Papers - - Produciton - Domestic- Oil and Gas Development in West Virginia during 1934

Oil and gas and their derivatives continue to be stable products in West Virginia. In the midst of the cataclysmic happenings of 1930 to 1934, which have swept away banks and practically destroyed many other enterprises of presumably nonspeculative character, the possession of a royalty or working interest in a few old oil or gas wells has prevented disaster in literally thousands of homes. These old wells yield their daily quotas of basic commodities, which the public must have. Fortunately, the facilities of disposal in the Appalachian Province are so ample and well managed that the owner of such equities may be reasonably certain that his proportionate share of existing markets will be afforded him without much effort on his part. In most cases these investments are free from encumbrance or hypothecation, therefore the main uncertainty is the date of ultimate exhaustion at the source. Generally, this is known to be fairly remote. The net result has been that individual owners part with such investments only as a last resort. In sharp contrast to the action of the small owner of wells or royalties who has prudently refrained from jeopardizing his rather certain income by drilling new wells that may be failures, or of which the product may not be needed for the moment, has been the plight of various promotional enterprises in natural gas. Many of these ventures have been operated by amateurish remote control and practically all have been overloaded from the start with bonds and debentures, which could only be satisfied in a rising and expanding market; and with operating costs that have been exceedingly high because of widely scattered producing units and large overheads. Many of these promotions are now in receivership or bankruptcy and in various instances the original units have been recaptured by former owners and have again become profitable by reason of personal operation and elimination of all forms of overhead expense. New Development In 1934, the State issued 524 permits for drilling. According to the trade journals, 553 wells were completed, with 184 oil wells, 274 gas wells and 95 dry holes (Table 3).