely connected with large masses of
+rock-salt, gypsum and dolomite.</p>
+
+<p>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 crust; from the
+<span class="pagenum" id="Page_17">[Pg 17]</span>earliest or Laurentian rocks to the most recent formations
+of what is known in geology as the Quarternary
+period.</p>
+
+<p>It is, however, evident that oil has often moved
+from the formations in which it was made to other
+formations, generally loose or porous, which have
+served as natural reservoirs for storing the oil in the
+earth. It is probable that in most instances the
+migration took place by filtration or flowing through
+fissures or openings from one formation to another,
+while in some cases it is evident that a distillation
+took place and the migration probably was made in
+the form of vapor, which was ultimately condensed
+in a cooler formation and there stored.</p>
+
+<p>Generally speaking, however, it reveals itself in commercial
+quantities chiefly in the Devonian and carboniferous
+formations which are comparatively old;
+or in the Tertiary rocks, aeons younger in geological
+evolution. The geographical distribution is as diverse
+as the geological; the deposits in many
+instances occur along well-defined lines and in association
+with mountain ranges, though this condition
+is by no means axiomatic. It is assumed that in the
+elevatory processes which obviously occurred while
+the earth’s crust was attaining its present characteristics,
+<span class="pagenum" id="Page_18">[Pg 18]</span>certain folds were formed which arrested and
+collected the oil in productive belts.</p>
+
+<p>Early misapprehensions with regard to the origin
+of petroleum are indicated by the familiar word
+“coal-oil,” now used to signify one of the most
+popular products of crude petroleum; 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 obtained. Over
+a century ago miners in Shropshire, England, observed
+oil trickling from fissures in coal veins and
+assumed that coal was the source of the liquid. This
+belief was intensified by the fact that the earliest
+discoveries in Pennsylvania, which resulted in the
+creation of the great modern petroleum industry of
+the United States, were in the vicinity of vast deposits
+of bituminous coal. Shortly afterward this
+belief was disproven by the discovery of valuable oil
+fields in the western part of the province of Ontario,
+Canada, where no coal exists; and other discoveries
+on this continent and elsewhere have furnished abundant
+proof that oil may exist in large volumes
+independently of coal.</p>
+
+<p>In considering the two primary theories as to the
+<span class="pagenum" id="Page_19">[Pg 19]</span>origin of petroleum, whether inorganic—that is
+from chemical action on rocks forming part of the
+earth’s crust, or whether organic, 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 correct.
+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 migration. As a rule, the production
+in such formations is small, rarely in commercial
+quantities, and it is probably derived from inorganic
+sources. This possibility is further demonstrated
+by laboratory experiments.</p>
+
+<p>On the other hand, it is probable that the greatest
+sources of petroleum are due to organic origin, more
+particularly in the carboniferous or the tertiary formations,
+where coal, cannel-coal, lignite, and other
+similar products are most frequently found. Hydro-carbons
+identical with most of the products of the
+distillation of petroleum, are so commonly obtained
+from the distillation of coal, lignite, and even bituminous
+shale and peat that in most cases the organic
+theory of the source of petroleum appears to be the
+correct one.</p>
+
+<p><span class="pagenum" id="Page_20">[Pg 20]</span></p>
+
+<p>Natural gas usually exists in association with oil
+deposits and in a great measure has the same properties,
+its existence as a gas or a liquid being dependent
+on the temperature and pressure under which it
+is held. In recent years, before it is sold for consumption
+as natural gas, 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 vapor. Another
+process for extracting this gasoline is by absorption,
+that is, passing the gas under a comparatively low
+pressure through a heavy oil, which takes out a part
+of the gasoline from the gas. In both processes,
+but especially in the high compression system, there
+is a considerable percentage of very volatile gasoline
+obtained, which is highly explosive and difficult to
+retain as a liquid. Varying in different localities
+and under different conditions, natural gas yields
+commercially from one-half gallon to five gallons of
+gasoline per thousand cubic feet, although extreme
+cases show much wider range.</p>
+
+<p>Natural gas, in conjunction with hydraulic pressure,
+is the cause of what is known to oil operators
+as a “gusher” or flowing well. It is the compression
+and volatility of the gas imprisoned for ages in the
+<span class="pagenum" id="Page_21">[Pg 21]</span>rock that sends the oil spouting into the air and has
+been known to create a flow of 170,000 barrels in a
+single day. As a general practice, and probably due
+to the weight of overlying strata, the pressure of gas
+encountered in drilling into oil formations is proportional
+to the depth. This pressure is generally known
+as rock pressure and the flow of the wells is in part
+due to it. 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 porosity.</p>
+
+<p>In some cases, notably in Mexico, the flow seems
+to be caused by the action of water. Here the formations
+are very porous, opposing little obstacle
+to the flow of the oil and gas through the formation.
+The production from the wells under these
+conditions is very great and, unlike most wells, a
+gradual decline in the yield is unusual, there being
+little sign of exhaustion until the moment when the
+well begins producing salt water in increasing proportions.
+After the appearance of the salt water the
+production of oil diminishes rapidly and for practical
+purposes soon ceases, due to the small production
+of oil and the fact that it comes out as an emulsion
+with the water, which is very difficult to utilize.</p>
+
+<p>A characteristic of the Mexican wells is that the
+<span class="pagenum" id="Page_22">[Pg 22]</span>oil, and finally the salt water which follows it, are
+generally produced at a high temperature—from
+115 to 145 degrees. Such gushers originally produced
+another fallacious belief that oil exists in subterranean
+pools or reservoirs; 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 sponge. A typical piece of oil rock examined
+under the microscope reveals millions of tiny
+interstices between different grains of sand. Porous,
+oil-bearing sandstone may contain one-tenth or one-eighth
+of its bulk in petroleum. The term “oil sands”
+is common in the oil industry and refers to the type of
+coarse grained porous rock which forms the best
+reservoir for petroleum; but limestone and some of
+the rocks described by geologists as conglomerates
+sometimes serve the same purpose. In every instance
+the oil-bearing stratum has been covered by a
+layer of non-porous rock, whose impervious qualities
+keep the oil and gas imprisoned until penetrated by
+the drill. Surface deposits are also a well-known
+phenomenon; and were the only type of deposits
+known to the world until modern times. About them
+has grown up much interesting history and legend
+which will be dealt with in a subsequent chapter.</p>
+
+<p><span class="pagenum" id="Page_23">[Pg 23]</span></p>
+
+<p>The geographical distribution of petroleum is, as
+has been said, world-wide, and the oil prospector,
+followed by the capitalist, who make these
+discoveries available to the world, are constantly
+opening up new fields. Oil discoveries necessarily
+mean great commercial expansion for the localities
+in which they occur; and no small part of the enormous
+wealth of the United States has resulted
+both from the abundance of our deposits of crude,
+and from the manifold uses to which they have been
+applied in the improvement and standardization of
+manufacture. Though the United States is the
+greatest oil producing country in the world, production
+on modern commercial and scientific lines first
+began across the seas, in the little Kingdom of Roumania.
+There the industry in a modern sense had
+its birth in 1857. The United States entered the
+field by virtue of the Pennsylvania discoveries in
+1859, and the original industry has attained enormous
+proportions through later discoveries in such
+scattered portions of our country as California,
+Oklahoma, Wyoming and Texas. Italy was the
+third entrant in the field of organized production in
+1860, but her industry has never assumed large proportions.
+Other countries became producers in the
+<span class="pagenum" id="Page_24">[Pg 24]</span>following order: Canada, Russia, Galicia (then
+Austrian, now Polish), Japan, Germany, India
+(Burma), Dutch East Indies, Peru and Mexico.
+The Mexican industry dates back only to 1907 and
+that country is now recognized as one of the world’s
+greatest fields.</p>
+
+<p>In the United States when we speak of benzine,
+gasoline and naphtha we allude to the more volatile
+distillates of petroleum. Lamp oil, as it is called in
+England, and kerosene or coal oil, as it is known in
+America, constitutes another product. While petroleum
+refining is conducted primarily for the production
+of motor fuel, illuminating oil, lubricants, wax,
+gas oil, and fuel oil, of various grades, there are a
+host of specialty products obtained from petroleum
+which go into use in almost every phase of human
+activity. These include pharmaceutical preparations
+for internal and external use, in the form of
+medicinal oils, ointments, salves, and soaps; cements,
+including binders for briquetted fuels, water-proofing
+and saturating agents; special solvents, used to some
+extent in all chemical laboratories; and an imposing
+list of rare chemicals, such as higher alcohols of the
+nature of fusel-oil, and a large variety of organic
+sulphur compounds.</p>
+
+<p><span class="pagenum" id="Page_25">[Pg 25]</span></p>
+
+<p>The word “naphtha” comes from Russia, where
+it is applied to all crude petroleum, and was supposedly
+derived from the Persian, <span lang="fa">nafata</span>, to exude.
+Early Roman writers like Strabo and Pliny, who
+were acquainted with the burning and lighting
+properties of the surface oil deposits known to the
+ancients, spoke of it as bitumen and <span lang="la">liquidum candidum</span>.
+And other terms in Roman and Greek
+literature obviously signify the same substance.</p>
+
+<p>Additional designations are: <span lang="pl">Ropa, ropianka</span>, (Galician
+Polish) <span lang="ro">pacura</span> (Roumanian), <span lang="fr">Huile de naphte</span>
+and <span lang="fr">pétrole brut</span> (French); <span lang="de">erdoel, rohoel, rohnaphtha</span>
+(German); <span lang="my">yenan</span> (Burmese); <span lang="ja">sekinoyn</span> (Japanese)
+<span lang="zh">shi-yu</span> (Chinese); <span lang="es">chapapote</span> (Mexican).</p>
+
+<p>There are also a large number of names for such
+petroleum products as paraffine, or mineral wax, of
+which the Spanish <span lang="es">brea</span> is an example; and for asphalt,
+which is really petroleum in a dense form.</p>
+
+<p>Surface indications of petroleum and natural gas
+are frequent and diversified. The most common
+is in the nature of seepages, which are generally
+found in what are geologically highly disturbed
+areas, underlain with petroleum deposits. These
+seepages most frequently occur where the oil-containing
+formations have been folded and exposed
+<span class="pagenum" id="Page_26">[Pg 26]</span>on the surface, either when the folding took place or
+subsequently through the cutting of water courses.
+From these formations the oil seeps out and is shown
+as a coating on the streams or, in case the quantity
+is great or the oil very heavy, it is shown as asphalt
+deposits, of which there are many in Mexico, and of
+which the best known are the pitch lakes in Trinidad
+and Venezuela.</p>
+
+<p>It is a common occurrence in oil fields, more particularly
+those in the younger geological formations,
+to find mud volcanoes, probably caused by the escape
+of gas, bringing with it some water, which
+reaches the surface as mud. 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 acres.</p>
+
+<p>Another evidence of petroleum is found in Galicia
+in the form of ozocerite, which is in many ways
+similar to paraffin, but has some distinctive characteristics.
+This ozocerite is found on the surface or
+in mines. 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 water.</p>
+
+<figure class="figcenter illowp100" id="i_p026a" style="max-width: 182.0em;">
+  <img class="w100" src="images/i_p026a.jpg" alt="">
+  <figcaption>
+      <p>A temporary oil reservoir in Oklahoma. When petroleum is produced in advance of the erection of tanks
+    it is held by earthen dams</p>
+  </figcaption>
+</figure>
+
+<p><span class="pagenum" id="Page_27">[Pg 27]</span></p>
+
+<p>Petroleum is found in different parts of the world
+and even in different formations in the same locality
+with widely different properties and composition.
+In some cases the oil is found almost white and varies
+through all the shades of amber and brown to black.
+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 pavements.</p>
+
+<p>It is also interesting to note that the crude oil
+from different localities, and even from different
+formations in the same locality, not only varies
+greatly in its own properties, but the manufactured
+products derived from different grades have very
+different properties as well. From some crude
+oils special lubricating oils can be made which cannot
+be manufactured from other oils. The same is
+true of the paraffins derived from different oils,
+some, for example, being especially desirable for
+one purpose while paraffin derived from another
+crude is more suitable for another purpose, due to its
+different properties and action under treatment.
+Thus, the refined oils from different crudes show a
+great variety, some lamp oils possessing much
+greater illuminating power than that derived from
+<span class="pagenum" id="Page_28">[Pg 28]</span>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 crudes.</p>
+
+<p>In Roumania and Russia the wells produce enormous
+quantities of sand with the oil, particularly
+when they first start flowing. The Roumanian
+wells frequently start flowing sand as fine as flour
+and more like the dust of a country road. This sand
+may hardly smell of oil at first and at this stage it covers
+the ground like a volcanic ash, sometimes breaking
+in the roofs of neighbouring houses.</p>
+
+<p>In the course of a few days the sand begins to
+show more oil but piles up around the mouth of the
+well, giving it the appearance of a small volcano.
+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 tanks. Later, the percentage
+of sand becomes less until it is almost negligible.</p>
+
+<p>The action of the sharp sand is similar to that of a
+sand blast, necessitating much ingenuity in changing
+the pipes and valves for handling the well while it is
+flowing.</p>
+
+<p>The diversity that is characteristic of petroleum
+in its geological and geographical distribution, and
+<span class="pagenum" id="Page_29">[Pg 29]</span>in its adaptability to the needs of humanity, is also
+to be found in the nature of the crude oil deposits.
+It differs in colour, density and other qualities in almost
+every field. In America, with which this book
+chiefly deals, three distinct basic types are recognized;
+the mixed base (paraffine and asphalt in
+combination) found in Ohio, Oklahoma and other
+States; the paraffine base, which is characteristic of
+the paler crudes of Pennsylvania and West Virginia;
+and the asphalt base common to the fields of California
+and Texas. The special qualities of the crude
+fix in a large measure, the character of the products
+each yields when subjected to refining and manufacturing
+processes.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_30">[Pg 30]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_III">
+CHAPTER III<br>
+<span class="subtitle">DAWN OF AMERICA’S PETROLEUM INDUSTRY</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">The</span> words of Washington show that long
+before the actual birth of the petroleum
+industry in the United States, discerning
+minds were at work on the best means of turning
+the bituminous or petrolific deposits of this continent
+to practical commercial uses. 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
+possible, and its first executive head. He was its
+earliest influential prophet of the power that was to
+be born of the unlimited natural resources of what
+was then the “hinterland” of the original commonwealth.
+During the first five decades of the nineteenth
+century there were a considerable number of
+Americans, less eminent than he—explorers, scientists
+and business men of imagination who looked to
+petroleum as a potential resource of national wealth.
+And speculations of this kind were not confined to the
+<span class="pagenum" id="Page_31">[Pg 31]</span>United States. In Great Britain and other countries
+processes were patented for the refining of
+mineral oils. The main purpose in view was the
+development of a substitute for sperm oils in anticipation
+of the decline of the whaling industry, which
+had become the main source of illuminants and
+lubricants. In America, also, petroleum had its
+recognized medicinal uses, the traditions of which
+had been acquired from the Indians. Thus, in the
+thirties, “Seneca Oil” produced at Lake Seneca,
+New York; and “American Medicinal Oil,” a
+Kentucky preparation, were familiar household remedies,
+especially as embrocations for burns, sores and
+rheumatic affections.</p>
+
+<p>The casual use of petroleum as a basis for proprietary
+medicines had, as will be seen, an interesting
+bearing on the future development of the industry;
+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 deposits. Had not the growing
+American population been compelled to secure adequate
+quantities of salt by boring and establishing
+brine wells, it is possible that the Pennsylvania oil discoveries,
+with which the real history of the modern
+<span class="pagenum" id="Page_32">[Pg 32]</span>petroleum industry begins, might have been indefinitely
+delayed. During the first half of the nineteenth
+century five different states had salt industries
+based on the boring process—Pennsylvania,
+Ohio, West Virginia, Kentucky and Tennessee.
+In connection with most of these wells petroleum
+occasionally appeared, usually to the annoyance
+and embarrassment of the operators. 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 property. Nevertheless, 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 discoveries.</p>
+
+<p>The first American salt well of which there is any
+official record was begun in 1806 and completed in
+January, 1808, on the Great Kanawha River in what
+is now West Virginia. Charlestown, <abbr title="Virginia">Va.</abbr>, was then
+the nearest town, and in the vicinity of this brine well
+the first burning gas spring had been discovered in
+1773. At Tarentum, on the Allegheny River,
+Pennsylvania, salt wells were started in 1810 which
+also yielded petroleum in considerable quantities,
+and such pioneers as <abbr title="Colonel">Col.</abbr> Ferris and Samuel M. Kier
+<span class="pagenum" id="Page_33">[Pg 33]</span>endeavoured later to turn this by-product to commercial
+account. The first flowing oil well was
+drilled unintentionally in 1818 at the mouth of
+Troublesome Creek, on the Big South Fork of the
+Cumberland River, twenty-eight miles south-east of
+Monticello, <abbr title="Virginia">Va.</abbr>, by one Martin Beatty, who was
+seeking brine. “The Devil’s Tar” as he called it,
+was allowed to flow into the Cumberland River and
+covered its surface for a distance of thirty-five
+miles. The oil became ignited and an enormous
+conflagration ensued, which destroyed trees along
+the banks of the river, and also the salt works.
+What would to-day be regarded as a piece of stupendous
+good fortune was then accounted a disaster;
+though this particular well later supplied the chief
+ingredient for “American Medical Oil” a remunerative
+compound bottled at Burkeville, Kentucky.</p>
+
+<p>The most enterprising man in utilizing this unwelcome
+by-product of his salt wells was Samuel M.
+Kier. Originally a chemist and druggist, he resolved
+in the later forties to ascertain its uses both as a
+medicine and as an illuminant. Experiments at
+distillation to secure a burning fluid for lighting
+purposes were a success, and his product attained
+some vogue in rivalry to a kerosene which was being
+<span class="pagenum" id="Page_34">[Pg 34]</span>extracted from oil shales in the province of New
+Brunswick, Canada. But Mr. Kier’s chief business
+was that of the sale of petroleum for medicinal purposes—a
+compound he named “Kier’s Rock Oil.”
+He advertised it by imitations of an American
+greenback, 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-issue.</p>
+
+<p>This imitation greenback was destined to influence
+the course of history. A prominent New
+Haven business man of the day was Mr. George
+H. Bissell, who had become interested in the possibilities
+of petroleum through his acquaintanceship
+with Prof. Crosby of Dartmouth College. The
+latter had received from a physician at Titusville,
+<abbr title="Pennsylvania">Pa.</abbr>, a historical city in connection with the coming
+industry, a bottle of petroleum, sent as a curiosity.
+Bissell was so interested that he, in company with
+friends, purchased for $5,000 a tract of one hundred
+acres at Titusville, with an oil spring on it. A company
+was founded, known as the Pennsylvania Rock
+Oil Company, with a nominal capital of $500,000
+and a tentative start made at collecting the surface
+<span class="pagenum" id="Page_35">[Pg 35]</span>oil by digging and trenching. Prof. B. Silliman, of
+New Haven, made a favourable report on the fluid
+as an illuminant but the cost of production rendered
+the project commercially impracticable. Mr. Bissell
+was, therefore, left with the Titusville property on
+his hands. The story runs that one day in the
+summer of 1857 while in New York he saw in the
+window of a Broadway drug store one of Kier’s
+imitation greenbacks, showing the picture of the
+derricks at Tarentum, <abbr title="Pennsylvania">Pa.</abbr> The idea suddenly came
+to him of developing the Titusville property just as
+salt properties were developed by boring and pumping.
+Though short of capital, he set about obtaining
+backing for the attempt, and the final outcome
+was that a small syndicate was formed in New Haven,
+<abbr title="Connecticut">Conn.</abbr>, to work the Titusville oil lands. This
+syndicate engaged Edwin Laurencine Drake, the
+most historic figure in connection with the beginning
+of the American industry, to carry out the work.
+How he set about his task, and how he succeeded will
+be the subject of a subsequent chapter.</p>
+
+<p>It is necessary to point out that unless the foundations
+had already been laid for refining and marketing
+the crude petroleum, Drake’s discovery would
+have been almost as valueless as that in 1818, which
+<span class="pagenum" id="Page_36">[Pg 36]</span>resulted in the conflagration on the Cumberland
+River. Science, however, had been grappling with
+the problem of extracting from the crude a safe
+burning oil and eliminating the offensive odour.
