Production - Petroleum Production - Summary

The year 1930 stands out in the petroleum industry as an exceptional one in many ways. It is one of the few years in its history during which crude oil production declined from that of the previous year in nearly every important producing district in the United States and in the world as a whole. World production of crude oil declined approximately 81,000,000 bbl., from 1,484,451,000 bbl. in 1929 to 1,403,500,000 bbl. in 1930. Production of crude oil in the United States declined approximately 111,000,000 bbl., from 1,007,323,000 bbl. in 1929 to a production of 896,265,000 bbl. in 1930. World production outside of the United States increased approximately 30,000,000 bbl., due principally to the increased production in Russia. This, together with the decided decrease of production in the United States, resulted in a smaller percentage of world production in the United States than in any other year since 1921. This declining production occurred in the face of the greatest visible supply in the form of potential production that the industry has ever known and was clearly the result of the great efforts put forward to restrict production, both by proration and by unitization. Throughout the year, developments along the lines of proration and unitization have overshadowed all other developments in the minds of those interested in the oil industry and will, no doubt, continue to do so more and more in the future, as it is quite evident that the industry cannot hope to maintain itself in a profitable position, without some rational plan of bringing about a better balance between supply and demand than has existed in the past. The successful operation of the Van field unitization agreement and the recently completed Kettleman Hills plan are indicative of what mag be expected in the future along this line. That real progress has been made in this direction is shown by the fact that total crude oil stocks in the United States were decreased by approximately 28,000,000 bbl. during the year 1930. This is the only year on record during which such a decrease of crude oil stocks was accompanied by a severely declining price structure. This reduction of crude stocks is apparently continuing even after the price has reached its present low level, indicating that there is no