Production - Domestic - Petroleum Development in Oklahoma in 1932

Petroleum development in Oklahoma during the year 1932 was rather colorless. The crude price structure, while it was relatively stable, was too low to encourage wildcat drilling and proration restrictions were such that producing wildcats were usually faced with the drab prospect of being limited to 50 bbl. per day. Proration in flush and semiflush areas was for the most part successfully accomplished. Military enforcement of proration rulings was deemed necessary at Oklahoma City. The trend toward cost cutting and abandonment of unprofitable wells continued through the year. It is estimated that 1500 wells were abandoned and it is not unlikely that as many more were shut down which will never produce again. Oklahoma crude oil stocks were reduced by approximately 11 million barrels in 1932. It is generally conceded that inventories of material have been appreciably reduced. Leasing activity was limited principally to rental reductions and to close scrutiny of all lease holdings. There were numerous "leasing plays" based on geophysical information but with few exceptions they were small. It is estimated that over 15 per cent of the acreage under lease at the beginning of 1932 was surrendered during the year. There was a tendency through the year to prospect shallow pay sands formerly passed by in the search for deeper production. This is especially true of the Seminole area, where the Calvin sand received considerable attention, and where some good wells were completed. Prices There were two price changes during the year that affected the majority of crude sales. Using 36 gravity A.P.I. as a basis of comparison, the price was increased on April 11 from $0.77 to $0.92. On Dec. 16, the price dropped to $0.69. During the fall months there were several postings higher than this schedule but all postings were at the same level at the end of the year.