Production - Domestic - Developments in the California Petroleum Industry during 1932

During 1932 the oil industry persistently endeavored to maintain a rate of production that would permit a profitable price structure. Much effort was concentrated on curtailment of both production and drilling. The tendency in curtailment was to shut in reserves where closely held and not subjected to drainage, and to allow town-lot fields such as Long Beach, Santa Fe Springs, Playa Del Rey and Huntington Beach a greater percentage of allotment. Marginal wells were given special consideration; only a small percentage of curtailment wag required, making their operations profitable. Naturally the decline in production of town-lot fields, under slight curtailment, is very rapid, hence production that is restricted in fields controlled by major interests at the present time will profit considerably in the future, as California reserves do not appear adequate to sustain heavy withdrawals over a long period of time. California production during 1932 was much greater than additions to reserves during the year. The state produced 10,701,238 bbl. of crude oil less in 1932 than in 1931, while total stocks (all petroleum commodities) decreased 1,589,524 bbl. Had all operators kept strictly within their allotted 'production, the total crude production decline would have been approximately 20,000,000 bbl. and total stock decrease 3,000,000 barrels. Estimated proven oil reserves for California were 3,965,000,000 bbl. on Jan. 1, 1932, as compared with 3,784,120,000 bbl. as of Jan. 1, 1933, a decrease of 180,880,000 barrels. Approximately 85 per cent of the 178,127,794 bbl. of oil produced during 1932 was withdrawn from old reserves in settled fields and the remaining 15 per cent from new sources such as Kettleman Hills North Dome, Belridge, San Miguelito and Dominguez deep zone. The oil reserves of Kettleman Hills North Dome are estimated to be approximately 50 per cent of the total oil reserves, of California and they may be drawn upon at a much greater rate than the remainder of the state's oil fields.