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By John G. H. Crump, E. W. Owen, Peter P. Gregory

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By E. W. Owen, John G. H. Crump, Peter P. Gregory

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By T. E. Weirich

Although 1931 witnessed no new discoveries of oil or gas in Oklahoma, the year is especially outstanding because of price demoralization, political intervention, abandonment of marginal properties, a strict curbing of oil flow from wells in flush fields and an extension of proration into settled fields. In spite of a strict, adherence to proration agreements, the price per barrel of oil sank from 65c to $1.07 to a low level of 10c to 22c. Table 1 gives the price range for crude oil in Oklahoma during the year. Under a martial law order by the governor, a period intervened from Aug. 4 to Oct. 10, of complete shutting in of the flush fields. This condition created an abrupt decline in the production curve during the two months' period. Oklahoma, as elsewhere, is passing through a "transition period" of relieving expensive above-ground storage by maintaining the more copious supplies of crude oil in the natural reservoirs. For many years the thousands of small, nearly depleted wells have been considered as being the "backbone of the industry." A large number of wells of this type are now idle or completely abandoned. More than 1100 abandonments were recorded by the state Corporation Commission during the year. The industry is becoming less interested in these small wells, replacing the former attitude by the curbed potentialities of flush pools. Many of the major companies are grouping these marginal properties with those of adjacent owners, operating the whole

Jan 1, 1932

By V. R. Garfias

It has been repeatedly questioned whether estimates of oil reserves are of any practical value, as the greater number of such calculations previously made have subsequently been proved to be grossly inaccurate. But even admitting partial justification for such statements, it must be evident that some idea, however approximate, of the available reserves of essential minerals is of vital importance in mapping their development and the future trend of the related industries, particularly if it is kept constantly in mind that these estimates—which are never intended as a final word—must be continually subject to revision in accordance with the changes in their component factors. The value of these estimates, therefore, hinges on the clear understanding that they can only apply within the limited time when the controlling factors remain unchanged. It should be understood, however, that while estimates of possible and probable oil deposits are as a rule but idle conjectures, appraisals of proven oil reserves can undoubtedly be made with an ever-increasing degree of accuracy. And it is with this in mind that in the present study the endeavor has been to estimate only the world's proven oil reserves—the oil that yet remains underground in the producing fields—and their logical extensions, and to leave out of consideration the questionable volume of the probable and possible oil reserves. In Table 1 the countries at present producing oil in commercial quantities are listed in the order of the magnitude of their proven reserves. As shown in the table, the world's proven oil reserves are estimated at over 24 billion barrels, while the total production to the end of 1932 aggregates nearly 23 billions. Past production represents, therefore, 48 per cent, and proven reserves approximately 52 per cent of the total. About 61 per cent of the reserves are located in the American continent and close to 33 per cent in the Near East fields of Russia, Iraq and Persia. It is interesting to note that the proven reserves in the important producing regions almost equal if not exceed their production to date. The Mexican fields are a remarkable exception in this respect since they produced over 135 billion barrels and have proven reserves estimated at only 300 million barrels.

Jan 1, 1933

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Guillermo Hileman

Probably the outstanding feature of the oil industry in the Argentine, during the past year, was the increase in production from the Comodoro Rivadavia field. This increase was accounted for by the discovery of a deeper producing horizon in the old coastal field (zone A). The oil, derived from the deeper sands, served not only to balance the natural decline of the upper sands and increase the yield from the area, but also provided a product of comparatively superior quality. The finding of this ney- production in the old field had a special economic significance because of the pumps, tanks and pipe lines already installed to take care of it. The deep horizon is looked upon as a life

