Large saline deposits exist, some in basins with no outlet, in the central Provinces, some of volcanic type on the Puna of Atacama, others near the ocean not far from Bahia Blanca. Some of them have been exploited. Importation of salt has diminished and home production is expected shortly to suffice for local needs.
Petroleum is now exciting the greatest interest. Oil is known to exist in four regions with others reported, but only one has been thoroughly tested, that at Comodoro Rivadavia. Borings carried on here by the Government struck oil at a depth of about 1800 feet in 1907. In 1910, 12,000 acres were reserved for Government exploitation which has since been carried on. The place is near the coast about 850 miles south of Buenos Aires. Development has been rather slow, but in 1916, 25 wells had been sunk and 21 were in active production of about 14 tons each per day. There were four steel tanks and other storage space, in all about 26,000 cubic meters, one such of this oil equalling .93 metric ton. In 1917, 36 wells were in production and 19 being bored. In 1918 about 1,250,000 barrels were produced. Tank steamers are provided, and storage tanks in Buenos Aires. An oil tank is begun in Rosario. Others are to be constructed in Buenos Aires, Bahia Blanca, Puerto Militar, Santa Fé, and Mar del Plata. The oil is heavy with an asphalt base; distilled, it yields 1.5-3.5 per cent of naphtha and gasoline, 15-19 per cent of illuminating oils, and 77-85 per cent of lubricating oils, fuel, and coke. Heavier than the better grades of United States oil, it has been used almost entirely as fuel, though it is said that it will distil readily. This will undoubtedly be its chief usefulness, to serve instead of coal. It is employed by a number of factories. A new Government well, 1921, was producing 34,000 barrels a day, and prospects are of the best. Millions have been appropriated for tank steamers, machinery, and for intensive development of the oil fields. The price rose from about $10 a ton in 1916 to $40 in December, 1917. Government control will probably continue, especially because the oil is likely to be used by the navy.
A few private companies are operating outside the restricted area, using 12-inch tubes, while the Government has used smaller. One Company with a capital of $2,000,000 has with other equipment 4.3 miles of railway connecting with the Government railway to the port, also two miles of pipe line. Many of the frigorificos use oil, mostly Mexican. The West India Oil Company imports from the United States or Mexico, mainly for refining.
The other fields are the Salta-Jujuy, the Cacheuta, a few miles south of Mendoza, and the Mendoza-Neuquen field, 700 miles southwest of Buenos Aires. In these fields the oil has a paraffine base, a sample from Jujuy showing 5 per cent of light oil, 30 per cent of kerosene, and 52 of lubricating oil; a grade equal to that of Pennsylvania or Ohio. One such field in Neuquen justifying immediate development is favorably located 824 miles from Buenos Aires near the Ferrocarril del Sud, which will provide special cars and tariff, so that speedy results are hoped for.
Industries including Manufactures
While Argentina is primarily an agricultural and pastoral country and is likely so to continue, a fair amount of capital is invested in manufacturing and in other commercial projects, some of the capital European. The largest sum is invested in Light and Power Companies; for all cities of any size have electric lighting and many, electric traction. About $128,000,000 have been thus invested; in packing houses 40 millions, flour mills 7; in sugar refineries 50, wine making 78, foundries and metal works 25, dairies, etc., 43, tannin extract, etc., 33, lithographing and printing 12, breweries 14, construction companies 11, these all millions. Other companies with investments of 5-10 millions are shoes, saw mills, jute and cotton sacks, carpentry, painting and horse-shoeing together; liquors, tanneries, cotton and woolen mills, furniture, trunks and tapestries, leather goods, brick kilns, clothing, wagons and carriages, ice and aërated waters, ore smelting, grain elevators; many more with investment of 1-5 millions, besides a total of 47 million in still smaller companies.
Of other lines, in 1916 there were 71 telephone companies, capital $15,000,000; 143 banks, capital about $500,000,000, employing 10,000 persons; 85 insurance companies. The companies of all kinds generally are on a sound and paying basis, in spite of high cost of fuel and power. The two leading department stores in Buenos Aires, equal to our best in character, are both British owned; there are many other shops of every kind of the highest class.
The tramways and subway of Buenos Aires are noteworthy. The tramway system has been called the best in the world. There are 500 miles of lines, carrying about 400,000,000 passengers yearly. Packing like cattle is not allowed, the number of persons per car being strictly limited. The subway 8.7 miles long carries 2,500,000 with a splendid system and fine service including one for freight. Extensions were postponed on account of the War. The water supply, taken from the river, and the drainage system are of the highest character. A revenue of $7,000,000 is received by the Government.
Dairy Products. The dairy industry is of quite recent development; butter formerly imported in quantity is now becoming an article of export. From 1914 to 1918 the production of cheese increased 277 per cent, of butter 162 per cent. Three thousand existing creameries, most of which are in the Provinces near the Capital, in 1918 made 50,000,000 pounds of butter, 40 million of cheese, and 15 of casein. More than half the butter and some cheese was exported.
The growth of other industries has caused a great falling off in many imports; of preserves 62 per cent, of ham 96, preserved vegetables 87, beer 98, cider 55, common wine 85. Other things as chocolate, macaroni, fruit crackers, shoes, and cloth have decreased 50 per cent. Of fideos enough is produced for home use, and to export in 1918 over 2,000,000 pounds.