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By V. H. Whihelm

Since 1935 California has enjoyed a remarkable cycle of discovery, which has placed the state in a very satisfactory position in regard to oil reserves. Most ol the geophysical plays have been drilled and it is possible that new discoveries must be made by the application of careful geologic and stratigraphic studies. During 1940 only one new field was discovered, which, although not of major importance, may lead to additional discoveries. During the year, 113 wildcats were drilled. New discoveries, extensions and a reappraisal of discoveries made in 1939 will not approximate over 50,000,000 bbl., as against an estimated withdrawal during the year of 224,000,000 barrels. Demand in terms of crude for 1940 was 632,000 bbl. per day as against 626,000 bbl. per day for 1939. Demand for gasoline was the same as in 1939, but the demand lor fuel oil increased 3.8 per cent. Compared with 1939, Japanese shipments decreased from 75,786 bbl, per day to 61,000 bbl. per day, but the balance of Pacific foreign shipments increased from 59,409 bbl. per day to 61,304. Total with-drawals from storage during the year will approximate 7,000,000 bbl., almost all of which is fuel oil. Drilling activity was slightly greater than in 1939 and accounted for 890 new producing wells as against 851 for 1939 (Table 3). Production averaged 611,900 bbl. per day as compared with 614.,842 bbl. per day for 1939. The productive acreage figure of the state was increased by 4000 through discoveries and extensions. New Discoveries Los Angeles Basin District Del Vdle Field.—Northwest of Newhall, where the first oil well in California was drilled, R. E. Havenstrite completed his Lincoln No. I well, flowing 390 bbl. of 50" gravity oil together with 7000 M CU. ft. of gas. Later the well was recompleted, after cutting off the gas, for 950 bbl. of 34" gravity oil. The type of structure from which this production is coming is a plunging anticline, complicated by faulting. The Lincoln No. I well uncovered approximately 180 ft. of net sand. This field contains a gas cap and its indicated productive area approximates 500 acres. An intensive wildcat drilling campaign is expected during this coming year in the district in the vicinity of the Del Valle field. Extensions and Deeper Sand Developments Los Ange1es Basin District Athens Field.—On the northwest plunge of the Athens structure, the Thorley Oil Co. completed its No. 12-1 well, flowing 250 bbl. of 3 2" gravity oil from a depth of 8097 ft. The area in which the well is located is complicated by faulting and it is impossible at this date to determine the importance of this deep-zone discovery.

Jan 1, 1941

By Alfred H. Bell, George V. Cohee

Illinois produced 146,788,000 bbl. of oil in 1940, or nearly 11.0 per cent of the total for the United States, and ranked fourth among the oil-producing states. Its production was only slightly less than that of Oklahoma, which produced 11.5 per cent of the national total. Illinois' production in 1940 represents an increase of 55 per cent over the previous year, when it amounted to 94,912,000 barrels. The development of the Devonian limestone in the Salem and Centralia fields is largely responsible for the increase in production during 1940 Production from the Devonian limestone in these two fields was estimated to be 36,698,000 bbl., or 25 per cent of the state's total production (Table I). The increase in production during June, when the state's daily average production attained a peak of 518,200 bbl. for the week ending June 29, was due to the Devonian production at Centralia (Fig. I). The initial production of the best Devonian wells in the Centralia field was as high as 12,000 bbl. in 24 hr. Daily average production in IIIinois for 1940 was 400,000 bbl. of oil, but actually daily production fluctuated widely during the year. At the beginning of 1940 daily production was approximately 330,000 bbl. During the first hali of the year it in-creased irregularly to the peak in June mentioned above and as the prolific Devonian producing areas were drilled up, the state's daily production declined rapidly during July and continued to decline, although more slowly, until the end of the year, when the daily production was approximately 325,000 bbl. The daily average production per well in the new fields at the end of the year was approximately 40 bbl. (Fig. I). Oil from the Devonian was also produced in the Bartelso field, Clinton County, the Sandoval field, Marion County, and the Irvington field, Washington County, bringing the estimated total production from the Devonian limestone to about 26 per cent of the state's total production, The remainder was obtained largely from the Mississippian system. About 2 per cent of the total was from Pennsylvanian and Ordovician strata. The decline in the Devonian limestone production has been so rapid that the 1941 output from this system will probably be only a small fraction of that of 1940 unless large new reserves are discovered. The "Trenton" (Ordovician) limestone has been tested in two wells in the Centralia field and both were small oil producers at a depth of about 4000 it. The "Trenton" also was found productive in the Salem field at a depth of 4500 ft. (Table 5). The initial production of the discovery well, which was completed shortly after the end of the year, was 130 bbl. on pump. Other wells drilled early in 1941 had initial productions averaging 172 barrels. The outlook for 1941 is for a continuation of drilling activity in Illinois, but at a declining rate (Fig. I, upper curve). The most active area at the end of 1940 was in the deep basin area in Wabash, Edwards, White, and Hamilton Counties.

