Production - Domestic- Petroleum Production in Oklahoma during 1931 (With Discussion)

Although 1931 witnessed no new discoveries of oil or gas in Oklahoma, the year is especially outstanding because of price demoralization, political intervention, abandonment of marginal properties, a strict curbing of oil flow from wells in flush fields and an extension of proration into settled fields. In spite of a strict, adherence to proration agreements, the price per barrel of oil sank from 65c to $1.07 to a low level of 10c to 22c. Table 1 gives the price range for crude oil in Oklahoma during the year. Under a martial law order by the governor, a period intervened from Aug. 4 to Oct. 10, of complete shutting in of the flush fields. This condition created an abrupt decline in the production curve during the two months' period. Oklahoma, as elsewhere, is passing through a "transition period" of relieving expensive above-ground storage by maintaining the more copious supplies of crude oil in the natural reservoirs. For many years the thousands of small, nearly depleted wells have been considered as being the "backbone of the industry." A large number of wells of this type are now idle or completely abandoned. More than 1100 abandonments were recorded by the state Corporation Commission during the year. The industry is becoming less interested in these small wells, replacing the former attitude by the curbed potentialities of flush pools. Many of the major companies are grouping these marginal properties with those of adjacent owners, operating the whole