Production - Domestic - Developments in California Oil Industry during 1939

Drilling activity in California during 1939 decreased approximately 15 per cent from that of the previous year. New reserve discoveries were the lowest in many years, but extensions, development of deeper sands, and reappraisals, indicated enough new potential to more than equal 1939 withdrawals of about 223,644,000 barrels. On June 1 a new uniform method of allocation was adopted, which had the immediate effect of reducing production, so that approximately 6,000,000 bbl. of crude were withdrawn from storage during the year. Market demand averaged 628,845 bbl. per day as compared with a daily production of 612,945 barrels. The rate of drilling was slow during the first five months because of the unfavorable storage situation. Subsequent to the adoption of the new uniform method of allocation on June 1, drilling was speeded up and continued at a rapid rate throughout the remainder of the year. As a result of prospecting, four new fields were discovered and seven fields were measurably extended. All of the new discoveries were made in the San Joaquin Valley. Statistics of production and development arc given in Fig. 1 and Tables 1 to 3. New Discoveries Coalinga-Northeast.—The Amerada Petroleum Corporation discovered a second Eocene shore-line field north of the Coalinga Nose when it brought in well S.P.L. 7-17 in sec. 17-19-16, flowing 4230 bbl. of 32.4" gravity oil and 14,200,000 cu. ft. of gas at a depth of 8237 ft., from the "Gatchell" sand of Eocene age. This field, 2 miles north of the Coalinga Nose field, is considered to be a separate structure because it has a gas cap and a lower water table. The structure is a broad, gentle anticlinal nose probably separated from the southerly Coalinga Nose field by a shallow syncline. Production is sealed updip by the pinching out of oil sands. The average sand thickness is approximately 200 ft., the top 75 ft. containing mainly gas. The sand has an average permeability of 1000 millidarcys and an average porosity of 25 per cent. The productivc area of the field is estimated to be between 1200 and 1500 acres.