Albert Lidgett

The remarkably perfect methods by which petroleum and its products are transported by land and sea before they reach the consumer may not at first sight appear to be anything but commonplace, but a moment’s reflection will be sufficient to suggest that a vast and complete organization must be required in order that petroleum may be brought from practically the ends of the earth to the consumer in the most remote village in the British Isles. But it is the demands of necessity that have been responsible for the building up of this vast organization of transportation which represents, in the United States alone, the investment of many millions of pounds sterling.

Taking first the methods of oil transportation by land, in no other oil-producing country do we find such an elaborate system for dealing with enormous quantities of petroleum as in America, for it is safe to say that at least 500,000 barrels of crude oil have to be dealt with daily at the present time.

Going back to the time when petroleum first became a commercial commodity—when the first wells in Oil Creek commenced to open up a period of new prosperity for the United States—these wells were situated so close to the water that their product could easily be loaded into canoes and barges, and floated down the Alleghany river. In the dry season, the flow was insufficient to float the craft, and then some hundreds of the boats, carrying each from 50 to 1,000 barrels, would be assembled in a mill-pond near the wells, and the water impounded while the loading was in progress. Then the gates would be opened, and the fleet, carried on the flood of rushing water, would be hurried down the river in charge of pilots. The fleet of creek and river boats engaged in this novel work at one time numbered 2,000.

But, as the production of oil increased, and new districts were successfully tapped, it became obvious that some different method of handling the crude oil would have to be adopted. The inland wells could not get rid of their production, and it is not surprising to find that at one time—about 1862—crude oil prices at the well fell to 10 cents per barrel. A system of horse haulage was initiated, and in time thousands of animals were required to haul the oil from the inland wells to shipping points. The waggon train of the oil country in the pre-pipe-line days at its maximum consisted of 6,000 two-horse teams and waggons, and a traveller in the oil region in those early sixties could not lose sight of an endless train of waggons each laden with from five to seven barrels. The roads were almost bottomless, and the teamsters tore down fences and drove where they liked. These men, always of the roving, picturesque type, would earn anything from 10 to 25 dollars per day, spending the most part in revelry on the Saturday night.

It was at this time that a Bill was introduced into the States legislature authorizing the construction of a pipe-line from Oil Creek to a spot known as Kittanning, but the opposition of 4,000 teamsters defeated the Bill and the first effort to organize an oil pipe-line company. The modest beginning of the present-day system of oil transportation on land by pipe-line was due to the enterprise of a Jerseyman named Hutchings, who laid a 2-inch pipe from some wells to the Humbolt refinery. The teamsters, foreseeing the possibilities of this innovation, proceeded to tear up the line, and warned the oil-producers not to adopt these new methods of oil transportation.

But Hutchings was undismayed, for he laid a second line, this being composed of cast-iron joints caulked with lead. Although this was impracticable, the teamsters again wrought vengeance on the proposition, and completely destroyed it. Hutchings still persisted in his efforts, but died—disappointed and penniless—a genius living a little before his time.

A PRIMITIVE METHOD OF TRANSPORTING OIL

At the end of 1865, a Henry Harley commenced the laying of a pipe-line to the terminus of the Oil Creek railroad, but teamsters cut the pipes, burned the collecting tanks, and retarded the work in every possible way. Armed guards eventually came on the scene, the mob was quelled and dispersed, and the line completed. It was of 2-inch diameter, and laid to handle 800 barrels of oil daily: this was the first successful and profitable pipe-line on record for the handling of oil.

From this time, the number of pipe-lines have multiplied, until to-day there are thousands of them scattered throughout every oil-producing field of America. The first long main transportation line for oil was laid in 1880 from Butler County to Cleveland, a distance of over 100 miles, and immediately after its completion, trunk lines were commenced from the Bradford oil region to the Atlantic seaboard. The popularity of this new method of oil transportation may be judged from the fact that within three years from the completion of these first propositions, the National Transit Company possessed over 3,000 miles of oil pipe-lines, and had iron tank storage for 35,000,000 barrels of crude oil.

