| Show 1 San Juan Basin Gas Production I. I Curtailed by Market Availability An analysis of ot production statistics statistics statistics statis statis- tics Indicate what the development o ot of a gas market has meant for forthe forthe forthe the San Juan Basin of Northwest New Mexico Although it was known in the early twenties that the SanJuan SanJuan SanJuan San- San Juan Basin contained large gas reserves it was not until 1929 when gas lines were completed to Durango and Albuquerque and vicinity vicinity vicinity vi vi- that development began on ona ona ona a very large scale Even then the market demand was not great enough to encourage scale large-scale exploration and development and although gas was discovered in inthe inthe inthe the Blanco Pool in 1926 it was not until 1946 that any large development Most of the early gas production came from the Kurtz Fulcher-Kurtz Pictured Pictured Pic Plc- Cliffs Pool discovered in 1927 and the Barker Darker Creek Dakota Dako Dako- ta Pool 1001 originally discovered in 1925 1923 and nd developed beginning in 1941 In 1949 the Federal Power Commission approved the application tion of the El Paso Natural gas Company to take gas from the San Juan D B Basin a s sin I n for California markets and development during the past four years has been at ata ata ata a very rapid pace At the end of 1950 there were a total of producing producing producing pro pro- gas wells in the Basin Cumulative production to the end of 1950 totaled MCF of gas This amount was marketed entirely by the Southern Union Gas Company through its lines to Durango and the Albuquerque area plus the amount which was marketed marketed marketed mar mar- in Aztec dating back to 1921 The El Paso Natural Gas Company completed its line to California California California Cali Cali- fornia and started making deliver in August 1951 Production for 1951 Jumped to MCF Total cumulative production to January 1 1952 was MCF By the end of 1951 there were producing gas wells inthe in inthe inthe the Basin Even greater development development development develop develop- ment has taken place during the thelast thelast thelast last three years By Dy the end of 1953 there were 1181 gas wells pro pro- du Total cumulative production production production tion to January 1 1954 was MCF When this is compared compared com com- pared with the total cumulative production to the end of 1950 93 93 MCF it can be seen that i over twice as much gas has been marketed during the last three I years as during the whole previous production history dating back twenty four years By the end of 1953 of wells in the field finally caught up with maket demand having the effect of curtailing per well production and causing a rapid slackening off In jn the rate at which new hew wells were being drilled Even so there was a total of ot wells completed through November November November Novem Novem- ber of 1954 of or which were were producers There are arc now slightly slight slight- ly In excess of 1600 1690 gas wells drilled drilled drilled led which are capable of or producing product ing gas but not all of these are presently producing This has been caused by obligations which some operators have made with new proposed pipeline outlets outlets outlets out out- lets hot yet completed It has bas also been caused by some of the new wells welb being located a long distances from pipeline connection so that there has necessarily been some lag in new connections When the of producing producing producing pro pro- gas wells in the Basin Dasin fields began to surpass the present market demand it was only natural nature al that the need for would arise This is necessary necessary- so that the available market is allocated to the total producing wells in such a way that each well will be able to produce its equitable share of the total gas produced producer The New Mexico Oil Conservation Commission is at present making an exhaustive study of all the factors which will go into the formula Evidence Evidence Evi Evi- dence and arguments were wore taken from all interested operators at hearings ft during ring the summer summer sum sum- mer of 1954 |
