The Lobitos field in Piura, 60 miles north of Paita, with a proved area of 725 square miles the second largest in Peru, has all its wells over 2000 feet deep. One sunk to 3435 feet was a failure. A well around 3000 feet deep costs $10 per foot average, against $1.50 or $2.00 for wells under 1500 feet. The shallower wells here are short lived. In 1915 a new pool was opened 12 miles north. The Negritos field is the richest, 40 miles north of Paita, with an area of 650 square miles. The average depth of the wells is 2500-3000 feet and the most important oil deposits are below 1500 feet. Eleven miles east is an asphalt seepage called La Brea. The oil from Negritos is piped 16 miles north to Talara, the port where the refinery and the wharves are situated. Besides the 6-inch pipe line there is a narrow gauge railway. The modern refinery has a capacity of 6000 barrels a day. With pressure stills employed the oil will give 75 per cent benzine. The Talara port permits vessels of 28-foot draught to approach the wharves. The International Petroleum Company, said to be controlled by Standard Oil interests, now operates this property and has taken over the smaller property of the Lagunitos Oil Company 11 miles from Talara. The amount of oil production in Peru has in ten years increased from 756,226 barrels of 42 gallons to 2,550,000 barrels in 1916, two thirds of the last amount coming from Negritos and Lagunitos. INDUSTRIES While Peru does not support large manufacturing industries she has more than some other South American countries and ample means for increase. Scattered along the coast are more than 50 streams which, though small, falling 10,000 feet, are capable of providing an immense amount of electric power. The use of electricity is already widespread, electric lights and telephones are found in many towns, in several, electric cars; the development of this source of power is progressing. Of factories, sugar mills take the lead, 50 _haciendas_ near the coast having their own mills. In some of these 75 per cent of the sucrose is extracted with the use of the best machinery. Alcohol and _aguardiente_ are made from both sugar cane and grapes, as well as wine from the latter. There are rice mills, and factories for making soap, tallow, lard, matches, chocolate, paper, and other ordinary articles; tobacco, cigar and cigarette factories, flour mills, etc. Panamá hats, though made by hand, must not be forgotten.