Oil And Gas Conditions In Kentucky And Tennessee During 1923

Little drilling has been done in Kentucky and Tennessee in 1923, with the exception of the Kettle Creek area on the Kentucky-Tennessee line. Oil prices fluctuated between $2.86 and $1.36 Per bbl. for light oil. The Kentucky production was slightly over 8,000,000 bbl., being 1,000,000 bbl. less than during 1922. Tennessee production was approximately 8500 bbl., being a decrease of 1000 bbl, over. 1922. During 1923, the first producing well was brought in, in Clay County, Tenn. Production in Tennessee will undoubtedly increase considerably in 1924, and Kentucky production will probably increase slightly. THE year 1923 has been a dull period in oil development in Kentucky and Tennessee, with the exception of the Kettle Creek area along the Tennessee-Kentucky line, in Clinton and Cumberland Counties, Kentucky, and Clay County, Tennessee. The price of oil during the year has been so low that wildcatters have shown little interest in drilling. At the beginning of the year, light oil sold for $2.31 per barrel and medium oil for $2.06 per, barrel. Prices increased to the highest point for the year in February, when light oil brought $2.86 per barrel and medium oil, $2.61. In April, prices had declined 35 c. while in May an additional decline of 25 c. went into effect. During June, prices declined 20 c. per barrel; during July, 45 c. per barrel; remained stationary during August and September, and dropped during November and December to the low price of $1.36 per barrel for light and $1.21 for medium oil. At present, an increase of 29 c. has brought the price of light oil up to $1.55, and indications are that the price will continue to increase during the coming months. It can readily be seen that during 1923 the price of oil was such as to prevent any drilling except that necessary to hold leases and to maintain production enough to take care of overhead expenses.