Development in South Texas for 1944 is the highest on record since the year of 1937-38. Production records achieved a new high for the district, 128,865,000 barrels of oil. Renewed interest in the faultline trend has been based on the possibilities of obtaining commercial production from formations of the Lower Cretaceous and Jurassic age. Continued activity in the Wilcox trend resulted in the discovery of 33 per cent of the new fields of the district. The discoveries of the upper Eocene trend are found to be of inferior quality as compared with the average of the reservoirs previously established in this trend. The reservoirs of the Frio-Vicksburg remain the source of the major oil and gas reserves of the South Texas district. Continued development of the known fields is resulting in additional reserves from new reservoirs. The export of large quantities of gas from the South Texas district has effected an increase in the value of the gas reserves of the area.