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Crude Petroleum Production 1938
June 8 2012 | me

Posted on 06/08/2012 7:18:55 PM PDT by moonshot925

I got this data from the "League of Nations Statistical Yearbook".

It is amazing how much petroleum we produced. 60% of the world's output !!!


TOPICS: Business/Economy
KEYWORDS: oil; petroleum; production; ww2

1 posted on 06/08/2012 7:19:01 PM PDT by moonshot925
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To: moonshot925
It had to with problems between Mexican unions, Mexican govt and international oil companies before nationalization in 1938 - the gov't settled with the unions, but the companies wouldn't agree; afterwards the oil companies led a boycott of Pemex, which was only partially successful.

I tried to to get figures for later years, but couldn't because I needed additional "plugins".

The Impact of the Nationalization

Although usually the impact of nationalization is depicted in terms of the effect on petroleum production this is not the crucial problem. The crucial problem is the effect on the development of new producing oil wells. The table below shows that in the period 1924-1926 the private oil industry was bringing in about three hundred new producing wells per year. In was about 1926 that the Mexican government began talking about controlling the petroleum industry. Immediately the exploration began to drop and continued dropping. The petroleum companies had alternative development sites in Venezuela, Colombia and the Far East that seemed safer investments. By the time the actual nationalization came in 1938 the annual development of new successful oil wells was a small fraction of what it had been in the mid-1920's. Not all of the private petroleum companies were nationalized in 1938. Only the ones which were involved in labor disputes in 1937.

The national petroleum company, PEMEX, was not notably successful in developing new wells. The problem was not that it had a lower success rate than the private companies, the problem was that it just did not drill many wells. Bureaucrats with their careers on the line have a problem with risk-taking. No bureaucrat wants to have to explain the loss of public funds in a dry hole.
After World War II the development of new wells increased from the negligible levels of the early 1940's but still the number of new producing oil wells developed in the decade after nationalization was less than the number brought-in in 1926. Although production from the wells expropriated in 1938 was maintained after a few years of declined production the nationalization during that first decade was a financial failure. Costs rose because of over-staffing promoted by the oil workers union. PEMEX had a difficult time meeting minimal financial obligations to the Mexican government.

2 posted on 06/08/2012 7:52:32 PM PDT by caveat emptor (Zippity Do Dah)
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To: caveat emptor
This is a tiny slice of the political, international power struggle in the long history of oil, beginning around 1859.

I am embarrassed at how little I thought I knew about the subject before reading The Prize, Pulitzer Prize winner, by Daniel Yergin.

The true tales in this book are mind boggling.

Did you know that FDRs presidential airliner was called The Sacred Cow?

That the King of Saudi Arabia pitched a desert tent on the deck of an American Warship when meeting with FDR? And that he wanted to bring 60 goats (or was it sheep?) aboard?

Etc.

3 posted on 06/08/2012 8:28:20 PM PDT by publius911 (Formerly Publius 6961, formerly jennsdad)
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To: publius911

“he wanted to bring 60 goats (or was it sheep?) aboard?”

Must have been sheep, goats aren’t constructed right!!


4 posted on 06/08/2012 8:41:33 PM PDT by dalereed
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To: publius911
Yeah, the competition's heating up again , with The Won batting for the other competitors.

Sounds like an interesting book. I'll check it out.
5 posted on 06/09/2012 6:48:42 PM PDT by caveat emptor (Zippity Do Dah)
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