Then a few master minds came to the front, and loyally supported by Mr. John D. Rockefeller, of Standard Oil fame, they undertook the herculean task of practically girdling the States with a system of oil pipe-lines that has no parallel anywhere. They eliminated the jaded horses, oil-boats, wooden tankage, and slow freights, tedious methods, and questionable practices of handling petroleum, and substituted therefor the stem pump, the iron conduit, the steel tank storage, and systematic and businesslike methods which soon commanded the confidence and respect of all oil-producers. They extended their pipe-lines to practically every producing well and established a transportation system which serves the industry to-day as no other on earth is served. The advantages of the modern pipe-line to the oil-producer are obvious. A pipe-line connection to a producer’s tank ensures prompt service and a cash market for his product at all times. The small line connected with his tank conveys the crude oil therefrom, either by gravity or by means of a pump, into a receiving tank of the gathering or field lines of the pipe-line system, from which it is pumped into the main trunk pipe-lines to the refineries.

The system by which the producer can have payment for his oil at any time, for he is credited with its value when it once enters the pipe-line, is the perfection of simplicity, accuracy, and efficiency. The pipe-line of which the gathering or field lines are composed varies in diameter from 2 to 8 inches, the joints of which are screw threaded. The main trunk lines are from 6 to 10 inches in diameter, and pumping stations, supplied with powerful plant driven by steam or internal combustion engines of the Diesel type, are located at suitable points of the line. According to the nature of the crude oils to be passed through the pipe-line must the erection of pumping houses be governed: for instance, in handling the heavy Californian or Mexican crudes, the pumping stations have to be much nearer each other than when a lighter crude oil is transported. Some of the heavier oils have, in fact, to be heated before they enter the pipes at all.

As already mentioned, the total oil transported to-day by the American pipe-line system exceeds half a million barrels daily. The lines themselves—all laid, of course, below ground—are so unobtrusive and do their work so quietly and unseen, that they attract no attention, and yet they are vastly important to not only the business of the States, but to those myriads of consumers abroad.

It is, in fact, impossible to over-estimate the importance of this up-to-date system of oil transportation in the United States as it exists to-day. To show the impossibility of conducting the present-day American petroleum industry without the use of pipe-lines, let me give a few facts. The large oil-tank cars, which are not unusual sights on our railways, hold, at the maximum, about 25 tons of oil. Excluding California altogether from these illustrations, the half-a-million barrels of oil which are transported daily in the States by pipe-lines would fill over 2,500 tank cars. Taking 25 cars to make up a freight train, it would require fully 100 trains daily to transport the oil that now goes by pipe-line, and inasmuch as it is estimated that the oil on the average is transported overland (or, rather, under-land) 1,000 miles, it would require, approximately, 200,000 railroad tank cars to do the daily work in connection with the transport of oil in the United States east of the Rocky Mountains, for the average movement of tank cars is 30 miles daily, and all empty cars must be returned. No less than 8,000 railroad engines would be required to do this work, which, on the face of it, is a railway impossibility.

I am afraid I have devoted more space to the question of pipe-line transport in the States than the confines of this little work warrants, but the subject is one of great interest to all who would know the magnitude of the organization which is comprised in the limits of the petroleum industry.

The United States, however, is but one of the large oil-producing countries where the pipe-line system for the land transport of oil has become the backbone of transport. In Russia, for instance, the fields of production are situated hundreds of miles from the exporting ports, and, following upon the principles which obtain in the United States, the pipe-line system had, perforce, to be adopted. In this respect, however, Russia has still a great deal to learn from our Western friends, and the conservative policy which permeated the Russian Empire as a whole has precluded the making of much headway.

