The History Of The Society Of Petroleum Engineers Of AIME

Organization The Foundling Years - 1901-1921 Two events that occurred in the decade of the 1870's have had far- reaching effects upon the petroleum industry in the U. S. and formed a basis for the birth and growth of the petroleum engineering profession. In 187 1 a group of mining engineers banded together to form the American Institute of Mining Engineers "to promote the arts and sciences connected with the economic production of the useful minerals and metals and the welfare of those employed in these industries by all lawful means". Although it was to be 30 years before an event in Jefferson County, Tex., would cause petroleum to come into prominence as the world's principal source of energy, the founding of AIME provided an organization through which the application of engineering to the recovery of petroleum and natural gas could be developed. In 1875, a Pennsylvania judge who was called upon to make a decision for which there was no precedent reasoned that oil and gas were like wild game - they belong to the man who can reduce them to possession. His decision sired the "rule of capture", which stated that a landowner possesses the oil produced from his well, even though it might have come from beneath his neighbor's land. This interpretation prevailed for more than half a century, during which time gold-rush tactics were employed in the drilling and production of many oil fields in the U. S. The resulting overproduction and tremendous waste led to a virtual economic collapse of the U. S. petroleum industry by the early 1930's. To bring these malpractices under orderly control, proration and conservation policies were developed, and petroleum engineering became the medium through which they were devised and implemented. At the turn of the 20th Century, more than 90 percent of this country's oil production came from the East, but the picture changed with dramatic suddenness on Jan. 10, 1901. Captain Anthony F. Lucas, an Austrian mining engineer, had noticed concentrations of oil and gas near salt domes during mining operations on the Louisiana Gulf Coast. In 1899 he leased a low mound near Beaumont, Tex., began drilling, and after almost 2 years of intermittent operations, brought in the famous "Lucas Gusher"