Heavy Lifting - thoughts and web finds by an economist
     I also contribute to Division of Labour Load HL's Front Page
Wednesday, August 24, 2005

Ol' Chuck's a millionaire

Okay, perhaps not a millionaire. However, the Aug. 24, 1905 NYT, reports on one Charles Haggstrom of Warren, Pennsylvania, who drilled a well to provide water for his bathroom. Water was eventually replaced with oil. Says the report (from Page 7):
The pipe has only to be driven about 15 feet into the ground to get the oil. The oil sells for $1.42, the refineries newar at hand furnishing the barrels free.


Hmmm. $1.42 per barrel. The story reports Chuck having collected about 159 barrels to date. That's about $225. Not too shabby. According to Economics History Services, $1.42 in 1905 had the following values in 2003:

In 2003, $1.42 from 1905 is worth:
$29.48 using the Consumer Price Index
$24.92 using the GDP deflator
$136.05 using the unskilled wage
$171.83 using the GDP per capita
$595.54 using the relative share of GDP

So, let's go with the GDP deflated value. The price of crude oil was considerably less in 1905 for a few reasons. First, the demand for crude oil was much lower than it is today. The marginal costs of extracting crude oil were obviously much lower, as Chuck was barreling oil from his bathtub. Chuck likely wasn't getting rich off his oil find, but I am sure it helped pad his savings account a little.

Comments: Post a Comment



Purchase




Le Chai - galerie du vin



Support



Popularity

Posts that contain Craig Depken per day for the last 90 days.



Contacts

Heavy Lifting's Main Page
Email Me
Atom Feed

WWW
Heavy Lifting




Great Links

Money I Found Today

Heavy Lifting - Firehose style (56k warning)



Recent Posts

- Ol' Chuck's a millionaire




Archives


home


Visitors
Site Meter Blogroll Me!



Credits

Modified maystar design
powered by blogger