i
24 Capital Journal, Salem, Ore., Thursday, Nov. 10, 1949
TODAY'S BUSINESS MIRROR
Mild Weather Gives Pipeline
Oilmen Worries and Shivers
By SAM DAWSON
New York, Nov. 10 M") A mild fell and the pipeline that
attaches the easterner'! furnace to JfTexai natural gas well
give the fuel oil man the shivers. f
Fuel oil producers started raising prices as the summer ended.
Now, in the east, they are granting price concessions to whole
sale purchasers.
Oil storage tanks are well fill
ed at the producer's level. But
mild weather induces the home
owner to put off buying. And
jobbers have resisted oilmen's
pleas to stock up, apparently
satisfied that fuel oil Is going to
be plentiful, and that if another
open winter is in "the making,
oil prices will be soft.
As the tentacles of natural gas
pipelines push steadily north
eastward Into the oilman's rich
est market, he is losing some of
that elation he has felt since the
war when mounting coal mining
costs sent that fuel up into oil
price bracket.
At the University of Illinois
they recently figured out that
according to the amount of heat
each fuel gives off, you can heat
your house at the same total
cost whether you pay eight cents
a therm for gas, 11.2 cents a gal
Ion for fuel oil, or $20 a ton for
' anthracite. Therefore, it was
pointed out this week to the
8,000 oilmen at the Chicago
meeting of the American Petro
leum Institute, in some localities
none of the three fuels enjoys
much of a price advantage any
more. The oilmen are doing all right
of course. This year they are in
stalling around a half million
new oil burners, nearly a third
more than last year. They are
selling more and more fuel oil
Since 1939 the country's total
use of oil for both heat and
power has gone up 66 per cent.
However, in the same period
the nation's use of natural gas
went up 97 per cent. And the
oilmen are warned by a New
York marketing consultant E.
Holley Poe, that they haven't
aeen the half of it yet.
Natural gas pipelines authori
zed by the federal power com
mission in the last 12 months
will add a daily capacity of 2.6
billion cubic feet to present ca
pacity, or the equivalent in en
ergy at an annual rate of 163
million barrels of oil. Poe re
minded the oil men that this one
year's addition to natural gas ca
pacity is equal to half of all the
distillate fuel oil they sold last
year. Natural gas transmission
lines now total more than a
quarter million miles, and last
year the Industry sold nearly
three trillion cubic feet of gas.
In Chicago some of the oil
dealers are calling this natural
gas invasion of the northeast
dumping of cheap laborless fuel
stressing the refinery, tanker,
tank wagon and local distribut
ing labor that Is employed by
the fuel oil men to get oil to
your furnace, as compared to
the relatively simple business of
piping gas across the land. And
the oilmen say the government
ought to prevent it.
But Poe has a word for that,
too. He warns them that any
new federal interference with
gas "must, and will, be accompa
nied by further regulation of the
oil industry."
The reason oilmen fret most
about the weather in the north
east Is that 45 per cent of all
the nation s oil burner Installa
tions are in New York, New Jer
sey and the six New England
States. It takes a lot of cold
weather elsewhere to offset the
. sales drop when a warm sun
shines in the northeast.
A year ago fuel oil sold as
12.9 cents a gallon in New York,
Now it sells at 11.9 cents, but
some of the big oil companies
have Just started wholesale buy
ers an allowance of 610 of a
cent a gallon, to move oil out
of the terminals. The retail price
so far has not been affected.
Oil men, however, renew their
warning not to count your
weather before it snows. The
warm days may end soon. Last
winter's mildness was unusual,
andj' there's no assurance of a
repaat performance. If it's a
cold winter, you'll need more
fuel; the price will be firm, and
you'd be wise the fuel dealer
sayi to be ready.
t
Shippers Opposed to
Higher Truck Rates
Portland, Nov. 10 (JP) Spokes
men for shippers testified yes
terday against freight rate
boosts asked by Oregon truck
er. George M. Martin, official of
t)le Utah Canning company, Mil
tjin, said any boost would men
ace the competitive position of
northwest canneries. He said
the profit margin in the industry
already was too low. He spoke
for the Northwest Canners' as
sociation. H. A. Holmes, representing
Medford area fruit growers, said
tjhe industry couldn't afford
higher rates. He urged the state
Utilities commission examiners
to exempt fresh fruits from any
yite Increase.
jUOO-Ton Freighter
Breaks Amidships
! Seattle, Nov. 10 Wt The 7,-
3 00-ton freighter Andalucia
roke amidships on its rocky
underwater pinnacle last night
apd today, the coast guard said,
the bow and stern sections are
about 100 feet apart.
, A three-man salvage crew,
which went aboard last evening
to attempt removal of the ves
sel's deck cargo of lumber, was
removed when the ship began
to crack.
The Andalucia went aeround
tost Friday when the master at
tempted to beach her after fire
broke out in the engine room.
Dallas Reservoir
Undergoes Tests
Dallas, Ore., Nov. 10 The
new 3,000,000 gallon water res
ervoir on the west Clay street
heights is being tested for water
leaks. The reservoir is filled
at different levels, each being
held for 48 hours, with a maxi
mum of one-eighth of an inch
drop.
The new reservoir is sched
uled for use early next month,
according to E. L. McCleary,
water commission manager. The
new basin has been sterilized
and ready when the final tests
are made.
Construction has been by F
B. Miller and company, Salem,
and provides nearly three times
the capacity of the old reservoir
and when used in combination
with it, stores more than 4,000,
000 gallons of water.
Noah's Ark was calked with
pitch, a form of petroleum gath
ered from the shores of the Dead
Sea.
A trace of chromic oxide
causes the red color of the ruby.
NO
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