+This latter was a very important consideration, and
+for years after petroleum began to assume the proportions
+of a large industry it encountered prejudice
+on this account. By the later ’fifties so much progress
+had been made that the possibilities had been
+created not merely for a large domestic trade in oil,
+but also for the development of an export market.
+Drake’s discoveries at Titusville in August, 1859,
+may, therefore, be said to have come at the psychological
+moment.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_37">[Pg 37]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_IV">
+CHAPTER IV<br>
+<span class="subtitle">FOUNDER OF THE PETROLEUM INDUSTRY</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">On October</span> 4, 1901, a magnificent monument
+was unveiled at Woodlawn Cemetery,
+Titusville, <abbr title="Pennsylvania">Pa.</abbr>, to the memory of
+Edwin Laurencine Drake at the expense of the late
+Henry H. Rogers, of the Standard Oil Company,
+himself a pioneer of the Pennsylvania oil fields in the
+boom days of the sixties. The inscription on the
+monument not only describes Drake as the “Founder
+of the Petroleum Industry” but gives an explicit
+review of what his services meant, not only to the
+people of the United States but to mankind at large.
+It runs as follows:-</p>
+
+<blockquote>
+<p><abbr title="Colonel">Col.</abbr> E. L. Drake, born at Greenville, <abbr title="New York">N. Y.</abbr>, March
+29, 1819; died at Bethlehem, Pennsylvania, November
+8, 1884, Founder of the Petroleum Industry, The friend
+of man.</p>
+
+<p>Called by circumstances to the solution of a great mining
+problem, he triumphantly vindicated American skill and
+near this spot laid the foundation of an industry that has
+enriched the State, benefited mankind, stimulated mechanic
+<span class="pagenum" id="Page_38">[Pg 38]</span>arts, enlarged the pharmacopoeia, and has attained
+world wide proportions. He sought for himself not
+wealth nor social distinction. Content to let others
+follow where he had led, at the threshold of his fame he
+retired to end his days in quieter pursuits.</p>
+
+<p>His highest ambition the successful accomplishment of
+his task, his noble victory the conquest of the rock,
+bequeathing to posterity the fruits of his labour and his
+industry. His last days oppressed by ills—To want, no
+stranger—He died in obscurity.</p>
+
+<p>This monument is erected by Henry Huttleson Rogers,
+in grateful recognition and remembrance.</p>
+</blockquote>
+
+<p>Drake was in his fortieth year when, through friends
+in New Haven, he was appointed director and
+superintendent of the Titusville properties of the
+Pennsylvania Rock Oil Company and the Seneca
+Oil Company. As a youth he had led a wandering
+life and his education was such as he could pick up at
+odd moments. He had worked as a commercial
+traveller and hotel clerk, and was a railroad conductor
+at the time he took service with the Bissell
+syndicate, which had decided to experiment in drilling
+for oil. He himself was so thorough a believer
+in the project that he put all his small savings into it.
+The salary at which he was engaged was a thousand
+dollars a year, which signified considerably more in
+the later fifties than it does to-day. On reaching
+<span class="pagenum" id="Page_39">[Pg 39]</span>Titusville early in 1859 he soon realized that he was
+handicapped by lack of practical knowledge of
+drilling processes, and therefore sent for one William
+Smith, a man of long experience as a driller of brine
+wells, who came with his two sons to assist in the
+work. The method adopted was that of forcing
+cast iron pipe through the soil at a spot near the
+“old oil spring,”—well known to the farmers of the
+locality.</p>
+
+<p>Operations were started in February and after
+many tedious delays rock was struck at a depth of
+thirty-six feet. If they were to go farther steam
+power was necessary, and by August 1st, this had
+been secured. In the meantime the drilling operations
+had been the joke of the countryside, but
+Drake literally could not afford to fail. 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 feet. No record was
+kept of the exact date, though the New York Tribune
+a few weeks later fixed it at August 23rd. The
+well was not a free flowing one, but yielded to the
+pumping process.</p>
+
+<p>The discovery, momentous as it was, did not
+<span class="pagenum" id="Page_40">[Pg 40]</span>create much excitement except in the immediate
+locality. John Brown’s raid, at Harper’s Ferry,
+and the possibility of the Civil War, which was to
+ensue within less than two years, were the chief
+topics in the public mind of America. Shortly after
+the discovery a fire wiped out the existing plant
+but kindly neighbours, now satisfied that the experiment
+was no failure, assisted Drake, and when the
+well was again set in working order its flow was more
+promising than ever. In the view of experts, Drake’s
+achievement as a pioneer may be regarded as limited
+to one great feat, the drilling with steam power of the
+first cased oil well. He ceased to be an active factor
+in the development of the newborn industry with the
+drilling of this first well. Following his inspiration,
+others organized it and in the course of a few years a
+great army of industrial workers, merchants, financiers
+and distributors of all classes became associated
+with petroleum and placed it in a foremost
+position among the world’s industries. Drake himself
+finally left the oil regions in 1863 with about
+$15,000 savings, which he soon lost in other forms of
+speculation. In the stupendous events of the national
+conflict he was almost forgotten. In 1869, ten
+years after his discovery, the older oil men who had
+<span class="pagenum" id="Page_41">[Pg 41]</span>known him learned that he was sick and penniless,
+with a wife and family at the point of starvation.
+They raised among themselves a purse of $5,000
+and later the State Legislature was prevailed upon
+to grant him an annual pension of $1,500, which
+maintained him in comparative comfort at his home
+in Bethlehem, Pennsylvania, until his death in 1884.</p>
+
+<p>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 1859 was
+2000 barrels, in 1869 it had risen to 4,215,000 barrels.
+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 development. As the news of the new
+industry and its possibilities spread, more and more
+wells were sunk along Oil Creek and the Allegheny
+River; farm lands containing oil prospects began to
+command enormous sums, 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 results. The Civil War undoubtedly interrupted
+development at the outset, and the new oil
+<span class="pagenum" id="Page_42">[Pg 42]</span>fields gave many a brave soldier to the Northern
+cause.</p>
+
+<p>The really sensational developments in connection
+with the oil fields began as the Civil War was
+drawing to a close. Then they commenced to assume
+the romantic and fevered aspect of California
+in the days of the early gold rush a decade or more
+previous. Unfortunately, the oil fields possessed no
+Bret Harte, as did California, to write the epic of
+good-fortune and ill-fortune. The story of the City
+of Pithole, not far from Titusville, is, however, as
+romantic as anything in the annals of gold discovery.
+It sprang to full life in 1865, a mushroom city with
+all the vices and excitements of frontier life. Fabulous
+tales have been told of its population, which
+probably never exceeded 20,000 but 20,000 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 continent.
+Gamblers and adventurers flocked there in company
+with many legitimate oil men. In the speculation
+that ensued fortunes were made and lost daily.
+Then, after a year or two, the wells which had shown
+such riches began to decline and Pithole was quickly
+deserted. A few years later a visitor found only
+<span class="pagenum" id="Page_43">[Pg 43]</span>two inhabited houses in a city that had for a time
+been the home of thousands of restless mortals.
+Later still some of the abandoned wells were made
+productive by new processes, but the glory of the
+mushroom city had vanished forever. In other parts
+of this continent there have been oil crazes, but nothing
+approaching the story of Pithole. And it is
+famous for another reason; it was the scene of the
+establishment of one of the earliest pipe-lines, a
+system which has been an invaluable auxiliary to the
+growth of the American industry.</p>
+
+<figure class="figcenter illowp100" id="i_p042a" style="max-width: 181.75em;">
+  <img class="w100" src="images/i_p042a.jpg" alt="">
+  <figcaption>
+      <p>Early activity; the famous Red Hot Oil Field near Shamburg, <abbr title="Pennsylvania">Pa.</abbr>, in 1870</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp100" id="i_p042b" style="max-width: 180.5em;">
+  <img class="w100" src="images/i_p042b.jpg" alt="">
+  <figcaption>
+      <p>Where Pithole stood—the main street of a Pennsylvania oil town, which had a population of 20,000 in
+    1870, as it looks to-day</p>
+  </figcaption>
+</figure>
+
+<p>The success of the early oil men of the United
+States not only in grappling with the problem of
+crude production, but with those of conservation,
+transportation, refining and the development of new
+uses for the various elements of the treated crude,
+set an example to all the world.</p>
+
+<p>From 1870 onward, though Pennsylvania continued
+to lead, American methods were copied in
+many other countries. The foundations of the
+trade which have made petroleum the most international
+of all commercial undertakings were at
+that time laid; and this brings us to a survey of the
+industry as a world interest.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_44">[Pg 44]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_V">
+CHAPTER V<br>
+<span class="subtitle">PETROLEUM AS A WORLD INDUSTRY</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">The</span> standardization of the petroleum industry
+which began in America during the
+later sixties naturally excited emulation.
+Just previous to the Pennsylvania discoveries of
+1859 something like a systematic industry had been
+established in connection with the Roumanian deposits,
+sixty years later destined to be a military
+objective of vital importance in the World War. But
+the actual sinking of oil wells by the boring process
+was a later development in Europe. As was
+natural, the first foreign country to profit by Drake’s
+example was our neighbour Canada, which has long
+been an oil producing country, and to a still greater
+extent, thanks to friendly American initiative, an
+oil-refining country. 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 lands.</p>
+
+<p>The most important are those of Russia, particularly
+<span class="pagenum" id="Page_45">[Pg 45]</span>the deposits of Baku, which, as has been
+related, figured in ancient history and legend. The
+unsettled condition of Russia renders an exact statement
+of the condition of its oil industry impossible
+at the present time, but prior to the war the Russian
+oil-fields had an output of approximately
+72,000,000 barrels annually, or 15 per cent. of the then
+world’s production. During the past fifty years the
+Russian fields have produced at least 1,650,000,000
+barrels; but, though this aggregate seems large
+it represents less than half of the petroleum
+production of the United States during the same
+period. It is believed, however, that Russia possesses
+great wealth in undeveloped oil fields, particularly
+in the south-western Caucasus. As yet the
+main part of the production of this vast country has
+come from an area of about 4,000 acres in the Baku
+region, near the Caspian Sea. Prior to 1870 Russia’s
+output of petroleum came from surface pits, dug
+by hand, rarely more than 50 feet deep. Boring by
+steam power after the American method was first systematically
+introduced by Robert Nobel, the famous
+scientist and expert in explosives, who went to
+Baku in 1873. Even in 1893 the number of bored
+wells in Russia was less than 500, but at the last
+<span class="pagenum" id="Page_46">[Pg 46]</span>census in 1911 wells of this type had increased to
+over 3,000. The Nobel brothers also assisted Russian
+oil production by introducing improved methods of
+transporting the crude oil, based on American experience,
+as well as improving refining processes
+through their own ingenuity. Many other companies
+operating in Russia prior to the Bolshevist régime
+have showed some disposition to follow their example,
+but the progressive spirit that has actuated the oil
+pioneers of North America has been lacking. One
+great obstacle to development which existed long before
+the Russian revolution of 1917 was the intractable
+character of the Russian workmen, encouraged, it
+must be admitted, by the reactionary spirit of the
+Russian capitalist. In contests between capital
+and labour much loss was sustained through incendiarism,
+and there are recorded instances where in a
+single night dozens of productive oil-wells, which had
+taken years to “bring in,” owing to the special
+geological difficulties of the Russian fields, were destroyed.
+Such catastrophes of course represent economic
+loss to the whole people; 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 unknown.</p>
+
+<p><span class="pagenum" id="Page_47">[Pg 47]</span></p>
+
+<p>Roumania, geographically adjacent to Russia,
+was prior to its participation in the great war,
+producing about 11,000,000 barrels, or approximately
+1,600,000 tons, of crude petroleum annually.
+The beginnings of her industry, already alluded to,
+were based on hand dug wells, three feet square and
+walled with horizontal oak planks, into which workmen
+would descend and bring up the oil in wooden
+buckets or bags of leather. Here, too, the oil area
+is comparatively small, and it was not until twenty
+years ago that mechanical equipment designed on
+the American model was introduced by foreign capitalists.
+Men trained in the oil-fields of this continent
+found employment there, although, when at
+the end of 1916 the exigencies of war compelled the
+Allies to adopt the policy of destroying the Roumanian
+wells, in order that the Central Empires
+should not obtain much needed supplies of oil, it was
+by English instructions and officers that the melancholy
+task was accomplished. Roumania has a
+great petroleum storage port at Constanza, fed by a
+trunk pipe-line of American model connecting it with
+the oil-fields.</p>
+
+<p>Galicia or Austrian Poland, as it was once called, lies
+in the same geographical zone as Roumania, and possesses
+<span class="pagenum" id="Page_48">[Pg 48]</span>an oil area 200 miles in length and varying from
+40 to 60 miles in width, although 90% of its production
+comes from the Boryslaw field. This field,
+which was the chief source of supply for the Central
+Empires during the war, necessarily suffered much
+in the conflict but ten years ago was producing about
+1,900,000 tons of crude annually. It is now on the
+way to restoration. The development of the Galician
+industry on a large scale was directly due to the
+introduction of modern drilling methods in 1882.
+The petroleum wealth of that country lies very deep
+and wells of a depth of 4,000 feet are common.</p>
+
+<p>Though the chief customer of the Galician fields
+for a considerable period, Germany also made efforts
+at developing a petroleum industry of her own,
+but, as in the case of Italy, her oil-fields, though not
+entirely negligible, do not bulk large in the statistics.</p>
+
+<p>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 needs.
+This is particularly true of Great Britain and France,
+whose statesmen have emphatically expressed their
+gratitude for the indispensable aid in the prosecution
+of the war provided by the leaders of the
+<span class="pagenum" id="Page_49">[Pg 49]</span>American oil industry, who organized a steady supply
+on an enormous scale.</p>
+
+<p>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 refining, rather than by the
+development of a really important home industry.
+Thus the United States and all oil-producing countries
+owe a debt of gratitude to Dr. James Young of
+Renfrewshire, Scotland, whose improvements in the
+processes of manufacturing paraffine from shale oil,
+during the early part of the nineteenth century, were
+of infinite value in developing the uses of petroleum
+after its presence in large quantities was proven by
+the pioneers of Pennsylvania. Great Britain, realizing
+her own need, also helped the world’s oil industry
+when she built the first oil-tank steamers on the
+River Tyne.</p>
+
+<p>Though Great Britain, with the exception of a small
+well recently drilled, has no deposits of crude so far
+as known, she is at the present time experimenting
+with processes to distil petroleum from oil shales,
+coal, cannel coals, ironstones, lignite and peat; but
+more important still, she is encouraging the oil industry
+in various parts of her great Empire. Under
+<span class="pagenum" id="Page_50">[Pg 50]</span>the British flag, either as autonomous parts of that
+Empire or as countries which she holds a mandate
+to govern, are the important oil-fields in Burma,
+Persia, Egypt, Trinidad and Assam.</p>
+
+<p>The Burma fields have of late years been developed
+in accordance with modern practice, and the
+producing area, long a subject of quaint legend, much
+extended, so that according to recent estimates the
+annual crude production from this source is upwards
+of one million tons. The Persian oil fields
+will be a factor to be reckoned with in future, and
+an oil port fed by a pipe line on the American model
+already exists at Abadan on the Persian Gulf. Egypt
+has also a future as a petroleum producing country,
+for within the past ten years not only “gushers”
+but wells which give evidence of steady flowing
+qualities have been discovered, and plans for development
+are already well advanced.</p>
+
+<p>Crossing to this hemisphere the name of the British
+colony Trinidad at once suggests itself. Its
+famous lake of pitch has long been a source of supply
+for that dense form of petroleum which is known as
+asphalt; while other deposits of crude yield surprising
+percentages of more volatile products like motor
+spirit.</p>
+
+<p><span class="pagenum" id="Page_51">[Pg 51]</span></p>
+
+<p>And while on the subject of petroleum under the
+British flag, reference may be made to Canada, although
+the industry there is very closely allied with
+that of the United States. In Eastern Canada, oil
+has long been produced in limited quantities, 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
+realized.</p>
+
+<p>A more distant foreign field, which is gaining importance
+in the eyes of the world, is that of the Dutch
+Indies in the Far East. There has been considerable
+oil production in Borneo, Java, and Sumatra,
+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
+Americans.</p>
+
+<p>Japan’s connection with oil is ancient and it has
+its own industry at Echigo; but like China, which also
+worked deposits of oil in prehistoric days, it is a large
+importer of American petroleum products, especially
+illuminating oils. The American travelling in remote
+parts of Asia is often reminded of home on
+<span class="pagenum" id="Page_52">[Pg 52]</span>seeing the tin containers that have crossed the
+Pacific from this country.</p>
+
+<p>Returning to this continent we find that the
+Mexican oil fields have come into prominence more
+rapidly than those in any other land, for there the
+industry has existed only since 1907. The Mexican
+pools now rank after the United States as the
+second largest producing area in the world.
+Most of the latter-day sensations in the matter of
+petroleum have been provided by Mexico, where both
+American and British capitalists have acquired large
+interests. In 1908 the “Dos Bocas” gusher in
+Northern Vera Cruz was drilled. At a depth of
+1,800 feet gas was encountered which blew out the
+drilling apparatus and presently, through a fissure
+which developed under the boiler room of the drilling
+plant, an eight-inch column of oil was spouting hundreds
+of feet into the air. Becoming ignited it burned
+for fifty-eight days, producing a column of flame a
+thousand feet in height and fifty feet in diameter.
+The well then began to produce hot salt water and
+is still producing probably a million barrels of salt
+water per day. In 1910 another great gusher, the
+“Potrero del Llano” was struck but fire was fortunately
+averted, and the daily flow was estimated at
+<span class="pagenum" id="Page_53">[Pg 53]</span>125,000 barrels. Production on so magnificent a
+scale has never been known in any other part of
+the world. Before this well went to salt water, in
+1919, it had produced more than 100,000,000 barrels
+of oil.</p>
+
+<p>Another Latin American republic which has
+developed a very important oil industry in recent
+years is Peru, and it is supposed that other parts of
+South America will yield their riches in the future.</p>
+
+<p>Despite the petroleum wealth of other lands, however,
+the United States far outdistances them, not
+only in the output of crude petroleum but in the
+manifold products extracted from it. The magnitude
+of the American industry may be gleaned from
+the fact that in the past year (1919) United States
+wells produced about 377,000,000 barrels, or over
+65 per cent. of the world’s supply. The lead of
+Pennsylvania as the chief oil-producing state and
+the pivotal point of the world’s supply continued for
+many years, but has long since been superseded.
+For a number of years this state provided 98 per
+cent. of the oil production of this country. In
+1891 the total production of Pennsylvania oil was
+35,839,777 barrels, and in 1897 35,165,990 barrels,
+so that the maximum was reached in 1891. The
+<span class="pagenum" id="Page_54">[Pg 54]</span>greatest daily average production was during the
+month of November, 1891, when it reached 135,676
+barrels. This pioneer territory suffered a gradual
+decline, and at the present time it is estimated
+that Pennsylvania produces about five per cent.
+of the American supply. Nevertheless, the output
+is considerably greater than in the boom
+days of the sixties when the phrase “Struck Ile”
+became an accepted synonym for the sudden acquirement
+of riches. As the importance of the industry
+grew, oil prospectors busied themselves in every
+part of the republic in probing for this source of
+wealth, and are still indefatigable after sixty years.
+What is known as the Mid-Continent fields, which
+includes such States as Kansas, Oklahoma and Wyoming,
+have developed enormous potentialities,
+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 supply. The California
+development is an example of the rapidity with
+which an oil field can become productive on an
+enormous scale under modern methods. The records
+of achievement there show that it is possible,
+with the modern system of rotary drilling, to get
+down nearly 4,000 feet below the surface within the
+<span class="pagenum" id="Page_55">[Pg 55]</span>period of a month, depending on the nature of
+the formations, and the experience in that state
+demonstrated a finer quality of crude at such depths
+than could be produced from deposits nearer to the
+surface. California too furnishes at certain points an
+illustration of the mechanical ingenuity of the modern
+oil worker; for there are to be seen oil wells sunk
+in the sea at a considerable distance from the shore,
+the encroachment of sea-water being overcome by
+carrying the casing above high-water mark.</p>
+
+<p>Until a comparatively recent period the California
+fields held the record for production, but in 1918
+the young State of Oklahoma forged to the front,
+with a production of more than 100,000,000 barrels
+in one year, and a large undeveloped territory which
+there is every reason to believe will prove rich in
+petroleum. 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 industry.</p>
+
+<p>There are those who believe that Texas will very
+shortly attain eminence equal to that of both California
+and Oklahoma as a petroleum region. The
+gulf fields came into prominence about the dawn of
+<span class="pagenum" id="Page_56">[Pg 56]</span>the present century, and have perhaps witnessed
+more booms than other sections of this continent.
