Papers - - Production - Domestic - Oil and Gas Development in New York State

On the bulk basis New York's contribution to the production of oil is small, representing, as it does, a bare half of one per cent of the annual total for the United States. Yet it has more importance than is implied by such a statement. Petroleum includes a variety of organic compounds, some more and some less valuable. It would be a fairer estimate of the situation to say that New York in recent years has produced around 10 to 12 per cent on the average of all Pennsylvania grade oil, the supply of which is strictly limited and the demand steady even in times of overproduction of other grades. One may not infer from this that New York and other Appalachian states enjoy an independent position in the market with a price structure uninfluenced by that of the Mid-Continent, Gulf or California fields. On the other hand, the recent market demoralization in the South and West brought about by uncontrolled production caused prices to drop to a point where the life of the local industry was seriously threatened. The current cost of producing oil in New York under the methods of water-flooding, by which most of the output is now obtained, has been estimated by competent authority at not less than $2.50 a barrel. The