Production - Foreign - Petroleum Activities in Brazil in 1944

Official daily output of the Reconcavo (Bahia) oil fields, which amounted to 300 bbl., increased by the end of 1944 to 500 bbl. The new productive wells are in the district of Candeias. This figure is expected to further increase during 1945. The Itatig Company, which had drilled five wildcats in the state of Sergipe, stopped in 1944, but intends to resume work during the current year, or as soon as the war is over, in order to try the Cretaceous areas around its salt deposits. Several concessions applied for in the states of Sao Paulo, Parana arid Santa Catarina were favorably considered by the Conselho Nacional de Yetroleo, which is interested in fostering prospecting activities in the country. Several national groups are interested in exploring the federal gas field of Aratu (Bahia), a proposal having been made to use the gas in the manufacture of Portland cement. Undoubtedly the most important fact in the 1944 activities was the visit by two outstanding petroleum geologists, who had the opportunity to examine some of the principal areas and reported their opinions to the Brazilian Government. By special courtesy of the U. S. Government, Mr. E. DeGolyer spent a few weeks inspecting the gas and oil fields of the so-called "Reconcavo" of Bahia (a large tract surrounding All Saints Bay, on whose shore lies the city of Salvador) Later he exchanged ideas with Colonel Joao Carlos Barreto, President of the Conselho Nacional de Petrolco, as to the most adequate measures to develop production. Considering the oil problem in the southern part of Brazil, in the sedimentary belt including formations from the Devonian to the Triajsic, Mr. DeGolyer suggested a visit there by Mr. Lemis MacNaughton. The latter traveled during the months of June, July and August, accompanied by Brazilian geologists Avelino de Oliveira, Vice-president of the Conselho Nacionial de Pctroleo, Pedro Moura, Annibal Bastos, Burdot Dutra and J. Felicissimo, and verified the actual possibilities of the region, thus confirming the opinion of Pedro Moura, Avelino de Oliveira and Froes Abreu as to the advisability of thoroughly prospecting the south of Brazil. It is to be hoped that on the recommendation of these proficient American experts the Brazilian Government will take the necessary measurcs to carry out a complete search 01 such areas, which hitherto have been unsuccessfully drilled because knowledge of the structure was not adequate. The old Government policy of monopolistic essence has now given way to the more enlightened tendency of reconciling official action with private enterprise, which should in no way be curbed but rather encouraged. Such trend is heartily welcomed by financiers and technicians alike, who realize how indispensable is the cooperation of private capital, both national and foreign, in