Refinery Products and Problems - Production Development in 1927

The overproduction of crude oil in 1927 has received such widespread publicity, both within and without the industry, and the several factors which have brought about this situation are so thoroughly agreed upon by everyone, that it is unlikely the writer will in this brief review be able to contribute anything new. The entire story of low prices and demoralization revolves around two flush districts, Seminole and West Texas— the actual. performance of Seminole and the potential threat of West, Texas. The sustained production of California has been a contributing factor to this situation also. It seems reasonably certain that Seminole and West Texas will together dominate the industry during 1928, with Seminole probably destined to drop into second place, as additional pipe lines are completed into West Texas to care for its rapidly expanding production. It now appears inevitable that the production of 1928 will equal or exceed that of the past year, depending solely upon the rapidity wit,h which it is possible to market West Texas crude, and the degree of restraint which operators are willing to impose upon themselves in holding proved reserves of oil underground. Adversity has cultivated the growth of a promising spirit of cooperation which has accomplished practical results both at Seminole and in West Texas. Cooperation among oil producers has long been ardently hoped for, but prior to the past year it has never been effective on an important scale. The interests both of the industry and the public at large can best be conserved by cooperation in controlling production, and the widespread acceptance of this idea has paved the way for a more rational policy in the immediate future Production BY Major Districts The domestic production of the United States during 1927 amounted to 894,43.5,000 bbl. (Bureau of Mines), an increase over 1926 of approximately 128,000,000 bbl. California succeeded in maintaining its position of the past four years at 230,000,000 hbl. In 1923 with the Los Angeles