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The Mexican Oil Fields

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The Mexican Oil Fields THE MEXICAN OIL FIELDS The Mexican Oil Fields BY L. G. HUNTLEY,*PITTSBURGH, PA. (San Francisco Meeting, September, 19151 Downloaded from http://onepetro.org/TRANS/article-pdf/52/01/281/2176808/spe-916281-g.pdf by guest on 03 October 2021 THE occurrence of oil or "tar" in Mexico was mentioned as early as the seventeenth century by Friar Sagahun, who gives the Indian name "chapopote," by which these asphalt seepages are still called. This asphalt was apparently used, as it has been used by primitive people in many parts of the world, in religious ceremonies and for medicinal pur- poses. Travellers also report that the ruins in Yucatan and the pyramids in southern Mexico show traces of the use of "chapopotel' as a building cement.l DeGolyer says that the first attempt to exploit oil or gas in Mexico in a commercial way is shown by the records of the Memoria de Fomento of 1865, when permission was granted to a Senor Ildefonso Lopez to exploit the deposits of petroliferous substances in the San Jose de las Rusias area in the State of Tamaulipas. Other concessions follow, and probably refer to surface seepages which occur in that district. This was several years after the discovery of oil in Pennsylvania. In 1868, a well 125 it. deep was :drilled by a company organized in Mexico City, in what is now known as the,,Furbero district, and a little oil was refined there. In 1873, residents of Tampico denounced seepages along the Tamesi River, and asphalt was mined near Tempoal in the Canton of Tantoyuca. No drilling was attempted. But between 1880 and 1883 several shallow wells were drilled for oil in Mexico, two of them being near the present Potrero de Llano field west of Tuxpam. The wells were drilled by a Boston company with Canadian rigs, and are said to have reached a depth of about 400 ft., while one is reported to have flowed. Several other abortive attempts were made to drill for oil between 1885 and the begin- ning of the present century, about which time the Mexican Petroleum & Liquid Fuel Co., Ltd., in which Cecil Rhodes was interested drilled 24 wellsunsuccessfully, several of them as deep as 1,500 ft., in the State of Vera Cruz. Also Messrs. Doheny and Canfield of California pur- * Johnson and Huntley, Consulting Oil Geologists. De Golyer. Oil and Gas Journal, April 16, 1914. 282 THI ME~CANOIL FIELDS chased land in the State of San Luis Potosi, and in May, 1901, the first successful well was struck in the present field of Ebano, 50 miles west of Tampico. Various shallow wells were drilled about this time in the States of Vera Cruz, Tamaulipas, near Guadalupe, Chiapas, and Tabasco on the Isthmus of Tehauntepec; and several asphalt companies attempted to mine the surface deposits in the Cantons of Tuxpam and Ozuluama. In 1904, drilling was commenced by the Oil Fields of Mexico CO. (Pearson interest) at Furbero, and its first well was brought in success-Downloaded from http://onepetro.org/TRANS/article-pdf/52/01/281/2176808/spe-916281-g.pdf by guest on 03 October 2021 fully. Fez No. 1, the first large well on the Ebano property, was also brought in during the same year, and has flowed continuously since. About 1907, drilling became more active, especially in the Cantons of Tuxpam and Ozuluama. It was started at SanDiego by thePennsylvania Oil Co., at Tumbadero by the Pearson interests, and at Juan Casiano and Tres Hermanos (La Pithaya) by the Hunsteca Petroleum Co. A Mexican bank drilled four shallow wells near the Tampalache seepage, just north of the Panuco field. Operations were also commenced by Pittsburgh interests at Los Esteros, in the State of Tamaulipas. In 1908, the Pearson refinery at Minatitlan on the Isthmus of Tehauntepec cornrnenced operations. In May of the same year San Diego No. 2, the discovery well of the Dos Bocas field, came in with a produc- tion of 2,500 bbl. daily. On July 4, the farnous San Diego No. 3 was brought in, caught fire immediately, and burned until extinguished by encroaching salt water. The Chijol field in the Ebano district and the Topila field were brought in during this year, which inaugurated impor- tant operations in the Mexican oil fields. The year 1910 saw the discovery well of the Panuco field (East Coast Oil Co. No. 401) drilled, and the first wells in the Tanguijo and San Pedro districts were put down in that year by the Pearson interest, the Mexican Eagle Petroleum Co. The Huasteca Petroleum Co. also brought in its NO. 6 and No. 7 Juan Casiano, one with 14,000 bbl. and the other with 28,000 bbl. daily production. About the time these came in, this company completed its 