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By W. V. Vietti, E. P. Hayes

OpeRations on the Texas Gulf Coast during 1936 increased materially over 1935. A number of new fields were discovered and a few of the older fields were extended, both by the discovery of deeper pay sands and by lateral expansion of the known producing horizons. Twenty-seven new fields have been discovered, of which 25 are oil fields and the others are gas fields that have every indication of becoming oil-producing areas. Amelia, Anahuac, Bay City, North Pettus, Placedo, Pickett Ridge and Tomoconnor have had major extensions. Production for 1936 amounted to 91,224,844 bbl., an increase of 21,627,033 bbl., or 31 per cent, over the 1935 production of 69,597,811 bbl. The number of producing wells at the end of 1936 was 6727, as compared with 4851 at the end of 1935. Proration has continued in force, thus decreasing the rate of depletion and the number of abandonments normally expected. New Fields A brief discussion of the new fields follows, in addition to Tables 1 and 2, which contain the general data on these fields. Aransas (McCampbell).-Buckingham and McCampbell No. 1 McCampbell was drilled to 7501 ft., then plugged back to 6560 ft. and completed in the Marginulina for a 100-bbl. flowing well on July 18. Bee County.—The Voss field, discovered by Swiger and Devonian's No. 1 Voss, and the Holzmark field, discovered by Miller and Donzis on the Holzmark farm, are both of the same type structurally and are caused by folding against a fault, one field being on one side of a fault and the other on the opposite side of the same fault. Brooks County.—-Standard Oil Company of Texas Garcia No. 1, the discovery well in the Alta Mew field, and Dick Young's Singer No. 1, the discovery well of Alta Verde, appear to indicate small fields. Garcia No. 1 was drilled to 8022 ft. and plugged back to 2485 ft., at which depth the well made 189 barrels. Lockridge.—This gas field was discovered by Gulf Production Company's Fairfield No. 1, in Brazoria County. It was originally drilled to

Jan 1, 1937

By J. D. Wheeler, H. W. Mathews

The increased activity in West Texas, which started in 1933, has continued through 1936 at a constantly accelerated rate. During 1936 there were 1442 wells completed in the area as compared with 700 in 1935 and 468 in 1934. Of these completions, 1313 were producers with a total 24-hr. potential in excess of 1,750,000 bbl. From among the 1442 wells, eight are considered to be discovery wells for new West Texas fields. New Fields Bennett.—The Bennett field, which added Yoakum County to the oil-producing counties of West Texas, was actually indicated as an oil-producing area during 1935, but the discovery well, Honolulu Oil Corporation, Ltd. and Cascade Petroleum Company's Bennett No. l, was not given a production test until April 1936. The discovery well made 15 bbl. per hour through 3/4-in. choke with a plugged-back total depth of 5264 ft. First oil in the hole was from 5088 to 5090 ft., which is several hundred feet below the top of Permian lime. Producing limits of the field are unknown, as the second test had not reached the pay at the close of the year. Henderson.—-To date indications are that the Henderson pool, in northern Winkler County, is the most prolific area opened during 1936. This field, which lies to the north of the old Hendrick pool, is producing from the same reef-type dolomitic lime producing in the older field. The Henderson field was opened by the completion of R. H. Henderson, J. B. Walton-Humble 1-A in April 1936 for a natural flow of 2306 bbl. per day through tubing. Total depth of the discovery well is 3049 ft. Later development has indicated the productive area to be a rather narrow zone running slightly west of north. Present area of from 1000 to 1500 acres has been proved for production. Keys and Emperor.—The Keys and Emperor pools in the belt of sand pools running across Winkler County appeared for the first time on State proration schedules during 1936. This report considers these pools as links in joining the belt of sand production across Winkler County, for