+Speculative eras in new fields which have been
+brought in by “wildcat” drilling, which term should
+not be confused with wildcat mining speculation, are
+however regarded by sane and conservative oil men
+as harmful rather than helpful to the petroleum
+industry. They invariably produce false inflation
+and subsequent depression; and involve in reproach
+one of the greatest economic blessings bestowed
+upon humanity.</p>
+
+<p>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 production,
+subsequent treatment and manifold application to
+the needs of present day commerce and civilization.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_57">[Pg 57]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_VI">
+CHAPTER VI<br>
+<span class="subtitle">LOCATING THE OIL WELL</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">When</span> Edwin Laurencine Drake went to
+Titusville, in 1859 the first question he
+asked of the natives was the location of
+“the oil spring” known to the Indians and the farmers
+who succeeded them. The modern oil seeker
+no longer concerns himself with surface indications.</p>
+
+<p>In truth there is little or nothing in the contour of
+the latter-day oil-fields to suggest oil to the eyes of the
+uninitiated. 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
+them. Roughly, the theory upon which such operations
+are based is that the sub-surface rocks undulate,
+and that the presence of oil is most assured at
+the highest points of the undulations. 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
+<span class="pagenum" id="Page_58">[Pg 58]</span>designate it. In cases, not infrequent when the
+lease which conveys the right of drilling is limited in
+area, it is the business of the surveyor to see that
+the site chosen is well within the boundaries of the
+plot acquired for drilling purposes.</p>
+
+<p>On the subject of present-day methods of location
+a recent contributor to “The Lamp,” an American
+oil journal, provides much interesting data. Oil
+geology, he points out, 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 area. In Oklahoma, for instance,
+geological investigations made within the
+past five years resulted in the discovery of many
+of the new pools. All drilling is in some sense
+speculative, or to use the oil man’s phrase, a “wild
+cat,” at the outset; 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 invoked.
+The speculative nature of the oil business in
+its initial stages is indicated by the fact that less than
+one per cent. of the area of the oil region of Pennsylvania
+is producing territory, although it has probably
+been more thoroughly drilled than any field in
+<span class="pagenum" id="Page_59">[Pg 59]</span>the world. The limited extent of even the permanently
+productive fields is one of the phenomena
+of petroleum. More than one-half of the production
+of the State of Wyoming is found within an
+area of not more than six square miles. The famous
+Tepetate-Casiano pool of Mexico, which produced
+more than seventy-five million barrels of oil
+from 1910 to 1918, is about one-half mile wide and
+three miles long. When we compare the acreage of
+oil areas with that of the continent, the analogy of
+the needle in the haystack at once suggests itself.</p>
+
+<p>The geologist draws the certain deduction that oil
+migrates through some porous formation from its
+original source and concentrates itself in detached
+“pools” of comparatively small dimensions. It is
+the oil pioneer’s business to find these pools. Again,
+there may be several successive deposits of what are
+known as “oil sands,” separated from each other by
+hundreds of feet of barren formation. The depth
+of a well in itself means nothing. The operator
+must know in what strata he expects to find the oil.
+If these beds prove dry, then he abandons the test,
+regardless of whether the drilling has reached 1,000
+or 4,000 feet.</p>
+
+<p>Past experience has taught the geologist that oil-bearing
+<span class="pagenum" id="Page_60">[Pg 60]</span>formations manifest themselves by certain
+surface indications, such as gas springs, and surface
+seepages of oil or asphalt. In an untested field the
+expert studies the character of the successive formations
+along such outcroppings. In any mountainous
+region earthcrust upheavals during past ages
+have exposed a series of formations, similar to those
+which lie deep below the surface of the plains. Thus
+it is possible to predict with a fair degree of accuracy
+just what the formations will be for a considerable
+depth from geological indications. Geologists have
+also learned to recognize certain types of structures
+favourable to the accumulation of oil pools, known
+as anticlines, synclines, salt domes, monoclines and
+so forth. Thus it is sometimes possible to make in
+advance of drilling a surprisingly accurate forecast
+of what these operations will reveal.</p>
+
+<p>Because for the most part oil fields exist in rather
+sparsely populated districts, remote from centres of
+commercial and industrial activity, 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 discoveries. The
+spirit of enterprise and initiative is even more alive
+<span class="pagenum" id="Page_61">[Pg 61]</span>to-day than it was in the time of Drake and the
+pioneers who followed him in the Pennsylvania field.
+The hopeful speculative spirit is as ever necessary;
+the capital fulfils an ever-growing function in this
+source of prosperity and employment for the community
+at large.</p>
+
+<p>In the oil industry any well drilled outside the
+narrow limits of a producing “pool” is regarded as a
+“wild cat” test. The element of a gamble is inevitably
+present, but has been materially reduced by
+science. An old established company in an important
+field is constantly adding to its land holdings in
+advance of the trend of development, and out of the
+profits from its developed productions sets aside a
+certain amount to expend for speculative ventures,
+to protect its investment in pipe lines, refineries, etc.
+The company also continues to drill in the vicinity
+of a producing pool until it is entirely surrounded
+by dry holes, and its limits demonstrated. Consequently,
+in an established oil field development work
+and prospecting are one and the same thing.</p>
+
+<p>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
+enterprise. The pioneer producer must make a very
+<span class="pagenum" id="Page_62">[Pg 62]</span>substantial financial investment for roads and equipment.
+He must have the courage and grit to continue
+his efforts, even though he at the outset obtains
+negative and unsatisfactory results; sometimes
+for a period of years. Nor do his troubles end when
+he has made an important discovery, for then land
+hitherto almost valueless becomes much sought
+after by competitors, and legal complications involving
+titles and taxes are not slow to develop.
+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 territory, the approximate
+depth and character of the oil bearing formations,
+and the possibilities of permanence in the wells
+themselves. The quality of the crude petroleum
+“mined” may be less important than the quantity.</p>
+
+<p>Though it is obvious that the obstacles that confront
+the pioneer operator are not insurmountable,
+the conditions described show why the history of oil
+discovery is bestrewn with failures. This has been
+particularly true of the Latin American fields of
+Venezuela, Colombia, Argentina and Costa Rica,
+and of many Asiatic attempts. Even in the great
+<span class="pagenum" id="Page_63">[Pg 63]</span>gusher field of Mexico the first tests were drilled in
+1869, yet it was not until 1902 that any important
+production indicative of the great future of that
+region resulted. More than 50 wells drilled in a
+space of 33 years were failures.</p>
+
+<p>It is, therefore, apparent that detailed, scientific
+information on which to proceed is almost as
+important in the initial steps as strong financial
+backing, and efficient organization. The methods
+used in the early days of the Appalachian fields of
+Pennsylvania depended absolutely on “fool’s luck”
+and steadfast optimism. As this field extended
+down into West Virginia and Kentucky, and over
+into Ohio, the ever-increasing number of failures
+caused the operators to cast about for some sort
+of a working formula in choosing locations. From
+the crude efforts of these early investigators the
+fundamentals of modern oil-geology were developed.
+The old-fashioned operators’ creed contained this
+axiom: “If you wild-cat enough in an oil field,
+you will make money in the long run.” But this no
+longer is a safe working motto. The steadily increased
+cost of drilling has made it of paramount
+importance to make careful selection beforehand.
+The modern oil operator realizes that Mother Earth
+<span class="pagenum" id="Page_64">[Pg 64]</span>provides many clues and hints which he cannot afford
+to disregard. The oil geologist interprets the surface
+indications and such other information relating
+to a given area as is available; and is ever on guard
+against the over-optimism of the promoter.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_65">[Pg 65]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_VII">
+CHAPTER VII<br>
+<span class="subtitle">DRILLING THE OIL WELL</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">Methods</span> 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 difficulties.
+Drake went about the business of drilling the first
+well by using the traditional methods of boring for
+salt. Improvement was inevitable, however, and
+the Canadian wells of Western Ontario, which came
+into existence almost contemporaneously with those
+of Pennsylvania, were fruitful of inventions which
+have influenced drilling practices in many parts of
+the world. If we go back to the origins of oil and
+salt drilling mechanisms we find ourselves in China
+centuries before the Christian era. The Chinese
+used an auger attached to a pole that was held in a
+vertical position from a cross pole supported on a
+post. The end of the cross pole was fastened to a
+lever while a driller guided the cable to which an
+<span class="pagenum" id="Page_66">[Pg 66]</span>auger or boring tool was attached. Several coolies
+jumped from a platform on to the reverse side of the
+board, so that the tool would be jerked up and would
+plunge down and thus deepen the hole with each
+stroke. The deeper the hole became, the more
+coolies required for the task of “kicking down.”
+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 ground.
+To-day labour-saving machinery plays as great a
+part in well drilling as in other branches of industry.</p>
+
+<p>Let us suppose then that an oil company, or an
+individual with the requisite capital at his back, has
+advanced through the preliminaries which must precede
+drilling operations; the geologists have made a
+favourable declaration as to the prospective site;
+the leases and royalties have been arranged and the
+title is secure. When it is decided to start drilling,
+roads are built, water lines laid, and the lumber,
+casing machinery and other equipment are hauled
+to the location (often under very primitive and difficult
+conditions). The apparatus most commonly
+installed under these circumstances is the Pennsylvania
+cable system, which consists of a standard
+<span class="pagenum" id="Page_67">[Pg 67]</span>derrick or rig, built of wood or steel, about eighty
+feet in height, having a twenty-foot base and a four-foot
+top. The strength of the derrick is conditioned
+entirely by the size and depth of the well the operator
+wishes to drill, for nowadays nothing is left to
+chance. The size of the hole necessary in starting a
+well depends upon the physical formation. If it is
+soft, it is necessary to start with a hole of large
+diameter, to overcome the disabilities produced by
+caving. It sometimes happens that soft formations
+cave so much that it is necessary to insert several
+columns of casing before the required depth is
+reached. A hole with a large diameter is also used
+in deep drilling.</p>
+
+<figure class="figcenter illowp46" id="i_p066a" style="max-width: 109.5625em;">
+  <img class="w100" src="images/i_p066a.jpg" alt="">
+  <figcaption>
+      <p>The Drader Well in the Moreni field, Roumania. This well
+    was producing 20,000 barrels daily when it caught fire</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp48" id="i_p066b" style="max-width: 112.25em;">
+  <img class="w100" src="images/i_p066b.jpg" alt="">
+  <figcaption>
+      <p>Burkburnett in northern Texas, showing development
+    since August, 1918</p>
+  </figcaption>
+</figure>
+
+<p>The drilling equipment is called by the oil workers
+a “string of tools.” It consists of a rope socket, a
+stem or sinker about thirty feet long and five inches
+or more in diameter, depending on the size of the
+hole to be drilled, with a bit at the bottom. Attached
+to a string of tools is a set of what are
+known as “jars,” which take their name from their
+function of enabling the driller to jar the sinker
+loose. Manila or wire cable is wound upon a large reel
+known as the “bull wheel” which is placed in the base
+of the derrick and a section of this cable passes over
+<span class="pagenum" id="Page_68">[Pg 68]</span>a crown pulley at the top of the derrick and is fastened
+to the rope socket and “string of tools.” The
+drilling movement is created by a power-driven walking
+beam which is a heavy timber working on an
+axis. This walking beam rocks up and down, with
+a stroke of three or four feet; thus the tools are
+raised and dropped at regular intervals, their great
+weight giving them a stroke equal in force to a steam
+hammer. The power used is ordinarily steam and
+the cable is connected with the walking beam by a
+temper screw, which enables the driller to lower the
+tools and handle them with ease and accuracy.</p>
+
+<p>Another method of growing importance is the
+rotary system, perfected within the present century
+in the Gulf Coast field of Texas and Louisiana and
+which in many sections is coming into common use.
+Its special advantage is speed in soft or caving formations.
+It consists of a perforated fish-tail bit
+screwed to a string of drill pipe, which projects up
+through the derrick platform and is rotated at the
+rate of about two hundred revolutions per minute by a
+turn-table. The top or “grip” joint of the pipe is
+usually made square, or hexagonal, to supply a good
+bearing surface for the turn-table. The tools are
+suspended by means of a swivel at the top of the grip
+<span class="pagenum" id="Page_69">[Pg 69]</span>joint. This swivel also has a hose connection
+through which thin mud is pumped down to the
+bottom of the hole. The circulation of this mud
+carries out the cuttings made by the fish-tail bit, and
+also serves to plaster up the side of the hole and
+thus prevent caving. The column of mud in the
+hole exerts a hydrostatic pressure which absolutely
+prevents quicksand from running in and causing
+the hole to collapse. A rotary appliance has been
+known to drill two hundred feet or more in twelve
+hours, but usually so high a rate of speed is impossible,
+since the pipe stem has to be pulled out at
+frequent intervals and the bit replaced. The fact
+that the delicate fish-tail bit grows smaller with
+wear creates this necessity.</p>
+
+<p>Another periodical process that must be carried
+on in the intervals of drilling is that of lining the
+hole with casing, in order that water and caving
+strata may be cased off before the oil sands are
+reached. After a well is operating, the lower part
+of the casing may rust through, causing leakage.
+To meet this difficulty an inner casing is put in place
+with a casing shoe, on the outside of which is lead
+or other soft material which expands under pressure
+from above to make a snug fit. Not infrequently,
+<span class="pagenum" id="Page_70">[Pg 70]</span>it is necessary to decrease the size of the hole with
+packers in this way four or five times, though it is
+kept as large as is practicable all the way down.</p>
+
+<p>When oil is struck it is sometimes suddenly driven
+to the surface by imprisoned gas, and another gusher,
+a comparatively common phenomenon in Mexico, is
+recorded. But if this condition does not arise, tubing
+and pump are inserted and the oil is drawn to the surface.
+Not infrequently, however, the oil sands at the
+outset do not yield an adequate flow and in a great
+number of cases what is known as “shooting” with
+nitro-glycerine, an interesting and once dangerous
+process, is resorted to. In the early days before oil
+production had been reduced to scientific formulas
+the obtaining of crude was often attended with
+serious hazards to life. Ignorance of the properties
+of petroleum also created imaginary dangers for the
+pioneers. In 1860 the people of Western Pennsylvania
+were thrown into a panic by the proposal of a
+stranger, claiming to be a European scientist, to
+shoot a white-hot bolt into the bowels of the earth
+through an iron pipe driven to a great depth for the
+purpose. By the ignition of inflammable gases
+thought to exist in the great cavities beneath the
+earth’s crust the promoter expected to produce a
+<span class="pagenum" id="Page_71">[Pg 71]</span>sufficient explosion to lay bare the subterranean
+reservoirs of oil. The Pennsylvania populace, instead
+of viewing this proposal with the apathy usually
+accorded to the first essays of inventive minds, possessed
+sufficient imagination to picture the possible
+results, and were so convinced that the alleged
+scientist minimized the possibilities of his project
+that they selected a small but determined committee
+to lynch him. Because he threatened to undermine
+not merely the foundations of society but the ground
+on which society subsisted, he was taken into custody
+by the authorities and solemnly warned to desist.</p>
+
+<p>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
+flow, without noticeable public or physical disturbance.
+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 well. The “oil-shooters”
+are necessarily men of steady nerve and
+extreme caution. A shot will vary from ten quarts
+to as much as three hundred quarts, as the well
+to be treated may seem to require. For this purpose
+the nitro-glycerine is contained in tin tubes
+<span class="pagenum" id="Page_72">[Pg 72]</span>or shells five feet long and two inches or more
+in diameter, pointed at the lower end and having
+bail handles at the top. From five to fifteen shells,
+as the case may be, are lowered into the hole with
+extreme delicacy, and then the “go-devil”—a five-pound
+pointed shell—is released point downward.
+Nowadays, it is customary to use a nitro-glycerine
+squib wound with a long fuse more often than a
+“go-devil,” since the lowering of the cans of explosives
+may loosen earth which forms a cushion above
+the shells. An example of the presence of mind of
+a well shooter was provided a few years ago.
+Just after the first shell had been lowered, the rope
+suddenly slackened. 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 mouth. There was no time to run and the only
+thing that could be done this “well shooter” did.
+Bracing himself directly over the well he grasped
+the shell as it came to the surface, and although the
+impetus with which it had ascended threw him
+across the derrick and dislocated his shoulder, he
+held it free from contact and saved the lives of the
+entire crew.</p>
+
+<p><span class="pagenum" id="Page_73">[Pg 73]</span></p>
+
+<p>Under the careful arrangements now made, 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 explosion.</p>
+
+<p>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
+weeks. This decline in production is often as much
+as 50% in the first 30 days. Where wells do not flow
+naturally, various devices can be used to stimulate
+the output. Gas pressure has much to do with the
+problem. As a general rule the well of low gas
+pressure must be pumped from the beginning. The
+“gusher” which is the result of high gas pressure
+usually recedes rapidly in the matter of flow and
+becomes what is known as a “pumper,” the name
+given to wells when pumping is resorted to.</p>
+
+<p>The minimum of flow at which a well ceases to be
+profitable varies according to location, and is fixed
+by many conditions of which transportation and
+quality are the most important. Thus, in Mexico,
+a well yielding only fifty or one hundred barrels
+per day is usually abandoned as uncommercial,
+whereas in Pennsylvania and West Virginia, where
+the facilities for handling are better, there are thousands
+<span class="pagenum" id="Page_74">[Pg 74]</span>of old “pumpers” in operation producing a
+superior grade of oil, many of which supply only
+one-fourth of a barrel per day.</p>
+
+<p>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 lease. After
+it has been tested and proven to be satisfactory the
+remainder of the property is drilled as quickly as
+possible. If the field is shallow and the wells are all
+“pumpers,” a central power station operated by gas
+or gasoline is sometimes installed which may provide
+the energy for pumping as many as a dozen wells.
+The shackle-rods spread out over the field like a
+spider’s web, and the rhythmical “chug-chug” 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 royalties.</p>
+
+<p>It will be clear to the reader that even in the initial
+process the production of crude petroleum under
+modern standardized processes which eliminate, so
+far as possible, waste of labour or of product, involves
+a considerable capital expenditure. The cost
+of a well in a new district, where the depth is likely
+to be in the neighbourhood of three thousand feet,
+may amount to considerably more than $50,000 and
+<span class="pagenum" id="Page_75">[Pg 75]</span>a year may pass in the process of drilling. In the case
+of deep wells a permanent derrick is built, but in earlier
+days, for shallower holes a portable drilling machine
+was used, and with good fortune oil was often
+reached within a short time and the cost kept well
+within a margin of $5,000. It will be remembered
+that in the original Drake well at Titusville, oil was
+struck at sixty nine and a half feet and that it took
+seven months to drill the well; a concrete illustration
+of the improvement in methods which has transpired
+in sixty years. 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 outlay.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_76">[Pg 76]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_VIII">
+CHAPTER VIII<br>
+<span class="subtitle">COLLECTING AND TRANSPORTING CRUDE: THE PIPE LINE</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">When</span> a new lease or area proves itself to be
+commercially productive, marketing the
+product becomes the next consideration.
+In the earliest stages of recovery and storage of petroleum
+there were great losses through lack of facilities,
+but modern mechanical science has largely eliminated
+the appalling waste of early days.</p>
+
+<p>The crude is pumped into small flow tanks, and from
+there run either to a pipe line station or to a “tank
+farm.” The problem of saving the flow of gushing
+wells at one time presented serious difficulties; and
+one of the most valuable of the early inventions
+was the clay underground tank. The petroleum
+is directed into a sump-hole lined (wherever possible)
+with clay, which, because of its close texture, makes
+an absolutely leakage proof reservoir. From the
+sump-hole it is pumped to the tanks, but this is
+usually but a temporary shift. When the gushing
+process ceases, pumps are installed and direct pipe
+<span class="pagenum" id="Page_77">[Pg 77]</span>connection with the storage tanks is established.
