The New York herald., 1921-06-15
OIL EXPERTS REPORT
RAPID DWINDLNG OF
MEXICOS SUPPLY
Secretary Hughes Unable to
Give Congress Official
Guarantee of Figures.
BENSON SENDS REPORT
63 of 104 Wells in 40 Square
Mile Area Have Ceased
to Produce.
SALT WATER IN OTHERS
British Producers Attitude
Called a Detriment to Amer
lean Interests.
SALT WATER IN OTHERS
BIZ the Assoctated Press.

WARRINGTON, June 14.-Secretary
Hughes informed Chairman Porter Of
the House Foreign Affairs Committee
to-day that the Government had un-
dertaken no official investigation Of
the condition Of Mexican oil fields and
that it was not advisable TO make
public such information as II now
possessed. (which might imply an
official guarantee"
Responding to request by resolu-
tion for a report dealing especially
with declining production and its
causes, Mr.. Hughes transmitted let
ter from Secretary Fall declaring that
Interior Department information was
not of the authoritative nature re-
quisite to the formulation "of report
to Congress and to the public on
question so critical as that Of the pros
pective output Of oil in Mexico"
Although the State Department was
unable to inform the House regarding
tho number Of wells which had gone
dry. Rear Admiral Benson, as chair
man OF the Shipping Board, forwarded
a report by j. A. Phelan. board ex-
pert. declaring that in the forty square
mile producing area 6S of the 1o4
wells had ceased to produce and that
salt water was rapidly filling those
now in operation. Mr.. Phelan stated
that mot new oil structure" had
been discovered in Mexico since 1916.
"and the proved territory is In fact
going into salt water"
Important Fields Drained.
'Tt Is generally reported that some Of
the important fields that swelled Mex
icos output IN 1920" Secretary Fall
wrote. ARE being rapidly drained OF
their oil, although reports differ widely
regarding the extent of the depletion.
Mexico contains oil reserves that have
been conservatively estimated by this
department at 100000 barrels. but the
present Issue relates to Mexico's sbility
to maintain her production from this re-
serve at the rate established In 1920 In
response to market demand Public con-
Germ naturally springs from the lack OF
unquestionable information regarding
the results rro..n drilling done and in
progress snc The development OF new
fields OF the types that yield the present
production"
Mr.. Phelan reported that "the most
serious factor in the Mexican situation
II that British owned companies. the
largest producers and sellers. control
some of the best developed territory"
N~~x
the Mexican political demands to the
detrfmcnt Of Americans.
That the proven oil fields Of Mexico
within a reasonable period are certain
to go into salt water IS demonstrated
fact" he added, land this may come
sooner than expected
Limited Producing Area.
The Phelan report. which urged oil
development in Mexico by the American
Government. discussed the limited pro-
ducing area and added:
stripped of all speculation. Mexico,
and the United States to a large extent
as well. is depending upon an oil field
less than forty square miles. half OF
| which Is developed. q field from which
more than 400. 100000 barrels had been
taken up to June 1, 1921. As to the
amount still left In this field, technolo-
| gists and geoiogfsts disagree, and tudg-
ing from previous estimates. prognostica-
tions are useless at this time"
In a table on the Panuco-Topila. the
Chinampa- -AmatlAn. Szacomixtle. Cerra-
Azui and Alamo-M Molino fields, the Phelan
| report declared that of potential pro-
duction Of a.s75.0oo barrels, the output
up to November 1 last had decreased
| 100000 barrels and t1a< on June last
the decrease amounted TO 100000 bar
reis.