Jan 1, 1937

By W. C. Bednar

In all, 127 producing oil wells, 8 producing gas wells and 212 dry holes were drilled during 1936 in the Central Texas area; 76 wells in Bexar County, 62 in Caldwell County, 44 in Guadalupe County, 22 in Williamson County, 20 in Navarro County and 20 in Frio County. Less than 20 were drilled in each of the other counties and none at all in Ellis, Hill, Bosque, Coryell, Lampasas, Burnet, Llano, Kennedy, Mason, Real, Kinney and Uvalde Counties. The Pearsall-Austin chalk field in Frio County and the Zoboroski field in Guadalupe County were the only new discoveries and there were no important extensions to old fields. In this report Corsicana, Mildred (Elm Ridge), Angus-Edens-Hodge, Burke, and Rice-Oil Ridge, all shallow Navarro County stripper fields, are grouped together under the name of Corsicana. This grouping follows that of the Railroad Commission of Texas, thus facilitating the gathering of production data. A map showing the location of the oil and gas fields in the Central Texas Area was published in Volume 114 of the A.I.M.E. TranBactions, page 380. New Fields Pearsall-Austin Chalk.—The Amerada Petroleum Corporation completed 13 Austin chalk wells during 1936 on the large Amerada-Rycade block in Frio County. Other companies drilled two dry holes to the Austin chalk in this vicinity. Not enough wells were drilled to give control of the structure but it appears to be a nose plunging in a west-southwest direction. A second deep test is being drilled in the Pearsall area and at this writing has cemented off a show of oil and gas in the Edwards limestone. The Humble Oil and Refining Co. is building a 6-in. pipe line from Lytle, Tex., to serve the Pearsall field. Zoboroski.—Actual discovery of the Zoboroski field was made by W. J. Walton et al. in 1931. The discovery well, Anton Zoboroski No. 1, was a small producer making but from 3 to 5 bbl. per day, which was used locally for fuel oil. The discovery of the Darst Creek Extension in

Jan 1, 1937

By W. A. Ver Wiebe

UNder the impetus of new demands caused by the defense program, the oil and gas industries of Kansas established new records during the year 1941. In all, 2113 wells were drilled, which compares favorably with the record total drilled in 1937. These 2113 tests resulted in 1446 oil wells, 76 gas wells and 592 dry holes. In all three categories there was an increase over the previous year, but unfortunately the most marked increase was in the dry holes. Nearly 80 per cent of the increase must be allocated to the drilling 01 unsuccessful tests. This was partly because of the increasing difficulty of finding new reserve areas and partly because of the erratic character of the production in the Arbuckle dolomite, which is now the main producing zone. Closer analysis of the totals reveals that western Kansas accounted for 1634 tests, of which 1186 were oil wells, 34 were gas wells and 415 were dry holes. The total potential initial daily production uncovered by the successful wells amounted to 1,691,000 bbl. of oil and 508,000,000 cu. ft. of gas. Both figures indicate a considerable decrease when compared with the proceeding year; in 1940 the respective figures were 2,128,000 bbl. and 1,289,000,000 cu. feet. In eastern Kansas a total of 479 wells were drilled. Among these, 260 were oil wells accounting for a daily initial potential production of 45,662 bbl. The new gas wells numbered 42 and added 290,438,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 177 in number, were dry. It is interesting and significant that almost half (791) of the total wells drilled in western Kansas were drilled by the independent operators. Among the large companies the Cities Service Oil Co. drilled 169 wells; the Stanolind Oil and Gas CO., 101; the Skelly Oil Co., 80; the Continental Oil Co., 99, and the Shell Petroleum Co., 63 wells. In eastern Kansas the independent operators drilled 406 out of the total of 479 wells. Among the major oil companies the Cities Service Oil Co. drilled 38; the Phillips Petroleum Co., 13, and the Sinclair-Prairie Oil Co., II wells. The figures on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas approximately one third of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 844 wells in western Kansas, of which 678 were successful in finding either oil or gas. It thus appears that the major companies fared much Getter than the independents. In eastern Kansas the major companies drilled 73 wells of which 63 were successful in finding commercial quantities of oil or gas. No less than 286 wildcat tests were put down in western Kansas and 72 in eastern Kansas, or 358 in all, during 1941. Considerably more than half of these were drilled by independent operators; zoo in western and 66 in eastern Kansas. An exploratory hole % mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, approximately 75 per cent of all wildcat wells were failures; only 25 per cent found oil or gas in western

