Production - Domestic - Petroleum Development in Michigan and the “Trenton Rock” Fields of Northwestern Ohio and Northern Indiana 1931 (With Discussion)

The drilling for and production of crude oil in the Lima-Indiana and Michigan fields were directly and profoundly affected by the severe strain to which the petroleum industry was subjected during the year 1931. Serious and long-continued overproduction in the large flush areas of the western and southwestern fields, coupled with a nationwide decrease in the annual rate of consumption-increase, served to precipitate ‡ This curve is the Mid-Continent price for 38" gravity crude and hence. affords a basis for estlmating the influence of general factors upon the price structure m these fields. a mid-year economic depression which was functionally reflected in every producing area in the United States. A study of the curves of price changes in portions of the central west territory (Fig. 1) will demonstrate this relationship as well as the ensuing upward trend, which developed when pressure was artificially relieved, at least for the time being, in the producing areas in the southwestern states. All field activities in the Lima-Indiana and Michigan territory during 1931 follow the price curve closely: the mid-year depression was evident in drilling activities— both wildcat and within the proved limits of producing fields, in pipe line