'The answer to why Curde Oil is Measured in Barrels'

The answer to why Curde Oil is Measured in Barrels

The local Oil City Newspaper, birth place of the Oil Industry, The Derrick explains the history of why the measurement of Crude Oil is the [404 Check: was link to http:/ / www. thederrick. com/ stories/ 08022007 -4014. shtml, anchor: Barrel] .

"So what is a barrel?

A barrel contains 42 gallons, or 34.97 imperial gallons.

The 42 gallons became the standard measurement in the early days of oil.

As oil flowed fast and furious from hastily drilled wells in the early oil days along [404 Check: was link to http:/ / www. thederrick. com/ stories/ 08042007 -6002. shtml, anchor: Oil Creek] , any type of container, whether a wash basin or a whiskey tub, was pressed into service to collect and ship oil.

While the sizes differed, they were all referred to as barrels. It was only by chance that the most common size container was a 40-gallon barrel normally used to ship spirits, salt, food and produce.

Oil tax:

Toward the end of the Civil War, the federal government tried to standardize the oil industry?s barrel measurement.

The reason: The government needed money to press the war effort so it decided to levy taxes on a barrel of oil.

The tax was tied to the measurement - a $1 tax on each barrel of petroleum of 45 gallons or less, and an additional $1 tax on any container larger than that."

The [404 Check: was link to http:/ / www. thederrick. com/ stories/ 08022007 -4014. shtml, anchor: article continues] with other interesting facts...

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