Petroleum Production - Foreign - Oil Development in Peru in 1928

Activity in the oil industry in Peru was somewhat above normal in 1928. Probably the most significant feature was the interest displayed in the oriental region in the northeast part of the country (Fig. 1). This region, though little known, has long been considered potentially rich in oil! gold, coal and other minerals, lacking only transportation to make it the country's most valuable source of income. The Standard Oil Co. of New Jersey, through its recently formed subsidiary the Standard Oil Co. of Peru, has acquired various tracts along the Maranon and Ucayali rivers in the neighborhood of the Brazilian border. Standard Oil Co. interests have had geological and surveying parties in this part of Peru since 1921, and as a result of the work done, we understand they have under lease at the present time some 2,500,000 acres of prospective oil lands. Development in the coastal region continued along normal lines during the past year. Production figures for both the International Petroleum Co. and Lobitos Oilfields show a small increase over the last few years. Total production figures since 1924 for the International Petroleum, Lobitos Oilfields and Zorritos companies, only in a minor degree estimated, are as follows: 1924, 7,924,700 bbl.; 1925, 9,138,042 bbl.; 1926, 10,750,676 bbl.; 1927, 10,110,696 bbl., and 1928, 11,969,677 barrels. International Petroleum Co., Ltd. Operations on the La Brea-Parinas Estate during 1928 continued with satisfactory results; nearly all branches showing improvement over the previous year. The average daily production for 1928 was 25,966 bbl., compared with 21,282 bbl. for 1927, an increase of 22 per cent. During the last two or three years, production methods on the company's property have been improved in line with the advance in scientific technique throughout the oil fields of the United States. Extensive investments were made in compressor equipment for handling surplus gas with the result that the gas-lift and repressuring operations are in no small way responsible for the increase in the 1928 production. In addition, the company's three casinghead plants produced 24,847,708 gal. of gasoline compared with 17,240,865 gal. in the previous year.