An Oil Lesson from Mexico

LESS than eight months ago at the annual meeting of the American Institute of Mining and Metallurgical Engineers, attention was called to the demoralizing effect of the abnormal oil production of Mexico on the oil situation in the United States, and it was predicted that this unstabilizing influence would probably become impotent in 18 to 24 months through ' the exhaustion of the principal producing fields of Mexico, unless new fields were found in- the meantime. When this statement was made, the daily production of Mexico was about 600,000 bbl. of crude oil; now it is about 350,000 bbl. No new pools of consequence have been opened, although extensions have been made to two old pools. Over 200,000 bbl., or more than half of the present daily production, comes from Los Naranjos, Amatlan and North Zacamixtle fields, in which practically every well is so affected by salt water that the potential production dropped 50 per cent. in the month of September, clearly indicating that these fields are moving rapidly toward extinction. How much longer the one remaining important pool will last is a matter of conjecture.