Papers - Production - Production Review for 1929 - Summary

It is perhaps significant that a few years ago the sessions held here were chiefly occupied with production. In the last two years these sessions have been concerned with production curtailment, unitization and conservation, notwithstanding that production in the United States in 1929 reached a total in excess of 1,000,000,000 barrels. A study of the leading producing units in the United States shows that Oklahoma, Texas and California in 1929 yielded 84 per cent. of the total production from 33.5 per cent. of the total number of producing wells. Production in the United States in 1929 showed an increase of 107,000,000 bbl. over the 1928 figures. This increase in itself perhaps is not enough to have caused the serious situation that is now confronting the industry. However, taking into account the gradual encroachment on the consumption of fuel oil through the greater utilization of natural gas, probably we have reached the point in the United States where prices will determine to a large extent,' in 1930, the amount that will be produced. In the states of Texas, Oklahoma and California, the most significant developmcnt of 1929 has been the desire of operators to reach some agreement to bring production more or less in control with the estimated demand. In November, production in California, particularly in the Santa Fe Springs field, was drastically cut to meet a certain requirement. Similarly, in Texas, the Yates field has been developed and has been producing under an agreement on the part of the operators; and more recently in Oklahoma City, serious efforts have been made to keep produetion in line with consumption. For the year 1930 we can see nothing in sight except drastic curtailment. This is a matter that I am sure is occupying the attention of all the leaders of the industry.