+The modern pump which lifts the oil from the oil-bearing
+strata to the surface is a very powerful mechanism.
+One of these will handle a column of oil
+as high as four thousand feet, and deliver it into
+pipes. As has been mentioned in alluding to the
+California seacoast fields, the intervening ocean itself
+constitutes no obstacle to operations. Not infrequently
+the walking beam, used in the drilling, is
+brought into commission for pumping purposes.
+It is rather a cumbersome system but has this advantage,
+that it enables the operator to begin
+production immediately and realize cash for his
+output.</p>
+
+<p>In what is known as the field tank, situated adjacent
+to the derricks and pumps, the oil operator
+deposits his daily production, which is later pumped
+to the “tank farm” for shipment. The capacity of
+a tank is known to a gallon. So many inches or
+feet of petroleum in a tank represent so many
+barrels. The gauger drops a steel tape into the
+oil until it touches bottom, and the location of the
+oil showing on this steel is the measure of the contents.
+Then the valves are opened and a portion
+of the contents flows away to the pump station
+<span class="pagenum" id="Page_78">[Pg 78]</span>or “tank farm.” A second measurement is taken,
+and the difference between the first and second
+measurement reveals the quantity of oil drawn off.
+The gauger then issues to the producer a credit
+certificate or “run ticket” representing the quantity
+of the crude received at that particular time.</p>
+
+<p>There are other complications, however, before
+the oil reaches the market. If the wells are gaseous
+in any considerable degree, the oil must pass
+through a gas separator before it enters the tanks.
+The gauger must measure and draw off any water
+present, which, owing to the proverbial incompatability
+of oil and water, is not difficult, and in calculating
+the amount of the credit slip he sees to it that
+no water is inadvertently paid for.</p>
+
+<p>Gas itself is not infrequently an important by-product
+of an oil lease. Almost invariably gas is
+associated with oil, although oil is not always found
+where gas is available. From many wells immense
+quantities of gas escape while drilling is in progress,
+and may occasionally wreck the machinery. Drillers
+have become expert in handling these difficulties
+and in casing off the gas and corking it up for future
+use. In many of the oil districts of the South and
+Middle West, natural gas from the producing areas
+<span class="pagenum" id="Page_79">[Pg 79]</span>has become the fuel of countless people who will
+never return to the use of coal, so long as this cheap
+and cleanly source of heat and light is available.
+Some wells yield as much as 25,000,000 feet of gas
+per day.</p>
+
+<p>With gas and water eliminated, the crude oil is
+pumped from the “field tank” to the “tank farm,”
+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
+refineries. These containers are built of sheet
+steel and have a standard capacity of about 55,000
+barrels in most cases, although some are constructed
+to contain 80,000 barrels. They are riveted and
+must be absolutely proof against leakage. Incidentally,
+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 prairies. Great
+havoc and waste sometimes result. Another convulsion
+of nature also dreaded by the oil man of the
+Middle West is the cyclone, which at times is especially
+disastrous to derricks and pumping plants.</p>
+
+<p>There is but one more stage through which the
+crude petroleum passes on its way to the refinery,
+<span class="pagenum" id="Page_80">[Pg 80]</span>but this stage is so important and has been such a
+vital factor in the organization of the American oil
+industry, as well as in those of other countries which
+have emulated the system, that it demands extended
+reference. 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 industry. It is in reality like
+the waterworks system which reaches under the
+streets of modern towns and cities, but extending
+beneath the surface of millions of square miles of
+territory.</p>
+
+<p>When, as a result of the Pennsylvania discoveries,
+petroleum became a commercial commodity, and
+opened up sources of untold wealth to the people
+of this continent, little thought was at first given to
+the transportation problem. 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 river. In periods of drought when the
+water was too low to float such craft, oil boats
+would be assembled on a mill pond near the wells
+and the water dammed back while the loading was
+in progress. Then the gates would be opened, and
+<span class="pagenum" id="Page_81">[Pg 81]</span>the fleet, carried on the flood and guided by pilots,
+would be rushed down Oil Creek to the Allegheny
+River.</p>
+
+<p>As production increased, and new districts without
+convenient water transportation were successfully
+drilled, it was necessary to devise new methods.
+The production of some wells, inaccessible by water,
+became a drug on the market and in 1862 crude oil
+prices at such wells fell as low as 10 cents a barrel.
+To meet the difficulty, a system of teaming was
+adopted and great caravans of the oil wagons became
+a familiar sight in inland oil regions. Such a
+caravan in the days before the pipe-lines would
+sometimes consist of no less than 6,000 wagons
+drawn by two horses each, and carrying from five to
+seven barrels of oil. Travellers of the early sixties
+encountering this spectacle were amazed at the endless
+stream of vehicles. Work was thus provided for
+a large number of men, who, with a team, could
+earn from $10 to $25 per day conveying petroleum
+from the wells to the nearest point of shipment.
+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 set, as
+later events proved.</p>
+
+<p><span class="pagenum" id="Page_82">[Pg 82]</span></p>
+
+<p>The inspiration of constructing a pipe-line which
+would obviate teaming, and by which oil could be
+made to flow direct to the shipping point or the refinery,
+is credited to a Jerseyman named Hutchings,
+who laid a short pipe line from some wells in which
+he was interested. The first test of conveying
+crude oil in pipes was through a two-inch iron pipe
+in process of being laid February 19, 1863 from the
+Tarr Farm to the Humboldt Refinery at Plumer,
+<abbr title="Pennsylvania">Pa.</abbr>, about six miles northeast of Oil City, <abbr title="Pennsylvania">Pa.</abbr>
+The distance was two and a half miles. The
+teamsters, forseeing that their earnings would be diminished
+and perhaps disappear, if the system were
+generally adopted, destroyed the line and warned
+other producers against similar attempts. Hutchings
+was obstinate and built a second line. Again
+the teamsters completely destroyed his work. Undaunted,
+he tried again, with no better luck, and in
+the end died a broken and penniless man. But his
+idea did not die with him. In 1865 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 tanks.
+The State authorities, however, gave him armed
+protection and his line was completed. It was of
+<span class="pagenum" id="Page_83">[Pg 83]</span>two-inch diameter, with a rated daily capacity of
+800 barrels.</p>
+
+<figure class="figcenter illowp100" id="i_p082a" style="max-width: 183.5625em;">
+  <img class="w100" src="images/i_p082a.jpg" alt="">
+  <figcaption>
+      <p>A big yield well in Mexico flowing into a temporary storage pond</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp48" id="i_p082b" style="max-width: 111.75em;">
+  <img class="w100" src="images/i_p082b.jpg" alt="">
+  <figcaption>
+      <p>Laying a pipe line through a Louisiana forest</p>
+  </figcaption>
+</figure>
+
+<p>J. D. Henry, one of the most eminent historians
+of petroleum, asserts that the first commercially
+successful pipe line was constructed in the summer
+of 1865 by Samuel Van Syckel of Titusville, from the
+mushroom city of Pithole, <abbr title="Pennsylvania">Pa.</abbr>, to the nearest railway
+station, Miller Farm, a distance of four miles.
+Van Syckel had the backing of New York capital,
+and the basis of his success, after similar projects
+had been abandoned as visionary, was due to better
+mechanical arrangements. Van Syckel’s line does
+not appear to have suffered from the lawlessness of
+teamsters. On the completion of Harley’s second
+line in the same neighbourhood, both proved so
+commercially successful that capitalists bought and
+amalgamated the two. Teamsters continued to
+give trouble and effect damage but protective measures
+were successful in securing the performance of
+the enterprise.</p>
+
+<p>From that time onward the mileage of pipe-lines
+has steadily multiplied, and by means of them the
+crude petroleum collected at a “tank farm” on the
+prairies is conveyed to refineries many hundreds of
+miles away. The first pipe-line of considerable
+<span class="pagenum" id="Page_84">[Pg 84]</span>length was laid in 1880 from Butler County, <abbr title="Pennsylvania">Penn.</abbr>
+to Cleveland, Ohio, a distance of over 100 miles.
+Almost immediately after trunk lines from Bradford,
+<abbr title="Pennsylvania">Pa.</abbr> to the Atlantic seaboard were commenced.
+By 1893 there were 3,000 miles of pipe lines in the
+Eastern states with storage facilities for 35,000,000
+barrels of oil.</p>
+
+<p>British and French historians of petroleum, viewing
+the development of the industry from the standpoint
+of impartial observers, regard the year 1883
+as an epochal one in its history, because it marked
+the initiation of a comprehensive policy with regard
+to pipe-lines, under the inspiration of John D. Rockefeller.
+Mr. Rockefeller, originally a produce merchant,
+became interested in the oil business as early
+as 1862 by the purchase of an interest in a small refinery
+at Cleveland, and by 1865, had become so
+convinced of the possibilities of the petroleum industry
+that he devoted himself exclusively to the
+refining and shipping business. In 1870 this business
+became incorporated as the Standard Oil
+Company.</p>
+
+<p>Of the events of 1883 Alfred Lidgett, a noted British
+oil expert and editor of the <cite>Petroleum Times</cite>
+(London, England), says in his book “Petroleum,”
+<span class="pagenum" id="Page_85">[Pg 85]</span>published in 1919: “Then a few master minds
+came to the front, and loyally supported by John D.
+Rockefeller, they undertook the herculean task of
+practically girdling the United States with a system
+of oil pipe-lines that has no parallel anywhere.
+They eliminated the jaded horses, oil boats, wooden
+tankage and slow freights, tedious methods, and
+questionable practice of handling petroleum, and
+substituted therefor the steam pump, the iron conduit,
+the steel tank storage, and systematic and
+business-like methods which soon commanded the
+confidence and respect of all oil-producers. 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
+served. The advantages of the modern pipe-line to
+the oil-producer are obvious.”</p>
+
+<p>The pipe-line connection to the producer’s well
+and tanks ensures prompt clearance of the crude
+and a steady cash market for his output, under the
+system defined in the last chapter. The elimination
+of waste and the reduction of cost in connection
+with transportation, of course, resulted in great
+material benefits to the consumer of petroleum products.
+It is indeed quite clear that without this
+<span class="pagenum" id="Page_86">[Pg 86]</span>Napoleonic organization of the pipe-line service the
+boon of petroleum could not have been adequately
+utilized by humanity at large.</p>
+
+<p>In conveying oil through the pipe lines both
+gravity and pumping are used. The pumping
+station at the “tank farm” forces the crude into
+pipes through which it commences its long journey
+to the refinery. This pumping equipment is in
+itself a wonderful mechanism and drives the oil
+over heights where gravity cannot assist. The pipe
+at the field lines where the journey starts varies in
+diameter from 2 to 8 inches and the joints are screw
+threaded. The main trunk lines are from 6 to 12
+inches in diameter and pumping stations to continue
+the driving process are located at necessary
+intervals along the route. In some fields the oil is
+heavier than in others and then the stations have to
+be located nearer to each other, while in the case of
+certain very heavy crudes, heat is applied to promote
+the flow before it enters the pipe-line.</p>
+
+<p>By this system the amount of oil that flows under
+the soil of the United States to distant points exceeds
+half a million barrels daily. Concealed and
+unobtrusive, these lines do their work so well that
+millions of people whom they serve are unaware of
+<span class="pagenum" id="Page_87">[Pg 87]</span>their existence. Everyone knows of the freight
+train that links up the small town factory with the
+central distributing point, and of the grain car which
+carries the farmer’s wheat to the seaboard; but little
+attention is paid to this great but inconspicuous
+transportation adjunct of American industry, the
+petroleum pipe-line.</p>
+
+<p>As the system has grown, handling in tank cars
+of anything but refined product has become more
+and more nearly obsolete, for economic reasons.
+Once installed, the pipe-line system is cheap and
+easily maintained. It would, indeed, be quite impossible
+to conduct the American oil industry of to-day
+by the use of railroads, even though they were
+greatly multiplied. The crude oil which flows daily,
+east of the Rocky Mountains, through pipe-lines
+would fill over 2,500 tank cars. Since, on the average,
+a barrel of crude travels 1,000 miles before it
+reaches its destination, it would require approximately
+75,000 tank cars to do the daily work of transportation
+effected by the pipe-lines, not to mention
+approximately 900 engines which it is estimated
+would be required to move them. Leaving out all
+the possibilities of congestion in stormy weather, it
+will be seen that such a task is one that railroads
+<span class="pagenum" id="Page_88">[Pg 88]</span>could not hope to carry out. In its present dimensions
+the oil industry, therefore, owes as much to the
+pipe-line as to the actual existence of oil deposits
+themselves. The work they perform is infinitely
+more even and uninterrupted than that of any system
+of railroad or water transportation. The pipe-lines
+run to full capacity, winter and summer, day
+and night, the year round, making possible the existence
+of great central refining plants where the
+crude can be treated in bulk at the lowest possible
+cost, and where distribution can be effected at the
+lightest impost on the ultimate consumer.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_89">[Pg 89]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_IX">
+CHAPTER IX<br>
+<span class="subtitle">REFINING AND MANUFACTURING PETROLEUM PRODUCTS</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">As has</span> already been intimated, 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 possibilities. If the reader has followed
+this narrative he will not have failed to note
+that it was the optimism of experimental chemists,
+who discerned in petroleum the possibilities of an
+illuminant which would take the place of whale oil
+and other fats, which first suggested to pioneer
+investors like Bissell the idea of developing America’s
+oil fields by the boring system. Certain crude
+traditional methods of refining petroleum had prevailed
+for centuries in the East, but they had not
+produced an illuminant that would be acceptable
+to our civilization.</p>
+
+<p>The advancement of science, which gradually enabled
+the early American refiners to produce a
+comparatively odourless, safe, and free-burning oil
+<span class="pagenum" id="Page_90">[Pg 90]</span>from the crude, gave the necessary stimulus to the
+new industry. The American refining system has
+since become one of the greatest examples of standardized
+industry, fascinating in its minutiae, and
+amazing in the efficiency and economy of its organization.
+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 miles, and which, by treating it in
+vast quantities, are enabled to provide the world with
+the products of petroleum at the lowest possible cost.</p>
+
+<p>It is the purpose of the refining process to produce
+from the crude petroleum marketable products and
+this involves two stages. First: The separation
+of the crude petroleum into its constituent parts,
+corresponding in general to gasoline, kerosene,
+lubricating oil, etc., and, subsequently, the purification
+of each of these roughly separated products
+to bring them into marketable condition.</p>
+
+<p>The process might be best understood by likening
+the crude petroleum to gravel scooped from out of the
+hillside. Such gravel would consist of a mixture of
+sand, fine gravel, coarse gravel, rocks and boulders.
+In this condition it would be unmarketable, except
+perhaps to fill up marshy land. By analogy the
+<span class="pagenum" id="Page_91">[Pg 91]</span>crude petroleum consists of a mixture of many different
+compounds and the mixture itself is unmarketable
+and of no value except as a fuel, at once troublesome
+and dangerous.</p>
+
+<p>To prepare the freshly mined or “crude” gravel
+for the market it would be sifted through a series
+of screens which would separate it into its component
+sizes. As a result of the sifting operation there
+would be produced builders’ sand suitable for use
+in mortar, fine and coarse gravel desirable for concrete,
+rough rock for road foundations, and boulders
+for masonry structures.</p>
+
+<p>The crude petroleum oil is a liquid and cannot be
+sifted on screens as is the crude gravel, but nature
+has given it properties in consequence of which it may
+be separated into its constituents almost as easily as is
+the gravel. These properties are the different boiling
+points of the several constituents. Thus, when water
+or any other single liquid is heated it continues to increase
+in temperature until boiling begins, after
+which its temperature remains the same, no matter
+how rapidly the heat is applied, until all of the liquid
+has been boiled away. When petroleum is heated,
+however, it begins to boil at a very low temperature,
+a temperature hardly hot enough to injure the skin,
+<span class="pagenum" id="Page_92">[Pg 92]</span>in some cases. It is not the whole of the petroleum
+which is boiling, however, but only the very lightest
+part of it, that is, the gasoline or naphtha. If the
+temperature were to be held constant for a short
+length of time all of the gasoline would have been
+boiled off, and although the liquid would be just as
+hot as it was before, the boiling would cease entirely.
+If the heating is now continued, however, and the
+temperature of the oil raised to some higher figure,
+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 liquid.
+After a time all of this kerosene will be gone, and as
+before, the liquid, although still at the same temperature
+at which it has just previously been actively
+boiling, remains quiescent. In this fashion the
+various constituents of the crude petroleum may be
+separated from one another by a “sifting” operation
+somewhat similar to that used to separate sand from
+gravel and gravel from rock, 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 products, which
+are successively driven off in this fashion, separated
+from one another.</p>
+
+<p><span class="pagenum" id="Page_93">[Pg 93]</span></p>
+
+<p>The apparatus commonly employed for this purpose
+is called a “still” and consists merely of a steel
+receptacle, usually in the form of a horizontal cylinder,
+much like a simple steam boiler. These stills
+have been developed to large capacity, some of them
+holding upwards of 50,000 wine gallons of oil at one
+time. The still is mounted over a furnace which is
+usually heated by coal just as an ordinary steam
+boiler. 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 coke.</p>
+
+<p>It remains, therefore, to cool and condense these
+vapours. This is accomplished by an apparatus
+called a “condenser” which is connected to each
+still. An elementary condenser consists merely of a
+coil of pipe submerged in a tank of cold water.
+The vapour leaving the still passes through the submerged
+coils in which the vapour by cooling is
+caused to return to a liquid condition. Into one
+end of the condenser coil, therefore, the vapour from
+the still enters and from the other end there flows
+the condensed liquid.</p>
+
+<p><span class="pagenum" id="Page_94">[Pg 94]</span></p>
+
+<p>The first and most important step in the process
+of refining all crude petroleum is conducted in the
+fashion above described. A refinery of large size
+will have perhaps 100 of those crude stills which
+are generally arranged in groups or batteries, each
+battery containing a dozen or more stills. From
+each still the condenser pipes are led to a “receiving
+house” which is located in some central position.
+In this manner it becomes possible for a single
+responsible supervisor to observe and control the
+operation of a large number of stills. The supervisor
+is called the “stillsman” 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 “fractions” or parts, each of which by
+further refining becomes a marketable petroleum
+product. As generally conducted, this first distillation
+process separates the crude petroleum oil
+into four major fractions.</p>
+
+<p>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 heated,
+is the naphtha or gasoline fraction. When all the
+naphtha or gasoline from any particular still has
+<span class="pagenum" id="Page_95">[Pg 95]</span>been driven off, the stillsman, stationed in the receiving
+house and able to observe constantly the character
+of the condensed liquid, which is delivered by
+the pipe from the condenser coil to the house, will
+change the connections in the receiving house so
+that the next “distillate” to be received will flow to
+a separate tank. This second distillate which comes
+into the receiving house and is thus diverted to a
+separate tank will be the illuminating oil distillate
+or, in refinery parlance, the “refined oil distillate.”
+It is interesting to note that “refined oil” to a petroleum
+refiner still means kerosene illuminating
+oil, since in the original petroleum industry this
+illuminating product was the only fraction of the
+crude oil which was highly purified or refined. The
+entire remainder of the crude petroleum, including
+gasoline and the lubricating oils and other products
+heavier than kerosene, were either discarded
+wholly or else sold for whatever they would bring
+in an unrefined or very poorly refined condition.</p>
+
+<p>The next product which is driven off from the
+crude oil after all of the kerosene has been removed
+is a somewhat heavy and discoloured, but free
+flowing oil, known as “gas oil.” Gas oil is seldom
+sold at retail and the general public has very little
+<span class="pagenum" id="Page_96">[Pg 96]</span>knowledge of it. Its main use is for the manufacture
+of city gas, auxiliary to coal, the products of
+which form the base of city gas.</p>
+
+<p>The next product after the gas oil and the last
+important product of crude petroleum is the lubricating
+oil distillate, which is known as “paraffine
+distillate” for the reason that it contains the paraffine
+wax.</p>
+
+<p>With the exception of the gas oil, which by reason
+of the uses to which it is put does not usually require
+any further treatment, the products thus
+roughly separated from the crude petroleum each
+need not only further separation, but actual chemical
+purification to prepare them for the market.</p>
+
+<p>Considering these products in the order in which
+they are derived from the crude petroleum, the
+gasoline or naphtha fraction is often subjected to a
+second distillation by which it is further “sifted”
+into light, intermediate and heavy naphthas. It
+is customary to conduct this second distillation
+process by steam heat instead of by fire, since the
+gasoline or naphtha fraction boils at such a low
+temperature that it is unnecessary to resort to a
+furnace and furthermore, the quality of the product
+is thought to be better if the second distillation is
+<span class="pagenum" id="Page_97">[Pg 97]</span>conducted with steam. Following this second distillation
+the naphtha or gasoline is subjected to
+chemical purification which involves treatment
+with sulphuric acid, with sodium hydrate, 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 action. There is a
+considerable variation in the purification or refining
+method employed by the different refiners, but the
+foregoing treatments are the principal ones now
+in vogue. The marketable products produced from
+the crude gasoline or naphtha distillate by this
+re-distillation and purification process are principally
+as stated—light naphthas, intermediate naphthas
+and heavy naphthas. The light naphthas range
+from petroleum ether, an exceedingly sweet-smelling
+and volatile liquid to aviation gasoline, especially
+suitable for use in aeroplane motors under extreme
+conditions of temperature and power development.
