Petroleum production in Europe outside the Soviet zone increased 7.7% over the previous year, to a rate of 256,700 b./d. Austrian production declined 13.3%, but this was more than offset by a substantial gain in Germany and lesser increases in all other producing countries. In Austria the first important oil field was found in the Molasse basin. In France exploratory drilling continued at a high rate. Important discoveries were made in the Paris and Aquitaine basins. Exploratory drilling declined in Germany. Some apparently significant gas discoveries were made, but most of the oil fields were evidently minor and most were related to previously oil- or gas-bearing structures. Two wells found gas for the first time in the Lower Triassic. In Italy an important gas discovery was made in the Bradanic trough in the southern part of the peninsula, and another in the Po valley. An oil field was found N. of Gela. Some interesting exploratory wells were drilled in structurally complex parts of the Apennines. In the Netherlands production in the Schoonebeek field declined further, but there was a sharp gain from the small fields in the western part of the country. In England oil was found for the first time in the Jurassic on the S. coast. Exploratory drilling was suspended in Denmark and Portugal after drilling of a number of dry holes. A well in northern Spain drilled to 16,503 ft. and another deep test was drilling at the end of the year. A deep test was drilled in Malta. Plans were made for drilling in Switzerland in 1960. Negotiations for concessions were made in Belgium, Eire, and Greece Some data on production and exploration in the Soviet Union are included in the paper.