Production - Foreign - Petroleum Development in Venezuela during 1936

In reviewing petroleum development in Venezuela during the year 1936, it is well to bear in mind certain factors that affected progress, although not directly connected with the oil industry itself. At the start of the year, when the present Federal Administration took over the reins of government, reaction against the former regime resulted in some popular uprisings. Although these were entirely political in character, they were not without their effect on the oil industry itself. Such popular agitation really ended with a short general strike in Caracas, Maracaibo and other cities during June, these strikes being based on demands for certain changes in government policies. The strikes were duly investigated and their motives taken into consideration by the executive power or by Congress, and during the year many of the civil, political and administrative laws have been revised. In June and December, however, it was necessary to suspend activities in drilling and production work, particularly in the Lake Maracaibo Basin area. In June a strike caused a five-day shutdown in the main producing fields and on Dec. 14 labor difficulties resulted in a shutdown that continued to the end of the year, which necessitated suspension of all drilling and production in the Lake Basin area and curtailment of shipments to deep-water terminals. Actually, the strike lasted for a period of 42 days, until Federal intervention brought the dispute to a close with minor wage increases to workers hut with no loss of initiative or independence on the part of the oil companies. Operations in eastern Venezuela were not affected by the labor disturbances, production and exports having been reduced in December only in the Lake Basin fields. Well Completions On Jan. 1, 1937, a total of 3384 wells had been completed throughout Venezuelan fields, as compared with 3094 on Jan. 1,1936. Of these wells, 2005 were producers. The 290 completions effected during 1936 were by the following operating companies: Lago Petroleum Corporation, 123 completions; Dutch Shell group, 104; Standard Oil Company of Venezuela, 46; Mene Grande Oil Co., 15; British Controlled Oilfields, Ltd., 2.