+The intermediate naphtha is the ordinary gasoline
+of commerce, principally used as fuel for automobile
+engines. The heavy naphtha is that often sold under
+the name of benzine, cleaners’ naphtha, solvent
+naphtha or varnish makers’ and painters’ naphtha.
+<span class="pagenum" id="Page_98">[Pg 98]</span>As these names indicate, the heavy naphtha is principally
+used in the manufacture of paints and varnishes,
+for dry-cleaning and as a solvent in the
+chemical industries.</p>
+
+<p>The second fraction of the crude petroleum, the
+kerosene, illuminating oil, or “refined oil,” is likewise
+ordinarily subjected to a second distilling
+operation, 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 lamps. This re-distillation is followed by a
+chemical purification, producing the kerosene of
+commerce, which is not only so safe that it may be
+heated to a temperature well above <abbr title="one hundred degrees Fahrenheit">100° F.</abbr> without
+danger of giving off any explosive vapour, but is
+also water-white in colour, crystal clear, and of such
+purity that it may be burned in a lamp in a closed
+room without producing offensive odours or smoke.</p>
+
+<p>The third major fraction of the crude petroleum
+is the gas oil which has previously been referred to.
+In general this product may be marketed without
+further treatment.</p>
+
+<figure class="figcenter illowp48" id="i_p098a" style="max-width: 112.5625em;">
+  <img class="w100" src="images/i_p098a.jpg" alt="">
+  <figcaption>
+      <p>Lines for loading oil on vessels anchored from one to two miles
+    off shore. This is a regular practice in Mexico where a deep
+    harbour is not available</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp100" id="i_p098b" style="max-width: 183.6875em;">
+  <img class="w100" src="images/i_p098b.jpg" alt="">
+  <figcaption>
+      <p>Battery of crude stills at the Bayway Refinery, Linden, <abbr title="New Jersey">N. J.</abbr></p>
+  </figcaption>
+</figure>
+
+<p>The next and last major fraction is perhaps the
+most interesting of all. It is from this fraction that
+the host of lubricating products are obtained and
+<span class="pagenum" id="Page_99">[Pg 99]</span>also the paraffine wax which has almost entirely
+superseded animal and vegetable waxes, not only
+for candles, but for laundry use, for producing
+water-proof paper, for sealing preserve jars and for
+a multitude of minor uses. The first step in the
+treatment of this “paraffine distillate” or lubricating
+oil distillate fraction of the crude petroleum is
+to separate from it the paraffine wax which it carries
+in solution. This is accomplished by chilling
+the oil to a very low temperature through the use of
+refrigerating apparatus. When the oil is thus
+chilled the dissolved wax therein crystalizes so that
+the mixture resembles nothing more than slush or
+mush ice. Having caused the dissolved paraffine to
+freeze and come out in the form of slush in this
+fashion, it remains to separate it from the oil. This
+is accomplished by filtering the mush, still held at
+its low temperature, through canvas cloths. The
+oily part of the mush passes freely through the
+cloth while the solidified particles of wax remain on
+the face of the fabric. The first two products
+separated by the chilling and filtering processes are
+therefore a wax-free oil and an impure paraffine
+wax.</p>
+
+<p>The impure paraffine wax is known as “slack wax”
+<span class="pagenum" id="Page_100">[Pg 100]</span>and is melted and poured in a liquid condition into
+shallow pans, where upon cooling, it solidifies. The
+pans are then slowly and cautiously heated, and as
+the temperature of the wax rises, the small quantity
+of oil which it still carries sweats out of the wax,
+just as though the wax were actually perspiring.</p>
+
+<p>As a result of this sweating operation there is
+produced “crude scale wax,” the ordinary wax of
+commerce. It is yellow to ivory in colour, contains
+only a small proportion of oil and is almost
+odourless and tasteless. The crude scale wax is
+very commonly further refined by the general
+methods used throughout the oil industry, i.e. by
+treatment with acid and alkali, and by filtration,
+to produce refined paraffine wax of pure white colour,
+free from oil, and without odour or taste. It is
+this refined grade of wax which is commonly met
+with in the retail market.</p>
+
+<p>Returning to the wax-free oil which passes through
+the canvas filters, leaving behind the impure wax,
+we find that this is the product from which lubricating
+oils are obtained. It is an oil of dark
+brown or amber colour, considerably heavier than
+kerosene and has a very greasy feeling which
+is indicative of its value for lubricating purposes.
+<span class="pagenum" id="Page_101">[Pg 101]</span>Elaborate methods have been devised for accurately
+determining and gauging this greasiness or
+viscosity, which is the property of the oil upon which
+its lubricating value is most dependent. In general,
+this oil is in part re-distilled, that is, it is
+charged into a still and subjected to a temperature
+which is sufficient to drive off, in the form of vapour,
+some portion, though not all of the oil under treatment.
+This process, accurately described as “reducing”
+the oil, serves to concentrate in the residue
+remaining in the still, the heavier or more greasy or
+viscous constituents, the grade or viscosity of the
+lubricating oil depending on the extent to which
+this reduction is carried. As in the case of the
+other petroleum products, it is customary to carry
+out a chemical purification process and to filter the
+oil subsequent to the re-distillation. As a result of
+such further chemical purification and filtration, the
+colour of the oil is improved, any suspended solids
+or dirt which it may contain are removed, and any
+chemical constituents which it may contain and
+which may be detrimental to its use, are destroyed.</p>
+
+<p>The refining process above described is that which
+is most largely employed in this country, being a
+typical process for obtaining gasoline, kerosene,
+<span class="pagenum" id="Page_102">[Pg 102]</span>gas oil, lubricating oils and paraffine wax from the
+grade of crude petroleum produced from the central
+and central western states of the United States.
+The process is considerably varied, however, in
+dealing with crude petroleum of different characteristics.
+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 asphalt. Oil of this character is not generally
+used for the production of lubricating oils or wax, but
+is instead merely refined for the production of gasoline,
+kerosene, and fuel oil, or for gasoline and fuel
+oil only. It will be understood that the term “fuel
+oil” merely indicates any heavy petroleum oil free
+from dirt and water, and fluid enough to be readily
+pumped through a pipe, and containing no constituents
+which would make it apt to give explosive
+mixtures with air. Fuel oil of this description is
+largely replacing coal as a fuel for steamships.</p>
+
+<p>The State of California produces a considerable
+quantity of this “asphalt base” crude petroleum,
+which, like the crude petroleum from Mexico, is
+subjected to refining processes very much simpler
+and yielding mainly gasoline, kerosene and fuel oil.
+<span class="pagenum" id="Page_103">[Pg 103]</span>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 produced. These artificial asphalts in
+general represent the heavier constituents of crude
+petroleums, such as those of Mexico and California.
+The term artificial asphalt is perhaps a misnomer,
+for, although the properties of the asphalt are somewhat
+modified by the refining operation, 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 dissolved.</p>
+
+<p>There is also a large amount of oil produced in the
+United States, mainly in Pennsylvania, which is of
+a character especially suited to the production of
+high grade lubricants by a simple refining method.
+With oil of this character the lubricating constituents
+do not require distillation to separate them from
+impurities. The crude petroleum may be directly
+reduced by distillation, taking off the three
+major fractions, that is, gasoline, kerosene and
+gas oil, and leaving behind in the still a very good
+grade of lubricating oil which, however, contains
+paraffine wax. To separate this wax from the lubricating
+<span class="pagenum" id="Page_104">[Pg 104]</span>oil, in which it is dissolved, an ingenious
+process called cold settling is resorted to. According
+to this process, the mixture of lubricating oil and
+wax is diluted with gasoline, enough gasoline being
+employed to make a very thin liquid, and the mixture
+is then chilled to a low temperature. From the chilled
+mixture the paraffine separates out in the form of
+a thick grease which settles to the bottom of the
+chilling tank. This grease is subsequently refined
+to produce the various grades of petroleum jelly.
+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 lubricants.</p>
+
+<p>Returning to the analogy by which we compared
+crude petroleum oil to crude gravel mined from the
+hillsides, it will be noted as in the case of the gravel,
+the various crude petroleums differ in character
+considerably, according to their origin, and that the
+refining process must be modified to suit the character
+of the oil.</p>
+
+<p>The analogy may be pursued one step further to
+explain one of the most interesting developments
+of the modern petroleum industry, i. e., the manufacture
+<span class="pagenum" id="Page_105">[Pg 105]</span>of gasoline not naturally contained in crude
+petroleum. This process of <em>manufacturing gasoline</em>
+is called “cracking.”</p>
+
+<p>Let us assume that we desire to obtain from
+crude gravel, mined from the ground, a maximum
+amount of fine gravel. 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 gravel, which is too large for our use,
+through crushing rollers which would crush or crack
+it, thus producing an additional quantity of fine
+gravel. An analogous process has now been successfully
+developed for the treatment of petroleum oils.
+According to this process, a heavier constituent of
+the crude petroleum oil, for example, kerosene or
+gas oil, may be subjected to distillation at high temperatures,
+and under high pressure in special stills
+designed for this process, thus securing increased
+quantities of gasoline. In this operation a certain
+proportion of the heavier oil treated is caused to
+break down into gasoline. The U. S. Bureau of
+Mines estimates that in 1919 some 15% of the
+country’s total gasoline production was obtained
+by this process.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_106">[Pg 106]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_X">
+CHAPTER X<br>
+<span class="subtitle">PETROLEUM AND OTHER INDUSTRIES</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">Petroleum</span> products not only enter as an
+essential into great industries; but their manufacture
+and distribution have given birth to
+many allied industries directly connected with the
+oil business. The plant of a modern refinery, for
+instance, by no means begins and ends with equipment
+for the distillation and treatment of oil. We
+have seen that the petroleum industry has given
+birth to an underground transportation system entirely
+unique, which accomplishes something impossible
+to railroads, under any conceivable organization.
+The architectural breadth and completeness
+of detail which characterize the petroleum industry
+as now organized, also extend to many mechanical
+trades. The modern refinery is a self-contained institution.
+It goes outside its own organization for
+little. Besides its still hands and other types of oil
+workers it has its corps of carpenters, pattern makers,
+machinists, acetylene welders, boilermakers, sheet
+<span class="pagenum" id="Page_107">[Pg 107]</span>iron workers, riveters, blacksmiths and the like. A
+modern refinery of the large type is a complex industrial
+unit, astonishing in its diversity of duties and
+pursuits. Among them this army of workers construct
+almost everything that is necessary to carry
+out the work of storage and distribution. Steel,
+delivered from the rolling mills in immense plates,
+emerges in the form of tank wagons, stills, condensers,
+tanks and all the varied equipment of the
+refining industry. Highly technical and intricate
+mechanical operations are carried out in connection
+with the manufacture of these accessories. 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 easily. Punching a four
+inch washer out of solid half-inch steel is a relatively
+light operation with the power available. 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 execute. The hydraulic press pats the steel
+plates into the required shape with a stroke of several
+tons. Cutting steel with an acetylene flame is a
+familiar sight, and the man who operates this torch
+could cut a hole in the side of a battleship in short
+<span class="pagenum" id="Page_108">[Pg 108]</span>order. Electric cranes toss beams weighing twenty
+tons or more about as though they were jack-straws.
+By such processes a tank capable of holding 55,000
+barrels of oil comes into being with astonishing expedition.
+The production of the barrels, boxes and
+innumerable subsidiary requirements of a great
+manufacturing industry are all a part of the plant’s
+activities. Refineries also provide a considerable
+portion of their own fuel. The gas produced in the
+refining process is collected to run gas engines which
+provide power for various mechanical operations.</p>
+
+<p>Although the refinery is self contained, the various
+branches of oil production, transportation and treatment
+have been a stimulus to many industries. Invention
+has been applied to the construction of improved
+oil drilling and pumping machinery; the pump
+lines themselves are prefaced by mechanical production
+of the requisite piping. Of the petroleum
+industry was born the tank steamer and the tank car.
+Though the crude reaches the refinery largely by
+means of its own transportation system, its various
+transformations leave by other routes. 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 cars, which have become an
+<span class="pagenum" id="Page_109">[Pg 109]</span>institution on American railways. Solid trains of
+them leave the great refineries every day; without
+them it would be impossible to deliver the various
+petroleum products, indispensable to industry, to
+consumers so expeditiously as now.</p>
+
+<p>Petroleum’s faculty, as a standardized industry, of
+attracting to itself subsidiary trades is, however, but a
+negligible consideration in comparison with its relation
+to industry and commerce in the larger sense
+of these terms. The noted English publicist, Sydney
+Brooks, has drawn a pen picture of the marvellous
+interpenetration of the world’s industrial fabric
+which has taken place within the past fifty years.</p>
+
+<p>“To-day” says Brooks, “petroleum enters into
+our daily life under the guise of at least 250 different
+and marketable commodities. It lights our lamps
+and stoves; it cleans our clothes; it prepares our
+varnishes; it acts as a substitute for turpentine in the
+printing, dyeing and painting industries; it invades
+our tables in the form of artificial butter, confectionery
+and a number of other edibles; it supplies us with
+our wax, our candles, our chewing gum, and a vast
+array of ointments, salves and drugs; it furnishes the
+dressing table with perfumes and the smoking room
+with matches; it imparts the final lustre to our collars
+<span class="pagenum" id="Page_110">[Pg 110]</span>and shirts; and the textile trades use enormous
+quantities of it for finishing soft goods; it medicates
+our bodies and gives to preserved fruits their peculiarly
+toothsome appearance; it blends with animal
+and vegetable oils in a range of combinations almost
+infinite; its residue can be burned as coke, or used in
+the manufacture of electric arc-lights, or employed in
+road making as a rival to asphalt; it lubricates our
+machinery and drives our motor cars, our ships, our
+aeroplanes, our locomotives, our ploughs and tractors.
+By means of it every form of transportation
+on land, in the air, on the seas and below the sea, has
+been immeasurably extended and in many instances
+revolutionized. 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
+coal. The demands for it are indeed illimitable.”</p>
+
+<p>Mr. Brooks is speaking exclusively of the part that
+petroleum plays in the industrial and social life of
+Great Britain. In the United States its applications
+are wider still. Were it necessary, it would be
+possible to dilate on the relation of petroleum to
+agriculture in this country, where the farmer who
+operates a large acreage in the middle west or in
+Texas and California, by means of tractors finds
+<span class="pagenum" id="Page_111">[Pg 111]</span>petroleum an indispensable ally. In this sense
+petroleum has helped enormously to increase the
+food supplies of the world and the national wealth
+of the United States.</p>
+
+<p>One of the greatest, 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
+(once regarded as almost the least valuable
+product of the refinery) gasoline. Invention has
+reacted radically on the oil industry, from decade to
+decade, and especially on its refining phase. Until
+the advent of what is known as the “internal combustion”
+engine, for instance, the demand for gasoline
+was so limited that when produced, as was inevitable
+in the distillation of many types of crude,
+it represented but a fraction of its present value.
+To-day this engine, which lives and functions by
+gasoline, has created an ever-increasing demand
+for that fluid which taxes the energy of all refineries
+to meet.</p>
+
+<p>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 reference. It not only made the automobile
+<span class="pagenum" id="Page_112">[Pg 112]</span>practicable, but the aeroplane, the dirigible
+air-ship, the submarine and a host of other craft
+possible. When, during the autumn of 1919, the
+entire railroad system of Great Britain was paralyzed
+by a general strike, and the people of its great and
+overcrowded cities were face to face with starvation,
+it was admittedly the internal combustion engine,
+operated by gasoline (commonly known overseas as
+motor spirit or petrol)—that saved the situation.
+To understand its appellation the reader should note
+the fact that the older forms of engines were operated
+by steam generated in boilers, heated by external
+combustion—a process familiar to everyone. The
+internal combustion engine, on the contrary, runs
+by fuel (usually gasoline) which is introduced directly
+into the contrivance itself. There it is vaporized
+and mixed with air so as to become an explosive
+substance with great powers of propulsion. 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 engine. During
+the war especially, the minds of all mechanical
+experts were applied to improvements that would
+result in an engine being made lighter and lighter
+with each new model, while at the same time meeting
+<span class="pagenum" id="Page_113">[Pg 113]</span>enormous power demands. Without such space-saving
+contrivances the flying machine would never
+have reached its modern development, and the motor
+car would not have come into general use. The
+revolution effected by automatic traction alone, with
+the co-operation of petroleum, would have seemed
+incredible a generation ago. The pioneer users of
+motor cars bought their gasoline at drug stores.
+To-day the “gas” 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 people. The automobile industry,
+which could hardly have been born without petroleum
+as an auxiliary, now represents an enormous
+investment in this and other countries giving employment
+to innumerable workmen of all classes.</p>
+
+<p>Oil as a source of power is to all intents and purposes
+an outgrowth of the twentieth century. Its
+function as a source of light and heat is historical.
+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 automobiles, aeroplanes and other inventions
+operated by gasoline engines, is steadily
+<span class="pagenum" id="Page_114">[Pg 114]</span>increasing. It is taking its place as a substitute for
+coal, not only in the United States but to a marked
+extent in other countries. For some of them it may
+be said to have proved a solution for railroad problems
+that were at one time almost insuperable.
+Russia, for instance, for the last thirty years, and
+up to the time when internal conditions disrupted her
+industrial organization, utilized her own petroleum
+for fuel. The railroads of Mexico, Argentina, 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 employed.
+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 success; in 1919 the amount of
+fuel oil used for this purpose in the United States
+was approximately 50,000,000 barrels. 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 engine.</p>
+
+<figure class="figcenter illowp100" id="i_p114a" style="max-width: 184.25em;">
+  <img class="w100" src="images/i_p114a.jpg" alt="">
+  <figcaption>
+      <p>“Look boxes” in the “Still House,” where the grades of oil are separated according to gravity, the process
+    being known as the separation of “cuts”</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp100" id="i_p114b" style="max-width: 182.375em;">
+  <img class="w100" src="images/i_p114b.jpg" alt="">
+  <figcaption>
+      <p>A modern tanker carrying 4,000,000 gallons of oil</p>
+  </figcaption>
+</figure>
+
+<p>Oil as a domestic fuel is gradually making its way
+because of the advantages it gives in the matter of
+<span class="pagenum" id="Page_115">[Pg 115]</span>cleanliness. 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 by. 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 power, the
+elimination of dust and the saving of labour involved
+are economic factors of first importance.</p>
+
+<p>The invention of new devices for the utilization of
+oil have necessarily proven a stimulus to manufacture.
+Indeed, it would be impossible to trace the
+myriad paths by which petroleum enters into the
+public and domestic economy of the civilized world.
+So far we have left untouched one of its most pregnant
+applications; its relation to sea power and to
+maritime commerce, which is so wide and important
+as to justify a separate chapter.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_116">[Pg 116]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_XI">
+CHAPTER XI<br>
+<span class="subtitle">PETROLEUM ON THE SEVEN SEAS</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">The</span> 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 supply. 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 light. 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 vessels. The
+relation of petroleum to the sea may be approached
+from several angles. The necessity of conveying
+vast quantities of oil across the oceans of the world
+has, for instance, produced a form of maritime architecture
+almost as unique in its kind as is the pipe-line
+in land transportation. Then again, oil has within
+recent years tended to revolutionize the fuelling of
+<span class="pagenum" id="Page_117">[Pg 117]</span>both the merchant marine and the war fleets of this
+and other countries. Petroleum’s relation to naval
+activity in time of war is so important that it will be
+dealt with in a separate chapter. 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 power.</p>
+
+<p>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 product.
