Production - Domestic - Developments in the California Oil Industry during the Year 1941

The year 1941 in the California oil industry was marked by an increased market demand, drilling activity, and production of crude oil. Although seven new oil fields and two gas fields were discovered during the year, additions to reserves from these discoveries, as well as extensions and revaluations of previous discoveries, were approximately 100 million barrels, as against estimated withdrawals of 230,233,000 barrels. The year was remarkable for the very great increase in domestic demand for all products, which more than compensated for the loss in shipments to Japan, which averaged 60,041 bbl. Per day during 1940. Demand in terms of crude during 1941 was 648,967 bbl. per day as against 632,647 for the same period in 1940. This abnormal increase in demand is due to increased industrial activity, and especially increased railroad activity. Gasoline consumption for 1941 was 241,011 bbl. per day as against 217,744 in 1940. Demand for fuel oil increased from 259,806 bbl. per day in 1940 to 285,896 in 1941, and caused a withdrawal from stocks of more than 7,473,000 barrels. During 1941, total oil storage declined 9,153,000 bbl., but additions to storage of 1,754,000 bbl. of light oil and light oil products were offset by a withdrawal of 10,907,000 bbl. of heavier products. Production during the year is estimated at 230,233,000 bbl. as against 222,784,386 bbl. for 1940. TraNsportation For a short time, California was affected by lack of transportation due to the diversion of tankers. This shortage affected the movement of oil from the Sari Joaquin mated to the refineries, since a large percentage of this production is moved to the coast through pipe lines, and thence by tankers to Los Angeles and San Fran-,iSco, Return of the tanker fleet, which may be temporary, indicates that there is a possibility of ample supplies of petroleum products in the Pacific Northwest. Drilling Activity Contrary to general opinion, drilling activity increased in 1941 over the pre-vious Year, 942 wells being completed in 1941 as against 890 in 1940, an increase Of 6 per cent. This increase was due to the increased demands for fuel oil, and also to the decreased drilling costs, which made many former marginal locations economic. The main activity caused by increased demands for fuel oil was in the Mt. Poso, McKittrick, Midway and Santa Maria Valley oil fields. Dry-hole footage in 1941 was 655,354 ft. as against 583,537 ft. for 1940. Curtailment Voluntary curtailment succeeded in holding production considerably below demand, although it was above the state quota. During the year the top allotment