Production - Domestic - Oil and Gas Development in Kentucky during 1939

Activity in the oil fields of the state was at a low ebb during the year because of the longest period of low prices that has yet prevailed, which has been detrimental to both the eastern and western sections of the state. Production for the state as a whole shows a drop of 209,192 bbl. during 1939, the total being 5,356,963 bbl. The loss is in the production of the western division, where a loss of approximately 300,000 bbl. more than offset a gain of approximately 100,000 bbl. in the eastern division. The loss in the western division can be attributed to decline in drilling activity due to the low prices prevailing, which were caused by flooding of the normal markcts with cheap Illinois crude. The gain in the eastern division is the result of repressuring operations begun in previous years and now showing results, and not to any renewed drilling activity. Gas development in western Kentucky during 1939 was of minor importance. In eastern Kentucky approximately 50 producing gas wells were drilled, which were sufficient for present market with excess reserves already developed. With the severe winter and additional industry load every gas well connected has been on line for the past three months. Although all demands are being met, development will be greatly increased during 1940 to meet depletion. From the geological point of view, the drilling activity in the western division developed additional information of benefit. Several wells on blocks of acreage assembled in previous years were drilled in the deeper parts of the Western Coal Basin—southern part of the Illinois Basin— giving for the first time accurate information about the Pennsylvanian and lower formations down to and through the Devonian.