Development in the South Texas district during 1949 reflected the general conditions of the domestic petroleum industry resulting from excessive imports of oil. All phases of development and production, except for gas production and the by-products of gas, were below the rates established the previous year. The 793 wildcat exploratory wells found 72 new producing areas, and 2 of the discovery wells were dually completed. Of the 1848 field development wells, 1220 were completed as oil producers, 330 as gas wells, and the remaining 20 per cent were abandoned. A net increase of 421 oil wells was noted during the year. The 17,159 oil wells in the district produced 125,238,744 barrels of oil, 44,500,210 barrels less than the amount produced during the previous twelve-month per od. Over 43 per cent of the oil wells in the area were serviced for casinghead gas. The liquids processed from all gas production amounted to 13,804,592 barrels, an increase of 12.3 per cent over condensates recovered during 1948. Gas transmission lines marketed 155 billion cubic feet of gas.