Petroleum Production - Foreign - Mexican Oil Fields during 1928

Mexican petroleum production for 1928 was approximately 50,000,-000 bbl., the lowest in 12 years, showing a decrease from 1927 of over 14,000,000 bbl. The steady downward trend for the past 7 years has allowed Russia to outrank Mexico by a wide margin for third position and if the expected decline continues during 1929 it should place Persia ahead of Mexico as fourth in rank. The year 1928 was characterized by a continuation of the reentrench-ment previously begun by the oil industry in Mexico in an attempt to adjust itself to the adverse conditions caused by the steady depletion of the fields, the rapidly increasing competition from Venezuela and the United States and the as yet unsettled petroleum legislation and taxation situation. With the exception of the Isthmus of Tehuantepee, drilling in proved fields was considerably curtailed and although the number of wildcats completed exceeded those of the previous year, no extensive drilling programs were undertaken. Practically without exception, the major companies reduced personnel and operations to a point where they could meet existing conditions and mark time while awaiting a more stable basis for the future testing of unexploited regions. Many terminal and transportation facilities were abandoned during the year. Development Only 371 wells were completed during 1928, as against 583 in the previous year and 808 during 1926, and although the percentage of producers in 1928 was 34 per cent., compared to 26 per cent. in 1927, the initial production of -wells was considerably lower than during the previous year, a great number of the wells showing salt water and becoming "strippers" from the time they started to flow. Development is summarized in Table 1. Drilling in the Northern fields did not prove any new pools of importance, the most successful wells being located in the old producing areas of Cacalilao, Panuco and Topila. (Fig. 1 Very few of the producers made more than 1000 bbl. daily, and a great many less than 300 bbl. a day.