The Russian oil-fields—those of Baku and Grosny—are situated at great distance from the coast, and the necessity of connecting both fields with the export port of Batoum, on the Black Sea, has frequently been put forward as a project offering the one solution of the difficulties attending the retention of a large export oil trade. The Grosny pipe-line is still a scheme for future solution, but that affecting Baku has been solved by the laying of a pipe-line from Baku to Batoum. This line, which is approximately 650 miles long, runs direct between the two oil centres and, assuming it operates 24 hours in the day, has a capacity of transporting over 3,000 tons of oil daily. Inasmuch as the Russian oil refineries are at Baku, the line is used solely for the transportation of the refined products. The line itself is laid alongside the railway line of the Transcaucasian Railway, at a depth of 4 feet, but many strange stories are related as to the tapping of it at various points, and a lucrative trade being done in the oil so caught.

When normal conditions return to Russia and the petroleum industry rights itself, Russian petroleum products will again come on the international markets, and in this respect the Grozny oil will be able to secure an outlet via Novorossisk.

Roumania can also boast of a main trunk pipe-line for refined products from the inland refineries direct to the port of Constantza. This important project, which has been carried out practically by the Government itself, was just about ready for service when the European War broke out: it has, therefore, had little time in which to display its practical use to the petroleum industry at large. When one recollects that Roumania’s future, so far as the petroleum industry is concerned, lies in the direction of the building up of its already established export trade in petroleum products, the necessity for such a trunk pipe-line to the seaboard has been obvious for many years. Unlike the case of the United States, there are no interesting events to recall which delayed the advent of this new form of land oil transportation. There is only one oil pipe-line of any considerable length in the United Kingdom and this runs across Scotland from Old Kilpatrick (on the west) to Grangemouth (on the east coast), its terminal being in close proximity to the naval base at Rosyth. The line, which is 36 miles long, was laid to circumvent the activity of enemy submarines, but was only completed in November, 1918, after the conclusion of the European hostilities.

The one other important oil-pipe-line which calls for mention is that connecting the oil-fields of Persia with the coast. In this scheme, the British Government is heavily interested, and, though there has been much criticism of its action, there is no doubt that, in due time, the Persian fields will play an important part in the supply of petroleum products to England, and, in that connection, the Persian pipe-line must naturally prominently figure, since, without it, there would be numerous difficulties to be contended with in getting the oil to the coast.

The carrying of large quantities of petroleum products over the seas of the world is a subject which has taxed the minds of experts quite as much as that of land transport. For many years it was the rule to ship petroleum products overseas in the ordinary barrels (approximately, 42 gallons each) to the consuming countries. It was a costly business, for, apart from the initial cost of the barrels themselves, they took up a very considerable space on the vessels, which was not proportionate with the quantity of oils carried. Leakage also played a very important rÔle in this ocean transport, and, generally, the principle left much to be desired. The Atlantic was doubtless the first vessel designed to carry petroleum in bulk from America, but records show that some years previously—in 1863—a Mr. Henry Duncan, of Kent, sent the first oil-carrying vessel to Europe. The vessel, however, never completed her voyage, for she was lost in the Gulf of St. Lawrence, just as she was starting on her trip across the Atlantic. The Charles—quite a small vessel—also played a part in the early days of bulk oil transport across the Atlantic, for this steamer was, I believe, the first to employ iron tanks for the bulk transport of petroleum. After these first few attempts to convey petroleum in bulk from continent to continent, tank vessels steadily wiped the barrel-carrying boats off the seas. It was found that not only did oils carried in bulk take up but one-half the space of those in barrels, but the cost of the oak-staved barrels themselves (usually 5s. each) was obviated. At first, sailing ships were adopted to meet the newer requirements, but later, vessels propelled by steam were introduced.

