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Show DRILLING In the San Juan Basin of northern New Mexico result! In a blow-off of gases from thou-t sands of feet beneath the earth's surface. This photo, from the flies of the Aztec, N. Mex. Inde- pendent Review, shows a producer In a previously un-tesled field, resulting In many new operations In the Immediate area and bringing in oil and gas for delivery to pipelines taking the energy-producing fuels to points of use. San Juan Basin Gas Production Curtailed by Market Availability An analysis ot production statistics indicate what the development ot a gas market has meant for the San Juan Basin of Northwest New Mexico. Although it was known in the early twenties that the San-Juan Basin contained large gas reserves it was not until 1929, when gas lines were completed to Durango and Albuquerque and vicinity, that development began on a very large scale. Even then the market demand was not great enough to encourage large-scale exploration and development, and although gas was discovered in the Blanco-Mesaverde Pool in 1926 it was not until 1946 that any large development occured. Most of the early gas production came from the Fulcher-Kurtz Pictured Cliffs Pool, discovered in 1927, and the Barker Creek Dakota Pool, .originally discovered in 1925 and developed beginning In 1941. In 1949 the Federal Power Commission approved the cpplica-tion of the El Paso Natural gas Company to take gas from the San Juan Basin for California markets, and development during the past four years has been at a very rapid pace. At the end of 1950 there were a total of 24S producing gas wells In the Basin. Cumulative production to the end of 1950 totaled 93,931,216 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 in Aztec dating back to 1921. The El Paso Natural Gas Company completed its line to California and started making deliverie In August. 1951. Production for 1931 Jumped to 28,117,808 MCF. Total cumulative production to January 1, 1952 was 122,049,024 MCF. By the end of 1951 there were 315 producing gas wells in the Basin. Even greater development has taken place during the last three years. By the end of 1953 there were 1181 gas wells producing. Total cumulative production to January 1, 1954 was 291,-458,910 MCF. When this is compared with the total cumulative production to the end of 1950 (93,-931,216 MCF) it can be seen that over twice as much gas has been marketed during the last three years as during the whole previous production history, dating back twenty four years. By the end of 1953 dellverability of wells in the field finally caught up with maket demand, having the effect ot curtailing per well production and causing a rapid slackening oft In the rate at which new wells were being drilled. Even so, there was a total of 331 wells completed through November of 1954, of which 283 were producers. There are now slightly In excess of 1600 gas wells drilled which are capable ot producing gas, but not all of these are presently producing. This has been caused by contractual obligations which some operators have made with new proposed pipeline outlets not yet completed. It has also been caused by some of the new wells being located a long distances from pipeline connection so that there has necessarily been some lag in new connections. When the dellverability of producing gas wells in the Basin fields began to surpass the present market demand, it was only natural that the need for proration would arise. This is 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. The New Mexico Oil Conservation Commission is at present making an exhaustive study of all the factors which will go into the proration formula. Evidence and arguments were taken from all interested operators at proration hearings during the sum-mer of 1954. |