Production - Domestic - Petroleum Production in Middle Western States, 1930 - Michigan, Indiana and Illinois

Despite abnormal economic conditions and the unhealthy state of the petroleum industry, 1930 closed without any marked decline in total production of oil in the Middle Western States. The most accurate figures available would indicate for this district an output of close to 25,000,000 bbl. for 1930 as compared to 26,000,000 bbl. for 1929. This can be accounted for by the settled nature of a great many of the wells producing in this area and the favorable geographical position, which affords adequate refining and marketing facilities. The only new flush production field discovered in the area was the Legrande oil pool in southeastern Hart County in western Kentucky, where wells up to 1000 bbl. initial have been reported from a shallow depth. Important extensions have been found in a number of central Ohio fields, and activity in the central Michigan area resulted in new pools along the northwest trend of the Mt. Pleasant structure. These new districts, known as the Leaton and Vernon pools, have not yet reached the scope of the Mt. Pleasant field proper, and although the structure is similar, sand conditions are not strictly analogous. Wildcatting was retarded somewhat by the scarcity of market for oil and many important wells were shut down for several months. This has not shown such a profound effect on production as the reticence of operators to drill inside proven locations. The major companies have not been able to dispose of their oil and the smaller operating units are having trouble financing their projects. The result is that oil in sight is not being produced and output is suffering accordingly. Another important effect on production was the introduction of proration by the major crude purchasers and a voluntary shut-down by Kentucky operators. This step became necessary because of the glutting of lake port refineries with Mid-Continent oil, and was not fostered by regulating state bodies, as in the case of the southwestern states. Small refining units have sprung up to meet this situation in a number of instances but they have experienced some difficulty in disposing of their product because of "dumping" tactics from other quarters. New refinery outlets on the Great Lakes and new pipe line connections should tend to alleviate this difficulty during the coming year. The