Jan 1, 1937

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By Valentin R. Garfias

The production of petroleum in the Mexican fields during 1931 followed the downward trend of the past nine years, with a decline of close to 6,600,000 bbl., or about 17 per cent from the 1930 total. The output was close to 32,964,000 bbl., the Tampico-Tuxpam fields showing the largest actual and proportional decline, while the production of the fields in the Isthmus of Tehuantepec remained practically unchanged. Wildcatting along the international border was carried on more actively than in previous years, the only successful completion being the Alberca No. 1 well located about eight miles from the international boundary, across from Roma, Tex. This well, completed at a depth of 2015 ft. and plugged back to 1550, is rated at about 6,000,000 cu. ft. of gas per day from a horizon between 1330 to 1540 ft., and is now connected to the gas line from the Jennings gas field, Texas, supplying the city of Monterrey. Favorable oil indications have been encountered in other exploratory wells along the border and drilling will probably continue as these lands are largely held under government concessions which require continuous development work in order to retain title. Development in the Isthmus of Tehuantepec has progressed in a systematic manner, the number of successful completions during the year being considerably larger than in the South or Northern fields. The oil pipe line from the south fields to Mexico City has been completed and its operation and that of the Azcapotzalco refinery is expected to begin early in 1932. The construction of this line will Tevolutionize the transportation of petroleum and its products from the fields to the high plateau and seriously affect the revenues of the government-owned railroads. General conditions in the oil industry were reflected in Mexican operations. Low prices and the imminent threat of an American oil tariff discouraged development work necessary to maintain or increase production, and the curtailment of activities resulted in considerable reductions in personnel by all companies. Early in 1932 the Mexican Government announced its intention to create a surface tax or yearly rental on oil lands equivalent to about 31/4 U. S. cents per acre. Such additional burden on this already harassed industry will not only create little or no

Jan 1, 1932

By R. V. Whetsel, V. R. Garfias

Petroleum production in the Mexican fields during 1932, estimated at 32,400,000 bbl., was only 564,000 bbl., or about 2 per cent less than the 1931 total. Production in the northern fields declined approximately 1,100,000 bbl., the Tehuantepec output showed a drop of 340,000 bbl. and the South fields gained 865,000 barrels. Wildcatting continued at a reduced rate, the only successful completion being Presa No. 2 well which at a depth of 1535 ft. produced about 7,000,000 cu. ft. of gas. This well is an offset to Alberca No. 1 completed during 1931. General conditions in the petroleum industry coupled with the additional burden of the 21c per bbl. duty on oil imported into the United States further discouraged development activity in Mexico during 1932. Production of the Mexican fields in 1932 was distributed as follows: Production (U. S. Barrels) 1931 1932 _______________________________________________1________________________ Northern fields.................................... 14,092,000 13,000,000 South fields....................................... 10,535,000 11,400,000 Tehuantepec fields............................... .. 8,000,000 32,964,000 32,400,000 Since their discovery to the end of 1932, the fields have produced as follows: (U. S. Barrels) Northern fields..................................... 681,300,000 South fields........................................ 967,200,000 Tehuantepec fields.................................. 40,540,000 1,689,040,000 The tremendous productivity of the Mexican wells and the very small number actually drilled in the proven areas is shown in the following table:

Jan 1, 1933

By V. R. Garfias, C. O. Isakson

The production of petroleum in Mexico during 1930 was approximately 39,600,000 bbl., or 5,188,000 bbl. less than in 1929. The decline which has continued for the last eight years, will place Mexico in fifth or sixth rank as an oil-producing country. The production of the northern and southern fields near Tampico declined over 5,250,000 bbl., while that of the fields in the Isthmus of Tehuantepec moderately increased. The wildcat operations which have been conducted for some years near the international border along a 290-mile belt, extending roughly 170 miles northwest and 120 miles southeast from Laredo, Texas, have so far met with little encouragement, although the oil possibilities of the region warrant the belief that commercially productive fields will be discovered eventually. An interesting development during the year was the starting of construction of the oil pipe line from Palma Sola in the South Fields near sea level—over Sierra Madre at 8660 ft.—to Atzcapotzalco, a suburb of Mexico City at an elevation of 7350 ft. This line, about 146 miles long, has a diameter of 10 in. and an estimated daily capacity of 10,000 bbl., and with its terminal refinery at Mexico City will form a transporting and refining unit which should materially affect the distribution and marketing of refined products in the Republic. Development During the past year 148 wells were drilled, as compared with 214 in 1929 and 371 in 1928, the percentage of producers being 49 as against 47 in 1929. With the exception of one well in San Isidro, at the extreme southern end of the Golden Lane, the Jardln Paso Real area was the only sector of the old fields where new development could be considered as successful, all other producers brought in during the year being drilled in nearly exhausted pools to be operated as ('strippers." Northern Fields A total of 71 wells were drilled in the northern fields, of which 22 were producers; one well in Ebano was estimated at 5000 bbl. per day, while the general average of all producers was less than 300 bbl. Results