+American petroleum met an ever-growing need.
+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 famine. Within two
+or three years after the sinking of Drake’s well,
+Europe was eagerly seeking to purchase not only the
+crude but the refined products, and the demand has
+grown apace ever since, despite the development of
+oil fields in other parts of the world. In the annals of
+the oil industry the name of Dr. A. F. Crawford, who
+in 1861 was U. S. Consul at Antwerp, holds an
+honourable place. In that year he arranged that a
+shipment of forty barrels of refined oil should be sent
+<span class="pagenum" id="Page_118">[Pg 118]</span>to the industrial country of Belgium and thus export
+to the continent of Europe was begun. Great
+Britain, which had been trying to develop Scottish
+shale oil production, was also quick to avail herself
+of the American discoveries. From the outset the
+problem of how to carry large quantities of petroleum
+products without waste, danger or injury to
+other cargoes, occupied the minds of shipping men.
+The earlier shipments were in the nature of samples
+despatched in ordinary cargo vessels, usually from the
+port of Philadelphia.</p>
+
+<p>In November of 1861 <abbr title="Messers">Messrs.</abbr> Peter Wright and
+Sons, a well known shipping firm of that city, chartered
+a small sailing vessel, the <i>Elizabeth Watts</i>, to
+carry oil exclusively and to deliver her cargo in
+London. 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 to;
+and the crew reached London without other disaster
+than the injury to their sensibilities involved. The
+success of this voyage prompted other shipowners
+to embark in the business, so that by 1864 shipments
+of oil from various Atlantic ports had grown to a very
+respectable total. Casks or barrels were used for
+<span class="pagenum" id="Page_119">[Pg 119]</span>transport, entailing a very great waste of oil, time and
+labour. The casks themselves called for a large
+initial outlay and leakages were a source of loss,
+damage and possible danger. In 1863 the thought of
+carrying oil in bulk in vessels, specially designed for
+that purpose, appears to have occurred almost
+simultaneously to importers in different parts of
+England. Henry Duncan of Bromley, Kent, is
+generally admitted to have been the father of the
+idea. He chartered a schooner at Chicago, fitted her
+to carry oil in bulk and in her hold and loaded her at
+Sarnia, Canada, then as now, an oil shipping point
+of inland America. The experiment was ill-fated,
+for the schooner was lost in the Gulf of <abbr title="Saint">St.</abbr> Lawrence
+before entering on the high seas. 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 1878.</p>
+
+<p>The genesis of the modern tanker dates from the
+launching of the <i>Atlantic</i> at <abbr title="Saint">St.</abbr> Peter’s on the Tyne,
+Yorkshire, in August 1863. In the record of this
+launching it was set forth that the vessel was specifically
+designed to carry petroleum in bulk “without
+the aid of casks” but there is no evidence that she
+was ever put into commission. The real beginning
+<span class="pagenum" id="Page_120">[Pg 120]</span>seems to have been made with the Belgian ship, the
+<i>Charles</i>, 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 cargo. She was a sailing
+vessel and her capacity has been estimated as high as
+7000 barrels in bulk. Between 1869 and 1872 she
+plied between New York and European ports. By
+1878 the business of carrying oil in iron ships specially
+built for that purpose, or in converted vessels like the
+<i>Charles</i> had become definitely established and barrel-carrying
+ships had practically disappeared from
+American harbours. At first oil was carried only on
+sailing vessels, owing to the supposed danger of fire;
+but gradually adjustments were made which rendered
+it feasible to propel oil ships by steam.</p>
+
+<p>The growth of the petroleum industry in the
+’eighties made it clear that the converted oil ship
+was uneconomical and somewhat dangerous. Leakages
+in such vessels produced gases that sometimes
+caused explosions; and one curious fact was demonstrated,
+namely, that there was greater menace in an
+empty oil ship than in a full one, for the reason that
+the exposed surface from which explosive gases might
+emanate was infinitely greater. When an oil ship
+<span class="pagenum" id="Page_121">[Pg 121]</span>of scientific model was filled to capacity the only
+danger points were the hatches through which it had
+been filled; whereas when empty, especially if there
+had been carelessness in unloading, the explosive
+area and the possible formation of gas-producing
+deposits was greatly increased. With the converted
+ships the chances of leakage were necessarily
+many, owing to numerous and inaccessible waste
+spaces outside the tanks. 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 vessel, and over every emanation
+of gas given off by that oil. 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
+danger.</p>
+
+<p>For a good many years past the construction of oil
+tankers has been one of the important branches of
+industry in the leading shipbuilding countries; and
+they carry not only the predominating American
+product, but that of all the scattered oil fields of the
+world. They bring crude to our seaboard refineries,
+but they carry little crude away; their business is
+that of conveying the finished oils to other lands.
+<span class="pagenum" id="Page_122">[Pg 122]</span>The shipment of the crude product of American wells
+overseas has long since ceased as a result of the
+stupendous development of our refining industry,
+but Mexico has lately come into prominence as an
+exporter of crude. In comparison with the earlier
+oil ships the modern tanker shows the same ratio of
+growth which characterizes all phases of petroleum
+development. 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 500
+feet in length and correspondingly wide beam.
+Whereas the little Belgian ship, the <i>Charles</i>, fifty
+years ago carried a maximum of 295,000 gallons, one
+of the larger types of modern oil tankers will carry
+more than 4,500,000 gallons.</p>
+
+<p>The greater petroleum organizations do not depend
+on private shipping firms to carry their products, but
+build their own vessels. 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 home.
+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 ago. Many of
+<span class="pagenum" id="Page_123">[Pg 123]</span>the American tankers are among the largest that fly
+the Stars and Stripes. Such giant vessels coming
+up the fairway of a foreign port constitute a graphic
+advertisement for the United States, and serve as
+the symbol of an industrial nation standing at the
+head of the world’s commerce. It is fitting that the
+American flag should have been carried to every port
+of the seven seas in connection with petroleum, the
+American product which has revolutionized the
+world’s industry. These great vessels carry the
+source of light, heat and industrial energy to peoples
+of every language and every colour. Great progress
+has been made in economizing time and labour in
+connection with cargoes. Where but a few years
+ago it required days to load or unload a ten-thousand
+ton ship, the task is now performed in a few hours.
+The oil is handled by the use of powerful pumps or by
+gravity, when possible. Owing to the speed with
+which oil cargoes are handled no other ships on the
+ocean do so much sailing, or spend so little time in
+port as the oil tanker.</p>
+
+<p>So far in this chapter we have dealt solely with the
+development of the sea-transportation of oil itself;
+but even larger vistas are opened when we come to its
+growing relation to all forms of maritime commerce
+<span class="pagenum" id="Page_124">[Pg 124]</span>and naval activity. This arises from the rapidly increasing
+use of oil as a marine fuel. In that respect
+it holds very high potentialities for America’s seaborne
+trade. The oil tankers we have been describing
+are oil burning, and the same system is being
+applied to many other types of vessels which constitute
+the arteries of the world’s trade. 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 Swansea, Wales. But
+the definite advantages of oil as a fuel for the navigation
+of steamships are changing the whole maritime
+equilibrium. As an English writer has said, the
+position that oil has captured for itself in this respect
+has been fairly won on its merits. Oil fuel has one
+and a half times the heating power of steam coal,
+so that weight for weight carried, the radius of action
+is extended fifty per cent. A vessel equipped with a
+modern internal combustion engine consuming fuel
+oil may make a voyage of fifty-seven days without replenishment,
+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 days.
+In 1912 an Oil Congress was held in London,
+<span class="pagenum" id="Page_125">[Pg 125]</span>England, when statistics were presented containing
+a comparison between coal and fuel oil on the great
+Cunard Liner the <i>Mauretania</i>. It was shown that
+for the round trip from Liverpool to New York and
+back there would be a saving of at least 5000 tons of
+fuel and that the force of stokers required could be
+reduced from 300 to 30 men working under much less
+difficult conditions. The resultant increase in available
+space for cargo and passengers is of enormous
+importance to ship-owners. The relative values of
+oil and coal for marine use are not limited to the
+superiority of oil engines over the old-fashioned steam
+engines. The caloric or steam-raising power of oil
+is so much greater than that of coal as to produce a
+fifty per cent. superiority. Another factor is that of
+cleanliness. Coal is not merely bulky and prolific of
+many inconveniences in the confined space of a ship,
+but it is unquestionably dirty, as every harbour
+bears ample testimony. Oil is clean, smokeless and
+leaves no ashes and clinkers. It can be pumped
+on board from a tender while both ships are making
+considerable speed. The late war furnished innumerable
+demonstrations of the superiority of oil as
+a source of motive power at sea, which will be presently
+dealt with; as an aid to peaceful commerce its
+<span class="pagenum" id="Page_126">[Pg 126]</span>influence during the next few years is certain to be
+revolutionary and incalculable in its benefits.</p>
+
+<p>The future of the oil-burning ship depends directly
+upon the supply of fuel, a question that at the moment
+is giving both the oil men and the steamship
+operators a good deal of concern. In recent months,
+owing principally to the changes effected by the
+intrusion of salt water in the Mexican fields, it has
+been a difficult matter for vessels not protected by
+contracts to obtain fuel oil. The advantages of this
+method of raising steam are so considerable that it
+will prove a great economic loss if, through failing
+supplies, it becomes necessary for oil-burning ships
+to revert to coal.</p>
+
+<p>It would be a mistake to think that other great
+commercial powers are not alive to the possibilities
+of oil on the seven seas, 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 industry. 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
+past. Although displacement of coal by oil in any
+<span class="pagenum" id="Page_127">[Pg 127]</span>wide measure is perhaps the most recent development
+in the story of petroleum; and the construction of oil-burning
+in place of coal-burning ships is the latest
+phase of maritime architecture, American oil producers
+have already anticipated the change in events
+by establishing oil-bunkering stations in various
+parts of the world. 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 call.
+It is highly important that vessels under the Stars
+and Stripes should not be wholly dependent upon
+foreign agencies for filling their tanks. 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 world.</p>
+
+<p>A glance at the list of such stations as it stood at
+the end of the year 1919 shows how much petroleum
+has done to extend the influence of the United States
+of America on the sea. Exclusive of the domestic
+establishments on the Atlantic seaboard and in the
+Gulf of Mexico, bunkering stations have been established
+by American initiative at all the chief ports
+<span class="pagenum" id="Page_128">[Pg 128]</span>of Canada, whether on the Atlantic or on the Pacific
+Coast, the Great Lakes, or the Gulf of <abbr title="Saint">St.</abbr> Lawrence,
+in South America, at Rio de Janeiro, Brazil; Montevideo,
+Uruguay; Campana and Buenos Aires,
+Argentina; at Valparaiso and five other ports on the
+long coast line of Chile; and at three ports in Peru.
+Bunkering facilities have also been established at
+both approaches to the Panama Canal and at many
+points in the West Indies, including Bermuda. There
+are nine such stations in Great Britain; three in Norway;
+two in Sweden and three in Denmark, covering
+effectively the North Sea and the Baltic. Those
+on the Mediterranean include five in Italy; one in
+Tunis (Bizerta) and one in Egypt (Port Said).</p>
+
+<p>These stations are designed to promote those
+peaceful and happy relations which should follow
+on the development of international trade, and to
+assure facilities for America’s expanding seaborne
+commerce.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_129">[Pg 129]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_XII">
+CHAPTER XII<br>
+<span class="subtitle">PETROLEUM IN THE GREAT WAR</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">No survey</span> 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 war. It was
+inevitable that in a crisis where all the scientific,
+mechanical and organizing genius of the leading nations
+was concentrated on instrumentalities to
+strengthen themselves and weaken or destroy the foe,
+a product of so many applications should prove a
+tremendous factor. It would be indeed possible to
+write a lengthy volume on the influence of petroleum
+on history, based on actual deductions drawn from
+the incidents of that greatest of conflicts. It was an
+indispensable factor in the new methods of warfare
+that were developed; it influenced the military and
+diplomatic strategy of all belligerents; it was a stupendous
+contributor to the victory of the Allied and
+Associated powers. Earl Curzon of Kedleston, a
+member of the British War Cabinet, stated the fact
+<span class="pagenum" id="Page_130">[Pg 130]</span>tersely when he said, shortly after the signing of the
+armistice—“The Allies floated to victory on a sea of
+oil.”</p>
+
+<p>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 contribution.</p>
+
+<p>In the preceding chapter the growing maritime
+importance of petroleum has been shown, 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 effort. 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 nations. Without petroleum the submarine
+as an effective agent in war could not have come into
+existence, and the whole story of the conflict from
+the winter of 1915 onward would have been different.
+Again, without petroleum no air-craft could have
+left terra firma, and military tactics based on the
+powers of observation provided by these “eyes of the
+army” would not have come into existence. It must
+also be admitted that the toll of destruction both on
+land and sea would not have been so great. It would
+<span class="pagenum" id="Page_131">[Pg 131]</span>not have been possible for any country to embark
+on a diabolical policy of destroying unarmed ships
+and unfortified cities, and wreaking vengeance
+on helpless non-combatants. But these crimes
+cannot be charged against petroleum itself, but
+rather against the ingenuity of men bent on destruction.</p>
+
+<p>These were but two instances of the part petroleum
+played in the war. It is no exaggeration to say that
+there was no phase of belligerent activity in which
+it was not an active agent. From the very outset of
+hostilities in August, 1914, discerning men in Allied
+countries foresaw that victory must rest with the side
+which commanded the greater reserves of petroleum.
+Thus from the beginning America, as the chief source
+of the world’s supply, was recognized as a factor of
+inestimable importance in the ultimate decision.
+Germany was as fully alive to this circumstance as
+her enemies. The high commands of the warring
+nations, from the very outset, took into consideration
+the desirability of securing possession of the oil
+fields in other lands. 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 Hemisphere. Later, when the blockade of
+<span class="pagenum" id="Page_132">[Pg 132]</span>Germany was definitely established and pressure
+was brought to bear against countries suspected of
+enabling Germany to obtain various classes of supplies
+by indirect purchase, petroleum products were
+regarded as the most important items in the extended
+list of contraband of war.</p>
+
+<p>On land, oil constantly influenced the thoughts of
+generals. 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 region. The long drawn out diplomatic
+embroglio with regard to Roumania all centred
+around the oil fields of that country. Germany
+was determined that Roumania should be forced into
+the war, either as an ally or an enemy; for in either
+case it would give her a pretext to seize the oil fields.
+In the end a British military mission destroyed
+the wells to prevent their utilization by the German
+invaders. In the operations of Turkey against
+Russia the oil wells of Baku were the objective. 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 outlet. Citations such as these from the history
+of the war on all fronts could be multiplied to show
+<span class="pagenum" id="Page_133">[Pg 133]</span>how closely the petroleum question was interlocked
+with belligerent action.</p>
+
+<p>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
+war. The conflict had not been in progress for
+more than a few months, however, 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 Paris. It was
+then that the friendship of the American people
+for the Allied cause made itself felt in practical form.
+Had American oil interests then proved hostile
+or indifferent; had the Government of this country
+yielded to Germanic pressure and placed an embargo
+on oil shipments, the cause of the Allies would have
+been doomed. In 1917 it was admitted in the
+British House of Commons that adequate supplies
+of petroleum products were quite as essential as men
+and munitions. This was almost an understatement,
+because without the aid of petroleum the
+necessary maximum of effort in other respects would
+have been impossible.</p>
+
+<p>Apart from naval and aerial needs, a reminiscent
+<span class="pagenum" id="Page_134">[Pg 134]</span>picture of the Western Front during the three or
+four years of trench warfare reveals the predominant
+importance of petroleum. It proved a decisive
+factor as early as the Battle of the Marne. 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 Paris. Thus, petrol transport hastily
+improvised saved Paris and turned the scale of the
+1914 campaign against the Germans. It will be
+recalled that the conflict then settled down to a
+prolonged era of trench warfare. The Allies commenced
+the construction of strategic railways to
+support the armies of the line, but between the railheads
+and the actual battlefront in the long stretch
+from the North Sea to the borders of Switzerland,
+transport was almost wholly dependent on motor
+spirit or gasoline. Innumerable heavy motor lorries
+carried food, guns and ammunition to the fighting
+forces. But the function of petroleum products on
+land did not end in its association with commissariat
+and supply. It was an aggressive instrument. The
+greatest new factor in land fighting that the war
+developed was the “tank”—a land battle cruiser,
+<span class="pagenum" id="Page_135">[Pg 135]</span>first introduced by the British at the Battle of the
+Somme in July, 1916, and afterwards adopted by all
+armies. This great instrument of war was wholly
+dependent on petroleum products for its power of
+movement. Without the internal combustion engine
+operated by gasoline it would have been an immobile
+toy. Again, when liquid fire came into use petroleum
+was the basis; and in another great destructive
+agent—the explosive, known as <abbr class="spell">T. N. T.</abbr>—toluol,
+which is found in some of the heavier grades of petroleum,
+was a basic constituent.</p>
+
+<p>Though petroleum in the hands of inventors became
+an agent of terrible destruction, it had its
+beneficent uses in battle as well as in periods of tranquility.
+Armies organized on so vast a scale could
+not have been fed without it. 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 gasoline.
+And when darkness had fallen on the fray the
+oil lamp and the paraffine candle were lighted to cheer
+the tired soldiers. An English writer who visited
+the front in 1917 wrote of the all-pervading uses of
+petroleum: “It was to be found wherever there was
+a vestige of life in those zones of battle; the soldiers
+<span class="pagenum" id="Page_136">[Pg 136]</span>in their, at times, lonely dug-outs, used oil for cooking
+as well as light, and all traffic was guided from disaster
+along the roads by the use of oil, which also
+offered the only source of artificial light in the Red
+Cross vehicles. What an immense organization
+it was which depended for its ceaseless activities
+upon the products of petroleum.”</p>
+
+<p>The British established a petroleum depot at
+Calais of an immensity previously unprecedented,
+where all products required for the organization of
+transport were stored; and it must be noted that
+lubricants of all kinds were as essential as gasoline
+itself, to keep moving the wheels of the innumerable
+motors that were employed by the various arms of
+the service.</p>
+
+<p>If petroleum was the life blood of activity in the
+battle areas, it was not less so of the munition factories
+where the means of offense were fabricated.
+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
+catastrophe. Though the Allies, once they
+really awakened to the dangers of the situation, had
+pursued the policy of piling up reserves of petroleum
+<span class="pagenum" id="Page_137">[Pg 137]</span>products there were times when the failure of a
+single tanker to arrive on schedule time from this
+side of the Atlantic caused grave apprehension;
+and when in April, 1917, the United States entered
+the war, reserve supplies had fallen dangerously
+low.</p>
+
+<p>If only because it placed the entire oil resources of
+America at the disposal of the Allies, the entry of the
+United States into the conflict proved the salvation
+of their cause; 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 war. After the armistice, Marshal
+Foch summarized that achievement in these words:
+“No military operation of the Allies on sea, on land,
+under sea or in the air was ever interrupted by the
+lack of petroleum supplies.”</p>
+
+<p>Unquestionably one of the motives which actuated
+Germany when, in February 1917, she decreed unrestricted
+submarine warfare and ordered the Stars
+and Stripes off the seas, was the hope of cutting off the
+petroleum supplies of her foes. Even before President
+Wilson declared war, several American tankers
+had been sunk by German U-boats. The German
+Government fully understood that a cessation of oil
+<span class="pagenum" id="Page_138">[Pg 138]</span>shipments from American ports would mean an almost
+immediate paralysis of belligerent effectiveness
+in her foes and the “German Peace,” for which they
+had long been manoeuvring, would have been accomplished.
+When activity was keenest on the
+Western front eighty per cent. of the oil and oil fuel
+used by the Allies came from the United States.
