Petroleum production in western Europe increased 20 per cent in 1954, or by the same percentage as in 1953. The daily average production of countries outside the Russian orbit was 87,486 barrels. The outstanding discovery of the year was the Parentis field in southwestern France, producing from Lower Cretaceous and Upper Jurassic dolomite. West Germany continued to be the leading producing nation, with a daily average production of 52,940 barrels. In northwest Germany remarkable success has been achieved in finding oil sands truncated by unconformities, guided by detailed reflection seismic surveys. Two gas and two oil discoveries were made on fault blocks in the sub-Alpine Molasse trough of Bavaria, adding this to the producing basins of Europe. In Italy three major gas ields were discovered in the Po valley, and the Ragusa oil field of Sicily, discovered late in 1953, was placed on full production in December, 1954. A discussion of oil developments in Yugoslavia is included for the first time, and in this report post-war developments in Croatia are summarized.