Business & Finance: Decreasing Oil Production

Evidence accumulates that the vast overproduction of oil in the new California fields has at last been halted, and that new supplies of petroleum there are declining considerably. According to S. A. Guiberson, Jr., Chairman of the Prorating Committee of the Southern California Oil Producers’ Association, California output is now about 834,000 barrels daily. He also characterizes as untrue rumors in the financial centers that huge amounts of new well petroleum were being “shut in.”

Joseph Jensen, geologist for the S. C. O. P. A., estimates a daily average production in November of 821,307 barrels; December, 748,807; January, 1924, 734,000; and so on down a gradually declining scale to September, 1924, at 517,900 barrels daily. He also estimates California consumption of oil at 441,800 barrels for November next; December, 442,950 barrels; and so on up to 451,000 barrels daily in July, 1924. On this basis, California should absorb all its own production by August, 1924, or thereabouts.