Papers - Domestic Production - Petroleum Production and Development in the Rocky Mountain District in 1929

Petroleum production in the Rocky Mountain district during 1929 registered a small decline from that of the previous year, conforming with a gradual decrease in the amount of oil produced during the last few years. A number of causes may be mentioned to account for this result, chiefly overproduction in other regions and the apparent desire of operators in this territory to conform to the policy of proration and retrenchment adopted by special agreement among operators in many of the fields. Unit operation has been adopted to control oil production from the Sundance sands in the Salt Creek field, Wyoming, in line with the general effort to stabilize this phase of the industry and prevent excessive drilling of new wells. Another factor which greatly retarded development in the Rocky Mountain region was the executive order of President Hoover issued in March refusing the award of new prospecting permits to future applicants and threatening cancellation of all existing permits upon which actual drilling had not been done as specified by law. Only four states in the Rocky Mountain region are important oil producers. In 1929 Wyoming led with an average daily output of 52,600 bbl., followed by Montana, with 10,730 bbl.; Colorado, with 6500 bbl., and New Mexico with 2700 bbl. daily average. These states bear the following percentage relation to total production in the Rocky Mountain district: Wyoming, 72; Montana, 15; Colorado, 9; New Mexico, 4., (Table 1.) The total average daily production was approximately 73,000 bbl. and the total production of all four states during the year was 26,534,606 bbl. This is 2.7 per cent. of the total oil production of the United States during this period. Colorado Although Colorado is not a large producer of oil and natural gas, its oil operations are widely distributed over the state. The Florence field is one of the oldest oil fields in the country, and there are good reasons for believing that the state will retain its place for many years to