Petroleum Development In California During 1923

A BRIEF review of the oil conditions in California for a few years prior to 1923 is desirable for a clear comprehension of the development during that year and the results of the development. California's oil production during the five years preceding 1922 had been running from 100,000,000 to 115,000,000 bbl. annually. Crude oil stocks in storage had been declining steadily from 1915 to 1919, when there was a slight increase. They continued to decline through practically all of 1920, when they were drawn on to the extent of 11,350,000 bbl., leaving 20,930,000 bbl. on hand. In 1921, with production approximately 10,000,000 bbl. greater than the previous year, crude-oil stocks increased until, at the end of the year, there were 33,289,000 bbl. on hand. It would seem, therefore, that at the end of 1921 the so-called Pacific Coast province could absorb between 100,000,000 and 105,000,000 bbl. of oil per year, any in excess of this amount going into storage, not being, able to compete in other markets with oil outside the state. During 1922, daily production increased from 316,000 bbl. at the beginning of the year, to 500,000, at the end. This increase was the result entirely of production from the new fields, in the Los Angeles basin. In fact, considerable oil from the older fields of the state was shut-in beginning with March, 1922. As of 1922, the past development of the oil industry of California had been, in a general way, quite regular. As the need grew for more oil, pioneer drilling was increased, resulting in the discovery of new fields here and there. The good prices for crude oil that prevailed during the later part of the War and into 1921 had stimulated an extensive wildcatting campaign by California's larger oil corporations, as well as by smaller independent oil companies and by individuals. Many wildcat wells in California have required, two or three years for their completion, consequently the intensive wildcatting, which might be said to have started in California in 1917 and continued into 1922, found its greatest results with, the discovery of three very productive fields which, for all practical purposes, might as well have come in simultaneously.