How does one go about making barrels? or does it eventually show up in Alchemy here? I'm only 500 skill right now.

I used to play on the US servers for many years and always did crafting. But we never had Barrels.

you can make barrels by doing the quest, the old Alchemist gives you.
not sure if you need a certain skill level though.

If your are Midgard i can tell you

Go to the Old Alchemist.
Buy A billhook and seeds.
Go out to Vasudheim get a ship to Nalitten.
Take the billhook in your right hand
On the coast are little earth elemental (Level 6 Mobs)
Drag & Drop the seeds to the elemental and they die.
A Tree grows, kill them with the Hook.
You get a wood.
Repeat this if you have more seeds.
Back to Jordheim.
Give the wood to Copper (on the marcetplace in the west of Jordheim)
He makes Barrels.

Remind: You need 11 Bottle for 1 Barrel

Thank you for your help. Found all the places and npc's.