Production - Domestic - Petroleum Developments in California during 1930

Curtailment of production of crude oil, to the extent of effecting an approximate balance in supply and demand, was a problem confronting the oil industry in California throughout the year 1930. At the beginning of the year, with drilling operations only slightly checked, the California industry faced a steadily increasing potential production, an actual production in excess of market requirements and stocks of crude oil and refined products which had reached staggering proportions. During the year, the intensive development of the Playa Del Rey field and extensions to several oil fields, together with flush production from numerous large wells from both new and old fields, caused a steady increase in the state's potential production to a record peak in November of 1,186,000 bbl. daily. Despite the burden of this steady stream of flush production and the handicap of incomplete cooperation in several fields, curtailment successfully lowered the trend of crude oil production in California, except for the period of an open-flow test to determine actual potential production in several important fields in February. Under the curtailment programs in effect, the state's production of crude oil for the year was reduced 22 per cent. under the production of 1929 and even slightly under the production for the years 1927 and 1928. The total stocks of crude oil and refined products were reduced 2.7 per cent. during 1930, as compared to an increase of 30 per cent. in total stocks of all products during 1929. Drilling operations were reduced 28 per cent. as compared to drilling activities during 1929. Voluntary curtailment of drilling programs by many operators, particularly the major companies, accounts for the greatest portion of the reduction in drilling activity. The decline in drilling activity at Santa Fe Springs and in the east-side fields of the San Joaquin Valley was more than offset by development in new fields and extensions to deeper zones of old fields. There were 755 new wells completed during 1930, as compared to 910 completions in 1929. At the close of the year, 220 wells were drilling in the oil fields of California, 9 of which were being drilled in search of deeper producing horizons.