PRODUCTION DOMESTIC PRODUCTION RANK OF STATES The three leading oil-producing States-California, Oklahoma, and Texas in 1923 produced more than 75 per cent of the total output of the country. In this group California, by its output of 262 million barrels, was in a class by itself; and Oklahoma and Texas, each producing considerably more than 100 million barrels, far outranked the other States. Wyoming, Arkansas, Kansas, and Louisiana, in the order named, constitute another group of States, in which each produces between 20 and 50 million barrels. Illinois, Kentucky, Pennsylvania, Ohio, West Virginia, Montana, New York, and Indiana, in the order named, in 1923 produced between 1 and 9 million barrels. The small producers-Colorado, Alaska, Tennessee, New Mexico, and Missouri-complete the list. During 1923 there were several changes in rank of the oil-producing States. California took the lead from Oklahoma, which for a number of years had ranked first. Texas maintained third place, which it assumed in 1919. Wyoming advanced from sixth to fourth place, passing Louisiana and Kansas, and Arkansas advanced from seventh to fifth place, also passing Louisiana and Kansas, which in 1922 ranked, respectively, fourth and fifth. (See Pl. IV.) CALIFORNIA The outstanding event of the year in the petroleum industry was the remarkable production of California as the result of the development of the Santa Fe Springs, Long Beach, and Huntington Beach fields in the Los Angeles Basin. The combined output of these three fields, amounting to more than 183 million barrels, was 22 million barrels greater than the production of the whole State of Oklahoma and was more than two-thirds of California's total production of 262,876,000 barrels. This record production in California was almost double the output of that State in 1922 and was equivalent to 36 per cent of the total output of the United States in 1923. The increase of production in California was greater than the total production of the State in any one year prior to 1922. Coinciding in time with decreased production and imports of Mexican petroleum, this flood of California oil resulted in the shipment through the Panama Canal to Atlantic and Gulf coast ports in the United States of about 53 million barrels of crude oil having an average gravity of approximately 30° A. P. I. (0.8762), besides which some 4 million barrels of California oil was exported to Mexico. In order to reduce the oversupply as far as possible, many wells in the older fields in California were closed in. The State Mining Bureau estimates that in October the capacity of the closed-in wells amounted to more than 107,000 barrels a day. This policy resulted in a decrease of more than 11 million barrels in the output of Fresno and Kern counties as compared with the production from those counties in 1922. Huntington Beach was the first of the three large pools of the Los Angeles Basin to produce on a commercial basis. Gas showings and the recognition of a possible relation of topography to structure called attention to this area, and the first well was completed for production in August, 1920. The top of the oil-producing formation lies at a depth of about 1,914 feet. Development has shown the existence of two oil zones separated by a water-bearing bed about 80 feet thick. The upper zone is 600 to 800 feet thick, and the oil produced from it is obtained mostly from rather loose sands, separated by thin layers of sandy shale. The gravity of the oil from this zone ranges from 17° to 25 (0.953 to 0.904). The lower zone is possibly 2,000 feet thick and yields oil from much more shaly material than the upper zone. The gravity of the oil from the lower zone is from 24° to 28° (0.910 to 0.887). The average daily production of the discovery well in the Huntington Beach field during the first month was about 85 barrels. By January, 1921, three wells were producing at a daily average of 328 barrels of oil per well. In January, 1922, 66 wells produced at a daily average of 245 barrels per well, and in January, 1923, 159 wells produced at a daily average of 505 barrels per well. To January 1, 1924, the Huntington Beach pool had produced 47,554,000 barrels of petroleum. In the Santa Fe Springs field the possibilities of oil accumulation were suggested by the slightly elevated country and by the presence of gas in water wells. No surface dips are exposed, but development has shown the field to be a closed anticline whose axis trends northwest. In 1907 and 1908 