Jan 1, 1941

By G. F. Fix

Oil and gas activity reached a higher peak in Indiana during 1940 than for any like period during the past decade. Major activity, as during 1939, was in the southwestern part of the state, the Indiana portion of the Eastern Interior Coal Basin, where most of the increase was due to field drilling in previously proven areas. The amount of wildcat drilling was about the same as for 1939. No new fields of any apparent consequence were discovered during the year, with the possible exception of the College pool, in southwest Posey County. Only one well had been completed in this area at the end of the year. About 10 ft. of saturated Aux Vases sandstone was drilled in this well and the initial production was I00 bbl. of oil a day. Other discoveries during the year 1940 include: St. Thomas, in southwestern Knox County, where four McClosky wells, ranging from I00 to 300 bbl. a day initially, were com-pleted; Buff kin, in central Posey County, with 11 oil wells and 5 gas wells completed; and new developments in two old areas —Randolph County (part of the old Trenton field) and Gentryville, northwestern Spencer County, where some oil was found many years ago. The St. Thomas field proved disappoint-ing, with very spotty production from the McClosky horizon of the St. Genevieve limestone at a depth of about 1875 ft. The discovery well flowed 362 bbl. a day ini-tially. At the end of the year the field was pretty well outlined by dry holes and some inside locations were dry. The Buffkin pool also proved spotty, with production from shallow Pennsylvanian sands and from the Basal Pennsylvanian Mansfield sandstone, the latter at a depth of approximately I175 ft., with small production from the Cypress sandstone of Chester age. Oil wells in this pool are small, ranging from 25 to 75 bbl. a day. The Randolph County area, on the east side of the Trenton gas field, showed some promise for a commercial gas field, with four completed gas wells having cumulative initial flows of about 1,200,ooo cu. ft. a day. The area appar-ently was not depleted during the Trenton boom at the turn of the century, since casing pressures are about as high as the virgin pressure in the old field. Elsewhere the pressure has dropped as low as 5 pounds. The Griffin field received most of the drilling during 1940, with 163 completed oil wells. This field now covers about 3200 acres on the Indiana side of the Wabash River and is not as yet completely delimited. It produced the major part of Indiana's oil during the year—a total of 3,594,000 bbl. At the end of 1940, there were 253 producing wells in Griffin. New Harmony had five completions for a total of 24. The Rockport field, in Spencer County, continued to be actively developed and had a total of 45 gas wells and 9 oil wells at the end of the year. Oil in commercial quantities had not been found in the field previous to 1940. Total gas production for the year was 394,470,000 cubic feet. In all, 521 wells were drilled in the state during 1940, as compared to 377 for 1939. Of this number 248 were oil wells, 77 were gas wells and 196 were dry. Divided into

