Production - Domestic - Development in the California Oil Industry during the Year 1943

California had a record year in production and drilling activity, but the results have not been sufficient to keep up with the enormous increase in demand due to war activity. During the year, 164 dry wildcats were drilled, 80 dry wells in proved areas, 31 gas wells, and 1158 successful oil-well completions for a total of 1433 wells, compared with a total of 765 in 1942. With new discoveries of only 20,000,000 and production of 283,000,000 bbl. for the year, total reserves of California oil have decreased more than 250,000,000 bbl. However, revised estimates of the reserves of old fields indicate an increase in the state's reserves of I00,000,000 barrels. The completion of 1158 wells has served only to maintain the maximum efficient daily rate of production at 800,000 barrels. There is evidence in many fields that oil is being withdrawn too rapidly to obtain the maximum recovery, and more rapidly than is conducive to good production practice. Statistics for 1943 as compared with I942 are shown in the table in the next column, Supply and Demand Steadily mounting needs of the military forces and increased industrial consumption raised total demand for all petroleum products on the Pacific Coast to 914,000 bbl. daily in 1943. That all-time record demand was 149,ooo bbl. daily higher than in 1942 and 214,000 bbl. daily above 1941 demand. Despite restrictions due to shortages of critical material, crude-oil production was boosted from 680,000 bbl. daily in 1942 to 779,000 bbl. daily in 1943, the highest level in 15 years. However, the new crude supply plus natural gasoline production and imports from other states totaled only 840,000 bbl. daily, leaving a deficiency between supply and demand of 74,000 bbl. daily. That shortage had to be made up by withdrawals from inventories, which had been steadily depleted during the previous four years. Aboveground reserves, which totaled 159,574,000 bbl. on Jan. I, 1939, were down to ~8.000,000, bbl. at the end of 1943. Significantly enough, the greater part of that decrease occurred during the last six months of I9437 when more than 23,000,000 bbl. was taken from inventories of both crude and products. Although the size of total inventories on Dec. 31, 1943 might appear substantial, about 65 per