the Union Oil Co. of California drilled two wildcat wells, Myer Nos. 1 and 2, in which gas was encountered but no oil. In October, 1919, Myer No. 3 came in at a depth of 4,595 feet, flowing at a rate of about 3,000 barrels of oil a day, but water broke in and stopped production, and when the well was brought in again the yield was only about 150 barrels a day. The field attracted little attention until November, 1921, when Bell No. 1, 11⁄2 miles northwest of Myer No. 3, was brought in at a depth of 3,788 feet and flowed 2,000 barrels a day of 31° (0.871) oil. This well was the cause of great excitement and led to intensive "town-lot development.' Royalties paid to landowners are reported to have ranged from 16% to 50 per cent, and usually cash bonuses were paid in addition. It is said that for one 19-acre tract a bonus of $410,000 and a 50 per cent royalty were paid. In December, 1922, there were 70 producing wells and 166 wells being drilled, and on September 10, 1923, there were 211 producing wells and 191 wells being drilled. Part of the producing area was divided into town lots, and elsewhere the oil land was held in fairly large tracts. In the town-lot area there was congested drilling. In one 40-acre tract, for instance, there were 60 wells, whereas normally in a deep high-pressure field one well to 8 or 10 acres would be considered appropriate. The surface formations in the Santa Fe Springs field consist of sticky clay and loose, unconsolidated sandy shale, sand, and gravel. Underlying these deposits is a thick shale bed which serves as a cap for a high-pressure gas zone. This gas zone is encountered at depths ranging from 2,000 to 2,100 feet and consists of sandy shale, sand, and shale with streaks of sand. The gas zone is probably about 1,500 feet thick and extends down nearly to the top of the first oil zone. Beneath the gas zone are three 1 Gester, S. H., Am. Assoc. Petroleum Geologists Bull., vol. 8, p. 42, 1924. oil-bearing zones known as the Foix, Bell, and Meyer zones. These oil zones are separated by shale. To January 1, 1924, the Santa Fe Springs oil field had produced 92,312,000 barrels. The following statement is quoted from a report published by the California State Mining Bureau: Wells and production in Santa Fe Springs field, May 31, 1923 133 80 3,813 ---acres__ 1,995 Number of wells being drilled below a depth of 4,000 feet.. Average initial production of new wells in May..barrels. The Long Beach oil field is in the city of Long Beach, in the southern part of the Los Angeles Basin, and occupies an elevated area known as Signal Hill. Structurally the producing area is a closed anticline, approximately 31⁄2 miles long and one-half to three-quarters of a mile wide. The existence of the anticline at Signal Hill has long been known from the dips of outcropping beds, but it was not tested until 1916-17, when a well was sunk to a depth of 3,449 feet without finding oil. Development has shown that this well was located a short distance outside of the present producing area. The discovery well of the field, Alamitos No. 1, was brought in by the Shell Co. in June, 1921. This well was completed at a depth of 3,114 feet and gave an initial production of 500 barrels of 21° (0.928) oil. The discovery caused great activity, which was stimulated by the owners of the townlot subdivisions, and the development of the field was very rapid. Six months after discovery, at the end of 1921, there were 38 operators, 75 active rigs, and 8 producing wells. At the end of 1922 there were 158 operators, 395 active rigs, and 148 producing wells, and at the end of August, 1923, 26 months after discovery, there were 222 operators, 700 active rigs, and 270 producing wells. Up to January 1, 1924, the Long Beach field had produced 86,032,000 barrels. In November, 1923, one gas zone and three oil zones were recognized in this field. Gas under high pressure was found at depths of 1,400 to 1,800 feet. Below the gas zone three oil zones have been encountered, known as the Wilbur, Alamitos, and Brown zones. The gravity of the oil from the Long Beach field ranges from 18° to 31° (0.947 to 0.871). Templeton, R. R., and McCollom, C. R., Am. Assoc. Petroleum Geologists Bull., vol. 8, p. 179, 1924. Case, J. B., Santa Fe Springs oil field: California Oil Fields, May, 1923, p. 19, California State Min. Bur. Schwennesen, A. T., Overbeck, R. M., and Dubendorf, H. H., The Long Beach oil field and its problems: Am. Assoc. Petroleum Geologists Bull., vol. 8, p. 418, 1924. |