Publications

The market for Pennsylvania grade showed a drop both in demand and in prices, which reacted unfavorably on New York oil production, all of which comes under that classification. The output for the year in New York amounted to 5,045,200 bbl. The production in 1937 was 5,478,000 bbl., the largest in any year for the last half century or more. Falling prices, of course, affected new drilling. They declined from $2.20 a barrel, which was posted at the start, to $1.68 in the final months of 1938. With this came a reduction in the amount of oil that would be accepted by the refineries operating in the New York fields. Conditions therefore have combined to halt, at least temporarily, the growth of oil production in the state, which had experienced a steady gain for the last 15 years or more, the yield having risen from less than 1,000,000 bbl. to the round total of 5,500,000 bbl. in 1937. Practically all the oil now obtained is from old, developed fields. No new pools have been found in the last quarter of a century or more. The larger share comes from flooding the sands. Although there are many wells that still produce without the aid of the water drive, they are small and for the most part are pumped periodically. Of late, new drilling has been restricted mainly to that required to maintain existing flood projects. Because of the high initial cost and time required to put a flood into production, the depressed condition of the market has been a serious handicap financially, and, further, has been an unfavorable influence on the planning of operations to secure the maximum recovery of the oil. Unless market conditions improve, it is certain that the effects will be shown in the yield for some time to come. Gas Developments Drilling was active in the southwestern area, chiefly in Allegany and Steuben Counties, and some notable wells were brought in that tapped the Oriskany sandstone. Altogether 42 holes were put down in the two counties, of which 31 were listed as producers and 11 were dry. The new wells gave an initial daily flow of 239,000 M cu. ft. At the close of