+After the war was over it was revealed that forty-eight
+per cent. 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 crash.</p>
+
+<p>It is now admitted that in the Spring of 1917 the
+Allies were closer to disaster than was known to any,
+save a few men at the head of affairs. It was
+a turning point in the world’s history. Next to
+man-power and munitions the resources needed
+above all others were petroleum and its products.
+The French coal fields had been lost. There was a
+labour shortage in Great Britain; Russian, Roumanian
+and Galician sources of supply were now definitely
+in the hands of the enemy. The Mediterranean
+Sea, through which the Far Eastern supplies
+must come, was a hot-bed of submarines; and indeed
+losses of oil steamers in all dangerous waters were so
+<span class="pagenum" id="Page_139">[Pg 139]</span>great as to show that they had been named as special
+targets by the German high command.</p>
+
+<p>An exchange of confidence between the Allies and
+the United States naturally followed the decision of
+this country to defend the freedom of the seas. Immediately
+after President Wilson’s declaration of war,
+urgent despatches from Great Britain warned our
+government that reserve supplies of petroleum in
+Europe were so low that unless immediate assistance
+were rendered, a partial demobilization of the British
+fleet must ensue. “We must have oil” said Marshal
+Foch, whose prescience had not yet been rewarded by
+elevation to the Supreme Command, “or we shall
+lose the war.” Italy was in no better position, fuel
+oil, aviation naphtha, gasoline and lubricants had
+been so seriously depleted.</p>
+
+<p>When the secret of the situation was confidentially
+communicated to the leaders of the American oil
+industry, there was an instant response. The
+National Petroleum War Service Committee was
+formed, with Mr. A. C. Bedford, Chairman of the
+Board of the Standard Oil Company, (<abbr title="New Jersey">N. J.</abbr>) as its
+presiding officer. The organization embraced all the
+oil companies of the United States. Those who had
+been life-long keen business rivals joined hands to
+<span class="pagenum" id="Page_140">[Pg 140]</span>keep the great war machine in Europe in action.
+Profits became a minor consideration. Agreements
+to stabilize prices and curb speculation were formulated
+and observed. Production on a scale previously
+unprecedented in this land of enormous oil
+production was organized. Soon it was recognized
+that the work of the National Petroleum War Service
+Committee, though unostentatiously performed, was
+the most efficient and the most fruitful in results for
+the cause of democracy of any industrial institution
+in the war. It achieved the remarkable feat of
+meeting every war demand for petroleum products
+of all kinds, of conveying these products across the
+Atlantic, despite the submarine scourge. 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 history. These
+results were achieved by the voluntary efforts of
+thousands of men serving in every phase of the
+oil industry, crude production, refining and transportation.
+After the armistice the Government of
+France, in recognition of what had been accomplished,
+conferred on Mr. Bedford the Cross of the
+Legion of Honour.</p>
+
+<p><span class="pagenum" id="Page_141">[Pg 141]</span></p>
+
+<p>Co-ordination having been arranged, the problems
+to be dealt with came under two heads, (1) Increased
+production; (2) Sea-transport. The first constitutes
+a record of highly organized endeavour never surpassed
+in the history of industry; the second one of
+actual heroism.</p>
+
+<p>Plans for increased production were well under way
+by the summer of 1917 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 supplied. The thoughts of all were fixed
+on the great blows which were to end the war in 1918.
+When the winter of 1917–8 arrived it seemed as
+though the elements were fighting on the side of the
+Hohenzollerns. The extraordinary severity of that
+winter, complicated by a coal shortage, all but
+paralyzed railroad traffic. Thus, 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
+Committee. Yet somehow or other it performed
+its task and the refineries trebled their pre-war
+output, expanding their capacities like an accordion.
+<span class="pagenum" id="Page_142">[Pg 142]</span>In addition to the vast quantities consumed
+at home, shipments abroad arose to stupendous
+figures. In the year 1918, 2,628,961 tons of fuel oil
+alone were shipped from the Eastern seaboard for
+the use of allied navies; and in the same year more
+than one million tons of high distillates and other
+petroleum products also crossed the Atlantic, entailing
+more than 500 tank steamer loadings.</p>
+
+<p>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 cargoes. 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 nation. The great
+value to civilization of the fleet of tank steamers built
+up by American oil exporters was also demonstrated.
+When President Wilson declared war one great
+company had already lost three big vessels through
+submarine attack, and during the war these losses
+were augmented by seven more, representing a loss of
+more than 75,000 deadweight tons and a toll of many
+lives. To meet its losses this particular company
+undertook to build a new ship for each sunk, and so
+efficiently was this policy carried out that its fleet,
+<span class="pagenum" id="Page_143">[Pg 143]</span>which had totalled 445,975 tons at the commencement
+of unrestricted submarine warfare in February,
+1917, had grown to 492,080 tons under the American
+flag when the armistice was signed in November,
+1918. Nor was the problem of shipping limited to
+that of carrying petroleum across the Atlantic.
+Much was required for coastwise trade in North
+and South America.</p>
+
+<p>The resourcefulness of the oil men of America was
+not confined to mastering the seemingly insuperable
+problems of increased production and transport.
+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 water. This work was carried
+out by Mr. Forrest M. Towl, President of the Southern
+and other pipe line companies, and was in full
+operation shortly before the armistice was signed.
+In this work both the American navy and the British
+Admiralty coöperated.</p>
+
+<p>Even apart from its wonderful assistance to belligerent
+action on land, it is clear that petroleum
+played a vital part in winning the war at sea. The
+<span class="pagenum" id="Page_144">[Pg 144]</span>following succinct statement of what it accomplished
+was given by a well-known oil man conversant
+with all phases of the subject, shortly after the
+armistice.</p>
+
+<p>“Oil and internal combustion engine made possible
+the submarine, enabling Germany to stave off defeat
+as long as she did, but oil burned under boilers gave
+us the increased efficiency of the destroyer, which
+conquered the submarine. It was the ability of the
+Allies to obtain a constant, 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 war.</p>
+
+<p>“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 practice. It took some time
+to bring the number of destroyers up to the work
+laid out for them by Germany’s early advantage, but
+the fate of the undersea boat was sealed with the
+arrival of the first oil-fired destroyer in the waters
+where the submarine preyed. The original fleet of
+war vessels which the United States despatched to
+convey merchant vessels and hunt U-boats were
+all 16,250 horse power, which at top speed could
+<span class="pagenum" id="Page_145">[Pg 145]</span>show 32 to 35 knots an hour. Later on we had
+destroyers developing 27,000 horse power but the
+small boats had already proved the case for oil fuel
+in war.</p>
+
+<p>“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 sea. The American
+flotilla had a tank supply vessel stationed at
+longitude 36 degrees West, from which oil was taken
+on by the destroyers at the rate of 40,000 gallons an
+hour, without interruption even in the roughest
+weather. Indeed, there were times when bunkering
+was done with both vessels travelling at six knots an
+hour. Similarly oil gave the larger warships increased
+speed and independence in the matter of fuel
+stations.</p>
+
+<p>“The British battle cruisers with which Admiral
+Sturdee destroyed the German fleet at the Falkland
+Islands were oil burners. To-day, modern war
+vessels are using liquid fuel almost exclusively, the
+United States having definitely abandoned coal-fired
+boilers in its construction plans some time
+ago.”</p>
+
+<p>In addition to other advantages it carried, the
+<span class="pagenum" id="Page_146">[Pg 146]</span>use of oil fuel in the War was of great practical
+value, for the following principal reasons:</p>
+
+<p>A lesser tonnage of oil replaced the amount of
+coal required for the same steaming radius, or an
+equal tonnage of oil gave the men-of-war a greatly
+increased steaming radius.</p>
+
+<p>Boilers fired by oil have a much greater steaming
+capacity than with coal, so that the actual speed
+of a ship converted to use oil fuel is materially increased
+without any change in boilers or engines.</p>
+
+<p>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
+admitted. This results in a heavy bank of smoke
+which destroyers throw out to hide the larger ships
+from the enemy, or which merchant ships produce to
+conceal their whereabouts from submarines.</p>
+
+<p>Petroleum thus proved an indispensable factor
+in saving the world from autocratic domination, just
+as during the previous half century it had become an
+incalculable influence in the arts of civilization, and
+had effected a beneficent revolution not only in the
+industrial but the social life of countless communities.
+By American methods of business organization it
+has been made to yield its highest potentialities for
+<span class="pagenum" id="Page_147">[Pg 147]</span>the good of humanity, both in peace and war. 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 purpose.</p>
+
+<figure class="figcenter illowp48" id="i_p146a" style="max-width: 116.6875em;">
+  <img class="w100" src="images/i_p146a.jpg" alt="">
+  <figcaption>
+      <p>A tanker being loaded with gasoline and oil at a refinery dock
+    at Port Arthur, Texas, one of the large Gulf oil ports</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp48" id="i_p146b" style="max-width: 114.6875em;">
+  <img class="w100" src="images/i_p146b.jpg" alt="">
+  <figcaption>
+      <p>Kansas wells flowing oil into a temporary sump, or
+    earthen reservoir</p>
+  </figcaption>
+</figure>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_148">[Pg 148]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_XIII">
+CHAPTER XIII<br>
+<span class="subtitle">AMERICA’S INVESTMENT IN PETROLEUM</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">A perusal</span> 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-mining, where a man
+may find a pocket of nuggets, wash them in his pan,
+and thus become possessed of sudden wealth. This
+used to be the popular impression in the days when
+the phrase “Struck Ile” was synonymous with a
+sudden stroke of luck. Undoubtedly the man who
+chances to own lands on which oil in paying quantities
+is discovered is blessed with good fortune,
+especially under modern conditions whereby fair
+and generous treatment is assured to him. But he
+contributes nothing to the expensive processes by
+which the precious liquid is extracted from mother
+earth, and risks no capital in the experiment.</p>
+
+<p>Perhaps more prevalent and fraught with infinitely
+greater possibilities in loss and disappointment
+is the delusion that oil is a speculator’s game;
+<span class="pagenum" id="Page_149">[Pg 149]</span>that the very words “oil” or “petroleum” in a
+promoter’s advertisement are a guarantee of large dividends
+and soaring values. 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 business. Countless people
+of a speculative tendency have loosely associated oil
+with great riches, and cherished the theory that whoever
+became associated with the production or refining
+of petroleum was necessarily, as if by magic,
+assured of large and easily acquired profits. The oil
+fortunes loom large in the public mind because they
+have been concentrated in comparatively few hands;
+and the fact is overlooked that these fortunes have
+been based not merely on the raw product, but on
+progressive methods of distribution and the elimination
+of waste. 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 sales, the
+financial returns are not spectacular. For every man
+who has made a fortune in oil, there are dozens who
+have earned but a bare subsistence from it, and
+others who have failed even in that, for they have
+sacrificed all in efforts to locate new wells.</p>
+
+<p>In previous chapters the arduous and costly
+<span class="pagenum" id="Page_150">[Pg 150]</span>labours which precede the process of distribution
+that begins with the conveyance of oil into the pipe-lines
+have been described. It should be borne in
+mind that more often than not these labours are unproductive.
+Oil does not bubble forth from springs;
+it conceals itself in the bowels of the earth and it is
+rarely that it even betrays its presence unmistakably
+by surface indications. When the subsequent outlay
+in handling the product of even a gusher is considered,
+the vast capital outlay involved can be
+visualized. 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 leases,
+construction, drilling and plant exceeds the gross
+value of the oil that has been obtained or can ever be
+forthcoming from these fields.</p>
+
+<p>Many millions of dollars during recent months
+have been poured into oil company flotations that in
+all likelihood will never yield any return whatever.
+Even well-organized companies, directed by men of
+experience, seldom prove bonanzas in a day when
+leases command very high prices; the exception
+arising where the company happens to be the first
+comer in the field that later develops important production.
+<span class="pagenum" id="Page_151">[Pg 151]</span>The oil business partakes of the nature of
+most other industries; it yields profits when fortunately
+located and economically operated. But
+there is no certainty that even the company which
+possesses leases in established fields will prove profitable.
+Under the circumstances it is ridiculous to
+assume that mushroom promotions, by men with no
+actual experience in the oil business, and whose talents
+lie rather in the direction of writing advertisements,
+can yield profits to those foolish enough to
+invest in them.</p>
+
+<p>The experience of one of the large producing companies,
+operating in the best fields of this country,
+financed exclusively by oil men and directed by some
+of the ablest men in the business, may be cited as an
+instance of the uncertainty of profits. This company
+produced about five million barrels of crude oil in
+1919 and sold at the relatively high prices then being
+obtained. Nevertheless, the company’s profit and
+loss statement for the year showed a net loss of
+approximately $1,000,000. This does not mean, of
+course, that this company is a liability to its owners.
+It may have expended in work that could not properly
+be capitalized, large sums of money that will
+eventually be repaid out of production. It is easily
+<span class="pagenum" id="Page_152">[Pg 152]</span>conceivable that without any material increase in its
+investment its yield of oil might be so augmented by
+1921 as to make its business show a very handsome
+profit. What this case does prove is that something
+more than good leases, experienced men and ample
+capital is needed to insure large returns from money
+put into oil promotions.</p>
+
+<p>People who clamour against the prices exacted by
+producers of crude oil overlook the fact that wells
+have an unfailing habit of playing out. This means
+that a producing company must never cease drilling
+and exploring. To do so would mean an early decline
+in its production and eventual failure even of
+its best wells. 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 holes, abandoned after large expenditures.</p>
+
+<p>Production in the United States is only kept up
+by the work of the “wild-catter” in locating new
+pools and by more intensive drilling of the old fields.
+Both involve heavy costs. There were drilled in this
+country last year no fewer than twenty-nine thousand
+new wells, but the net increase in production
+over 1918 was but twenty-two million barrels of
+crude. The declining yield of wells necessitates
+<span class="pagenum" id="Page_153">[Pg 153]</span>amortization to cover the cost of new wells to take
+their place.</p>
+
+<p>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 estimates.
+It is not possible to obtain detailed statistics
+covering the cost of drilling that has gone for naught;
+but an approximately accurate estimate can be
+reached by striking an average based on the experience
+of leading companies.</p>
+
+<p>It is fair to estimate production at $1,000 per
+barrel of daily yield, multiplied by the current price
+for that grade of crude. On this basis Oklahoma
+leads all other fields with production valued at
+$958,517,000. The fields in north and central Texas
+are worth on this basis $617,690,000 while California
+is third with a total of $456,443,000. On the basis
+of the country’s production in February, 1920,
+California produced almost exactly the amount of
+crude derived from Oklahoma, 274,966 barrels per
+day, in the one case, as against 273,862 in the other,
+but the posted price of Oklahoma crude was $3.50
+per barrel as compared with $1.66 for the lower grade
+<span class="pagenum" id="Page_154">[Pg 154]</span>California product. The daily average production in
+February, taking the country as a whole, was
+1,130,759 barrels, and the value of that oil at the
+current price was $3,541,511. This would give an
+approximate valuation of the country’s production,
+on the basis assumed, of $3,541,511,000.</p>
+
+<p>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 capacity. Oftentimes,
+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 production.
+These lines in the different fields are known
+as gathering pipe-lines. They are connected with
+main trunk pipe-lines running to the various refining
+centres. According to the Bureau of Mines, there
+are at this time approximately thirty-two thousand
+miles of trunk pipe-lines and eleven thousand five
+hundred miles of gathering lines. At the present
+day replacement cost, this mileage is worth, respectively,
+$360,000,000 and $40,000,000, a total of
+$400,000,000. 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
+<span class="pagenum" id="Page_155">[Pg 155]</span>mileage was built prior to the present era of high
+costs, but it is a safe assumption that the pipe line
+system represents an actual investment of not less
+than $300,000,000.</p>
+
+<p>The United States is over-equipped with refineries,
+measured by their ability to obtain the
+necessary crude oil to operate them to capacity, but
+it is not over-supplied from the standpoint of the
+potential demand for refined products. On the
+first of January, 1920 there were three hundred and
+seventy-three refineries, with a daily capacity of
+1,530,565 barrels. Since that date there have been
+completed ninety-nine more refineries, adding
+263,500 barrels to the daily capacity. Even before
+the completion of these new refineries, it was estimated
+in the report made by the United States Geological
+Survey that the country had a surplus refining
+capacity of 177,000 barrels per day over the
+production and importation of crude oil. Since
+that time the surplus capacity has been increased to
+about 500,000 barrels daily. Averaging the cost of
+the complete refineries with those of the much less
+costly skimming plants, the refineries of the United
+States represent a total investment of about
+$1,795,000,000. This total includes real estate
+<span class="pagenum" id="Page_156">[Pg 156]</span>and much equipment not ordinarily associated in the
+public’s mind with the business of refining. There
+is, for instance, at several of the larger refineries
+valuable wharf and railroad terminal property, extensive
+manufacturing plants for the production of
+tin containers, factories for the manufacturing of
+steel and wooden barrels, foundries, machine shops,
+pattern shops, etc.</p>
+
+<p>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 lines, this stock
+varying greatly according to the demands of the
+refineries and the rate of production in the fields.
+In April, 1920, the crude stocks on hand totalled
+124,873,000 barrels, which was worth at the prices
+quoted in the different fields at that time,
+$393,724,580. In addition, there were large quantities
+of refined stocks in the course of treatment at
+the plants. The gasoline alone reported on hand
+March 31st was valued at more than $125,000,000,
+while the kerosene on hand as of the same date was
+worth approximately $35,000,000. Lubricating oils,
+fuel and gas oil, wax, coke, asphalt, crude oil awaiting
+distillation and miscellaneous products on hand
+<span class="pagenum" id="Page_157">[Pg 157]</span>brought the total value of the refinery stocks up to
+$370,000,000.</p>
+
+<p>There is, of course, 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 world. On January
+1, 1920, there were six hundred and seventy-eight
+tankers engaged either in the oil business or as supply
+ships for the navies of the world, and of these,
+three hundred and ninety-four, with a deadweight
+tonnage of approximately 1,500,000, were under the
+American flag. This fleet represents an investment
+of $250,000,000.</p>
+
+<p>The minor phases of oil marketing are represented
+by the multitude of stations, warehouses, bulk
+barges, tugs, motor trucks and tank wagons, tank
+cars, private railroad sidings, storage tanks, etc. in
+all parts of the United States. It is customary to
+allow an investment of $4.00 per barrel for the real
+estate and equipment needed to do a retail marketing
+business, and $1.00 per barrel for the tanks and
+docks required in the fuel oil department. On this
+basis the domestic marketing equipment for the
+country represents a total investment of approximately
+$660,000,000.</p>
+
+<p><span class="pagenum" id="Page_158">[Pg 158]</span></p>
+
+<p>No attempt has been made here to bring in the investment
+by American oil companies in other lands.
+The principal item under this head is, of course, the
+huge sums that have been expended in drilling and the
+acquisition of producing properties, leases for development
+and for surveys, etc., in Canada, Mexico,
+South America, Roumania, and other countries.
+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 abroad.</p>
+
+<p>We have here an aggregate investment in the production,
+transportation, refining, and distribution of
+petroleum and its products of $7,310,000,000. With
+this equipment, the United States last year produced
+377,000,000 barrels of crude oil from within its
+borders and imported 55,000,000 barrels more,
+chiefly from Mexico. We exported 366,000,000
+gallons of gasoline, 965,000,000 gallons of kerosene,
+1,175,000,000 gallons of gas and fuel oil and
+276,000,000 gallons of lubricating oil. Against that
+may be set our domestic consumption, showing that
+while we produced in this country more than two-thirds
+of all of the world’s petroleum, we consume
+in almost the same ratio. There was marketed
+<span class="pagenum" id="Page_159">[Pg 159]</span>in the United States last year 3,426,000,000 gallons
+of gasoline, 1,397,000,000 gallons of kerosene,
+6,290,000,000 gallons of gas and fuel oil, and
+568,000,000 gallons of lubricating oil.</p>
+
+<p>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 for.