Jan 1, 1931

By Ben B. Cox

Oil produced in Iraq for export during 1938 was 31,354,090 bbl., or a daily average of 85,901 bbl; This is an increase of 182,614 bbl., or 0.5 per cent over 1937. All oil exported was produced from the Kirkuk field. The Khanaqin Oil Company, Ltd., a subsidiary of the Anglo-Iranian Oil Company, Ltd., continued to supply local market requirements from its Naft Khaneh field in the Transferred Territories. Slightly more than 32,000,000 bbl. was produced in Iraq, a small part of which was used in field operations. During the year 12 wells were completed and 9 wells were drilling at the end of the year. Of the completions, 5 were producers and 1 was an oil-water level observation well in proved fields, and 6 were listed as failures. Basrah Concession The outstanding event of the year was the granting, by the Kingdom of Iraq, of a 75-year concession embracing approximately 89,000 sq. miles to the Basrah Petroleum Company, Ltd., a British company with French and American participation. The concession covers all parts of the Kingdom, its territorial waters, islands, submerged lands, and its interest in the Neutral Zone separating Iraq and Saudi Arabia that

Jan 1, 1939

By Ben B. Cox

Oil produced in Iraq for export during 1938 was 31,354,090 bbl., or a daily average of 85,901 bbl; This is an increase of 182,614 bbl., or 0.5 per cent over 1937. All oil exported was produced from the Kirkuk field. The Khanaqin Oil Company, Ltd., a subsidiary of the Anglo-Iranian Oil Company, Ltd., continued to supply local market requirements from its Naft Khaneh field in the Transferred Territories. Slightly more than 32,000,000 bbl. was produced in Iraq, a small part of which was used in field operations. During the year 12 wells were completed and 9 wells were drilling at the end of the year. Of the completions, 5 were producers and 1 was an oil-water level observation well in proved fields, and 6 were listed as failures. Basrah Concession The outstanding event of the year was the granting, by the Kingdom of Iraq, of a 75-year concession embracing approximately 89,000 sq. miles to the Basrah Petroleum Company, Ltd., a British company with French and American participation. The concession covers all parts of the Kingdom, its territorial waters, islands, submerged lands, and its interest in the Neutral Zone separating Iraq and Saudi Arabia that

Jan 1, 1939

By H. De Cizancourt

AS in former years, Pechelbronn, in Alsace, was the most important producer in 1936, with 484,453 bbl., of which 283,151 from drilling and 201,302 from mining showed a slight increase in comparison with the preceding year. Gabian, in France and Tliouanet, in Algeria, are nearly exhausted. At Gabian, four wells drilled in intermittent exploitation produced during the year 2893 bbl. Four wildcats, one of which is producing, constituted all the activity in research on French territory. In Morocco, some wildcats have been drilled in search for new fields and exploratory drilling has been done in Tselfat and in Djebel Bou Draa in known fields, but the results have been inconsiderable. In Tunisia there was a gas outburst in Kebir 1, which is the first practical result obtained. In Madagascar, the Andrafiavelo region has been left and a new region has been tried in Folakara with the Tsimororo. In French Equatorial Africa, one drilling is in progress.

Jan 1, 1937

Masjid-i-Sulaiman Field.—During the past year, drilling activities have been limited to repair work. No new developments of importance can be recorded in production technique. Fall of dome pressure is maintained at the 1 lb. per sq. in. per annum rate mentioned in previous reports. Acid treatment of wells is being increasingly used and for wells in fissured areas has been very successful. Such wells have been converted into first-grade producers with substantial drops in bottom-hole differential pressures. The effect of acid treatment has been to increase the flowing lives of wells so treated. The normal procedure consists of threo treatments of 500 gal. commercial acid diluted 100 per cent but success has been met with fewer applications. The policy of returning products to the resorvoir has been continued. The total quantity of products returned since the policy was commenced in 1929 now amounts to approximately 30 million barrels. Haft Kel Field.—The drilling of the main Haft Kel structure for production purposes has now been completed. Production and control wells have been completed to meet the rate of production anticipated over the next few years.

Jan 1, 1937

By W. P. Haynes

The 1938 production for all of Rumania amounted to 48.984.200 bbl., as compared with 53.239.500 bbl. in 1937. which represents a drop of 4.255.300 bbl., or 8 per cent. Of the various fields. there are only two major increases in production—Baicoi-Tintea with 3.092.400 bbl. And

Jan 1, 1939

By W. P. Haynes

DuRing 1939. there were no discoveries of oil and gas in Rumania worthy of mention. and the only important extension was the anticipated

Jan 1, 1940