Petroleum Production – United States - Production Development in the United States in 1928 (With Discussion)

Total United States production for 1928 was 900,364,000 bbl. as compared with 901,129,000 for 1927, or 2,466,000 bbl. per day versus 2,468,000. The three major producing areas were Texas, Oklahoma and California. Texas production increased from 217,389,000 bbl. in 1927 to 256,888,000 in 1928—an increase of 39,499,000 bbl. following an increase of 44,500,000 bbl. in 1927. Oklahoma production amounted to 249,558,000 bbl. in 1928 as compared with 277,775,000 bbl. in 1927 and 177,650,000 bbl. in 1926. California production for 1928 was 231,982,000 bbl. as compared with 231,196,000 in 1927. Production increased markedly in Venezuela and declined in Mexico. Elsewhere no great changes or declines in production were noted. New discoveries occurred in nearly all districts. The many excellent reviews of the various districts of the United States presented at this meeting, are each fully summarized and tell their own story so well that little would be gained by attempting to repeat their content here. There are certain impressions to be gathered from these papers and certain trends that are indicated by them which may better be pointed out. OVERPRODUCTION Overproduction is the most serious one of them. Efforts to avert it resulted in a measure of cooperation in the oil industry more widespread in character and more beneficial in results than has ever been recorded in any previous year. These efforts were undertaken in the closing months of 1927 and enthusiastically effected before the spring of 1928 had passed. Unfortunately, slight advances in prices during the summer months accompanied by the letting down of this sort, of effort resulted in a marked increase of production during the latter half of 1928. Successful delay in the drilling of new prospective areas was in effect in Oklahoma. California delayed some drilling and increased its shut-in