Petroleum Development In California During 1924

THE year 1924 was particularly notable in the petroleum industry of California as it was a period in which extensive town-lot drilling, with attendant overproduction and allied problems, virtually ceased and the industry returned to a nearly normal condition. Nearly all major field operations were conducted by large operating and marketing companies; in contrast to 1922 and 1923 field operations, when small promotion companies set the pace and forced the large companies to follow. The outstanding features of petroleum development were: 1. The three major fields of 1923, namely Huntington Beach, Long Beach, and Santa Fe Springs, declined from a production of 13,042,939 bbl., in January, to 6,764,417 bbl., in December, a drop of nearly 52 per cent: During this period, Huntington Beach declined 35 per cent., Long Beach 42 per cent., and Santa Fe Springs 63 per cent. 2. Methods of pumping deep wells were improved in some particulars; this contributed toward sustaining the productions of these three famous fields above what was predicted. 3. Of the fields producing previous to 1924, only three increased in production to any appreciable degree, during the year, as the result of bringing in new wells. These fields are Dominguez, Torrance, and Wheeler Ridge. Dominguez, discovered in September, 1923, produced 56,851 bbl. in January and increased regularly to a production of 1,641,042 bbl. in December. Torrance increased from a production of 972,261 bbl. in January, to 1,783,670 bbl., in May, and then declined to 1,393,215 bbl. in December. Wheeler Ridge, discovered in January, 1923, produced 23,254 bbl., in January, 1924, increased to a high of 33,678 bbl., in September, and declined to 27,430 bbl. in December. 4. Nearly all the production that had been shut-in during 1923 was opened in 1924, except some wells chiefly in Coalinga, Fullerton, and Santa Maria districts. The opening up of this shut-in production, combined with the increased productions from Dominguez and Torrance, were the chief factors that held the rate of decline for the state to a gentle slope.