The Petroleum Industry

DURING 1910, crude-oil production in the United States reached a record level averaging about 3.700,000 barrels daily. Export declined sharply while imports increased with the result that large quantities of crude oil were run to storage during the year. Imports consisted largely of residual fuel oil brought in from South America bit because of a shortage of that product in this country and of Mexican crude. The price of petroleum products followed the declining trend of the last three year resulting in serious disparity between crude and product prices. This condition was aggravated in some areas by the increasing production of distillate by recycling operations and by the high tanker rates prevalent in the last two months of the year. As a result two small purchasers found it necessary to reduce crude-oil price in the Corpus Christie area of Texas.