Evening Republican, Volume 23, Number 273, Rensselaer, Jasper County, 15 November 1920 — Page 2 Advertisements Column 4 [ADVERTISEMENT]

'- f fL .-. *X. ■-• •* - • wSSgsgsHfeHy Crude Oil and the Automobile ' <> •.- - »*. >% * -^.. •*' " './* S IN 1914<wben there were 1,009,000 automobiles in th* United States) oil producer* drilled about 25,db0 wells. The average paid for erode was 95c per barrel. In 1919 producers had a little discouragement. The price for erode oil felt off to 81e average, and ' they drilled* only 23,000 wells. These wells, how* . ever, proved exceptionally prolific and erode prices dropped to an average of 64c a barrel (40c in the Mid-Continent field). As a consequence of the over-production, the bottom dropped out of the gasoline market and low prices prevailed. * The low prices of crude made exploration of new fields unprofitable a and in 1915 only 14,000 wells were-drilled. This halt in production enabled demand to creep up on supply, and caused crude to advance until it reached sl.lO per barrel. ' Encouraged by the better prices offered, producers put down 24,000 wells*) 1916. The unprecedented demand aroused by the war caused petroleum prices to soar, and, notwithstanding the. activities in the producing field, prices have continued to advance because demand exceeded supply. In August, 1920, the number of new oil wells brought in for that month alone was 8,513 —the highest oil production mark in the history of the United States. Yet so great was demand that Mid-Continent crude stood firm at $3.50, and Pennsylvania crude at $6.10 per barrel, the present prevailing price*. The market price for crude is not apt to go off appreciably while demand continues to increase a* during 1920. \ • Since 1918 the number of motor vehicles in the United States has increased approximately t 7,459,607, and the forecast for 1921 is 10 million motor vehicles in the United States. The Standard Oil Company (Indiana) is straining every fibre and sinew of its highly • specialized organization to increase the yield of gasoline from crude petroleum. How well it is succeeding is indicated by the fact that an eminent authority state* that the Burton - process, originating in the laboratories of the Standard Oil Company (Indiana) ha* produced 40 million barrels of gasoline from heavy distillates, and has thus saved approximately 150 million barrels of crude oil that would otherwise have been necessary to produce. an equivalent amount of gasoline. Standard Oil Company 910 So. Michigan Ave., Chicago _ 2330

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