distillates. These distillates can be purchased for five cents per gallon at 

 this time. An efficient gasoline engine will develop one horse power on 

 from one-eighth to one-tenth of a gallon of distillates per hour, depending 

 on the quality of distillates and efficiency of the engine, making the fuel 

 cost per horse power per hour from 0.5 to 0.625 cents. 



The Oil Industry 



By DR. C. T. DEANE, 5ecrctary Pacific Coast Petrolcnm Hlaers' AMociatfoa 



IN treating of the oil industry of California I shall confine myself to 

 facts, and all figures will be most conservative. 

 While we have known of the existence of petroleum for the past 

 twenty-five years, only for five years has Its importance been appre- 

 ciated, and even now there are many who smile when you tell them 

 of the great changes the use of crude oil is bound to produce in the 

 future. 



Development work has determined the existence of a well-defined oil 

 belt, extending from Siskiyou to San Diego. 



There is nothing to prevent us from entering into manufacturing com- 

 petition with the Atlantic and trans-Mississippi States, for oil at less than 

 $1 a barrel is as cheap as coal at $3 a ton; and then our climate, par- 

 ticularly around the Bay of San Francisco, Is capable of bringing forth 

 the best efforts of the mechanic. 



The Southern Pacific and Santa Fe railroads use oil exclusively in 

 their locomotives and machine shops. A locomotive uses about 23 barrels 

 of oil a day; it is estimated that the Southern Pacific Railroad thus saves 

 over $5,000,000 per annum. 



The increasing production of oil during the last five years has been 

 from 1900, 4,000,000 barrels; 1904, 29,000,000 barrels; 1905, estimated, 

 35,000,000 barrels. 



California produces more oil than any other State in the Union. 



The producing fields of California are, beginning at the Southern end 

 of the State, as follows: Fullerton, Puente, Whittier, Los Angeles, Newhall, 

 Ventura, Summerland, Maria, Kern River, Sunset and Midway, McKittrick, 

 Coalinga; Santa Clara and San Mateo Counties. 



None of these fields have been brought into full production. The 

 greatest oil field yet developed in California and what may prove the most 

 prolrfic district in the world, with, perhaps, the exception of Baku (Russia), 

 Is the Kern River; here we have over 4000 acres of proven land, capable 

 of developing on any acre a well of not less than 100 barrels a day; at the 

 present there are over 600 wells pumping, which produced In 1904 over 

 17,000,000 barrels of oil. Kern River has already produced over 65,000,- 

 000 barrels and is producing 40,000 barrels a day. 



There are in the State at the present about 3,000 wells. The con- 

 sumer in San Francisco Is paying now about 65 to 70 cents a barrel. 



At the beginning of this year there were forty refineries in the State, 

 making kerosene, distillate, lubricants, asphaltum, coke and many by- 

 products; the great refinery at Point Richmond on the Bay of San Fran- 

 cisco, constructed by the Standard Oil Company, in connection with its 

 pipe fine, 278 miles long from Bakersfield and a branch to Coalinga, is one 

 of the largest in the United States, having a capacity of handling over 

 10,000 barrels of oil a day. 



It was believed that California oil, with an asphaltum base, could not 

 be refined for kerosene at a profit, but the ghost of that fallacy has been 

 laid to rest, and most of the kerosene used on the Pacific Coast to-day is 

 made not twenty miles from the city of San Francisco, instead of importing 

 It from the Atlantic States. 



There is rapidly developing a large demand for oil in the sprinkling 

 of roads; an oil road is so much smoother, more durable, cleaner and less 