Jan 1, 1941

By W. A. Ver Wiebe

The year 1940 was singularly unmarked by sensational developments in Kansas. Routine operations were carried on in a systematic, orderly fashion and the efforts of oil producers were concentrated on extending known fields. In Kansas an arbitrary yardstick for wildcats has been set up. A well drilled mile or more from a known pool or well is now considered a wildcat. A "rank wildcat" is one that is drilled at least 2 miles from any known producer. During 1940, rank wildcats resulted in the completion of 116 test wells, among which 16 were successful in finding new oil pools and the remaining I00 were dry holes. The ratio of successful wells to dry holes, therefore, was approximately I:6. During the year, 1890 wells were completed in eastern and western Kansas. This figure is somewhat lower than that given in several trade journals, because it does not include wells that were deepened or wells that were recompleted in a different geological horizon. About three fourths of these (1423) were completed as commercial oil wells (I220 in western and 203 in eastern Kansas). The commercial gas wells completed number 58 of which 10 are in eastern Kansas and 48 in western Kansas. Of the remzining completions 147 are dry holes in eastern and 262 are dry holes in western Kansas. Based on daily potential capacity, the new discoveries of the year account for a cumulative initial production of 46,000 bbl. in eastern and 2,128,000 bbl. in western Kansas. The state of Kansas attained a new peak in production, with the total of 66,245,000 bbl. for the year 1940, the number of contributing wells being 20,779. Thus the increase over 1939, when about 58 million barrels was produced, is considerable. The previous peak occurred in 1937, when 70,761,000 bbl. was marketed. In another still earlier peak, in 1917, slightly more than 45,000,000 bbl. was produced and sold. The production of gas probably reached a new peak also during 1940, with its total of 85 1/2 billion cubic feet. Between the peak of the year 1908, when over 80 billion cubic feet was produced, and that of 1940, the production dropped to a low point of 16 billion cubic feet in the year 1921. The number of test wells drilled was larger than in 1939; that is, 1890 compared with 1458. The first peak was reached in 1904, when 2782 wells were drilled. The number dropped off rapidly, to 368 three years later, but rose to the second and highest peak in 1918, when 4671 test wells were completed. In the period between 1904 and 1912 more gas wells were completed than oil wells. Between the high peak of completions in 1918 and somewhat lower peak of 1937, the low point was reached during 1931, with the completion of only 470 test wells. In the number of new pools discovered, Kansas again ranks high among the states. The exact number depends somewhat upon the interpretation of a "new" area— whether it should be called a new pool or a long extension of an old pool. Unfortunately, the matter of securing the right kind of production allowable also enters into this question. Often the decision regarding a new pool cannot be made until other wells

Jan 1, 1941

By Coleman D. Hunter, George M. Straughan

Oil and gas development as well as extensive leasing in Kentucky during 1940 has shown a marked improvement over the past three years.$ The most noticeable improvement is the gas development in eastern Kentucky and the deep tests being drilled by major oil interests. In western Kentucky, 406 wells were drilled, of which 173 were oil producers, 12 were gas wells and 221 were dry or abandoned. The number of dry tests was large, because no important, new oil or gas pool was discovered and many of the dry holes could be considered wildcat tests. However, with either oil or gas possibilities from Pennsylvanian formations on through Mississippian, Silurian, Devonian, and Ordovician, this percentage of dry holes seems rather high. Many of the dry tests possibly should have been tested in deeper horizons before being abandoned: namely, Silurian and Ordovician ages. In eastern Kentucky, 213 wells were drilled, of which 113 were gas producers, 61 were oil wells, and 39 were dry holes. Of these wells, 117 were drilled in the most important Big Sandy gas field, in Floyd, Pike, Knott and Martin Counties, and of this number 103 were gas producers, 5 were oil wells, and 9 were dry holes. In the Big Sinking oil field of Estill, Lee and Powell Counties, 70 of the remaining 96 wells were drilled, j6 being oil producers. During 1940, four deep tests were drilled in eastern Kentucky. One test penetrated the Knox dolomite in Knox County and was dry; no St. Peter sand was encountered. Another test in Lee County had some gas in what might be called St. Peter sand, according to the State Department, and also some gas deeper in the Knox dolomite. In Wolfe County, a small oil well was completed in the Ordovician, which was undoubtedly of Trenton age. ilt the present time, four deep tests are being drilled, all of which will go to the Knox dolomite. In Elliott County, on the Burke dome, the Inland Gas Co, is drilling at 3650 ft. In Magoffin County, on the Paint Creek uplift, the Cumberland Petroleum Co. is drilling at 3800 ft. In Clark County, in the Ruckerville fault area, W. 0. Allen is drilling at 1800 ft. In Laurel County, on the Sinking Creek dome, the Globe Oil and Gas Co. is drilling at I750 ft. If production is encountered in the Trenton, St. Peter, or Knox dolomite in any of these tests, eastern Kentucky will experience a marked increase in deep development.

