Petroleum Production – United States - Petroleum Production and Development Rocky Mountain Region during 1928

The so-called Rocky Mountain region is here made to include Colorado, Idaho, Montana, northern New Mexico, Utah and Wyoming, an area of great distances and relatively sparse population. Conditions of distance, transportation and markets have had their retarding influence on devolopment and production but the increase in facilities and markets in recent years has provided additional incentive for more thorough search for new productive areas and the more complete development of the known fields. The low prices of crude during the past year have offset, to a certain extent, the desire for increased production and much of the effort has been directed therefore to outlining new areas rather than to attempts to increase production from known fields and thereby add to the already sufficient supply above ground. During the year just closed the Rocky Mountain region has seen consistent efforts to outline new areas and these efforts have been reasonably successful. In this area a very large part of the land is government property, and by cooperation between the government, the private owner and the company it has been possible to carry on development in a scientific manner, providing for the maximum recovery of valuable products at least cost and at times when prices were best. Due to the fact that in the Rocky Mountain region costs of exploration and development are relatively high because of natural circumstances, it has been the policy of operators to drill test wells only on structures where they controlled a large proportion of the land. Even community lease programs have been effected in certain areas, thus obviating the necessity of offset drilling and the attendant uneconomical and even wasteful production. Oil production in the Rocky Mountain states has shown a slight increase during the year, the average daily production for November being 78,124 bbl. as against an average in January of 76,681 bbl. The total production during the first 11 months of the year, according to the U. S. Burcau of Mines, was as follows: