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By J. C. McKinnell

The appraisal of an oil lease may often be mad,? through production decline analysis, which requires description of the functional relationship between the oil production rate and either cumulative production or time. Heretofore, attempts to define the function appropriate to a given set of production data have depended to some extent on subjective procedures. The purpose here is to introduce an objective solution, obtained by combining the principle of least squares with the theory of equations. MATHEMATICAL ANALYSIS The fundamental differential equation appropriate to a general class of decline curves may be written. Solution of Eq. 1 for general boundary conditions may be written in terms of either the cumulative oil production or time: These equations constitute the mathematical expression of the so-called hyperbolic decline. Their complete description for a given set of production data requires the numerical evaluation of the three parameters1.', n, D, and (go),. For the special case of n = 0, Eq. 2 becomes q. = (q.), - DiN with the corresponding expression in terms of time being q. = (qa),e...........(5) Similarly, for the special case of n = 1, Eq. 3 becomes with the corresponding expression in terms of cumula- tive oil production being q. = (q.),e " '.......(7) Eqs. 4 and 5 constitute the mathematical description of the so-called exponential decline; Eqs. 6 and 7 are the mathematical description of the harmonic decline.',' Returning to the hyperbolic expressions, Eqs. 2 and 3 may also be written, q: = sNp + b........ (8) and where a = 1 - n; s = (n— 1)D,(q0);"; b = (go):-"; a'=-n;s/= nD,(qo);"; and b' = (go);-. Note that both Eqs. 8 and 9 are linear in either time or cumulative production with respect to an exponential function of the production rate. In other words, a straight line relationship results for both variables when associated with the appropriate power of q,. This fact is of prime importance in the application of statistical analysis. . STATISTICAL ANALYSIS For a given oil lease, the time, production rate and cumulative production are recorded records. To establish predictive formulas from Eqs. 2 and 3, it remains to determine numerical values for the three parameters [n, D, and (q,) .] through an investigation of the past history. Upon interpreting a, s and b as parameters, Eq. 8 may be expressed for every time interval of interest, i, over the past history as follows. (q,): = s(Np), + b........(10) In general, Eq. 10 will not be satisfied exactly, because of the assumptions in the expression of Eq. 1, and the errors and anomalies universally associated with production data. It will instead define the residual, s(Np), + b- CO=d......(11) Squaring both sides and summing over all the data points, m, under consideration yields

By John T. Eash

DURING the course of the war the supply of tin in this country has steadily decreased and a continued effort has been made since the beginning of the emergency to use alloys that are either tin free or contain appreciably lower quantities of it. Even with the use of emergency materials, the tin supply has become particularly acute, and it is estimated that after recovery of the far eastern mines probably one to two years will be required before our normal annual supply is attained. One of the major tin-consuming fields is the bronze industry. Recommendations were made several years ago by the War Production Board toward the use of bronzes of lower tin content and manganese bronze and yellow brass for the customarily used tin-bronze alloys. The substitution of 88-5-5-2 copper-nickel-tin-zinc for composition G received considerable attention before the war, and consequently this alloy and modifications of it have been adopted for some current structural and pressure castings requiring high mechanical properties. Another of the commonly used bronzes is the 10 per cent tin, 10 per cent lead copper alloy for heavy-duty bearings. It has been known for some time that about 2.5 per cent nickel could be substituted for an equal amount of tin with retention of equivalent casting and tensile properties; however, it was desirable that a still greater conservation of tin be made. Consequently the present paper deals with the development of an alloy of low tin content that could be used for bearings. SELECTION OF COMPOSITION While the final criterion of the suitability of an alloy for a bearing must 0f course be determined by practical applications where all the ramifications of service conditions are encountered, certain short cuts in the initial selection of compositions are necessary to avoid an extensive and time-consuming investigation. The present program has been to match certain metallurgical properties of the 80-10-10 bronze that have been shown by previous investigations to be related to good bearing qualities. Such properties as microstructure, hardness, compressive yield strength, ductility, and castability have been considered, and certain simple wear tests have been made. Of the readily assessed characteristics desired in a good bearing alloy, one can be certain that a uniform distribution of lead is required in a leaded bronze. It has generally been found that segregation of lead is one of the chief difficulties with this type of material. Tin has a powerful effect on lead distribution, and with 10 per cent present produces a random distribution of chunky particles, such as are shown in Fig. I. In addition, the tin bronze contains the hard alpha + delta eutectoid constituent distributed through-

Jan 1, 1945

By R. I. Jaffee, H. P. Nielsen

In recent years much attention has been given to high melting alloy systems. It has been of interest in this respect to investigate the alloys of platinum and tungsten, which were known from the literature to have very high melting points up to about 50 pct tungsten, but about which little had been published on the high-tungsten side of the system. Powder metallurgical methods were used throughout this investigation for the preparation of the alloys, utilizing electrical sintering techniques such as are used for tungsten and molybdenum. In the course of the work it was found desirable to determine fusion temperatures of the alloys, and it was possible from these and other data to draw a tentative constitutional diagram (solidus, mostly) applicable to the high-temperature part of the system. No attempt was made to determine solid solubility vs. temperature data, nor to investigate the lower temperature transformations in the solid state. Data on the microstructure, hardness, and a note on oxidation resistance of the sintered alloys were obtained. Past Work Miillerl determined liquidus temperatures of platinum-rich alloys to 50 pct tungsten, using a radiation method employing a photoelectric cell, and found that the melting points increased progressively from I771 C for platinum to 2350°C for the 50 pct alloy. Microscopic evidence by Miiller that complete solid solutions exist to 50 pct tungsten was not checked by Kremer2 who, according to Vines and Wise,3 found that "although the 8 pct tungsten alloy was a solid solution, the 26 pct tungsten alloy contained a eutectic or an intermediate phase." Hultgren and Jaffee4 using X ray methods found continuous solid solutions to at least 33.6 pct tungsten (35 at. pct) after annealing in vacuum for 6 days at I000 C. Vines and WiseS report work communicated to them by E. C. Rhodes on wrought alloys to 7 pct tungsten, which showed that tungsten hardened platinum extremely rapidly, and was one of the most potent hardeners of the binary additions to platinum. Considerable quantities of 4 pct tungsten platinum wire have been produced for grids in radar tubes and for aircraft spark plugs. Some of the alloy for the latter application is made by sintering, the remainder by smelting and casting. Materials The platinum powder used in this work was kindly supplied by the Research and Development Laboratory of the Owens-Corning Fiberglas Corp., Newark, Ohio. It was prepared from scrap platinum. After dissolving in aqua regia and evaporating almost to dryness, the solution was worked up several times with concentrated HC1. The resultant platinic chloride was diluted considerably, and metallic zinc was added, which precipitated the platinum in a very finely divided form. After dissolving the

Jan 1, 1949

By John T. Eash

During the course of the war the supply of tin in this country has steadily decreased and a continued effort has been made since the beginning of the emergency to use alloys that are either tin free or contain appreciably lower quantities of it. Even with the use of emergency materials, the tin supply has become particularly acute, and it is estimated that after recovery of the far eastern mines probably one to two years will be required before our normal annual supply is attained. One of the major tin-consuming fields is the bronze industry. Recommendations were made several years ago by the War Production Board toward the use of bronzes of lower tin content and manganese bronze and yellow brass for the customarily used tin-bronze alloys. The substitution of 88-5-5-2 copper-nickel-tin-zinc for composition G received considerable attention before the war, and consequently this alloy and modifications of it have been adopted for some current structural and pressure castings requiring high mechanical properties. Another of the commonly used bronzes is the 10 per cent tin 10 per cent lead copper alloy for heavy-duty bearings. It has been known for some time that about 2.5 per cent nickel could be substituted for an equal amount of tin with retention of equivalent casting and tensile properties; however, it was desirable that a still greater conservation of tin be made. Consequently the present paper deals with the development of an alloy of low tin content that could be used for bearings. Selection or Composition While the final criterion of the suitability of an alloy for a bearing must of course be determined by practical applications where all the ramifications of service conditions are encountered, certain short cuts in the initial selection of compositions are necessary to avoid an extensive and time-consuming investigation. The present program has been to match certain metallurgical properties of the 80-10-10 bronze that have been shown by previous investigations to be related to good bearing qualities. Such properties as microstruc-ture, hardness, compressive yield strength, ductility, and castability have been considered, and certain simple wear tests have been made. Of the readily assessed characteristics desired in a good bearing alloy, one can be certain that a uniform distribution of lead is required in a leaded bronze. It has generally been found that segregation of lead is one of the chief difficulties with this type of material. Tin has a powerful effect on lead distribution, and with 10 per cent present produces a random distribution of chunky particles, such as are shown in Fig' 1. I' In the tin bronze contains the hard alpha + delta

Jan 1, 1946

By John T. Eash

During the course of the war the supply of tin in this country has steadily decreased and a continued effort has been made since the beginning of the emergency to use alloys that are either tin free or contain appreciably lower quantities of it. Even with the use of emergency materials, the tin supply has become particularly acute, and it is estimated that after recovery of the far eastern mines probably one to two years will be required before our normal annual supply is attained. One of the major tin-consuming fields is the bronze industry. Recommendations were made several years ago by the War Production Board toward the use of bronzes of lower tin content and manganese bronze and yellow brass for the customarily used tin-bronze alloys. The substitution of 88-5-5-2 copper-nickel-tin-zinc for composition G received considerable attention before the war, and consequently this alloy and modifications of it have been adopted for some current structural and pressure castings requiring high mechanical properties. Another of the commonly used bronzes is the 10 per cent tin 10 per cent lead copper alloy for heavy-duty bearings. It has been known for some time that about 2.5 per cent nickel could be substituted for an equal amount of tin with retention of equivalent casting and tensile properties; however, it was desirable that a still greater conservation of tin be made. Consequently the present paper deals with the development of an alloy of low tin content that could be used for bearings. Selection or Composition While the final criterion of the suitability of an alloy for a bearing must of course be determined by practical applications where all the ramifications of service conditions are encountered, certain short cuts in the initial selection of compositions are necessary to avoid an extensive and time-consuming investigation. The present program has been to match certain metallurgical properties of the 80-10-10 bronze that have been shown by previous investigations to be related to good bearing qualities. Such properties as microstruc-ture, hardness, compressive yield strength, ductility, and castability have been considered, and certain simple wear tests have been made. Of the readily assessed characteristics desired in a good bearing alloy, one can be certain that a uniform distribution of lead is required in a leaded bronze. It has generally been found that segregation of lead is one of the chief difficulties with this type of material. Tin has a powerful effect on lead distribution, and with 10 per cent present produces a random distribution of chunky particles, such as are shown in Fig' 1. I' In the tin bronze contains the hard alpha + delta

Jan 1, 1946

By Marcus A. Grossmann

The Institute has established this lectureship to honor the memory of a great American metallurgist, one whose fame has continued long after his passing. As one scientist recently stated it, "All metallurgical texts gradually become outdated and outmoded, except those of the great Henry Marion Howe." It seems fitting, then, that, once every year, we shouId review, in his honor, some aspects of the science in which he was such a distinguished leader, and also discuss any new data that may help to clarify our concepts. It is my privilege, for which indeed I express the deepest appreciation to this Institute, to offer for consideration a few thoughts on the toughness and fracture of hardened steels. Before proceeding to the data, I wish to express my great indebtedness to many associates whose stimulating discussions, generous contributions of data and cooperation in experiments are gratefully acknowledged. (But I wish to absolve them of any blame that may arise from the way in which their discussions and data have been used!) First, Dr. Edgar C. Bain, Vice President, Carnegie-Illinois Steel Corporation, whose amiable but merciless criticisms and always constructive and thoughtful suggestions help unfailingly to guard against pitfalls. Then to associates at Gary Steel Works, especially Mr. H. B. Wishart, Mr. W. K. Smith and Mr. V. Elliott, for great assistance in securing data. Also to Col. C. H. Greenall, Director of Laboratories, Frankford Arsenal, and his metallurgical staff, including Messrs. J. K. Desmond, H. Markus, D. F. Armiento, H. Rosenthal and Henry George, for numerous data and illustrations. Further to Dr. J. R. Low and Dr. M. Asimow, for helpful discussions of effects of states of stress during deformation and rupture, to Mr. J. M. Hodge for discussions and data, to the staff of the U. S. Steel Corporation Research Laboratory for advice and data, and to the Metallurgical Staff at Duquesne Steel Works. The individual acknowledgments will also be found under illustrations. Acknowledgment is also due to Mr. S. C. Snyder for incredibly meticulous scrutiny of manuscript. To all of these, grateful thanks. Introduction The discussion to be offered here will deal with quench-hardened steels only, and may perhaps be considered under three headings: 1. It was found that, when ferrite was precipitated in the (prior austenite) grain boundaries of hardened steel, the notch-bar toughness was much less than in pieces fully hardened. The fracture took place in the ferrite, and the loss in toughness is attributed to the lower cohesive (cleavage) strength of the ferrite, as cornpared with martensite. 2. When notch-bar impact test pieces of quenched and tempered steels were examined as to their mode of fracture, it

Jan 1, 1947

By Marcus A. Grossmann

The Institute has established this lectureship to honor the memory of a great American metallurgist, one whose fame has continued long after his passing. As one scientist recently stated it, "All metallurgical texts gradually become outdated and outmoded, except those of the great Henry Marion Howe." It seems fitting, then, that, once every year, we shouId review, in his honor, some aspects of the science in which he was such a distinguished leader, and also discuss any new data that may help to clarify our concepts. It is my privilege, for which indeed I express the deepest appreciation to this Institute, to offer for consideration a few thoughts on the toughness and fracture of hardened steels. Before proceeding to the data, I wish to express my great indebtedness to many associates whose stimulating discussions, generous contributions of data and cooperation in experiments are gratefully acknowledged. (But I wish to absolve them of any blame that may arise from the way in which their discussions and data have been used!) First, Dr. Edgar C. Bain, Vice President, Carnegie-Illinois Steel Corporation, whose amiable but merciless criticisms and always constructive and thoughtful suggestions help unfailingly to guard against pitfalls. Then to associates at Gary Steel Works, especially Mr. H. B. Wishart, Mr. W. K. Smith and Mr. V. Elliott, for great assistance in securing data. Also to Col. C. H. Greenall, Director of Laboratories, Frankford Arsenal, and his metallurgical staff, including Messrs. J. K. Desmond, H. Markus, D. F. Armiento, H. Rosenthal and Henry George, for numerous data and illustrations. Further to Dr. J. R. Low and Dr. M. Asimow, for helpful discussions of effects of states of stress during deformation and rupture, to Mr. J. M. Hodge for discussions and data, to the staff of the U. S. Steel Corporation Research Laboratory for advice and data, and to the Metallurgical Staff at Duquesne Steel Works. The individual acknowledgments will also be found under illustrations. Acknowledgment is also due to Mr. S. C. Snyder for incredibly meticulous scrutiny of manuscript. To all of these, grateful thanks. Introduction The discussion to be offered here will deal with quench-hardened steels only, and may perhaps be considered under three headings: 1. It was found that, when ferrite was precipitated in the (prior austenite) grain boundaries of hardened steel, the notch-bar toughness was much less than in pieces fully hardened. The fracture took place in the ferrite, and the loss in toughness is attributed to the lower cohesive (cleavage) strength of the ferrite, as cornpared with martensite. 2. When notch-bar impact test pieces of quenched and tempered steels were examined as to their mode of fracture, it

Jan 1, 1947

El Indio, eighty percent -owned by Compania Minera an Jose Inc., a subsidiary of St. Joe Minerals, and twenty percent-owned by private Chilean investors, will open their new flotation and Carbon -In -Pulp plant near La Serena, 480 km (300 miles) north of Santiago, Chile, in early 1981. The underground mine, at an altitude of 4,270 m (14,000 ft), will produce about 1,270 mt per day (1,400 st per day) of ore containing about 2. 2570 Cu, and gold and silver to the extent of 16 and 254 g per mt (0.47 and 7.4 oz per st) respectively. While construction of the plant was underway, development ore, containing some 1,400 kg (45,000 oz) of gold, was shipped to the United States for recovery in a copper smelter. At El Indio the underground ore is rail-hauled to the mill a short distance from the portal where it is crushed, ground, and floated to produce a copper concentrate containing both gold and silver. The crushing plant also crushes waste for use as mine backfill. Approximately 92% of the copper and 60% of the gold and silver are recovered in the flotation concentrate. Flotation tailings, at a grade of 19 g Au and 116 g Ag per mt (3.4 oz Au and 0.55 oz Ag per st), are cyanided for 72 hours in six Pachucas with auxiliary air lifts for pulp transfer. Lime, cyanide, lead nitrate, and a phosphate are also fed to the cyanidation Pachucas. After cyanidation, the pulp is treated in four air lift Carbon-In-Pulp tanks equipped with external vibrating screens for carbon advance. Loaded carbon is stripped in two pressure vessels in parallel. Pressure stripping must be used because of the high altitude. Stripped carbon is dewatered in a spiral classifier before being reactivated in a rotary kiln and returned to the C. I. P. circuit. Pregnant solution is then sent to four banks of four Zadra cells for gold and silver recovery on steel wool. Zadra cell cathodes.are washed with the slimes being captured in a plate and frame filter. The filter cake and the washed cathodes are then dried on an infrared dryer and smelted in two stages to bullion bars. Published reports indicate that the total investment for this unique operation was in the neighborhood of $80 million.

Jan 1, 1981

By T. H. Alden

In several recent studies of fatigue fracture in single-phase metals, tests have been made using the condition of essentially constant plastic strain amplitude.1-4 This procedure departs from the more common practice of holding the amplitude of stress constant. From these studies have emerged two important generalizations about the behavior of metals during cyclic straining. First, measurements of the stress amplitude, required to impose the fixed plastic strain amplitude, have shown that the rate of cyclic strain hardening in annealed metals is rapid in the early cycles but decays quickly to a very low value.1"5 This behavior is displayed particularly for a range of strain amplitudes below about 2 pct and at low and high temperature. Frequently, the hardening rate becomes so low that one can determine a "saturation" stress. This stress increases with strain amplitude. In addition, an experimental relation between fracture life and plastic strain amplitude was obtained by Coffin and Taternelli,' namely N 1/2 ep = constant. For several metal:;, this equation has been shown to hold down to a strain amplitude of 0.1 pct. Whether it also holds in the "low amplitude" range (lives of more than about 105 cycles) has not been established. The importance of the saturation stress level (a value derived from strain hardening measurements) to the question of fracture life (the usual quantity of interest of fatigue testing) lies in the observation that cracks start to form when the cyclic hardening rate is essentially zero, and not before.4"5 This point suggests immediately a means of relating tests at constant stress and constant strain amplitudes. When making comparison, the stress in a constant stress test is to be identified with the saturation stress in a constant strain test. If these ideas are correct, then it should be possible, using the relation between fracture life and strain amplitude and experimental curves of saturation stress versus strain amplitude, to predict the fracture life as a function of stress, i.e. predict the S -N curve, for low stress fatigue. Saturation stress amplitude-plastic strain amplitude data, obtained in tension-compression, exist only for a few metals and for relatively high amplitudes of strain. Comparable S -N curves (push-pull loading) were known by the author only for OFHC copper. Values for this metal taken from Ref. 2 are shown in Fig. 1. The strain amplitudes, the lowest

Jan 1, 1962

By John Birkinbine

(Read at the Philadelphia Meeting, February, 1878.) IN a former paper* attention was directed to the various firms of pumping machines employed for permanent work in mining and metallurgical processes. The following is simply a collection of memoranda of work done of a temporary character, and is presented by way of comparison with other work of similar nature. In close proximity to the charcoal furnace at Pine Grove, Cumberland County, Pa., is a large deposit of superior hematite iron ore, which has been worked for a number of years, and from which many thousand tons of ore have been taken by open pit workings. In July, 1874, the furnace was blown out and operations at the bank suspended, the machinery for draining being removed except a plunger pump, 18 inches in diameter and 66 inches stroke, operated by a steam-engine by means of rods. The pit was allowed to fill with water, and no steps towards its reclamation were taken until November, 1877. At that time the pit was a pond of water at the base of the mountain, having an area of about four acres and a depth of seventy feet. As the pumps, rods, etc., had been submerged for over three years, and partially buried by the mud washed down from the banks, and as it was determined to change the location of the pump for future operations and drive it by water-power, a temporary pumping apparatus was determined upon for reclaiming the pit and keeping it drained until the permanent arrangements could be completed. By opening an old adit about 10 feet of the water was removed, and the area decreased to three acres. The inflow of springs was found to be 250 gallons per minute, and the amount of water contained in the pit was computed to be 45,000,000 gallons. As the inflow would undoubtedly increase while the water sank in the pit, provision was made for removing at least 60,000,000 gallons, at the rate of 1,500,000 to 2,000,000 gallons per day. The company determined to employ a Heald and Cisco centrifugal pump driven by an oscillating engine by means of a belt. Steam was supplied by four plain cylinder boilers, each 36 inches diameter *Transactioiis of the American Institute of Mining Engineers, vol. p. 455.

Jan 1, 1878

By K. Nassau

The Effect of tin and hydrogen on the C0 parameter of a titanium. specimens were capsule cooled in water to eliminate contamination by water. Deybe-Scherrer photograms were obtained in a 114.6 mm camera with CuKa radiation. The parameters shown in Table I and Fig. 1 were calculated from the 213 (8569°) and 302 (8173.5°) reflections? no attempt being made to correct for systematic errors. The principal difference in method of preparation of specimens between this investigation and that of Worner was the use of pickling by the latter to produce X-ray diffraction samples. The possibility that hydrogen introduced by pickling was responsible for the lower a and c-parameters was investigated with the same 80 pct HNO3- 20 pct HF solutions used by Worner. The 6 and 10 at. pct specimens, the parameters of which had already been determined, were pickled and the c-parameters obtained are also shown in Fig. 1. The a-parameters, not shown, are also diminished. The quality of the lines obtained from the unetched and etched samples was unchanged, being quite sharp in both cases. It is quite possible that if corrections for systematic error carried out that the parameters obtained for the unetched samples would approach the data of Worner. In any event, the parameters of the etched samples would be still lower. The data obtained here is evidence that hydrogen in solution has contracted the c and a -parameters. Crystallographic Angles of Calcium Tung-state (Tetragonal, c/a = 2.169) K. Nassau In connection with the preparation and orientation of single crystals of calcium tungstate (Scheelite -CaWO4), the need arose for a stereographic projection for this tetragonal material. There appear to be no tetragonal projections with a c/a ratio above that of indium1 (c/a = 1.522) in the literature. In addition to its use for calcium tungstate, such a projection might find other more general applications and is accordingly presented below. The most recent X-ray diffraction work on CaWO4 is that of Swanson, Gilfrich, and Cook,2 where a summary of previous work is also found. Lattice parameters given are: a = 5.242A, c = 11.372A, and c/a = 2.169. The material is tetragonal with space group Table I, giving angles between crystallographic planes (HKL) and (hkl), was calculated from the formula3

Jan 1, 1961

By Stephen H. Stow

A relationship exists between the color and the chemical composition of the pebbles from the Bone Valley Phosphate Formation. Darker-colored pebbles are relatively high in iron oxide and relatively low in calcium phosphate when compared to lighter-colored samples; the brown color of the phosphate pebbles can be correlated with their iron content and the black and gray colors with their organic carbon content.1,3 It was anticipated that the darkness of a phosphate sample might be quantitatively measured by a simple reflectivity test and that the amount of reflected light could be correlated with the chemical composition of the rock, especially with the elements which cause the color and darkness of the Florida phosphates. Twenty-one samples of production grade phosphate rock from Hillsboro County, Fla., were studied. All samples were ground to -200 mesh for reflectivity tests and analyses. All analyses are accurate to well within ±2% of the reported value, except for aluminum and organic carbon, which are accurate to only ±15% of the reported amount. Reflectivity measurements were taken with a model 610 Photovoltmeter for tri-stimulus amber, blue and green, and white lights. Experimental procedures and data are available upon request. Results Table 1 contains linear correlation coefficients (LCC) for the element-reflectance relationships for the samples. The top portion of the table refers to the LCC between the percent of light reflected off the samples and the percent of a given element (or its oxide) as analyzed. In the lower portion of the table the LCC refers to the relationship between the same reflectance data and the chemical analyses which have been corrected on the basis of 0% acid insoluble material (chiefly quartz) in the phosphate rock. Each LCC presented in Table I is computed for the 14 coarser samples exclusive of the seven concentrates since the concentrate samples appear to have anomalous reflectivities upon comparison with the coarser grades. Only the most significant LCC for each element is presented in graphical form. Discussion of Data Iron: [Fig. 1] is a graph of the relationship between iron and reflectivity (LCC = - 0.98). A good correlation with Fe2O3, is expected due to the relationship between the tan (or brown) color and the abundance of iron oxide, the principal mode of occurrence of iron in Florida phosphates.8 Note the location of the seven triangles which repre-

Jan 1, 1972

By H. J. Struth

Conditions in the gasoline market undoubtedly influence the oil industry's general economic situation to a greater degree than perhaps any other single factor. No matter how efficiently the oil industry manages to conduct its producing operations, a drop in the price of gasoline exerts definite pressure upon the posted price of crude oil in the field. Efforts of the recent past have shown that profits from the producing division of the industry are closely tied in with the course of the gasoline market. When refinery gasoline prices are depressed, as they have been during recent months, it is utterly impossible for purchasers to maintain a crude market that is commensurate with the cost of production, regardless of how well balanced the producing situation may be. In fact, the producer can no longer regard his operations in the light of an independent unit of the oil industry, since his financial well-being is directly dependent upon the well-being of the refiner. Because gasoline is the principal constituent of crude oil, it is obvious that profitable refining operations can only be maintained through profitable gasoline markets. Likewise, when the price of gasoline influences a profit for the refinery it also influences the prosperity of the producer, through the advent of higher and more profitable posted prices for crude oil in the field. Financial results for 1932 showed material improvement over the preceding year, primarily because the price of gasoline was maintained at levels somewhat above those of 1931. Consequently, the producer was able to record improvement in the crude market, through a somewhat higher level of posted prices. While effective methods of prora-t,ion of crude production are given credit for the advance recorded in the crude market last year, it is also a fact that the advent of higher prices for gasoline had a direct influence upon the posted prices of crude oil. For example, when gasoline was sold in Group 3 at 2 3/4 a gallon in June and July, 1931, the price of 36-gravity Mid-Continent crude was down to its lowest point of only 18c a barrel. As refinery prices advanced, however, there was a corresponding advance in posted prices of crude oil. Thus, when Group 3 gasoline commanded a price of 5c a gallon

Jan 1, 1933

By C. M. Kleeman

All mines have a finite life and the time comes when the ore is depleted, or it has become uneconomical, or for some other reason which may be peculiar to that particular mine, it must be shut down. The operation at that point of time still has some assets such as mining and milling equipment, workshops, and in the case of a gold mine, an unknown quantity of gold which has been trapped in the treatment plant. Recovering this gold can be done at small cost and can be extremely profitable. Recovery of these hidden assets requires a good knowledge of the treatment plant, i. e. , as say values of heads, tails, and of the products produced; and if mercury for amalgamation was used, where? A careful study of available plant records can be extremely valuable in forming a working plan for adequate recovery. In the following paragraphs the various unit operations and equipment where gold can collect are described and suggestions made for its recovery. Subsequently, a case history will be given for dismantling a gold plant which had a complex flowsheet and which had been in operation for many years. Looking for trapped gold in a crushing section would invariably not be worthwhile since crushing is normally a dry process and there would be few areas where free gold could collect. In the milling section, however, many areas can literally become small gold mines in themselves. Material in the bottoms of grinding mill scoop boxes can be high-grade, and even the scale on the sides of the boxes should be scraped off and collected. Mill liners should be removed and all scale, rust, and residue collected. Residue in the bottoms of rake or spiral classifiers, if they have been used, should be removed as should the scale and rust on the sides of pump sumps, launders, etc. The following procedures should be used to extract gold from these collected materials. All steel (ball scats) should be removed, screened out, and reserved. Fine material should be placed in an amalgam barrel, water added and ground with the amalgamation tailings being sampled and assayed. If high-grade, tails should be reserved; if not, discarded. The coarse material that was screened out should be placed in a heap, regularly sprayed with water and allowed to rust. After several months this material should be screened again and the fines amalgamated.

Jan 1, 1981

By Barnabas Bryan

During the boom period of 1928 and 1929, several oil companies took advantage of high security prices to sell stocks, thereby securing money for the company very cheaply. Few if any of those companies realized that the money received was not at all cheap in view of the fact that it was for investment in fixed assets at inflated prices. Suppose a company borrowed twenty millions of dollars to expand its marketing facilities during the boom. It diluted its capital and acquired fixed property which could not earn its interest requirements during the following deflation and therefore consumed income from other company activities. The company also had to stand the deflation in the capital value of all the property it bought. Since the mistaken expansion during the boom accelerated the decline in net income during deflation, the financial position of the company was harmed in proportion to the amount of that expansion. Thus the company was unable to get money to buy fixed assets in the depression when all property is cheap. The same condition holds for the company that sold common stock for the purpose of developing potential production in a newly discovered oil field. Regardless of what the ultimate value of the new field may be, potential production does not increase the net income of the company. The difficulty of meeting the enlarged dividend requirements due to the increased number of shares outstanding impairs the financial position of the company during deflation in some relation to the probability of decreased dividends. This company also is not in a position to expand during the depression when properties and companies can be bought for a fraction of their real value. Expansion of fixed assets during boom times has been the ruin of many otherwise good companies. Some of those which most extensively bought property during the post-war boom have not yet recovered. A number of cases could be cited in sugar, leather, fertilizer and wool. This does not seem to be governed by the quality of the property bought, for examination shows the assets to have been of individual high quality in many cases. When recovery is long deferred it is likely to be true, as in sugar or textiles, that the industry has a large "potential" capacity for overproduction.

Jan 1, 1931

By A. Andreas

New Mexico, after several years as the sixth ranking oil-producing state, was surpassed by Illinois and for 1939 ranks seventh in the United States. Oil production for 1939 was 36,746,840 bbl. Production for 1938 was 35,510,176 bbl., a gain of 0.033 per cent. Production for the year would have been greater had there been a pipe-line outlet for the Vacuum field. The complete shutdown during the latter part of August covering a period of 15 days meant a production loss of over 1,500,000 bbl. of oil. Daily production allowable as set by the Oil Conservation Commission has followed very closely the recommendations of the Bureau of Mines. It has been found that the recommended allowables as quoted by the Bureau of Mines do not always reflect the actual demand, as there is a considerable lag hetween the recommended amounts and the current demands. During the year the various operating companies have done considerable remedial work in setting packers to reduce the gas-oil ratios in the various fields. Six new fields were discovered in New Mexico during 1939; three in Lea County, two in Eddy County and one in Chaves County. In the early part of 1939 a committee composed of the various engineers and geologists recommended subdividing the old Artesia area into various producing pools. This division was accepted, therefore the total number of producing fields in New Mexico is considerably greater than the number of fields in 1938, but does not represent new fields discovered during the year. The southeastern area continues to he the largest producer of oil. During the year 2,716,551 bbl. were produced in Eddy County and 33,690,996 bbl. in Lea County. Total production ill the northwestern part of the state, which includes San ,Juan and McKinley Counties, was 338,293 bbl. At the beginning of the year the daily average nonmarginal well allowable for Lea County was 48 bbl. At the close of the year it was 49 bbl. The daily average production for the year was 97,313 bbl. During the year, 659 wells were drilled in the state, of which 565 were producing oil wells, 15 gas wells, 6 carbon dioxide gas wells and 73 dry holes. Summarized at meeting; manuscript received at the office of the Institute March 18, 1940. * State Geologist, member of New Mexico Oil Conservation Commission, Santa Fe, New Mexico.

