Production - Domestic - Development in the California Oil Industry during 1942

Developments in California during 1942 were marked by many difficulties in operation, of which the lack of labor and material were the main factors in slowing down work. During the many years of curtailment, which has been effective since 1928, a number of estimates of the state's capacity to produce have been built up, but during the year 44 fields were 'eliminated from curtailment and valuable data were obtained as to the normal capacity of these fields to produce. Because of new discoveries and the normal decline of old fields, which is more than 15 per cent per year, it is estimated that the sustained capacity of the state for a 5-year period is not more than 500,000 bbl. per day. Decline in the rate of production was greatest in the fields in the Los Angeles Basin district. These fields have been produced nearly at capacity for many years and had no reserve of shut-in production. The San Joaquin Valley and Coastal districts have responded well to the increased allotments assigned to them by the Petroleum Administrator for War. All heavy oil fields in the state are on full production, except in the Coastal district, where transportation is the limiting factor. Although approximately 2500 more wells are on production in the state than there were in 1941, the supply of heavy crude has not yet reached the demand. A summary of statistics for 1941 and 1942 is given in the following table. Production in California for 1942 was 680,000 bbl. a day as against 631,000 bbl. a day for 1941, an increase of 7.8 per cent. The present maximum efficient rate has been estimated at 808,000 bbl. per day. This indicates that in the 15 restricted fields of the state there is only an additional 83,000 bbl. per day of light oil available. Drilling Activity Drilling activity during the year was equivalent to but 70 per cent of normal. Although shortages of equipment and labor were in part responsible for the reduced drilling activity, the main reasons were the lack of proved locations due to a cycle of very few new discoveries and the restrictions of Conservation Order M-68. For the first six months of the year, 300 new oil wells were completed, which were equally divided as to the number of light and heavy oil producers. But, for the last six months of the year, it is