During November, 1919, a new field at Naranjos was developed by the Mexican Eagle Co., and the first three wells to come into production, commenced to yield over 30,000 tons daily.
It says much for the enterprise of the Pearson (Lord Cowdray) interests that they have been able to build up such a remarkable business in Mexico’s oil industry in so comparatively a short space of time. The production of crude oil, as everyone knows, is but the first link in a long chain of commercial oil operations. To-day, the Mexican Eagle Oil Company owns considerably over 250 miles of pipe-line (mostly of 8-inch capacity), possess several miniature railways, and on the fields of production has bulk oil storage accommodation for several million barrels of crude oil. It has also two large refineries—one at Minatitlan and another at Tampico, which together are capable of handling over 5,000 tons (about 35,000 barrels) of crude oil daily, and turning the same into a complete range of high-grade products—motor spirit, illuminating oils, lubricants, fuel oil, paraffin wax, and an asphalt for road-making.
An interesting equipment of this Company in Mexico is that of its sea-loading pipe-lines at Tuxpam. Here, the water inside the bar is too shallow to allow the gigantic bulk oil-carriers of the Company’s associated concern—the Eagle Oil Transport Company, Ltd.—to come alongside and load. Pipe-lines have accordingly been laid on the bed of the sea reaching out to a loading terminal a mile and a half out at sea. Here, the pipe-lines are connected with the steamers by means of flexible hose, and three or four tank vessels can be loaded simultaneously from the storage tanks on shore. In one recent twelve months alone over 200 oil tankers were so loaded in this way, and on the average, each was loaded and dispatched within 2½ days, for the pipe-line facilities permit of 10,000 tons of oil being pumped into the vessel’s tanks every 24 hours.
INSIDE THE DERRICK OF AN AMERICAN OIL WELL
There are several large amalgamations of capital interested in the development of the Mexican fields—American and English, while, prior to the war, the Germans had anxious eyes upon this growing industry, and even formulated plans whereby German interests would be largely represented in its future.
While on the subject of the Mexican fields, might I say that no other oil-producing regions have, in the short space of time during which developments have taken place, exercised such an influence upon the international oil situation as has Mexico. This may be traced to the fact that Mexican oil is an admirable liquid fuel, and as such is now in regular use the world over. The vast consuming centres in the South American Continent have seen that, whereas coal is very dear, it is possible to secure almost unlimited supplies of Mexican fuel oil almost at their own doors, while overseas, consequent upon the advent of the fuel oil age, Mexican fuel oil is playing a most important part, and to-day is in great demand for the mercantile fleet.
Russia.—Long before the commercial value of petroleum and its products was established, Baku—the present centre of the Russian petroleum industry—had become famous for its “Eternal Fires,” and it was to that place the Parsees made pilgrimages for over 1,000 years; in fact, centuries before the Russians occupied the Caucasus, the tribes of Persia eagerly sought the oils of Baku for their curative qualities.
The Russian oil-fields have an output of, approximately, 10,000,000 tons annually, or, roughly, 15 per cent. of the world’s total production of crude oil. Since the time when the petroleum industry was placed upon a commercial footing, the Russian fields have produced 230,000,000 tons of petroleum. Enormous though this quantity is, it has been more than doubled by the United States.
The oil-fields of Baku have gained a distinction for the reason that numerous individual wells have given forth a flood of crude oil which has, with very few exceptions, been unknown in other petroliferous regions. The Baku fields proper embrace the districts of Balakhany, Saboontchi, Romany, and Bibi Eibat: the first three districts stand on a plateau but a few miles from Baku, while Bibi Eibat is located quite near the Caspian Sea, on a bay from which the field takes its name. One remarkable feature of these fields—as showing their prolific oil content—is that the four main oil-producing districts in Baku have an area of less than 4,000 acres. It is in this locality that the Russian petroleum industry, having had its birth, became centred, and though it is known that there are several really promising oil areas in this south-western part of the Caucasus, the fact that the lands belong to the State has been a sufficient stumbling-block to development in the past.