Production - Domestic - Oil and Gas Development in the Texas Panhandle in 1932

The Texas Panhandle produced 18,677,000 bbl. of oil in 1932 as against 25,064,000 in 1931. The decline was caused by smaller market demand, since the Railroad Commission potential increased from 105,528 to 149,260 bbl. during the year. Well Completions, 1932 The development during 1932 compares with 1931' as follows: Year Wells Drilled Dry Holes Gas Wells Oil Wells Initial Pro- duction, Bbl. 1931 200 6 77 117 347 1932 136 18 28 90 603 Crude oil prices, small market demand, and lower allowable rate of production caused less drilling. Expiration of leases was one reason for a greater number of dry holes through forced drilling of questionable areas. The small number of gas wells reflected the influence of the business depression upon industrial and domestic gas demand, together with difficulties of franchise negotiations or pipe line extensions under present conditions. Probably much of the gas-well drilling was done on expiration leases, or to protect against drainage, and equalize withdrawals as between the various units held by each gas pipe line company. The increase in average initial daily production was due chiefly to excellent granite wash wells in the LeFors district developed by the Texas Co. and Skelly Oil Company. In the Panhandle district, comprising a major anticline with almost a million productive gas acres, the pools tend to merge in time, the development being confined to more productive areas. Hence separation into pools becomes a matter of time of development with some effort to keep dolomite, archosic and granite wash production separate. Many pools, like the Finley and Bowers, have mainly one type, but many leases and even individual wells produce from two zones. The oil production is usually closely associated with sea level, where proper porous formations