Production - Domestic - Petroleum Developments in Texas during 1931, Except the Gulf Coast and Panhandle Districts (With Discussion)

The active development of the vast East Texas oil field, the attendant effects of the rapidly increasing flow from its prolific wells and the efforts to bring order out of chaos precluded or dwarfed other oil development in Texas during 1931. In a paper by Dr. F. H. Lahee1 presented at the October, 1931, meeting, the early history of the East Texas oil field is described and the sequence of events in connection with its development and efforts to control its production up to Sept. 25 is narrated. At that time the Railroad Commission of the state reduced the production of the field to a maximum of 400,000 bbl. per day by restricting the allowable daily production per well to 185 bbl. By further reduction in the daily production per well to 100 bbl., the field was held below that maximum figure during the remainder of the year. Meanwhile, as a result of an injunction against the Railroad Commission, its authority in the field was superseded on Oct. 13 by the Governor of the state, and after that date production was controlled directly by his orders issued under authority of martial law. Suits to contest this authority were brought in the Federal courts and were pending at the close of the year. On March 5, 1931, as a result of the East Texas production, posted prices for Mid-Continent 40' A.P.I. crude slumped from $1.07 to $0.67. As East Texas production continued to mount, posted prices in East Texas were reduced to $0.37 on June 3 and $0.22 on July 8, although in that field most of the oil was sold for much less, bringing the producer and royalty owner as low as $0.025 per barrel. Northeast Texas To the information contained in Dr. Lahee's paper, it can now be added that the East Texas field has produced over 105,000,000 bbl. and registered about 3700 successful completions during 1931. There may be some merit to the recent prediction that a large part of the field will have passed its flowing period by the middle of 1932 unless