Jan 1, 1942

By W. A. Ver Wiebe

UNder the impetus of new demands caused by the defense program, the oil and gas industries of Kansas established new records during the year 1941. In all, 2113 wells were drilled, which compares favorably with the record total drilled in 1937. These 2113 tests resulted in 1446 oil wells, 76 gas wells and 592 dry holes. In all three categories there was an increase over the previous year, but unfortunately the most marked increase was in the dry holes. Nearly 80 per cent of the increase must be allocated to the drilling 01 unsuccessful tests. This was partly because of the increasing difficulty of finding new reserve areas and partly because of the erratic character of the production in the Arbuckle dolomite, which is now the main producing zone. Closer analysis of the totals reveals that western Kansas accounted for 1634 tests, of which 1186 were oil wells, 34 were gas wells and 415 were dry holes. The total potential initial daily production uncovered by the successful wells amounted to 1,691,000 bbl. of oil and 508,000,000 cu. ft. of gas. Both figures indicate a considerable decrease when compared with the proceeding year; in 1940 the respective figures were 2,128,000 bbl. and 1,289,000,000 cu. feet. In eastern Kansas a total of 479 wells were drilled. Among these, 260 were oil wells accounting for a daily initial potential production of 45,662 bbl. The new gas wells numbered 42 and added 290,438,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 177 in number, were dry. It is interesting and significant that almost half (791) of the total wells drilled in western Kansas were drilled by the independent operators. Among the large companies the Cities Service Oil Co. drilled 169 wells; the Stanolind Oil and Gas CO., 101; the Skelly Oil Co., 80; the Continental Oil Co., 99, and the Shell Petroleum Co., 63 wells. In eastern Kansas the independent operators drilled 406 out of the total of 479 wells. Among the major oil companies the Cities Service Oil Co. drilled 38; the Phillips Petroleum Co., 13, and the Sinclair-Prairie Oil Co., II wells. The figures on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas approximately one third of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 844 wells in western Kansas, of which 678 were successful in finding either oil or gas. It thus appears that the major companies fared much Getter than the independents. In eastern Kansas the major companies drilled 73 wells of which 63 were successful in finding commercial quantities of oil or gas. No less than 286 wildcat tests were put down in western Kansas and 72 in eastern Kansas, or 358 in all, during 1941. Considerably more than half of these were drilled by independent operators; zoo in western and 66 in eastern Kansas. An exploratory hole % mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, approximately 75 per cent of all wildcat wells were failures; only 25 per cent found oil or gas in western

Jan 1, 1942

By John G. H. Crump, E. W. Owen, Peter P. Gregory

.Although oil Production in West Texas in 1939 reached the highest figure for any year since the inauguration of proration, drilling activity continued in the decline that had commerlced the previous year. Production totaled 79,469,341s bbl. of oil during 1939 as compared with 71,257,541s bbl. in 1938 and 75,743,000 in 1937. The number of wells completed in 1939 was 1850, compared with 2045 in 1938 and 2806 ill 1937. Several factors combined to cause the decrease in drilling activity, principally the contiriued increase in the length of time required to obtain a return of invcstment and the scarcity of important new discoveries during the past two years. Of the 1850 completions 1638 resulted in oil wells, 4 were gas wells, 168 were dry holes and 40 were abandoned locations; 1990 new locations were made during the year. The ratio of dry holes to producing wells completed was one dry hole to each 9.75 oil wells, compared with one dry hole to each 7.48 oil wells completed during 1938. This large decrease in dry holes was due to a marked decline in the number of wildcat wells drilled, there having been only 120 wildcat completions during 1939. In addition to the lessened exploration work, the deeline' in activity was largely accounted for by the slowing up of operations in the older pools of Ector, Howard and Winkler Counties. Ector County, which had led West Tcxas in 1938 with 622 new oil wells, furnished only 485 producers in 1939, but was still the leader for the West Texas district. The largest gain in activity was in Yoakum County, whew 350 oil wells were completed in the Denver-Wasson field against 152 during 1938. Most of the older oil fields have been almost completely drilled up, only a few new producers still being completed from time to time in

