IC 6808 Natural-Gasoline Plants In The United States, January 1, 1934 ? Introductory Summary

For several years prior to about the middle of 1928 both the number and capacity of natural-gasoline plants showed a steady increase; this resulted from a material gain in the supply of casinghead has due to the discovery of a number of flush fields with relatively high gas-oil ratios. From 1928 to date some form of proration has been continually in force, with a consequent curtailment in the supply of wet gas. This decline in available gas and a severe decrease in prices, due largely to the increasing competition of light refinery products, has eliminated virtually all of the weaker units during the last 5 years, with the result that the number of plants declined from 1,155 on January 1, 1928 to 19035 on January 1, 1930, to 909 on January 1, 1932, and then to 859 on January 1, 1934, The struggle of the small high-cost producers to exist is illustrated further by the trend in the number of shut-down plants, which has increased from 36 on January 1, 1930 to 100 on January 1, 1932 and to 128 on January 1, 1934. The increase in the number of plants prior to 1929 resulted in a material gain in the total capacity, but the decline in number between 1929 and 1932 was not followed by a corresponding decrease in capacity, as gains resulting from the construction of a few very large plants overbalanced the loss due to the dismantling of a large number of small ones. However, the low prices of 1932 and 1933 supplied little incentive for new construction, and the total capacity declined in approximately the same ratio as the number. Thus the total capacity declined from 11,387,000 gallons daily on January 1, 1932 to 13,060,000 gallons daily on January 1, 1934, Of the latter 9,181,000 gallons (91 percent) represented the capacity of the operating plants and 679,000 gallons (9 percent) the capacity of the idle plants.