Production - Foreign - Petroleum Development in Venezuela in 1931

The production of petroleum in Venezuela during 1931 was approximately 118,767,000 bbl., a decrease of 18,904,000 bbl., or 13.7 per cent, compared with the previous year. This is the first break in production, which has risen steadily since 1920, and is attributable to restriction of output and drilling operations, in harmony with lessened demand, rather than to any real decline in potential production. Venezuela ranked third among the world's producers, having lost second place to Russia. The Bolivar coastal fields, which were extended approximately 14 miles southward during the year, continued to supply most of the oil. La Concepcion, Los Manueles and Quiriquire all showed marked increases. A new field of light oil was discovered on the north coast near Puerto Cumarebo, State of Falcon. Exports declined 15.7 per cent, from 137,377,000 bbl. in 1930 to about 115,800,000 bbl. in 1931. Crude oil in storage at the end of the year amounted to 7,450,000 bbl., a decrease of 2,150,000 as compared with 1930. Tankage utilized is about 40 per cent of the available space. A drastic decline in drilling activity reduced the number of wells completed in producing areas from 401 in 1930 to 116 in 1931. Only three wells were drilled in the Lagunillas field proper, but, the amount of closed-in production and proven acreage gave assurance of a satisfactory potential output. Of the 1580 wells drilled to the close of 1931 in the producing areas of the Bolivar Coast, 631 were active and 853 were closed in; 96 had been abandoned. The status of the active wells at the end of 1931 was as follows: flowing, 331; pumping, 99; gas-air lift, 201. Producing wells closed in numbered 452; workovers, 8; totally inactive, 393. Lago Petroleum Corp. and Venezuela Gulf Oil Co. placed in operation the first units of their electric power plants, the former at Punta Gorda and the latter at Las Morochas, and are replacing steam power in their operations as rapidly as possible. Compressor stations were also installed for use in connection with air-gas lift operations. A considerable volume of gas was treated in gasoline extraction plants, the tail gas being recom-pressed and utilized together with natural high-pressure gas, for stimulation of production.