Jan 1, 1940

By E. W. Owen, John G. H. Crump, Peter P. Gregory

.Although oil Production in West Texas in 1939 reached the highest figure for any year since the inauguration of proration, drilling activity continued in the decline that had commerlced the previous year. Production totaled 79,469,341s bbl. of oil during 1939 as compared with 71,257,541s bbl. in 1938 and 75,743,000 in 1937. The number of wells completed in 1939 was 1850, compared with 2045 in 1938 and 2806 ill 1937. Several factors combined to cause the decrease in drilling activity, principally the contiriued increase in the length of time required to obtain a return of invcstment and the scarcity of important new discoveries during the past two years. Of the 1850 completions 1638 resulted in oil wells, 4 were gas wells, 168 were dry holes and 40 were abandoned locations; 1990 new locations were made during the year. The ratio of dry holes to producing wells completed was one dry hole to each 9.75 oil wells, compared with one dry hole to each 7.48 oil wells completed during 1938. This large decrease in dry holes was due to a marked decline in the number of wildcat wells drilled, there having been only 120 wildcat completions during 1939. In addition to the lessened exploration work, the deeline' in activity was largely accounted for by the slowing up of operations in the older pools of Ector, Howard and Winkler Counties. Ector County, which had led West Tcxas in 1938 with 622 new oil wells, furnished only 485 producers in 1939, but was still the leader for the West Texas district. The largest gain in activity was in Yoakum County, whew 350 oil wells were completed in the Denver-Wasson field against 152 during 1938. Most of the older oil fields have been almost completely drilled up, only a few new producers still being completed from time to time in

Jan 1, 1940

By John G. H. Crump, E. W. Owen, Peter P. Gregory

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By E. W. Owen, John G. H. Crump, Peter P. Gregory

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By T. E. Weirich

Although 1931 witnessed no new discoveries of oil or gas in Oklahoma, the year is especially outstanding because of price demoralization, political intervention, abandonment of marginal properties, a strict curbing of oil flow from wells in flush fields and an extension of proration into settled fields. In spite of a strict, adherence to proration agreements, the price per barrel of oil sank from 65c to $1.07 to a low level of 10c to 22c. Table 1 gives the price range for crude oil in Oklahoma during the year. Under a martial law order by the governor, a period intervened from Aug. 4 to Oct. 10, of complete shutting in of the flush fields. This condition created an abrupt decline in the production curve during the two months' period. Oklahoma, as elsewhere, is passing through a "transition period" of relieving expensive above-ground storage by maintaining the more copious supplies of crude oil in the natural reservoirs. For many years the thousands of small, nearly depleted wells have been considered as being the "backbone of the industry." A large number of wells of this type are now idle or completely abandoned. More than 1100 abandonments were recorded by the state Corporation Commission during the year. The industry is becoming less interested in these small wells, replacing the former attitude by the curbed potentialities of flush pools. Many of the major companies are grouping these marginal properties with those of adjacent owners, operating the whole

Jan 1, 1932

By V. R. Garfias

It has been repeatedly questioned whether estimates of oil reserves are of any practical value, as the greater number of such calculations previously made have subsequently been proved to be grossly inaccurate. But even admitting partial justification for such statements, it must be evident that some idea, however approximate, of the available reserves of essential minerals is of vital importance in mapping their development and the future trend of the related industries, particularly if it is kept constantly in mind that these estimates—which are never intended as a final word—must be continually subject to revision in accordance with the changes in their component factors. The value of these estimates, therefore, hinges on the clear understanding that they can only apply within the limited time when the controlling factors remain unchanged. It should be understood, however, that while estimates of possible and probable oil deposits are as a rule but idle conjectures, appraisals of proven oil reserves can undoubtedly be made with an ever-increasing degree of accuracy. And it is with this in mind that in the present study the endeavor has been to estimate only the world's proven oil reserves—the oil that yet remains underground in the producing fields—and their logical extensions, and to leave out of consideration the questionable volume of the probable and possible oil reserves. In Table 1 the countries at present producing oil in commercial quantities are listed in the order of the magnitude of their proven reserves. As shown in the table, the world's proven oil reserves are estimated at over 24 billion barrels, while the total production to the end of 1932 aggregates nearly 23 billions. Past production represents, therefore, 48 per cent, and proven reserves approximately 52 per cent of the total. About 61 per cent of the reserves are located in the American continent and close to 33 per cent in the Near East fields of Russia, Iraq and Persia. It is interesting to note that the proven reserves in the important producing regions almost equal if not exceed their production to date. The Mexican fields are a remarkable exception in this respect since they produced over 135 billion barrels and have proven reserves estimated at only 300 million barrels.

