CHAPTER TWO. FUELS. Among the most important mineral products of California are its fuels. This subdivision includes coal, natural gas and petroleum, the combined values of which make up approximately 50 per cent of the state's entire mineral industry. Comparison of values during 1914 and 1915 is shown in the following table: Bibliography: State Mineralogist Reports VII, XII, XIII. Coal has been produced in California since as early as 1860, but the quality is not high, most of it being lignite. In competition with fueloil, coal of all grades has had to give way, and the low-grade domestic product has suffered severely. Besides the counties noted below as showing a commercial production, workable bodies of coal are also known in Mendocino, Shasta, Siskiyou and Riverside counties. During 1915, there was a production reported from Amador, Contra Costa and Monterey counties, totaling 10,299 tons, worth $26,662, most of it, however, coming from Amador and Monterey. Since 1887, the annual output of coal has been as follows: NATURAL GAS. Bibliography: State Mineralogist Reports VII, X, XII. Bulletins 3, 16, 19, 69. Statistics on the production of natural gas in California are largely guesswork, though each year becoming less so, as more data are available. The figures here given are certainly far below the actual production, particularly in the six oil-producing counties. It is an exceptional oil property where gas in some quantity does not occur. Many oil producing concerns make no mention of their gas, because they have no method of measuring it, and it is so widely used in the oil fields that it is frequently as lightly regarded as sunshine or fresh air. Doubtless, considerable gas is wasted, but a sweeping condemnation of operators should not be indulged in. It must be remembered that several of our important oil fields are removed many miles from the site of any other industry, and that the gathering of small amounts of gas and transporting it for any considerable distance, may not always be profitable. However, it is undoubtedly a fact that greater saving can frequently be made with profit. Gas traps of various size and design are coming into more frequent use. Some large operators are making commendable efforts to conserve the gas which accompanies oil and is richer than the so-called "dry gas" occurring in strata which do not produce oil. As far as possible, casing-head gas is used in driving gas engines for pumping and drilling. It will be noted that several counties produce gas which is not accompanied by oil. The value of gas as here shown is open to some question, but is certainly not too high. The average price is about 6¢ per 1,000 cubic feet. Approximately 7,000 cu. ft. of gas is equal to one barrel of oil in heating value, and is so accounted for by many operators. In driving gas engines, about 4,000 cu. ft. per 24 hr. are consumed by a 25 h.p. engine, which figure has been used in compiling this report. The annual production of natural gas in California since 1888 is as follows: 1 As above indicated, more or less gas usually accompanies the petroleum in the oil fields. A number of plants are in operation manufacturing gasoline by compression from this "casinghead gas." This subject was investigated recently by the U. S. Bureau of Mines and the U. S. Geological Survey, and described in considerable detail by G. A. Burrell et al.,1 and J. D. Northrup. A valuable article also appeared in one of the trade journals. Upon the enlargement of its engineering force, in the near future, the Department of Petroleum and Gas, of the State Mining Bureau, intends to conduct a more detailed investigation of natural gas production with the idea of being able to point out means of more economical use of this splendid natural resource. The largest natural gas field of commercial importance thus far developed in California is in the Midway district, followed by Santa Barbara, Los Angeles and Orange counties, in the order named. The Southern California Gas Company operates a 12-inch pipe line from the Midway field, a distance of 107 miles, to Los Angeles, where it supplies gas to local distributing companies. The California Natural Gas Company supplies gas to consumers in the Midway field and to local distributing companies at Fellows, Taft, Maricopa and Bakersfield. The Santa Maria Gas and Power Company distributes gas around Santa Maria, from wells in the neighboring oil fields.. 1U. S. Bur. of Mines, Bull. 88. 