Oil Discovery Rate Depends on Price of Crude

TO SERVE their primary function of balancing supply with demand. crude-oil prices must not only return full cost plus a reasonable earning to the efficient producer but they must also offer an additional reward to stimulate exploration sufficiently to maintain adequate reserves. High prices increase the volume and efficiency of exploration; low prig e- -Idle exploration. Over the last decade average prices for crude oil have been much lower than for the proceeding ten years, and lower even than the average over the life of industry. Under these circumstances no one should be surprised to learn that over this same recent period of discovery of new oil fields has also lagged and fallen below its average level for the previous decade. Crude oil prices have been too ion to support the required activity in wildcatting.