Jan 1, 1933

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Guillermo Hileman

Probably the outstanding feature of the oil industry in the Argentine, during the past year, was the increase in production from the Comodoro Rivadavia field. This increase was accounted for by the discovery of a deeper producing horizon in the old coastal field (zone A). The oil, derived from the deeper sands, served not only to balance the natural decline of the upper sands and increase the yield from the area, but also provided a product of comparatively superior quality. The finding of this ney- production in the old field had a special economic significance because of the pumps, tanks and pipe lines already installed to take care of it. The deep horizon is looked upon as a life

Jan 1, 1937

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By Valentin R. Garfias

The production of petroleum in the Mexican fields during 1931 followed the downward trend of the past nine years, with a decline of close to 6,600,000 bbl., or about 17 per cent from the 1930 total. The output was close to 32,964,000 bbl., the Tampico-Tuxpam fields showing the largest actual and proportional decline, while the production of the fields in the Isthmus of Tehuantepec remained practically unchanged. Wildcatting along the international border was carried on more actively than in previous years, the only successful completion being the Alberca No. 1 well located about eight miles from the international boundary, across from Roma, Tex. This well, completed at a depth of 2015 ft. and plugged back to 1550, is rated at about 6,000,000 cu. ft. of gas per day from a horizon between 1330 to 1540 ft., and is now connected to the gas line from the Jennings gas field, Texas, supplying the city of Monterrey. Favorable oil indications have been encountered in other exploratory wells along the border and drilling will probably continue as these lands are largely held under government concessions which require continuous development work in order to retain title. Development in the Isthmus of Tehuantepec has progressed in a systematic manner, the number of successful completions during the year being considerably larger than in the South or Northern fields. The oil pipe line from the south fields to Mexico City has been completed and its operation and that of the Azcapotzalco refinery is expected to begin early in 1932. The construction of this line will Tevolutionize the transportation of petroleum and its products from the fields to the high plateau and seriously affect the revenues of the government-owned railroads. General conditions in the oil industry were reflected in Mexican operations. Low prices and the imminent threat of an American oil tariff discouraged development work necessary to maintain or increase production, and the curtailment of activities resulted in considerable reductions in personnel by all companies. Early in 1932 the Mexican Government announced its intention to create a surface tax or yearly rental on oil lands equivalent to about 31/4 U. S. cents per acre. Such additional burden on this already harassed industry will not only create little or no

Jan 1, 1932

By R. V. Whetsel, V. R. Garfias

Petroleum production in the Mexican fields during 1932, estimated at 32,400,000 bbl., was only 564,000 bbl., or about 2 per cent less than the 1931 total. Production in the northern fields declined approximately 1,100,000 bbl., the Tehuantepec output showed a drop of 340,000 bbl. and the South fields gained 865,000 barrels. Wildcatting continued at a reduced rate, the only successful completion being Presa No. 2 well which at a depth of 1535 ft. produced about 7,000,000 cu. ft. of gas. This well is an offset to Alberca No. 1 completed during 1931. General conditions in the petroleum industry coupled with the additional burden of the 21c per bbl. duty on oil imported into the United States further discouraged development activity in Mexico during 1932. Production of the Mexican fields in 1932 was distributed as follows: Production (U. S. Barrels) 1931 1932 _______________________________________________1________________________ Northern fields.................................... 14,092,000 13,000,000 South fields....................................... 10,535,000 11,400,000 Tehuantepec fields............................... .. 8,000,000 32,964,000 32,400,000 Since their discovery to the end of 1932, the fields have produced as follows: (U. S. Barrels) Northern fields..................................... 681,300,000 South fields........................................ 967,200,000 Tehuantepec fields.................................. 40,540,000 1,689,040,000 The tremendous productivity of the Mexican wells and the very small number actually drilled in the proven areas is shown in the following table:

Jan 1, 1933