Stabilization - Changing Concepts in the Petroleum Industry (With Discussion)

The function of gas in the development and production of oil has far-reaching consequences that should be emphasized. The technical aspects of the subject have recently had a great deal of attention but less thought has been given to fundamental concepts underlying oil and gas law and the many customs and practices that have grown up in the industry. I shall review briefly the advance in knowledge of the subject and attempt to relate these concepts to legislative, judicial and operating problems. Early writers on oil and gas in Pennsylvania noted their close association in oil pools and their contemporaneous decline in output; also, that as gas pressure decreases so does production, that new offset wells reduce the output of existing wells, and even that tubing a well lengthens its flowing life. Expanding gas was deduced as the principal expulsive force. These fundamental observations had been made at least as early as 1880.1 They were treated, however, as academic considerations and did not greatly influence law or practice for many years except to instill into all operators an urgent desire to hasten offset drilling in order to obtain as much of the flush as possible. The most noteworthy later advance in knowledge came in 1926 when Beecher and Parkhurst published their paper on Effects of Dissolved Gas upon the Viscosity and Surface Tension of OiL.² This paper added to the old idea of an expelling force the concept of a modifying agent that actually changes the physical characteristics of the oil and facilitates its movement through the pore spaces of the reservoir rock. Largely since the publication of this paper, intensive study and concerted effort have been given to means of using to a maximum, in producing oil, these combined properties of gas. This is shown clearly by the number of papers dealing with the subject, and the new and revived terms now widely used to express thought, such as the expressions gas energy, reservoir pressure, reservoir energy, gas-oil ratio, bottom-hole pressure, beaning, tapered tubing and back-pressure. These terms, some of which are