New York Paper - Present Conditions in Mexican Oil Fields and an Outlook into- the Future

The Mexican oil fields, during 1921, produced in round numbers 203,000,000 bbl. of which 176,000,000 bbl., or 86 per cent., were exported, the bulk of these exports, or about 73.3 per cent., going to the United States. The Mexican exports were divided by grades as follows: Light crude, 47.0 per cent.; heavy crude, 22.0 per cent.; tops, 3.5 per cent.; fuel oil from light crude, 24.0 per cent. The balance, or 31/2 per cent., includes the bunker fuel shipments and the coastwise trade in Mexico, which is not classified as to grades. The figures show that, in importance, the light-oil fields form about 75 per cent. of the Mcxican petroleum industry. The production of the Panuco field has followed the general history of the American fields, and its gradual decline, which is at present foreshadowed, may be estimated as well as its ultimate economic life. On the other hand, the behavior of the light-oil fields to the south is unlike any in the world so far discovered, and as a result we have concentrated overproductions followed by sudden droughts, both sometimes equally unexpected. The coming in of two or three gushers within adequate pipe-line facilities will flood the market with 100,000 bbl. or more a day, while the flooding by water of a particular pool will, in a few weeks, remove from the market one-half the total production of the Mexican fields.