California's decline in discovery rate was sharply checked in 1941. Thirteen new areas of production were officially acknowledged. Eight are definitely established as fields, this figure including one new gas field. The status of the remaining five remains unsettled either by virtue of their imperfect state of development, or because subsequent drilling may prove them extensions of old fields. In addition, there were discovered three significant extensions to old fields, and a deep zone in one of the new fields of this year.

Increase in discovery rate was associated with increased exploratory effort as indexed by wildcat drilling, geophysical activity, and geological employment.

Although numerically impressive, the addition to reserves by 1941 discoveries was disappointing, amounting to a tenth or less than the year's production. Nevertheless,

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the year's record of improved discovery rate is encouraging, and implies that we may reasonably expect discoveries to continue with perhaps an occasional one of major proportion.

The problem of diminishing rate of supply is briefly examined.

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