Show SOUND REASONS FOR SPEEDING UP OIL production CHANCE increased demand for american petroleum from foreign sources due to the further recovery of europe is probable in 1926 according to F julius fohs consulting 01 oil 1 I geologist and vice president of the humphreys corporation who reviewed present day conditions in the american oil industry before the recent annual meeting of the american institute of mining min ing and metallurgical engineers approximately barrels or 52 per cent of the 1925 american oil production came from 27 pools reaching the peak of their production within the past three years and eight of these 27 pools reached their peak in the past year mr fohs pointed out it is is probable that production from these pools will decline at least one third in 1926 since not to exceed four of them have possibilities po of extensions or increased deep sand production during the year in the different american fields mr folls fohs predicted for 1926 increased production along the mexican gulf coast and in the texas fields outside of the gulf coast the california and appalachian fields he anticipated would just maintain present production or decline somewhat production is apt to decline in the mississippi valley rocky mountain and kansas oklahoma fields it is unlikely that increased production in the gulf coast jand texas districts will more than offset the possible decline in california while in the mississippi valley and rocky mountain districts the decline will probably continue at a rate of about 10 per cent and in kansas oklahoma a much greater decline for the year may reach approximately barrels the 1925 american oil production figures OW barrels showed an increase of barrels over 1924 imports in 1925 barrels showed little change from the previous years figures indicated domestic consumption in 1925 amounting to barrels registered barrels less than in 1924 though there was actually greater utility in consumption due to increased gasoline production by cracking the 1925 exports of barrels showed a decrease of barrels mak ing altogether a total apparent decreased demand in 1925 1923 of barrels stated another way this means further diversion of fuel oil for cracking demand exceeds supply by barrels the excess of demand over supply in 1925 was barrels the increase of stocks over those at the close of 1924 was barrels of the stocks on hand at the close of 1925 about barrels in california are not imports from mexico venezuela colombia and peru are factors of increasing importance to the oil industry of this country the maximum production of these countries lor bior 1926 may be estimated at barrels As t american production declines these countries especially venezuela and possibly colombia will be factors of great importance in meeting american demand it would not be surprising if by 1930 the united states would actually welcome these imports if these latin american states produce and use perhaps barrels it will leave barrels for export but part of this will go a as s sly to europe and elsewhere the estimated decline in mexican production for 1926 of barrels will just about offset the expected production increase in south america hence there is apt to be no material increase ot of I 1 imports into the united states in 1926 and the product production ion deficit for 1926 will have to be made up from stocks on oil hand a salient thing for the industry california which in 1925 produced barrels or barrels more than oklahoma kansas fields and barrels in excess of texas production easily held front rank among the states state s california bids fair mr fohs predicted to hold front rank in oil prodoc tio tion n during 1926 and possibly 1927 during 1928 okla homa kansas or california may hold first rank and it wi vill probably be 1930 before texas reaches this position due to increased gulf coast salt dome production |