Economics - A Comparison of Old and New Oil Fields

During the past few years a number of large and highly productive oil fields have been discovered in the United States. The immediate oversupply which has resulted, together with the circumstances under which the new fields have been operated, has created exaggerated impressions of the importance and magnitude of these fields. Statements as to the many years during which individual fields could supply the entire demand of certain areas, as to the overwhelming effect of these fields on the industry, and as to their greater size compared with any of the older fields have become so common as to attract little attention. For example, East Texas is commonly considered as the "greatest oil field" and a review of the development of the field for 1931 is so headed in one of the leading trade journals.' East Texas is unquestionably a very great oil field. However, some students of the field have estimated its ultimate recovery at about one billion barrels, and the Bradford field discovered in 1875 is also estimated, by competent engineers, to have about a billion barrels still recoverable by water drive, in addition to more than 300,000,-000 bbl. it has already produced. If East Texas should produce the two or three billion barrels assigned to it by more optimistic estimators, it will, though considerably greater than Bradford, still fall far short of it in importance to the industry. A reasonable doubt also exists as to whether East Texas will exceed the Midway-Sunset field which has produced about 720,000,000 bbl. and still has important reserves. Again, in importance to the industry, Midway-Sunset has been greater than East Texas can ever be. Relative Importance of Oil Fields The principal purpose of this study is to compare, on the basis of their importance to the industry, a considerable number of the major fields which have been developed in the United States. Some remarks are also made as to the estimates of reserves in certain fields now in course of development, since the writer believes that the conditions under which these fields are operated lead to estimates of recoverable reserves which