OIL OUTPUT.

Hawera Star, Volume XLVIII, 30 June 1924, Page 7

OIL OUTPUT.

— LESS THAN 1924 NEEDS. Present production of petroleum in the United States is estimated to be at the rate of 125.000,00*0 barrels less annually than the indicated requirements for consumption for the current year, according to statements made by experts. This, it is said, means that four new fields, with a production of 100,000 barrels a day each, should be developed quickly if the production of crude petroleum in 1924 is to equal consumption. According to trade leaders, there is not even one such field in sight. As a result a serious drawing upon surplus stocks soon is inevitable, it is asserted.

The year 1924 opened with surplus stocks of crude petroleum aggregating 333,000,000 barrels, hence no immediate shortage of crude is expected. But trade, leaders say there seems to have been isonie nvisunderstanding ps to the necessity of an extensive drilling campaign. The belief has been expressed, it is said, that because of the stocks of crude oil on hand at the beginning of the year which were the greatest in the history of the country, the oil men could sit back serenely at this time and not inaugurate drilling campaigns. A recent article in “The Oil and Gas Journal,” says: “With the duction of crude petroleum throughout the United States still failing to equal the output of the first week of this year, despite the increases recorded during recent weeks, probably the most important feature of the situ >'i n; at this time is the amount of ?iew wok planned, and which >s expected to be inaugurated within the near future, It is conceded that considerable new work will have to he done in order to bring the production of crude oil uo to the now requirements of consumption. The present producing wells of the entire country are not capable of providing sufficient crude oil to meet the needs, and additional .producing wells in large numbers will have to be completed, not only to hold production of crude at its present level, but to bring it up to a sale point in relation to the steadily increasing demands being made upon the industry by consumers.”.