PRICE OF BENZINE.

Auckland Star, Volume XLVII, Issue 167, 14 July 1916, Page 6

PRICE OF BENZINE.

BEASOHS WHY IT ADVANCED. GREATLY INCREASED "consumption. - .CRUDE OIL COSTS MORE. Wjth the rapid increase in the number of automobiles, and the steadily growing •use of motor traction generally, the question of~the supply and cost of petrol has become a matter of great import-1 ance. In the "Oil, Faint, and Drug Reporterf of New York, under date of May Ist, 1916, appears an article that throws some light upon the position. This 6tate3 that "during the investigation by the Federal Trade Commission subsequent to the report submitted to Congress as to the petroleum situation in America, several contributing factors to the increased cost of petrol were discovered. (1) The decline in possible production of petrol is 20 per cent. (2) The etock of petrol on hand had been reduced 27J per cent., leaving a reserve supply less than 30 days' consumption on hand, January 1, 1916; and (3) an estimated increased consumption during the current year of at least 10,000,000 barrels. In the investigation now being carried on, the Commission is covering these points as probable factors in determining the cost of petrol to the consumer—forces of demand and supply as affecting the price of crude oil exports and imports; deterioration in the quality of crude; increased cost of Tefining; improved methods, and speculative holding of crude oil and petrol." The causes of the C 2 per cent, approximate increase in the price of petrol during 1915 in the United States, are summarised as follow: —Increased use of motor engines of all descriptions; marked increase in the number of automobiles; rise of 55 per cent, during 1915 in the eo3t of crude oil; and the higher cost of all commodities as a result of the European war. One significant point touched upon is the heavy decline in production of right gravity crude oil in the Cushing field, and the fact that the petrol content of all grades of crude petroleum has been steadily declining during the past few years. Secretary Lane, of the U.S. Department of Interior, presented a report to the Senate recently recommending the use of heavier distillates approaching kerosene in internal combustion engines, also the general use of processes whereby petrol is made from kerosene and other less valuable petroleum oils. It is also suggested that centralisation and •unification of effort by the establishment of a governmental mode of conduct, with a comprehensive search department, would tend to extend the resources of the country to an extent not now deemed possible. Some idea of the vastness of the oil trade in America may be gathered from the fact that in New York Bay, on the New Jersey side, are works covering in all four square miles. Ships going to the wiharves have to be towed there, as all fires in the engine-room are put oat, and no lights are allowed in the officerss' or men's quarters. Hundreds of raihvay tanks pour oil into these works daily, and steamers ply constantly from producing ports miles away. Enormous retorts and distilleries treat the crude oil, and in other parte of the works the tins are made. The cans when filled travel Iby an endleea chain to the timber eheds, ■where they are put in caeca, after wlrWi. the article is ready ior ehipment to* the egwumere alLover-Ahe world. .'