Jan 1, 1941

By H. K. Shearer

North Louisiana (including all townships north of the Louisiana base line) had a year of normal development in 1940, marked by the discovery of two shallow oil fields producing from the Wilcox formation in La Salle Parish and a large increase in drilling in the old Caddo shallow field. This renewal of shallow drilling activity led to a somewhat unexpected increase in the number of wells drilled, although the total footage and average depth continued to decline, as in several preceding years. Well completions and depth statistics for 1940, with previous years for coinparison, are as follows: Wildcat producers in 1940 include the discovery oil wells in the Olla and Nebo fields; also three gas wells in the vicinity oi the Olla field and a shallow gas well, which opened a new field or extension in the Greenwood area of Caddo Parish. This table illustrates the lack of important deep discoveries since 1937, in which year the Rodessa, Lisbon and Cotton Valley fields were being actively developed. Operators have been forced to return to the old type of shallow drilling, which necessarily means smaller producing wells. Oil production in 1940 was 24,381,760 bbl., a decrease of 867,880 bbl. from 1939, or 3.44 per cent. The newly discovered fields of La Salle Parish produced over a million barrels, and other increases worthy of note were at Cotton Valley, Caddo, Sligo and Sugar Creek. The greatest decrease was again at Rodessa, although this remains the principal producing field. Geological Names Revised Deep drilling during 1940 did not provide a great deal of new geological information. However, by agreement of a majority of the members of the Shreveport Geolog- ical Society, the names of some of the Lower Cretaceous formations have been revised in the interest of greater clarity and in order to make the descriptions agree better with the facts discovered in recent years. The geological section is discussed in detail and reasons for changes in nomenclature are stated in a recent publication by Ralph W. Imlay. Although not yet in universal use among field men, the new names are employed in this report and accompanying tables, as

Jan 1, 1941

By J. Brian Eby

The Gulf Coast of southern Louisiana during the year of 1940 was subjected to an extensive exploration and development campaign, as a result of which 16 oil fields and about 38 new producing sands were found. Although this record of discovery appears in keeping with the rate of 1939 actually in amount of new proven reserves, it may fall short of that of the previous year. Only five or six of the discoveries rated as first-class or important fields at the close of the year. The most prominent new fields opened during the year were Neale field in Beaure-gard Parish, the West Cote Blanche field in St. Mary Parish, the Stella field and the West Bay field in Plaquemines Parish, and the Lake Salvador field in St. Charles Parish. There were many important oil-sand discoveries in proven fields, such as in the Bayou Perot field, the Golden Meadows field, the Iowa field, West Lake Verrett field, and the Venice field. During the year, 1047 weUs were drilled in southern Louisiana, of which 768 were completed as oil-producing wells, 17 as gas wells and 262 as dry holes. The Neale field in northwest Beauregard Parish is considered one of the most important discoveries of the year. The f~eld centers around the north half of sec. 26, 'Y.3 S., R.I I W., just north of the town of Neale. It was discovered by the Atlantic Refining Co., using reflection seismograph to locate the structure. Production was found in the second well drilled in the Wilcox sand on the downthrown side of a fault. The structure is known as the "Tepetate" type, being similar to that of the well-known Tepetate field. There were 12 oil wells and 3 dry holes drilled during the year. The Wilcox sand in this field occurs between 8350 and 8400 ft. and averages 30 ft. in thickness. The West Cote Blanche Bay field, in West Cote Blanche Bay, St. Mary Parish, is a 1940 discovery by the Texas Company, credited to reflection seismograph exploration. The oil is from two sands occurring at 3110 to 3140 ft. and from 4950 to 5020 it. Four wells were drilled during the year, three oil wells and one dry hole. The deepest hole drilled reached 9491 ft. without encountering salt or dome material. In Plaquemines Parish, south of New Orleans, the California company has a new field known as the Stella field. The sand was found at a depth of 7485 ft., and 5 ft. of perforations made a well capable of producing 486 bbl. of oil in 24 hr. through a 9.is-in. choke. The oil is 42" gravity. The discovery well was drilled to a total depth of 10,258 ft. and other producing sands were indicated. A good field appears assured, although only one well was completed within the year. The Lake Salvador field, in the center of Lake Salvador, St. Charles Parish, gives promise of being one of the most important discoveries of the year. The discovery well was perforated at 9775 to 9800 ft. making 850 bbl. of 33.7° gravity oil daily through a 1/4-in. choke. Three wells were completed in 1940 but few details have as yet been made available.he Gulf Oil Corporation apparently has a good field in its wildcat discovery in West Bay, Plaquemines Parish. This well found