+Clearly it is no speculator’s game, but one in which
+the most expert knowledge and economic discretion
+are entailed if it is to yield profits at all.</p>
+
+<hr class="chap x-ebookmaker-drop">
+<div class="chapter">
+
+<p><span class="pagenum" id="Page_160">[Pg 160]</span></p>
+
+<h2 class="nobreak" id="CHAPTER_XIV">
+CHAPTER XIV<br>
+<span class="subtitle">PETROLEUM IN THE FUTURE</span>
+</h2>
+</div>
+
+<p class="drop-cap"><span class="smcap">In these</span> 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
+structure. Having attempted to portray the part
+it plays in the arts of war and peace, and its intimate
+relation to civilization as now organized, it is fitting
+that something should be said as to the future of
+petroleum.</p>
+
+<p>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
+problem. The course of events in connection with
+the world industry may even be said to have a
+paradoxical aspect. American petroleum became an
+international institution when, shortly after the
+Pennsylvania discoveries, the eagerness of other
+<span class="pagenum" id="Page_161">[Pg 161]</span>nations to secure it was evinced. The increase of
+production was so rapid that for years the supply
+far exceeded the domestic demand, and made the
+creation of foreign markets necessary to the American
+oil interests. These foreign markets have contributed
+materially to American national wealth and
+are now an important factor in the country’s favourable
+trade balance; exports of petroleum products
+from the United States for the year 1919 representing
+a value of $343,776,385, and ranking fourth in
+order of importance of the country’s exports.</p>
+
+<p>Our oil companies have been international traders
+for several decades, but their operations have been
+entirely based on private initiative and have rarely
+benefitted by official coöperation. The phenomenal
+growth of inventions and manufactures pivoting
+on the products of petroleum, which has transpired
+during the twentieth century, has, however, entirely
+reversed the situation that existed in the year
+1900. Though the United States provides almost
+seventy per cent. of the world’s production from wells
+on her own soil, she is to-day actually an importer of
+crude oil to meet the needs of the domestic market,
+combined with those of the foreign market for the
+manufactured products of petroleum, which yield
+<span class="pagenum" id="Page_162">[Pg 162]</span>vast revenues to American wage-earners engaged in
+their creation.</p>
+
+<p>To the American people, who use six times as much
+petroleum per capita as the citizens of any other
+country, and who own ninety per cent. of the motor
+vehicles in operation in the world to-day, the question
+of future supplies is vital. 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
+requirements. Statisticians and scientists differ as
+to how long the stores of petroleum still lying untapped
+in our own soil may last, 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 enterprise. Petroleum
+is therefore a problem about which the man on the
+street and not merely the oil merchant must perforce
+think internationally. The people of other
+countries are to-day wide awake to the necessity
+<span class="pagenum" id="Page_163">[Pg 163]</span>of securing petroleum reserves for themselves in
+regions of potential oil-bearing character; and in
+some instances they have shown themselves very
+active.</p>
+
+<figure class="figcenter illowp100" id="i_p162a" style="max-width: 185.4375em;">
+  <img class="w100" src="images/i_p162a.jpg" alt="">
+  <figcaption>
+      <p>Steam stills at a modern refinery</p>
+  </figcaption>
+</figure>
+
+<figure class="figcenter illowp49" id="i_p162b" style="max-width: 113.75em;">
+  <img class="w100" src="images/i_p162b.jpg" alt="">
+  <figcaption>
+      <p>Storage tank at Cushing, Oklahoma, struck by lightning—not
+    an infrequent occurrence. 55,000 barrels of crude oil being
+    consumed</p>
+  </figcaption>
+</figure>
+
+<p>In an exceedingly able paper presented by Mr.
+David White, Chief of the United States Geological
+Survey, to the Society of Automotive Engineers in
+February, 1919, that authority drew attention to
+“the widening angle between the flattening curve of
+production and the rising curve of consumption,” and
+announced that after a most exhaustive survey of
+American oil potentialities, in which many experts
+coöperated, the conclusions had been reached that
+the available oil in the ground at the end of 1918
+approximated 6,740,000,000 barrels. The total production
+of crude from the United States wells from
+1858 to the end of 1918 was approximately
+4,598,000,000 barrels, 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 Survey. To understand fully the significance
+of these figures it must be realized that the
+rate of production has enormously increased during
+the past decade. Mr. White’s figures placed the oil
+produced from United States wells in 1918 at
+<span class="pagenum" id="Page_164">[Pg 164]</span>345,500,000 barrels. Production, if continued on
+like scale annually, would exhaust the estimated
+supply in America in less than twenty years. Moreover,
+despite its vast extent, 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
+27,000,000 barrels, and it was necessary to supplement
+the home supply with a net importation of
+31,000,000 barrels, chiefly from Mexico. The year
+1918 was a war year but in 1919, despite peace,
+production in the United States rose to 377,000,000
+barrels. Thus an ever-increasing demand—especially
+for gasoline—is producing a pressure on crude supplies
+greater than in war time.</p>
+
+<p>It does not follow that all the estimated available
+crude reserves in American territory can be reached
+in even the near future. American oil wells will
+undoubtedly be producing at least seventy-five
+years hence, for the very good reason that all the
+hidden pools cannot be discovered forthwith or
+immediately made productive, even when located.
+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
+<span class="pagenum" id="Page_165">[Pg 165]</span>reached, an event that may transpire this year or
+next, or may be delayed for a decade.</p>
+
+<p>Mr. White’s paper, which had the effect of enlightening
+many as to the changing phases of the oil
+industry, also emphasized the possibilities of the
+development of shale oil, a potential resource which
+might prove a suitable substitute. But since this
+product is still in the experimental stage, and since
+it has never been claimed for it that it could develop
+the manifold richness and varied utility of crude
+petroleum, it is not necessary to discuss its possibilities
+in a book devoted to the latter product. Whatever
+the future of shale oil, it cannot alter the plain
+circumstance that if it is to be maintained at its
+present level for any extended period, the American
+oil industry must look for reserves abroad.</p>
+
+<p>A glance at the world’s production for the year
+1917 proves that the United States has more at stake
+in this matter than all the other nations combined.
+The production was distributed as follows:</p>
+
+<table class="autotable2">
+<tr>
+<td class="tdl">United States</td>
+<td class="tdr">66.2</td>
+<td class="tdl">per cent.</td>
+</tr>
+<tr>
+<td class="tdl">Russia</td>
+<td class="tdr">13.6</td>
+<td class="tdl"><span class="tq1">”</span> ”</td>
+</tr>
+<tr>
+<td class="tdl">Mexico</td>
+<td class="tdr">10.9</td>
+<td class="tdl"><span class="tq1">”</span> ”</td>
+</tr>
+<tr>
+<td class="tdl">Dutch East Indies</td>
+<td class="tdr">2.6</td>
+<td class="tdl"><span class="tq1">”</span> ”</td>
+</tr>
+<tr>
+<td class="tdl">Other countries</td>
+<td class="tdr">6.7</td>
+<td class="tdl"><span class="tq1">”</span> ”</td>
+</tr>
+</table>
+
+<p><span class="pagenum" id="Page_166">[Pg 166]</span></p>
+
+<p>Since then the proportion has been altered, Russia
+dropping to third place and Mexico rising to second,
+the relation of the United States to total production
+remaining probably unchanged.</p>
+
+<p>The predominating importance of the petroleum
+industry to the American people was indicated in a
+speech delivered by Sir Auckland Geddes, British
+Ambassador to the United States, at New York in
+May of the present year (1920) when he said that this
+country controlled 82 per cent of the present visible
+world supply.</p>
+
+<p>This estimate of course embraces not only domestic
+fields but foreign fields developed by American private
+enterprise. 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 purposes, the founders of the
+industry.</p>
+
+<p>As has been set forth elsewhere in this book, the
+importance of petroleum to countries of maritime
+aspirations, either naval or commercial, is inestimable,
+and it is on that phase of the question that the
+minds of British statesmen have, within the past
+five years, become concentrated. So far as Great
+<span class="pagenum" id="Page_167">[Pg 167]</span>Britain is concerned, this is a new development, born
+of the great war. Sir John Cowans, G. C. B.,
+Quartermaster General of the British Army throughout
+the decisive period of the conflict, has said
+“Great Britain was, when the war broke out, between
+twenty and thirty years behind the American and
+Dutch nations in its knowledge of oil.” He and
+other eminent Englishmen have emphasized the
+difficulty of making up that leeway, one obstacle
+being that at least eight or ten years was required
+for the education of an oil expert. In seeking a
+trained personnel to handle the problem, Great
+Britain, like most other countries, must for the time
+being at any rate look to the United States. But
+though the awakening of the British to the importance
+of petroleum was belated, it is real. Not only
+their Admiralty, but their Army authorities are insisting
+on the importance of adequate reserves.
+Controlling as they do the destinies of a vast maritime
+Empire, the growing dominance of oil-burning ships,
+and the necessity of providing for their fuelling, has
+become an ever-present thought in the minds of
+British public men at a time when the American
+Government, relying perhaps on a factitious belief in
+the inexhaustibility of our native oil resources, remained
+<span class="pagenum" id="Page_168">[Pg 168]</span>indifferent. There is no reason to doubt
+that the aim of Great Britain is her own national and
+Imperial security, rather than aggression. The
+British Ambassador, in the address referred to, gave
+the most absolute assurance on that point, but the
+fact is patent that, through governmental coöperation,
+British oil men have secured distinctive advantages
+in foreign fields, advantages which, with
+similar coöperation, might have been available to
+American oil interests—whose leaders may be accepted
+as equal to foreign business men in foresight,
+courage and enterprise.</p>
+
+<p>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 reader. 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 seas, she now aims to
+preserve that prestige by oil bunkering stations advantageously
+placed. The situation might conceivably
+arise whereby (despite our vast home production),
+the American merchant marine when at sea
+would find itself dependent on the bunkering stations
+of foreign powers. No one will question the right of
+<span class="pagenum" id="Page_169">[Pg 169]</span>Great Britain to protect and maintain her trade
+routes by reserves of the new maritime fuel, and her
+Government deserves praise rather than censure for
+backing British enterprise in measures directed to
+that end. The point to be borne in mind is that
+American oil men, the real creators of the industry,
+have accomplished what they have in the foreign
+field virtually <em>without</em> governmental support or co-operation.
+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
+reserves. Thus, there has lately arisen a demand
+for constructive legislation which will permit
+governmental coöperation 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 supply. Disinterested public men who
+have made a study of the problem are of the opinion
+that in the national interest, and entirely without
+reference to the advantages that might or might
+not accrue to this or that individual, American
+petroleum companies should be encouraged by all
+the power and influence their Government can
+<span class="pagenum" id="Page_170">[Pg 170]</span>exert to acquire foreign sources of supply wherever
+available.</p>
+
+<p>A glimpse at the facts with regard to the oil
+bunkering situation shows how closely petroleum and
+national aspiration are allied. The estimated requirements
+for the U. S. Navy for the fiscal year of
+1919–20 were about six million barrels. In the undesired
+event of war this estimate would be vastly
+increased. With regard to the American merchant
+marine, it is worth noting that about one half of the
+vessels constructed in 1919, representing approximately
+three million deadweight tons, were of oil-burning
+design. On the Pacific Ocean, where satisfactory
+grades of steam coal are not so generally
+available as on the Atlantic, oil has come into general
+use as fuel. American companies furnish most of the
+fuel oil which is supplied at ports outside the United
+States and the United Kingdom, the total number of
+such foreign bunker installations, owned by American
+companies, being 88 in a total of 114. But the
+possession of such foreign facilities for American
+shipping will prove of little value unless Americans
+have sufficient oil, from either home or foreign fields,
+to furnish adequate supplies at competitive prices.
+With an increasing shortage of oil for domestic consumption,
+<span class="pagenum" id="Page_171">[Pg 171]</span>bunker fuel oil supplies can only be maintained
+through the control of production in advantageously
+located foreign fields.</p>
+
+<p>Among the rivals to American enterprise which
+have arisen, the most important is the Royal Dutch
+Shell combination, which, though of Holland registration,
+has been a partner with the British Government
+in petroleum enterprises, and is to-day the
+leading factor in the Far East and in Australia in this
+vital matter of bunker supply. It is acquiring
+potential petroleum fields in Mexico, South America
+and the United States itself. 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 world; 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
+fuel.</p>
+
+<p>In order that the reader may clearly visualize the
+situation with regard to the prospects of augmenting
+home supplies, it is necessary to speak once more of
+certain foreign fields mentioned in the geographical
+survey that constituted an earlier chapter. The
+<span class="pagenum" id="Page_172">[Pg 172]</span>nearest field and the one to which Americans must
+naturally look, because for an indefinite period it will
+continue to produce oil far in excess of the needs of its
+own people, is Mexico. Unbacked by governmental
+coöperation in any form, American private enterprise
+has done much in an endeavour to develop
+permanent supplies in that country, and has paid its
+way generously. Fortunately, 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 provinces,
+but precious lives have been lost, and considerable
+property destroyed without redress. 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 where, for geographical
+reasons alone, it has a claim to first
+consideration. The patriotism of an American
+citizen, Mr. E. L. Doheny, controlling owner of the
+Mexican Petroleum Company, has been more potent
+than that of the public authorities in safeguarding
+the future of our interests in that country. Mr.
+Doheny received a handsome offer from the Royal
+Dutch Shell Company for his interests; but he
+<span class="pagenum" id="Page_173">[Pg 173]</span>refused it on the ground that for the future welfare
+of the United States, his properties should remain
+under an American control. 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 bidder. While a recent
+Mexican administration proposed to “nationalize”
+petroleum there have been many attacks in other
+forms upon the rights of American oil companies,
+but so far these companies have escaped absolute
+confiscation of their properties. 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 secure.</p>
+
+<p>The next closest field to which Americans must
+naturally look is the Caribbean Region—the Central
+American and West Indian Republics, Colombia and
+Venezuela. Their importance lies almost wholly
+in their future possibilities, but they undoubtedly
+have oil potentialities of considerable value. Therefore,
+the control of concessions is of very grave
+importance in view of the need for acquiring extra
+territorial oil reserves. Fortunately, Americans are
+here first in the field, though enterprise has not gone
+<span class="pagenum" id="Page_174">[Pg 174]</span>very far beyond the securing of concessions. Such
+privileges obtained in Colombia, Panama, Nicaragua,
+Honduras, and Costa Rica are held by various American
+syndicates. A Venezuelan concession originally
+American-owned is at this writing in British hands,
+and British capital is also interested in Honduras
+oil development. It is obvious that the sympathetic
+coöperation of the authorities at Washington, is
+necessary in the Caribbean area if the United States
+is to render secure an ascendancy there.</p>
+
+<p>In South America the rivals of the United States
+interests are also active but have not outstripped
+them, and with a progressive policy on the part
+of their government Americans may hopefully look
+for reserve supplies from that vast continent,
+though their development, owing to the mechanical
+and speculative conditions of modern oil production,
+cannot be rapid. Argentina, which already has two
+producing fields, operates them as state enterprises
+and has as yet granted no foreign concessions. Peru
+is already a large producer of crude petroleum and
+has opened her gates to American oil interests, but
+here, as elsewhere, the need of diplomatic backing is
+present. Generally speaking, though the real potentialities
+of South America are unknown, it is a
+<span class="pagenum" id="Page_175">[Pg 175]</span>territory in which the United States, if it is to safeguard
+its future interests, cannot afford to remain
+indifferent.</p>
+
+<p>The world-wide British Empire includes many
+countries containing oil potentialities, though the
+total production is inconsiderable in comparison
+with that of a single American state like California
+or Texas. According to the statistics put forth by
+Sir Auckland Geddes, production under the British
+flag in 1919 represented but five per cent. of the
+world’s petroleum output. 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 capital.
+In the important oil territory at Burma these
+restrictions are absolute; though in self-governing
+Dominions, like Canada, they do not obtain. In all
+Crown colonies the British Government retains the
+right of pre-emption at need. Quite as severe are
+the laws covering oil deposits or potential oil deposits
+in French colonial possessions. The Dutch
+East Indies, a comparatively promising field, are
+closed to all but subjects of Holland, or to companies
+which have a majority of Dutch subjects on their
+<span class="pagenum" id="Page_176">[Pg 176]</span>directorate; under the latter provision British capital
+dominates the oil production of Borneo.</p>
+
+<p>Outside the Western hemisphere the only fields
+where the United States may look for reserves,
+(which, as has been explained, are of especial importance
+in connection with bunkering stations,) lie in
+what are respectively known as the Near East and
+the Far East. China has undoubtedly oil potentialities,
+though data on the subject is vague, and it is
+presumed that the Chinese government, which holds
+a monopoly of them, will one day admit foreigners
+into partnership in the working of them under some
+sort of special contract. Japan already has a somewhat
+similar arrangement. In demonstrated possibilities
+the Near East is of much more promise. The
+importance of the Roumanian field has been spoken
+of elsewhere and prior to the war American interests
+were established there. Later in its reconstruction
+policies Roumania is contemplating changes in its
+petroleum program not formulated at this writing.
+It is reported that French and British interests,
+supported by their respective governments, are
+making every effort to secure important holdings
+in the Galician oil fields, formerly situated in
+Austria, but now coming within the boundaries of the
+<span class="pagenum" id="Page_177">[Pg 177]</span>new Republic of Poland. The future administration
+of the Russian fields is still problematical.
+At the moment they are occupied by the Bolsheviki.
+The Persian field, by an arrangement dating back
+to 1901, is operated by British interests. The
+potential fields of Mesopotamia and Palestine are
+under control of Britain by mandate of the League
+of Nations; but that country expressly disclaims
+any special authority to exclude other nations from
+participation in petroleum development in these territories.
+It must be plain to the most inexperienced
+reader that in the case of Asiatic and East-European
+fields, however, American oil interests are powerless
+to achieve influence and obtain due recognition without
+the diplomatic assistance and coöperation of their
+home government. It is necessary, if they are to
+secure equal rights under international law that will
+serve not merely as a check upon any possible unfair
+discrimination, but enable them to secure workable
+international arrangements. These should redound
+to the interest of all countries for the United States is
+the motherland of the science of oil production. 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
+<span class="pagenum" id="Page_178">[Pg 178]</span>company seeking foreign reserves at present labours,
+without creating serious disputes or international
+entanglements. In the words of Thomas A. O’Donnell,
+President of the American Petroleum Institute,
+with which most of the leading petroleum producing
+and manufacturing companies of the country are
+associated:</p>
+
+<blockquote>
+<p>The American oil industry asks only the support of the
+nation in giving it an equal status, 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 nation.</p>
+</blockquote>
+
+<p>With the Government at their back to secure for
+them fair play, American oil interests could face the
+future with confidence, if not with certainty; lacking
+such coöperation, the future is fraught with hazard
+to an industry that stands as a monument to American
+organizing genius.</p>
+
+<p class="noindent center p2">THE END</p>
+
+<p class="noindent center p4">THE COUNTRY LIFE PRESS, GARDEN CITY, NEW YORK</p>
+
+<div class="transnote">
+<h2 class="nobreak">Transcriber’s Note</h2>
+
+<p>
+Some inconsistencies in spelling, hyphenation, and punctuation have been
+retained.
+</p>
+
+<ul>
+<li><a href="#Page_xv">p. xv</a>: changed “Rumania” to “Roumania” (Moreni Field, Roumania)</li>
+
+<li><a href="#Page_50">p. 50</a>: changed “Egpyt” to “Egypt” (Egypt has also a future)</li>
+
+<li><a href="#Page_69">p. 69</a>: changed “fish-tale” to “fish-tail” (the delicate fish-tail bit)</li>
+
+<li><a href="#Page_74">p. 74</a>: changed “rythmical” to “rhythmical” (the rhythmical “chug-chug”)</li>
+
+<li><a href="#Page_83">p. 83</a>: changed “Samual” to “Samuel” (Samuel Van Syckel of Titusville)</li>
+
+<li>On pp. <a href="#Page_35">35</a>, <a href="#Page_37">37</a>, and <a href="#Page_57">57</a> appears “Edwin Laurencine Drake.” Modern sources
+differ in spelling (Laurentine). This name was left as originally printed.</li>
+</ul>
+</div>
+
+<div style='text-align:center'>*** END OF THE PROJECT GUTENBERG EBOOK 77066 ***</div>
+</body>
+</html>
+
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+This eBook, including all associated images, markup, improvements,
+metadata, and any other content or labor, has been confirmed to be
+in the PUBLIC DOMAIN IN THE UNITED STATES.
+
+Procedures for determining public domain status are described in
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+
+No investigation has been made concerning possible copyrights in
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+status under the laws that apply to them.
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+Project Gutenberg (https://www.gutenberg.org) public repository for eBook #77066
+(https://www.gutenberg.org/ebooks/77066)