Papers - Production - Domestic - Oil and Gas Development in Southwestern Pennsylvania during 1940

Production of crude oil for 1940 in southwestern Pennsylvania was off nearly 70,000 bbl., largely as a result of the great number oi abandonments, together with the lack of extension of the Washington and Green County pools. Oil wells completed numbered 51, which is 26 more than last year, but the total initial production of 259 bbl. is only 18 bbl. greater than in 1939. There was an increase of 72 over last year for a total of 209f gas wells. However, 68 7 dry holes were drilled, which is 40 more than a year ago. Thus, 328f wells were drilled during the year, and rigs are erected or drilling is progressing on 59 t more. Shallow Development Oil.—Butler County led in number of oil wells completed, with a total of 27 for an initial production of only 69 bbl. Washington County, with 12 new oil wells, one of which made 40 bbl. from the Fifth sand in S. Franklin township, has 95 bbl., while in Allegheny County 9 wells gave an initial of 86 bbl. for the highest Per well average in the area. This initial was given a considerable boost by one 35-bbl and another 2;-bbl. well in West Deer township, where the Fourth sand produced at 1840 feet. Greene County had only one oil well completed during 1940, and Washington County had 12. The subnormal totals for these counties may be explained by the higher cost of completions and the declining price of crude. The first price change in crude during the year occurred on May 22, when a 25 cut was made. A second 25 cut was made July 12, and was followed by a 156 cut on .Aug. 28. This price held until Nov. 12, when there was a restoration of 156. On Dec. 17 a second 156 increase was put into effect, bringing the price to $I.So per barrel. Gas The large increase in the number of gas wells completed may be attributed to three factors; namely, the recently discovered production possibilities of moderately deep, hitherto little tested horizons, together with increased demand and price. The latter has been made possible by a recent decision of the court, which ruled restraining the public service Commision's prohibition of a raise in the minimum monthly charge to small consumers by one of the major gas companies. A portion of the revenue derived in this manner is being passed along to the producer in the form of higher prices in the field. This higher field rate will remain in effect until a new ruling is made, when it will be reduced in proportion to the reduction of the monthly minimum charge. In an effort to extend the chambers Dam Fifth sand oil pool southwest from Amwell township, Washington County, several wells have been drilled. One of these, in Morris township, washington County, had an initial of 3.2 million cu. ft. open flow from the Big Injun sand. This indicates an entirely new productive area for the latter horizon. Allegheny County had one spectacular well in South Fayette township-—at a depth of about 2500 ft. a 4-million-CU. ft.