Production - Domestic - Oil and Gas Development in New Mexico in 1939

New Mexico, after several years as the sixth ranking oil-producing state, was surpassed by Illinois and for 1939 ranks seventh in the United States. Oil production for 1939 was 36,746,840 bbl. Production for 1938 was 35,510,176 bbl., a gain of 0.033 per cent. Production for the year would have been greater had there been a pipe-line outlet for the Vacuum field. The complete shutdown during the latter part of August covering a period of 15 days meant a production loss of over 1,500,000 bbl. of oil. Daily production allowable as set by the Oil Conservation Commission has followed very closely the recommendations of the Bureau of Mines. It has been found that the recommended allowables as quoted by the Bureau of Mines do not always reflect the actual demand, as there is a considerable lag hetween the recommended amounts and the current demands. During the year the various operating companies have done considerable remedial work in setting packers to reduce the gas-oil ratios in the various fields. Six new fields were discovered in New Mexico during 1939; three in Lea County, two in Eddy County and one in Chaves County. In the early part of 1939 a committee composed of the various engineers and geologists recommended subdividing the old Artesia area into various producing pools. This division was accepted, therefore the total number of producing fields in New Mexico is considerably greater than the number of fields in 1938, but does not represent new fields discovered during the year. The southeastern area continues to he the largest producer of oil. During the year 2,716,551 bbl. were produced in Eddy County and 33,690,996 bbl. in Lea County. Total production ill the northwestern part of the state, which includes San ,Juan and McKinley Counties, was 338,293 bbl. At the beginning of the year the daily average nonmarginal well allowable for Lea County was 48 bbl. At the close of the year it was 49 bbl. The daily average production for the year was 97,313 bbl. During the year, 659 wells were drilled in the state, of which 565 were producing oil wells, 15 gas wells, 6 carbon dioxide gas wells and 73 dry holes. Summarized at meeting; manuscript received at the office of the Institute March 18, 1940. * State Geologist, member of New Mexico Oil Conservation Commission, Santa Fe, New Mexico.