Production - Foreign - Mexican Oil Production in 1931

The production of petroleum in the Mexican fields during 1931 followed the downward trend of the past nine years, with a decline of close to 6,600,000 bbl., or about 17 per cent from the 1930 total. The output was close to 32,964,000 bbl., the Tampico-Tuxpam fields showing the largest actual and proportional decline, while the production of the fields in the Isthmus of Tehuantepec remained practically unchanged. Wildcatting along the international border was carried on more actively than in previous years, the only successful completion being the Alberca No. 1 well located about eight miles from the international boundary, across from Roma, Tex. This well, completed at a depth of 2015 ft. and plugged back to 1550, is rated at about 6,000,000 cu. ft. of gas per day from a horizon between 1330 to 1540 ft., and is now connected to the gas line from the Jennings gas field, Texas, supplying the city of Monterrey. Favorable oil indications have been encountered in other exploratory wells along the border and drilling will probably continue as these lands are largely held under government concessions which require continuous development work in order to retain title. Development in the Isthmus of Tehuantepec has progressed in a systematic manner, the number of successful completions during the year being considerably larger than in the South or Northern fields. The oil pipe line from the south fields to Mexico City has been completed and its operation and that of the Azcapotzalco refinery is expected to begin early in 1932. The construction of this line will Tevolutionize the transportation of petroleum and its products from the fields to the high plateau and seriously affect the revenues of the government-owned railroads. General conditions in the oil industry were reflected in Mexican operations. Low prices and the imminent threat of an American oil tariff discouraged development work necessary to maintain or increase production, and the curtailment of activities resulted in considerable reductions in personnel by all companies. Early in 1932 the Mexican Government announced its intention to create a surface tax or yearly rental on oil lands equivalent to about 31/4 U. S. cents per acre. Such additional burden on this already harassed industry will not only create little or no