Jan 1, 1941

By Theron Wasson

No major oil-field discoveries were made County; the second in Marion township, in Michigan during the year 1940. Produc- Osceola County. Both are producing from tion for the year was maintained by the Stray sand at about 1350 ft. These discoveries made in 1938 and, as a result, is fields are on structures founci by core test-below the total for 1939. Several extensions ing through the glacial drift. The Six Lakes to old fields have been made, which have field, Montcalm County, discovered in helped to maintain production in the face 1934, is Michigan's largest gas-producing of rather rapid decline in the fields of the field. it has 195 wells producing from the southwestern part of the state. Important Michigan Stray sandstone and the Upper extensions were made in Overisel, Porter, Marshall sandstone. This field was devel-Sherman, and Adams fields. Important oil oped on a 40-acre spacing plan, and gas fields of the state are shown on the -map, Fig. I. WiI~dcat Drilling Michigan's production of 19,700,000 bbl. A test in sec. 29, Winterfield township, during 1940 was 3,800,000 bbl. less than Clare County, which is producing oil from the total for 1939, but about one million the Monroe of Devonian age at a depth of greater than 1938. This brings the total 3760 ft., and a well in sec. 31, Lincoln accumulated production for the state to a township, Osceola County, producing from little over 145,000,000 bbl. the Monroe at 3625 it., should be classed as wildcats that are sure to lead to further Active Oil Fields development in I94L The leading producer for the year was the At the end of the year the Gulf Refining Temple field, Clare County, where 29 new Company's deep test on the Kawkawlin wells were drilled. The Walker field, Kent structure in Monitor township, Bay County, was second, but drilled 183 new County, was preparing to drill deeper after wells in order to gain that position. In the having had a gas blowout from a depth of extension of the Overisel field in Allegan 7775 ft. This test is the most important one County, 115 new producers were drilled. drilling at the end of the year in Michigan, The Adams field, Arenac County, was for should it develop commercial produc- revived by several wells with initial production from deeper beds it will lead to deeper tions of over 1000 bbl. per day from the drilling on many well-known structures Dundee of Devonian age. that have been producing from shallower sands. Active Gas Fields Two important gas fields were discovered Exploration by Taggart Brothers during the year. The A small amount of reflection seismograph first was in Riverside township, Missaukee work was done in Clare, Osceola, and Glad-Win Counties during the year. Exploration Manuscript received at the office of the Institute March 28 1941 by shallow drilling for structural informa- tion on beds below the glacial drift con- 347

