Production - Domestic - Review of the Eastern Oil and Gas Fields for 1931

Drilling for oil in the eastern producing states was fairly active during the first part of 1931, although less so than in 1930. With low prices development declined during the year, until the low prices of the summer resulted in an almost complete shut-down of drilling. This coincided with the action of the Conservation Board of the Pennsylvania Crude Oil Producers Assn, in limiting pipe line runs to 50 per cent of the 1930 normal for the Bradford district and upper country, and to 70 per cent for the balance of the region. Not only was new drilling halted but in many cases oil-producing properties were shut in. In November crude prices were partly restored, and all oil offered was being taken except in the Bradford district which was restricted to 80 per cent of the 1930 normal. During the latter part of the year drilling was being resumed on a moderate scale, and new production indicated a resumption of the proration order. The interest in gas development which has been under way for several years, maintained its supremacy over the search for oil in 1931. New reserves of importance were developed during the year in the Western Kentucky Coal Basin, in the Eastern Kentucky shale gas territory, in Stark County, Ohio, as well as the Oriskany sand development in northern Pennsylvania and central New York. A gas line was completed to the Eastern Seaboard serving Washington and Baltimore, and other lines were under construction designed to serve portions of the territory not hitherto supplied with natural gas. The low price of fuel oil at seaboard is understood to be the deterrent factor against further extension of natural gas lines to these markets at present. The development of these new reserves, as well as those developed by intensive drilling in old areas, resulted in the building up of large potential gas production and a lowering of rates paid to the producer. This, coupled with the country-wide tendency to lower the consumer rates of all public utilities, resulted in a general threat to reopen rate cases before various state commissions. Oil Development The past year was marked only by the almost complete shut-down of new development, reaching its low point during the summer, with its