8-in. pipe line from that field to Tampico. The Mexican Eagle Co., having completed its pipe line from Furbero to Tuxpam, brought in, in December, 1910, the famous Potrero delllano well, yielding about 100,000 bbl. daily. Drilling was by this time very active; and in 1911 the first exportations of crude oil were made to the United States from Tampico. In July, 1912, the Government put a tax of 20 centavos per metric ton (1.1 C. U. S. gold per barrel) upon all oil produced in the Republic. The construction of a large fleet of tank steamers had already been com- menced by the Huasteca Petroleum Co. In 1913, the Penn-Mex Fuel Co., now a subsidiary of the Standard Oil Co. of New Jersey, through the South Penn Oil Co., brought in two good wells in the Alamo field near L. G. HUNTLEY 283 Potrero del Llano. The Chila-Salinas and the Topila field began to suffer severely from the invasion of salt water. The Mexican Eagle Co. brought in the discovery well in the Los Naranjos field in Amatlan, which has since broken its valve and proved to be a much larger producer than was estimated by flowing at the rate of 50,000 bbl. per day for a week. On December 1, the Government raised the production-tax to 75 centavos per ton ( approximately 4c. U. S. gold per barrel) besides increasing numer- ous duties affecting the petroleum industry. A bill was proposed in the Chamber of Deputies for the nationalization of the petroleum industry, Downloaded from http://onepetro.org/TRANS/article-pdf/52/01/281/2176808/spe-916281-g.pdf by guest on 03 October 2021 but no decisive action was taken. During January, 1914, the Dutch Shell interest (La Corona Petroleum Co.) brought in its big well, which is estimated to have a capacity of 100,000 bbl. per day, in the Panuco field. During the spring of this year the activity of both the Federals and the Constitutionalists became very great in the vicinity of Tampico, culminating in a general exodus of the foreign employees of the oil companies in April, at the time of the Vera Cruz affair. Operations came to a standstill for a time, but the foreign employees gradually returned during the next two months, and re- stricted drilling was carried on by some of the larger companies, especially in the Panuco field. But continued guerrilla warfare, and the generally hostile attitude of all Mexican factions, led to hea~ydemands upon all companies, so that affairs in the oil fields were by no means normal when the European war broke out in August. In addition to this, lightning set fire to the big Potrero del Llano No. 4 well, which was not entirely extin- " guished until after the end of theyear. During the latter part of the year hardly a string of tools was running. Gen. Carranza meanwhile appointed a commission to examine into the oil industry in Mexico and to make recommendations as to future methods of regulation. The conditions under which new work might be carried on under this decree were pro- hibitory, and resulted in a complete shutting down of all work during the early part of 1915. However, the Carranza government later modified its attitude, and agreed to issue permits to companies making applica- tion, under which they could operate under certain restrictions, pending the result of the work of the commission. This remains the situation in June, 1915, and development work is being carricd on under difficulties, with only about six rigs running. Oil shipments have not been inter- rupted, however. 11. PRODUCTION The following table shows the annual production of pctroleum in the Mexican fields since 1904. Within the last three years, this has not represented the productive capacity, which was much greater. The com- pletion of additional transportation lines to seaboard, the building of more tank ships, and the passing of the aver-production of high-grade 284 THE MEXICAN OIL FIELDB oil in the United States, together with the broadening market following the end of the European trouble, will see the production of the Mexican fields advance enormously. At present they are yielding only about 70,000 bbl. per day; but the wells already drilled could produce 330,000 bbl. per day. In fact, the latest figures on good authority make this ' capacity more than 500,000 bbl. PRODUCTIONOF OIL IN MEXICO Year Barrels (42 gal.) Year Barrels (42 gal.) 1904 200,000 1910 4,099,000 Downloaded from http://onepetro.org/TRANS/article-pdf/52/01/281/2176808/spe-916281-g.pdf by guest on 03 October 2021 1905 300,000 1911 13,655,488 1906 500,000 1912 16,844,066 1907 1,000,000 1913 24,574,500 1908 3,481,000 1914 25,725,403 1909 2,765,000 During the latter part of 1914 there were 56 companies actually operat- ing in the Mexican fields.
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