2U. S. G. S., Min. Res. 1914, Pt. II, pp. 793-795; 798-800; 804-805. Oil & Gas Journal, Tulsa, Okla., Jan. 13, 1916, p. 62. There were in operation in 1915 a total of 20 plants making casinghead gasoline by compression, with a total daily capacity estimated at 38,175 gallons, distributed as follows: At Santa Maria, after the gasoline is extracted, the remaining “dry gas" is taken into the pipe lines of the Santa Maria Gas and Power Company, by whom it is distributed to consumers, both domestic and commercial. "There are many peculiarities in connection with the extraction of gasoline from gas that are ascertained only through the closest study. The percentage of gasoline taken from the highest grades of oil, it is natural to infer, is much greater than that taken from low grades of oil, and yet this does not always prove to be the case. Much depends upon the amount of oil produced with the relative amount of gas coming with the oil. For instance, if. an oil well is a small producer of oil and a heavy gasser, the percentage of gasoline is much larger than it would be from the same amount of gas coming from a large production of oil. Old wells seem to be more prolific in gasoline than new wells. "Aside from the Salt Lake field, only a small percentage of the gas coming from low-grade oil has proved to be of commercial value. This is especially true among new producing wells where the oil is of a gravity below 18 degrees. "It is stated that as a general average gas coming from grades of oil of from 22°-25°, will make from four to six quarts to the thousand feet of gas; from 25°-29° it will average from two to three gallons per thousand feet, and above 29° it will average from three to five gallons per thousand feet. "The richest gas so far discovered in the state is that found in the old Newhall field. The wells are all very old and small producers of high-gravity oil." PETROLEUM. Bibliography: State Mineralogist Reports IV, VII, X, XII, XIII. Chief of the fuels of California is petroleum. A complete description of the industry is to be found in Bulletin 69, issued in 1915 by the State Mining Bureau. The oil production for California for 1915, as determined from the sworn statements made to the State Mineralogist for the Department of Petroleum and Gas, by all of the 363 producers, amounted to 88,240,620 barrels. This is doubtless the most accurate figure that has ever been obtained and it is of public interest to note that it is in close agreement with the figures given to the public at an earlier date by 40. & G. Journal, loc. cit. two private concerns, namely, the Standard Oil Company and the Independent Oil Producers Agency. Private parties publishing such information perform a distinct public service, the value of which should be more generally recognized, and encouragement given to enlarge its usefulness by touching upon the quality as well as the quantity of oil produced. Of the total of 88,240,620 barrels, 33%, or 29,587,163 barrels was produced by the five large refining and marketing companies, and 16%, or 13,704,982 barrels was produced by the several large concerns, such as the railroad companies, who use the oil in their own service. The remaining 51%, or 44,948,475 barrels is credited to the smaller producers who usually sell the crude oil at the well. To the above amount we have added 2,906,000 barrels consumed for fuel at the wells, making a total gross output of 91,146,620 barrels, valued at $43,503,837, which is a marked decrease both in quantity and value as compared with the year 1914. The average price per barrel, however, is slightly higher, as may be noted by the table giving average prices. The major portion of the loss is due to the decrease of over 10,000,000 barrels in the output of the Midway-Sunset field. Several causes contributed to the decline, among which may be mentioned: Overproduction for several years previous; the closing of South American markets, temporarily, as a result of the European war; the suits instituted and threatened by the Federal Government against operators on unpatented land; and the elimination of the gusher wells. Segregation of figures by counties can be made directly from field. reports in all cases except for Los Angeles and Orange counties, where the fields cross county lines. Figures on price are open to some question, as it must be remembered that a large portion of the oil does not enter the open market, but is consumed or refined directly by the producers. The prices given are averages for the oil which is actually sold. The business of producing oil is not so profitable as it should be. Many operators continue to drill wells when there is not a great demand, and overproduction, of course, depresses the price. Just profits and stable conditions are more nearly assured to the producer who is able to refine and retail his product. Realization of this fact is apt to lead to the formation of larger and stronger business units in the future. Doubtless, undue obstacles will not be placed in the way of such changes, if they are carried out with reasonable regard to public welfare. The fact can not be too strongly emphasized that our oil resources are far from inexhaustible, and that needless production hastens the day when we shall stand stripped of one of our most valuable assets. Raising oil from the ground and selling it at a price too low to return the invested capital with interest, is about the same as drawing gold from a savings account and disposing of it at a discount. As |