in most lines of human endeavor, some operators have entered the oil business with more thought and preparation for the future than have others. The following table is compiled from the monthly statements of the statistical bureau of the Independent Oil Producers Agency: The following table is compiled from the monthly statements contained in the Standard Oil Bulletin: The proportion of heavy and light oil produced in the various fields is shown by the following figures, for which we are indebted to the Standard Oil Company. Oil below 18° Baumé may be considered as largely unrefinable, or fuel, oil; while the lighter oils yield varying amounts of refined products and a very large proportion of residuum or fuel oil. A very few years ago, the total amount of heavy oil was in excess of the light oil. Production of Light and Heavy Oil by Fields. Financial results of the oil business during 1915 are shown by the following tables. The variations there indicated in the results, as differing from those of 1913 and 1914 (see Bulletins Nos. 69 and 70) are probably due to the larger number of wells shut in and the decrease in new development work, as a consequence of the unfavorable market conditions in the first half of the year. Shut-in production, chiefly in the Coalinga field, was estimated at the end of the year at 12,000 barrels daily. The profitable, or dividend-paying companies received a slightly higher figure for their product than the average market price, probably due to the higher grade of oil produced by them. It is also noticeable that their production cost per barrel is usually lower than the average, due to the fact that their wells are more productive. Operating cost per well is not always lower for the dividend companies than others. Profitable operations seem to depend generally upon large wells, high-grade oil, and proximity to market. There is nothing to indicate that unnatural causes or manipulations have affected the profits of one producer against another. It should be particularly noted that both price and profits are greater in the Los Angeles and Orange County fields. than in others. Doubtless this is largely due to the proximity to market. There is a large supply of oil still in storage which, in many cases, might better be left in the ground and not subjected to losses by fire, leakage and evaporation as well as cost of storage. According to the Standard Oil Company, the stocks on hand on Dec. 31, 1915, amounted to 57,147,051 barrels, a decrease from the 58,526,274 barrels on hand Dec. 31, 1914. The figures are practically the same as those of the Independent Oil Producers Agency. The oft-repeated statement that this is less than a year's supply is of little moment in the face of a steady production which can supply the regular demand. It would be extremely interesting to know what portion of the stock on hand is low-grade oil. In view of the difference in value and marketableness of various grades of oil, the concerns publishing monthly statistics would render to the public and themselves a distinct service by showing something of the amounts of high and low gravity oil produced and stored. Financial and Operating Condition of California Oil Fields, 1915. |