The Office of Petroleum Coordinator, now changed to the Petroleum Administrator for War, made a survey during the year of the reserves of all oil in the state under 24° Be. gravity. The California Oil Administrator then made a survey of reserves of all over 24° Be. gravity.

Results of these two surveys indicated that the total California reserves were 3,300,000,000 barrels but that the available oil was insufficient to meet present increased market demands.

Certain steps were taken by regulatory bodies to increase reserves of oil and available oil especially of the grade designated as "heavy" oil. The most important of these steps was the action of the City of Los Angeles in permitting the drilling of an exploratory well within a residential district.

The activity of the operators was almost entirely confined to the exploration of shallow undeveloped reserves of heavy oil. This activity was the direct cause of several important extensions to known fields.

There were five new oil-producing areas and three new gas-producing areas discovered during the year. Extensions were made, either as the results of the development of heavy reserves or from routine development of 1941 discoveries, in 13 fields. Deep sands were found under three producing fields.

In the light of present knowledge, the new discoveries appear to be unimportant in comparison to the yearly demand of the state which under the war emergency has risen to 288,000,000 barrels a year. It is probable that reserves established by the new discoveries will not exceed 10 per cent of this demand. However, extensions and deep-sand discoveries probably have added considerably to the reserves.

Lack of man-power, equipment, and a low crude market have materially decreased the activity of California operators during the year. The P.A.W. has attempted to encourage the development of new areas and old reserves by various methods but the operators can not obtain materials readily and the competition for labor can not be met at the present price of crude, especially at the price of the heavier grades of the crude now in demand.