OIL-WELLS AND OIL-TRADE. One of the most remarkable trades, suddenly sprung up into importance in modern times, is that in oil obtained from subterranean sources. See NAPHTHA.
It is now known that oil-bearing mineral beds exist in various parts of America, as well as in the older continent; but the richest deposit hitherto discovered is in the United States, in Venango co., at a spot in Pennsylvania not far from the point of junction of that state and New York state with lake Erie. Oil had for many-years been seen floating on the surface of the water of a well near Titusville; it was taken up by absorption by means of flannel, and applied to medicinal purposes. Dr. Brewer, in 1853, suggested tha:dt might possibly be used for lubricating and for illumination; and in the following year was formed the Pennsyvania rock-oil company. This company languished until 1858, when col. Drake, manager of the company, and Mr. Bowditch, resolved to sink a well purposely for oil. They were amply rewarded, for oil was pumped up at a rate varying from 400 to 1000 gallons daily. The news being spread abroad, adventurers quickly came to the district, which obtained the names of Oil Creek and Petrolia; and they experienced every degree of fortune from utter failure to splendid success. By 1860 it was known that oil existed beneath 100 sq.m. of country, at a depth varying from 70 to 500 feet. In 1861 the first large flowing well was struck—that is, a well up which the oil rose so profusely as to flow over the surface., yielding 1000 barrels (of 40 gallans each) per day. "No ruthing;.eitterprise-.1100:eyer offered sucliBOdext foitnnes. A well costing a few thousand dollars might yield from 100 to 2,000 barrels of oil daily with no expense for pumping. The Noble well yielded, in little more than one year, 500,000 barrels of oil. The Sherman flowed 450,000 barrels in about two years." At first the uncertainty in this trade was something extraordinary. On one occasion a well was bored with the usual centerbit to a considerable depth without any oil being found. On withdrawing the bit, and putting in the rimer or rimmer to widen the hole, a vein was struck at the side. The bit had just missed the vein, and the well would have been a failure had not the orifice been enlarged. This incident gives meaning to a phrase much used in America—that of " striking oil." Another well was bored, flowing a large amount of oil; but by the time the owner had built tanks to collect it,. the oil had altogether disappeared. The deepest well sunk in the district, more than 1Q00 ft., yielded no oil whatever; and altogether only 15 per cent of the horinas were successful.
When the oil began to be sent in large quantities to New Fork and other towns, the cheapness of price led to its application as lamp oil, and in many other ways; the increas ing demand brought the price up again to a reasonable figure at Petrolia, and the price induced the sinking of new wells. Small villages rose into large towns, with 'banks, hotels, and wealthy people, all, however, begrimed with oil. Titusville, which had 243
inhabitants in 1855, rose to nearly 9,000 in 1870. Oil city has now become a town of great huportance. The new oil exchange is a handsome building, providing amply• for the requirements of "the most important petroleum market in the world." The following table shows the production of petroleum in 1870: Gallons. Value in Dollars Kentucky 4,000 650 Ohio 2,038,543 228,488 Pennsylvania 171,207,622 18,045,967 W. Virginia 8,013,340 1,029,119 The production for the year ended June, 1878, bad risen to the enormous figure of 619,000,000 gallons. The exports were about 66 per cent of the production, and were valued at $46,574,970. In 1876 it was estimated that 20,000 oil-wells had been duff in Pennsylvania and West Virginia, at a cost of $192,000,000. They have yielded oil to the value of $300,000,000 at the wells, or rather more than $400,000,000 at the sea-board.. An important new oil district has been discovered at Bradford,. in McKean co., Penn.
In Canada there are four areas in which oil-springs are found—two in Enniskillen, a third in Mosa and Oxford townships, and a fourth in Tilsonburgh. The Canadian oil is more troublesome to purify than that found in the States. Although it occurs abun dantly, the production in 1878 was not more on the average than 1200 barrels per day. As explained under NAPHTHA, natural petroleums and the paraffin oils distilled from shale or coal very closely resemble each other, so that both kinds are used for the same purposes. In Scotland the parailine-oil industry is an important one, yielding not much less than 30,000,000 gallons of crude oil annually, from which solid paraffin and other products are obtained as well as lamp oil. See SHALE. In Prussian Saxony the Same or very similar products are distilled on nearly as large a scale from an earthly. lignite found in the brown coal formation between Weissenfels and Zeitz. In Galicia, chiefly in the Borysiaw district, there are both a native oil and a native bitumen (ozokerite) found, which in 1873 yielded burning nil and paraffin to the value of nearly £500,000, and the industry is still prospering. There appears to be also a considerable supply of petroleum or rack-oil in Roumania.
In 1665 a shale was discovered in New South Wales, similar to the Bogliend coal or Torbanehill mineral of Scotland, but richer in oil, and more free from sulphur. When distilled at Sydney, from 100 to 160 gallons of oil were obtained from one ton of shale., The seam in Hartley district is 51 ft. thick. Of this substance the South Wales shale and oil company raised 15,598 tons in 1876, valued at.£46,794; and there appears to be an extensive deposit of it in the district. These shale-oil industries are held in check by the low price at which American petroleum is usually sold; and in July, 1879, it was lower than it had ever been, namely 60. per gallon in the refined state in the London market.