Production - Domestic - Oil and Gas Development in Ohio for 1938

Lack of reliable detailed production figures for earlier years, together with the loose nomenclature in reference to producing horizons and the application of the term "field" without any definite meaning or restriction, has made it impossible to gather statistical data suitable for the Institute's form. In common with all other producing areas in the United States, Ohio has felt severely the economic ills of the entire industry during the past year. With overproduction, not only of crude but also of refined products, going on throughout the country, the price structure as a direct consequence has weakened on Ohio oils. Valuable crude is being sold at a big loss today because producers arc willing to, and do, sell more than the market can absorb. The axe hangs heavy over the heads of Ohio producers, and will until something constructive is done to keep supply in proportion to demand. This not only applies to Ohio but to the entire industry. Production of Pennsylvania grade in Ohio was under 50 per cent proration, which has been in effect since Oct. 1, 1937. Three price cuts since February have lowered the posted price from $1.70 to $1.18, a 30 per cent reduction; other grades were less drastically reduced. Pipeline storage facilities were limited; many producers were faced with the problem of providing their own storage or the risk of ruining their wells. If they wanted to pull and abandon wells, there was no market for junk equipment. Many employees have been cut to half time and in a number of instances their services entirely dispensed with. Summary of Production and Drilling Both oil and gas production in the state during 1938 showed a definite decline over the previous year. (A table showing production by years from 1876 through 1937 was published in Vol. 127 of the Transactions.) The total production of crude oil in the state for 1938 was 3,357,914 bbl., as compared with 3,654,000 bbl. in 1937, a decrease of 7.1 per cent. At