The New York herald., 1921-11-14
Facts About Mexican Oil.

racts About Mexican I'll.
Mexico is yet young as an oil pro-
ducing country, but in ten years her
natural advantages have put her
ahead of every other nation except
the United States among the coun-
tries that furnish the worlds supply
OF petroleum.
In 1901 Mexico produced 10,345 bar
rels Of petroleum, the United States
produced 69,620.000 and the world s
production was 167,434.0O0 barrels.
In 1910 Mexico produced 1884 900
barrels, the United States 209,557, 900.
and the world 327,937, 900 barrels.
Since 1910 the growth in Mexican
oil production has been amazing. 1t
jumped to 100000 barrels in 1911.
In 1920 it reached $4,000, 900 barrels.
or nearly "a per cent. of the worlds
6S8,000,000 barrel production in that
year. The output Of wells in the
United States was 443,0O0,00O bar
rels in 1920, or about two-thirds Of
the worlds total.
In 1910 the share of the worlds
production supplied by the United
States was about 70 per cent. The
remaining 80 per cent. came from
foreign fields other than those in
Mexico, with the exception Of the
3,634,0O0 barrels of Mexican produc-
tion. which was just about per cent.
OF the total supply.
BY 1920 the worlds appetite for oil
had more than doubled. The United
States still maintained close to its
70 per cent. proportion of the total,
but the foreign fields other than Mex
leo, it can be seen from the fore
going figures, dropped to a meagre
S per cent. of the total oil supply,
their output being only S0,O00,000
barrels compared with 100,000,000
barrels In 1910.
This reveals the policy OF foreign
countries owning oil deposits in the
Far East and controlling others In
the Near East and South America.
which is to conserve their own re-
sources and draw on ours, supple
menting what they get here with oil
from Mexico. the neighbor on whom
we would be most dependent when
our own wells were exhausted.
Since we cannot control the oil
production in other parts Of the
world 1t is to our interest that Mex
leo should furnish as large share
OF the oil supply as possible, to re-
lieve the draft on our own wells.
that checks oil production
in Mexico adds directly to the de-
mand on our own fields and thus
shortens their life.
Salt water drowned out the famous
Potrero del Llano well in Mexico In
1918 after it had produced 100000.
900 barrels of oil in eight years.
This would have called for nothing
more than a granite monolith suit
ably commemorating such stupen-
dous producer had it not been that
other wells in the same neighborhood
and in pools further removed also
went to salt water. The life OF the
Mexican oil fields appeared to be
one investigator even
went so far as to limit the duration
of existing pools to 1000 days from
July 81, 1921, which would be to De-
cember /, 1924. This would be
disaster for Mexico and not much
less a misfortune for this country.
Roy H. FLAMM, a Department OF
Commerce expert on Mexican oil pro-
duction, in an analysis of Mexico's
probable oil producing capacity In
future years, appearing in the Com
merce Reports, allays some OF the
fears concerning the salt water men,
ace. He shows that the Mexican out.
put has not been reduced by the salt
water invasion. New wells are
in faster than old ones are
It is estimated that out Of 49,
BOO, 900 acres of prospective oil bear
ing land only 100000 have been in
vestigated. Vast tracts where Oil
seepage gives almost certain indica-
ton of subsoil pools have not yet
been developed. Mr.. FLAMM says as
a conservative estimate that Mexico
could produce 6O0,000,O00 barrels OF
oil a year, or nearly four times the
1920 output, and the United States
Geological Survey is authority for
the estimate that Mexican oil re-
serves are sufficiently large to last
years at the 1920 rate Of
export.
The report Of the Department OF
Commerce gives at least little as.
surance that the salt water menace is
not SO serious as it was at first be-
lieyed to be. From the larger view of
place in the world oil mar
ket and the relief afforded our own
wells by her increased production
this assurance is something for which
=, ..ax.c1,, yratofuI Mpxicn with