The writer first discusses the economic relationship between the supply of and demand for petroleum in the California district. On a daily basis, during 1927, about 665,000 barrels of crude and casinghead gasoline were produced, an additional 70,000 barrels were shut in, and the total petroleum demand was 686,000 barrels, resulting in a net decline in total stocks of 21,000 barrels, or 7,500,000 barrels for the year. The largest decline was 12,629,000 barrels in stocks of light crude and tops, whereas heavy crude and fuel oil showed an increase of 5,161,000 barrels.

The writer further discusses the important production and geological features of the new developments in California. The Huntington Beach and Seal Beach fields, in addition to the volume shut in, were the principal factors influencing total production in 1927. Long Beach is likely to be the major factor in 1928. New areas discussed include Alamitos Heights, Rincon, Goleta, Potrero, and the important developments in the southern end of the San Joaquin valley, namely, Mt. Poso, Round Mountain, Union Avenue, Edison, Fruitvale, and Buttonwillow.