Production - Domestic - Developments in the California Oil Industry during the Year 1936

The year 1936 was a prosperous one for the oil industry in California. Increases in crude prices were posted in February and March. Re-establishment of voluntary curtailment in February was a factor in holding production at an efficient level throughout the year. Reduction of storage was effected through adherence to curtailment measures, aided by greater demand and smaller average well completions. During the first six years of voluntary curtailment, allotments were increased during the summer season and reduced during the winter season. This year, good results were obtained through a revised system of allocation, by which the California monthly quota was held constant at approximately 540,000 bbl. per day. After a 7-month period of practically unrestricted production (ending in January 1936), numerous operators found that curtailment was still necessary, as California and export market,s were not yet capable of absorbing the state's potential production, which was estimated to be in the neighborhood of 850,000 bbl. per day. Therefore, in February California operators again placed themselves under voluntary curtailment; with the result that state production dropped from around 700,000 bbl. per day in January to a low of 565,000 bbl. per day in April, and increased gradually to around 585,000 bbl. per day for December. Drilling activity during the year increased about 10 per cent over that of the preceding year, although the resultant production per well decreased. Field Discoveries As a result of a very active wildcatting campaign in California, aided by better interpretation of geophysical data, five new oil fields and two new gas fields were discovered. Oil Fields Greeley Field, Kern County.—The Standard Oil Co. added to its list of djscoveries by drilling and completing its K.C.L. No. 11-1 well at a