Jan 1, 1941

By H. M. Morse

During the year of 1940, wildcat wells were drilled in 32 counties of Mississippi; 85 wells in all. These were scattered over the state from the most northern county to the southern counties and from the Mississippi River on the west to the Alabama line on the east. Yazoo County, with 19, received the largest number. The average depth of all the wells was 5333 ft. The shallowest well completed as a dry hole was in Yalobusha County, aban-doned at 1392 ft. in the Selma. The deepest well drilled was in Scott County, abandoned at 10,365 ft. in the Lower Cretaceous Paluxy. G. C. Grasty drilled the Kentucky Lumber Company No. I well, sec. 7, T. 10 S., R. 10 E., Itawamba County, to a depth of 3530 ft. and bottomed his hole in the Ordivician. Tinsley Oil Field.—In the Tinsley oil field 104 wells were completed as producers during 1940. Five producing sands have been logged with a total average thickness of I57 ft. of oil sand. One of these sands is in the Selma, three in the Eutaw, and one in the Tuscaloosa. Vaughan-Pickens Field.—The Vaughan-

Jan 1, 1941

By Frank C. Greene

The wildcatting in northern and northwestern Missouri, which started in 1939, was continued in 1940. Two new gas fields were found and one discovered in 1939 was further extended. The total number of completions was 94, of which 5 were oil wells with about 48 bbl. initial production, 30 were gas wells with an initial open-flow capacity of 37,655,000 cu. ft., and 59 were dry holes. The outstanding discovery was the Polo gas field, T. 55 N., R. 28 and 29 W., in Caldwell County. A sand now believed to be a lens in the Bandera shale at a depth of 400 ft. yielded flows of more than 12,000,-000 cu. ft. In all, I0 wells with 31,490,000 cu. ft. of gas, were drilled. The rock pres-sure is 80 lb. At present no arrangements for an outlet have been made. In Platte County, the Prairie Point gas pool in sec. 7, T. 51 N., R. 33 W., and sec. 12, T. 51 N., R. 34 W., and the Lake-side pool in sees. 5 and 6, T. 50 N., R. 33 W., were further developed, and in the latter both oil and gas have been found, but data are not available for publication at this time. Drilling for gas continued in proven areas in Clay County, and for both oil and gas in proven areas in Jackson and Cass Counties. Table 1 summarizes the results of drilling in Missouri in 1940.

Jan 1, 1941

By E. C. Reed

Oil was discovered in Nebraska on Nov. I, 1939, when the Pawnee Royalty Company's Boice No. I well, about 3 miles west of Falls City (NE 1/4 NE 1/4, sec. 18, T.r N., R.16 E., Richardson County) was drilled into the Hunton formation but the develop-ment of the area took place during 1940. After a pumping test lasting 18 days, the Boice well stopped producing and failed to qualify for the State bonus of $ 15,000 offered for the first oil well to produce go bbl. per day for 60 consecutive days. On May 9, 1940, the Pawnee Royalty Company's Bucholz No. I well was completed about M mile southeast of the discovery well and flowed at the rate of about 330 bbl. per day, easily meeting the State bonus requirements. In addition to the discovery well, which later was reconditioned, and the bonus well, 28 producers were drilled in the Falls City field during 1940. Of these wells, 23 are in sec. 20, two are in the northern part 'of sec. 29, two in the southwestern part of sec. 17 and three in the eastern part of sec.

