Production - Domestic - Oil and Gas Developments in New York for 1939

In 1939 the production of crude oil in New York totaled 5,105,000 bbl. This marks the third consecutive year production of crude oil has exceeded 5,000,000 bbl. and only once has this total been surpassed—in the year 1882, three years after the discovery of oil in Allegany County, when the annual production was more than 6,000,000 barrels. The most gratifying feature of the industry was the increased demand for lubricants, which resulted in advanced prices for crude. From a price at the beginning of the year of $1.68 per barrel, six advances totaling 82c brought the year's closing to $2.50 per barrel. A further increase in price on Jan. 1, 1940, to $2.75 per barrel places the local industry in a strong position for the year's operations. Most of the oil production of the state is now obtained by water-flooding, and the industry is practically stabilized. No new pools have been discovered in over 25 years, and border drilling indicates little prospect of extending the boundaries of the fields beyond their present limits. Deep drilling to the Oriskany sandstone in and close to the present oil fields hay failed to find oil in substantial amounts. Altogether, the oil pools of New York have produced during the 60 years that they have been exploited approximately 125,000,000 bbl. of oil. Following the flush production of 1882, the annual production gradually dccrcased and the year 1912 marked an all-time low of only 782,000 bbl. In 1919, as a result of flooding operations, a definite upward trend in oil production was recorded. During that year also the production of oil by water-flooding methods as approved by Legislative action. In the 21-yr. period beginning with 1919, oil production in the state ha.: totaled 60,338,000 bbl. Thus it will be seen that by the aid of flooding methods nearly as much oil has been produced in the last 21 yr. as in the preceding 40 yr., although the Iatter period included the flush production in 1882. As there is little hope of extending the area of the present producing oil fields of the state, producers and refiners are concerned regarding the future life of the fields. It is encouraging to observe that earlier esti- Published by permission of Director of New York State Museum, Albany, N. P. Summarized at meeting; manuscript received at the office of the Institute March 20. 1940.