At first the shipbuilders had nothing to guide them in the shape of practical experience of bulk oil carriers, but, from small things, a great ocean trade in bulk petroleum products soon grew. It is interesting to note the enterprise which English shipbuilders displayed in this new method of handling petroleum for ocean transport, for during at least two decades the vast bulk of construction of oil carriers took place in English shipbuilding yards. The opening of the Far Eastern fields of production led to the construction of a large number of oil tankers—each of increasing size—for Messrs. M. Samuel and Company, and these were named after various shells. The fleet of “Shell” tankers to-day ranks as one of the finest in the world, and forms the connecting link between the prolific oil-producing properties of the “Shell” Transport and Trading Company, Ltd., in the Far East, and the demand for petroleum products in this and other countries, the vessels themselves being owned by the Anglo-Saxon Petroleum Company, Ltd., one of the influential owning interests in the wide ramifications of the “Shell” Company.

For several years the oil tanker Narragansett, owned by the Anglo-American Oil Company, Ltd. (London), held claim to being the largest bulk oil carrier in the world, for the good ship had a capacity of nearly 11,000 tons of products. The size of this vessel may be judged from the fact that she had a length between perpendiculars of over 510 feet, with a 63 feet beam, while her moulded depth was 42 feet. This vessel, which marked a distinct step forward in oil tanker construction, belonged to Lloyd’s A1 three-deck class. The Anglo-American Oil Company has shown its belief in oil fuel for ocean power purposes by contracting for internal combustion-engined tankers, and the first of this class was launched in November, 1919.

It was left to the enterprise of the Eagle Oil Transport Company—that important concern associated with Lord Cowdray’s immense oil organization for handling Mexican petroleum products—to make what will ever go down as the most bold policy of increasing the size of oil tankers by 50 per cent. upon all predecessors. Some six years ago, just when the Mexican fields were commencing to pour forth their flood of oil for the world’s requirements, the Eagle Oil Transport Company included in its programme of activities the building of an immense fleet of oil tankers, and it was decided that a number of these should each have a capacity of 15,000 tons of petroleum products. There were many who asserted that the limit to the size of oil tankers had been reached, but, undaunted, the Company went forth with their policy. It was a bold stroke, yet a successful one, for not only have the vessels proved to be very practical, but they have taught a lesson in economy of ocean transport which has been seriously taken to heart by practically all engaged in ocean oil transport.

I had the honour of being one of the invited guests at the launch of the first of these gigantic oil carriers, and of subsequently experiencing a trip in the mammoth floating “tank.” The vessel behaved admirably at sea, and in a chat with the designer, I recollect asking if there were any reason to believe that the limit in size had been reached. The reply was pointed: “So long as we can have loading and discharging berths large enough to enable such large vessels to be manipulated, we can easily go beyond the present size.” Events have proved that the policy adopted by the Eagle Oil Transport Company was justifiable, for already a new oil tanker, the San Florentino, has been built, having a capacity of over 18,000 tons.

Before leaving this interesting subject of ocean oil transportation, I should like to emphasize the distinct step forward which is marked by these latest oil tankers. To-day, we have entered the era when oil fuel has passed its experimental stages and become one of the greatest boons to those associated with the navigation of the seas. The ease with which oil fuel is handled is remarkable, for vessels of the largest size—that is, those using oil instead of coal for power purposes—could replenish their stores within a few hours at any oil port. In the transport of petroleum by the modern tankers, the taking on board of a full cargo is accomplished in about a single day, thanks to the most improved means of pumping oil from the shore tanks through flexible pipes. The great oil tankers trading between this and other countries and Mexico, load up off the Mexican coast by means of a submarine pipe-line, and, reckoning but fourteen return trips per annum, it will easily be apparent what immense stores of petroleum can with ease be brought to the centres of consumption. Compare this with the primitive methods of transport in barrels, and it will be readily seen with what rapidity the hands of progress have moved during comparatively recent years.

The vast majority of oil tankers to-day, true to their calling, derive their power from oil, for they burn it under their furnaces, and, therefore, are not liable to those tedious delays so inseparable from the use of coal, and should severe storms beset their passage in Mid-Atlantic, then a little oil pumped overboard will quell the most turbulent sea and permit a safe passage onward.

It is evident, however, that the motor-engined oil tanker will be the order of the future, for already vessels are being built which utilize oil fuel internally—a much more economical process than burning it under boilers.