Papers - Production - Domestic - Oil and Gas Development in New Mexico in 1940

New Mexico established an annual record by producing 38,897,741 bbl. of oil during 1940. This was approximately 6 per cent greater than the 1939 production of 36,746,840 bbl. The daily average produc-tion was 106,569 bbl. New Mexico retained its position as the seventh oil-producing state. The recommendations of the United States Bureau of Mines were followed by the Oil Conservation Commission in setting the monthly state allowable. At the beginning of the year the average top allowable for each qc-acre unit was 40 bbl. and at the close of the year it was 36 bbl. Remedial work by the operators has been extremely beneficial and satisfactory in reducing the gas-oil ratios in various fields. Gas formerly blown into the air is now being processed by numerous casinghead plants. The Oil Conservation Commission, with the full cooperation of the Proration Office and operators, has taken bottom-hole pressure surveys and has done considerable remedial work in various fields. Two new oil fields and one gas field were discovered in New Mexico during 1940. Numerous extensions to the existing fields were made. Some of these were definitely wildcats in the same townships designated as fields and some, although called extensions, were more than 3 miles from production. Lea County continued to be the largest oil-producing county in the state, with a production of 33,976,394 bbl. It had the largest number of completions during 1940, with 303 oil wells, 9 gas wells and 13 dry holes—a total of 325 wells. Eddy County was the next most active county, with 239 completions, of which 163 were oil wells, 8 gas wells and 68 dry holes. It produced 4,405,158 bbl. of oil during the year. The increased activity in Eddy County and the completion of a large number of producing oil wells have created a transportation problem that can be solved only by additional pipe-line facilities. During the year Eddy County was unable to produce 1,500,000 bbl. of its allowable oil, because there was no pipe-line outlet. There were 601 wells completed in New Mexico in 1940, of which 478 were oil wells, 22 gas wells and IOI dry holes. This was a decline of approximately 9.5 per cent in the number of completions compared with 1939, when 659 wells were drilled. Southeastern New Mexico Lea County.—The largest producing field in Lea County was the Monument field, with 6,894,475 bbl.; followed by Eunice with 6,559,348 bbl. and Vacuum with 4,743,065 bbl. The Hobbs pool, which for years was the largest producing field in the state of New Mexico, was fourth with 3,790,477 bbl. The Vacuum pool was the most active area, having 68 completions, of which 67 were oil wells and one was a dry hole. Only one new field was discovered in Lea County during 1940; the discovery well was in the Caprock area, the Livermore State No. I, in the SE. 1/4 SE. 1/4 sec. 30, T. 12 S, R. 32 E. This well was drilled to a