Jan 1, 1941

By A. Andreas

New Mexico established an annual record by producing 38,897,741 bbl. of oil during 1940. This was approximately 6 per cent greater than the 1939 production of 36,746,840 bbl. The daily average produc-tion was 106,569 bbl. New Mexico retained its position as the seventh oil-producing state. The recommendations of the United States Bureau of Mines were followed by the Oil Conservation Commission in setting the monthly state allowable. At the beginning of the year the average top allowable for each qc-acre unit was 40 bbl. and at the close of the year it was 36 bbl. Remedial work by the operators has been extremely beneficial and satisfactory in reducing the gas-oil ratios in various fields. Gas formerly blown into the air is now being processed by numerous casinghead plants. The Oil Conservation Commission, with the full cooperation of the Proration Office and operators, has taken bottom-hole pressure surveys and has done considerable remedial work in various fields. Two new oil fields and one gas field were discovered in New Mexico during 1940. Numerous extensions to the existing fields were made. Some of these were definitely wildcats in the same townships designated as fields and some, although called extensions, were more than 3 miles from production. Lea County continued to be the largest oil-producing county in the state, with a production of 33,976,394 bbl. It had the largest number of completions during 1940, with 303 oil wells, 9 gas wells and 13 dry holes—a total of 325 wells. Eddy County was the next most active county, with 239 completions, of which 163 were oil wells, 8 gas wells and 68 dry holes. It produced 4,405,158 bbl. of oil during the year. The increased activity in Eddy County and the completion of a large number of producing oil wells have created a transportation problem that can be solved only by additional pipe-line facilities. During the year Eddy County was unable to produce 1,500,000 bbl. of its allowable oil, because there was no pipe-line outlet. There were 601 wells completed in New Mexico in 1940, of which 478 were oil wells, 22 gas wells and IOI dry holes. This was a decline of approximately 9.5 per cent in the number of completions compared with 1939, when 659 wells were drilled. Southeastern New Mexico Lea County.—The largest producing field in Lea County was the Monument field, with 6,894,475 bbl.; followed by Eunice with 6,559,348 bbl. and Vacuum with 4,743,065 bbl. The Hobbs pool, which for years was the largest producing field in the state of New Mexico, was fourth with 3,790,477 bbl. The Vacuum pool was the most active area, having 68 completions, of which 67 were oil wells and one was a dry hole. Only one new field was discovered in Lea County during 1940; the discovery well was in the Caprock area, the Livermore State No. I, in the SE. 1/4 SE. 1/4 sec. 30, T. 12 S, R. 32 E. This well was drilled to a

Jan 1, 1941

By C. A. Hartnagel

The production of petroleum in New York in 1940, totaling 4,999,000 bbl., was only slightly under the amount produced in each of the previous three years. The year 1940 started auspiciously with a posted price on Jan. I of $2.75 a barrel. Four price reductions, beginning in May, resulted in August in a low of $1.85 a barrel, after which two increases brought the year's closing price to $2.15 a barrel. The favorable crude price at the beginning of the year stimulated an increased drilling program, especially in the water-flooding districts. In the Allegany County region, which accounts for about two-thirds of the state's oil production, 886 wells, including water-intake wells, were drilled; 200 more than in the preceding Year. During the closing months of the Year there was a marked decline in the number of wells drilled. The unfavorable position in which the industry found itself before midsummer was due largely to the loss of export markets for its high-grade lubricants, constituting approximately 25 per cent of its business. As a result of this situation, runs to refineries were curtailed as much as 30 Per cent at the middle of the Year. Improvement in market conditions toward the end of the Year found the stocks of available crude at an almost record low. Deep DRILLING with the gradual exhaustion of some of the important natural and flood-oil-produc-ing areas of the Allegany and Bradford pools, overproduction will not be a serious problem in the future. The possibility of finding new territory or deeper producing sands has been further lessened by the drilling of additional deep wells for gas in and about the present oil fields. Many of these wells drilled to the Oriskany sand-stone were over 4000 ft. deep and have tested the entire thickness of the Devonian formation, the upper 2000 ft. of which contain all the important oil-producing strata in the state. Water-flooding It is thus evident that the problem of the New york oil producers is not one of find-ing new supplies but of obtaining as much 6 oil as possible from the old developed fields that during the 60 years of their life have 1 produced I 3o,ooo,ooo bbl. of oil. Although a few floods were in operation before I9I9, when the production of oil by flooding was 1 made legal, the output for that year amounted to only 85I,000 bbl. From 1919 I on there has been an almost constant increase, which during the past four years has averaged well above 5,000,000 bbl. annually. During the last 22 years, which constitutes the period of important flooding operations, 651337,000 bbl. of oil have been produced in the state. Careful estimates indicate that between one-third and one-half of the oil fields are being flooded or are already watered out. Some of the flooded and watered-out areas include territory with unusually thick sands, which were highly productive during the early history of the fields. From a recent study of operations in the New York oil fields, it is estimated that about 65,ooo,oo bbl. of oil

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