A correspondent who has been through the oil region writes from that greasy latitude as follows:

The Oil Region of Pennsylvania

Venango County is, par excellence, the oil region of Pennsylvania. Some attention has recently been given to Clarion County, and other sections of the State, but nothing of consequence has been as yet found outside the limits of Venango County, which may be considered the great oil basin of the State. If a line be drawn nearly through the centre of the county, running from north to south, tending a little west. It will pass along Oil Creek, the center and most productive portion of the oil territory.

From Franklin, a few miles below where Oil Creek joins the river, the Allegheny to the east and French Creek to the West, form a huge “V” with Oil Creek passing down the middle and joining the right arm of the V just above the point of junction. Below this point, the Allegheny stretches, converting the V into a Y.

The center or Oil Creek line is that of the greatest yield at present, the others not having been sufficiently tested to establish their character as large oil producing lines, although enough has been ascertained that oil in considerable quantities exist. The first discoveries of oil were made on Oil Creek. For some time explorations were confined to that line. The success there met with induced others to examine into the oil-producing qualities of the adjoining streams. A number of holes were sunk on the banks of the Allegheny River, French Creek (an affluent of the French), and some of the “runs,” or small streams, tributary to the several creeks.

These wells were put down by hand, by horsepower or by waterpower. The operation In either case being very slow and tedious. Few penetrated lower than the second sand but the disturbed state of the country, and the low price of oil – consequent on the limited demand and the large supply from the flowing wells – discouraged the well-owners. Most of the wells were abandoned without further test when it was found they would not “flow.”

The deserted derricks, standing like monuments of dead hopes and buried fortunes, frighted many a timid speculator who had some thoughts of investing in oil wells, and tended to keep operators closely to the line of Oil Creek.

The result was that the creek was thoroughly explored from Titusville to Oil City, a distance of nearly 20 miles. In that distance the ground is punched, like a strainer, with hole. Most of them exuding oil, but many “dry holes.” From Titusville up, there are also a large number of wells, but as yet they have not been largely productive. If the six miles to be taken that lie about midway between Titusville and Oil City, it will be found that nearly all the flowing wells of notoriety lie within that space.

When oil, that at 15 cents a barrel was allowed to run to waste, rose to seven or eight dollars a barrel, owing to the European demand that at length sprung up. The abandoned wells in the creek were once more put in operation and all the available land taken up in leases. Those who were attracted by the fortunes rapidly and easily made by shrewd or lucky operators. [They] found on coming to the creek to invest that the desirable property was unattainable, and were compelled to turn their attention elsewhere.

The “Runs” or ravines opening into the creek were explored, and were found but little, if any, inferior to the larger portion of the creek oil territory. The success in that direction gave a powerful impetus to the progress of developing new oil territory. Old wells were taken by new parties and on being tested with proper machinery were found to be, in many instances, highly productive. New wells were sunk in spots hitherto looked on with disfavor. The favorable results, sometimes obtained, heightened the excitement.

At last speculators, eager for a chance to make large fortunes in the least possible time, turned their attention to oil lands. That virulent disease known as “oil on the brain” became epidemic, affecting all ranks and conditions of men, and spreading rapidly from city to city until now the whole country burns with oil fever.

Speculations in oil wells partake more of the nature of lottery than any other operations that I am acquainted with. This consists, with many, its peculiar charm.

Three weeks careful investigation of the different sections of the oil regions have left me as much in the dark as ever as to what are the best locations or positions for successful oil wells. Territory that now seems unlikely to produce a gallon of oil, may, a few months hence, be among the best oil territory. No sooner is a theory established and rules laid down for the guidance of those intending to sink experimental wells, than some well, put down in defiance of theory and in violation of rules deduced from experience, gives an abundant yield of oil. And knocks all theories and established rules into “pi.” This has been done so frequently that it would be worse than useless for me to theorize on the matter. Or to say that any particular undeveloped territory is or is not likely to yield oil in paying quantities.

The proof of the pudding is in the eating. It is only after a location has been thoroughly tested, that any correct idea can be obtained as to its value as oil territory. In the meantime, all that can be done is to judge from the actual developments in the neighborhood, the surface indications, and the configuration of the land as compared with known oil-bearing locations.

The day of individual enterprise by men or of small means has gone by in the oil regions. The successful working, by capitalists, of wells that had swallowed up the entire funds of their original owners, and left them without means to complete their work, is sufficient evidence of the folly of a man risking his all on one throw. Associations of capital are needed to prosecute the work of exploration. Such associations have taken the task in hand, thus lessening the individual profit. But also decreasing the individual risk.