Petroleum Economics - Future Supply of Oil in California

FoR more than 30 years California has been one of the three leading oil-producing states. Present daily production of crude oil under curtailment, approximately 580,000 bbl., comes from three general areas: Los Angeles Basin, San Joaquin Valley, and the coastal region of Ventura and Santa Barbara Counties. This state produces approximately two-thirds of its oil from eight large fields, and obtains a daily average production of 48 bbl. of oil per producing well, whereas the average for the United States is but 8.15 barrels. During the closing stages of the first half of 1936, discovery of the Section Ten oil field was made, and credit goes solely to geophysical work. It is the first direct important discovery of oil in California that may be credited to geophysics. This discovery may furnish the cue to the means of discovering several fields in California, particularly in the San Joaquin Valley. It is a question, however, whether returns from geophysical work will play as important a part in the future supply of oil in California as have our former types of prospecting. Explobation Methods of prospecting have progressed in the oil industry through invention or improvement in scientific means of locating and defining structure and because of market improvements in drilling equipment. Present methods of prospecting include: 1. A detailed study of geology in an attempt to locate structural and stratigraphic conditions that would be favorable to the accumulation of oil. 2. Geophysical methods involving the use of the seismograph, torsion balance, magnetometer and electrical methods. (There is still much to be learned in California in the application of geophysical methods.) 3. Use of micropaleontology as an aid in correlation,. The principal improvements in drilling equipment are: 1. The Schlumberger dipmeter, which determines the direction of formation dip in an uncased hole.