Mexican Oilfields During 1924

ALTHOUGH Mexico still ranks second in importance as produce for petroleum, the output in 1924 was 7 ½ per cent. less than in 1923 and 30 per cent. less than the peak production of 1921. The decrease may be partly accounted for by labor troubles and revolutionary activities early in the year, although undoubtedly the main factor was the continuous rise of the salt-water level in the South Fields, causing a decline of 24,000,000 bbl. in the production of light oil. Since the middle of 1923, the production of heavy crude has been greater than that of the lighter grade and, in 1924, the output of heavy crude was 2 ½ times that-of the light oil. DEVELOPMENT Drilling operations in the Mexican fields were probably more active in 1924 than in any other year, the greatest activity taking place in the Cacalilao and neighboring fields; toward the end of the year there was an added number of wells drilling in wildcat areas. The number of wells drilled in proved territory was almost twice that of the previous year, the increase taking place in the heavy-oil fields north of Panuco, as only 78 of the 710 wells completed were drilled in the Southern Fields. The percentage of successful completions decreased from 45 per cent., during 1923, to about 38 per cent., during 1924; there was also a noticeable decrease in the average flush production of the new wells. It is interesting to note that notwithstanding the increased drilling activity, the total production declined over 10,000,000 barrels. In the heavy-oil district, 632 wells were completed but only 231, or 36 ½ per cent., were commercially productive. The develop-ment in the Cacalilao area reached its peak in April and May, or about the time the first serious salt-water encroachments took place. Development in the old Panuco and Topila fields was more active than during the previous year, although the salt-water level continued to rise, the high price of crude making such development advisable especially for companies having to protect large-investments.