OIL PRODUCTION.

Northern Advocate, 21 October 1920, Page 4

OIL PRODUCTION.

THE WORLD'S SUPPLY

AMERICA'S RECORD OUTPUT.

In spite of all the pessimism we (the "Petroleum Times" of England) hear as the inability of the oil-pro-ducing fields of the United States to meet even her own requirements in oil, it can be asserted with safety that the production of crude oil in America nas now reached figures which far surpass all previous records, and if only th e same success continues to attend oilfield operalions as that which has characterised chem during the first half of the present year, the total crude oil production of the United States for 1920 will exceed 400,000,000 barrels, or approximately 60,000,000 tons.

Though there is still considerable difficulty in securing regular equipment for oilfield operations field work is proceeding far more actively than was possible in the earlier months of the year, and this remark does not to apply to any isolated cases, but to the whole of.America's oil-producing States. The impejtus of high prices for the crude oil has caused development, operations to be widespread, and not only is there an oil fever in the old oil regions, wher c many abandoned wells are being brought again into production, but "wild-catting" is being indulged in to a degree never registered before. There is a third aspect which is stimulating production, and that jis the deeper drilling which is being resorted to in many regions. DEEP DRILLING. We attach the greatest possible importance to the results which are to b e secured by deep drilling. Over and over again it has been proved that by far the richer oil horizons lie at depths which in the earlier histories of oilfield exploitation had not been reached. Where a systematic sarch has been made for the deeper levels, w e have no instance on record that this has totally failed t 0 reveal new and large deposits, of hitherto untouched oil reserves, and it is a matter for gratification that no small portion of the increased output of the American oilfields to-day is due to this deeper drilling policy.

In the prolific fields of the MidContinent, in California, Texas, and also in the newer regions of the States, the records of crude oil production for the present year show substantial increases, and though it is certain that th e home consumption l of petroleum products in the States is steadily expanding, it is equally certain that the gulf between supply and demand this year will be far less gaping than during the past few years. FUTURE PROSPECTS. When dealing, however, with the crude oil production of th e United States, many are so apt to come to an erroneous conclusion that a basis can be reached as to the approximate life of th e present crude oil output, but we have always argued—and events to-day are showing the truth of this argument— that it is useless to commence diving into the realm of prospective oil production unless it is already known, what are the limits, of the producing fields.

We have reason to believe that numerous new areas of production will in the not distant future be opened in the States and the present widespread "wild-catting" in search of new production justifies our expressing th e opinion that the results will be particularly satisfactory. Large as America's oil output has been in the past, there is hot the slightest doubt that by a continuance of the present activity a large gain will be registered, not merely for th e present year, but for a long time to come. •