Jan 1, 1940

By Riki Kobayashi, D. L. Katz

The conditions at which methane and water form solid hydrates have been extended from 4,000 to 11,200 pounds per sq. in. The curve at high pressure had been in doubt because of Villard's report of a critical decomposition temperature. The paper explains the nature of the hydrate curve at high pressure and its dependence on fluid phase behavior. Extropolation of the methane hydrate curve indicates a pressure of 40,000 pounds per sq. in. will cause hydrates to form at a temperature of 100" F. INTRODUCTION The conditions under which natural gases form hydrates when liquid water is present have been studied by several investigators up to pressures of about 4,000 pounds per sq. in. The early work by Villard on hydrates of methane and ethylene13, ethane'', and propane14 included references to critical decomposition temperatures of the hydrates. Villard's work raised the question as to whether the pressure-temperature curve for methane-water hydrate continued above a temperature of 70.7°F. or whether this was the maximum temperature at which hydrates would form. This paper extends the experimental data on methane hydrate to 11,200 pounds per sq. in. A discussion of phase relations in the hydrate region for the hydrocarbons and of the methane-water system at high pressures is included. PREVIOUS WORK Villard suspected that methane hydrates could not be formed at temperatures above 21.5°C. (70.7°F.)la irrespective of the pressure of the liquid-vapor system. However, he was limited in his studies by his apparatus in 1888 to pressures not greater than 300 atmospheres (4,410 pounds per sq. in.) so that there has remained some doubt as to the existence of such a maximum temperature in this region. For the case of ethylene hydrates, however, Villard does specifically state the occurrence of what he terms a "critical temperature for the decomposition of the hydrates"13. Fig. lB shows a pressure-temperature projection of the three-phase locus, hydrate-ethylene rich liquid-vapor (H-L2-V) terminating at the critical locus in which L² and V assume similar properties. Throughout this paper the following phase designations will be used: H for hydrate, Ll for the water rich liquid. L2 for the

Jan 1, 1949

By A. Andreas

New Mexico, after several years as the sixth ranking oil-producing state, was surpassed by Illinois and for 1939 ranks seventh in the United States. Oil production for 1939 was 36,746,840 bbl. Production for 1938 was 35,510,176 bbl., a gain of 0.033 per cent. Production for the year would have been greater had there been a pipe-line outlet for the Vacuum field. The complete shutdown during the latter part of August covering a period of 15 days meant a production loss of over 1,500,000 bbl. of oil. Daily production allowable as set by the Oil Conservation Commission has followed very closely the recommendations of the Bureau of Mines. It has been found that the recommended allowables as quoted by the Bureau of Mines do not always reflect the actual demand, as there is a considerable lag hetween the recommended amounts and the current demands. During the year the various operating companies have done considerable remedial work in setting packers to reduce the gas-oil ratios in the various fields. Six new fields were discovered in New Mexico during 1939; three in Lea County, two in Eddy County and one in Chaves County. In the early part of 1939 a committee composed of the various engineers and geologists recommended subdividing the old Artesia area into various producing pools. This division was accepted, therefore the total number of producing fields in New Mexico is considerably greater than the number of fields in 1938, but does not represent new fields discovered during the year. The southeastern area continues to he the largest producer of oil. During the year 2,716,551 bbl. were produced in Eddy County and 33,690,996 bbl. in Lea County. Total production ill the northwestern part of the state, which includes San ,Juan and McKinley Counties, was 338,293 bbl. At the beginning of the year the daily average nonmarginal well allowable for Lea County was 48 bbl. At the close of the year it was 49 bbl. The daily average production for the year was 97,313 bbl. During the year, 659 wells were drilled in the state, of which 565 were producing oil wells, 15 gas wells, 6 carbon dioxide gas wells and 73 dry holes. Summarized at meeting; manuscript received at the office of the Institute March 18, 1940. * State Geologist, member of New Mexico Oil Conservation Commission, Santa Fe, New Mexico.

Jan 1, 1940

By Riki Kobayashi, D. L. Katz

The conditions at which methane and water form solid hydrates have been extended from 4,000 to 11,200 pounds per sq. in. The curve at high pressure had been in doubt because of Villard's report of a critical decomposition temperature. The paper explains the nature of the hydrate curve at high pressure and its dependence on fluid phase behavior. Extropolation of the methane hydrate curve indicates a pressure of 40,000 pounds per sq. in. will cause hydrates to form at a temperature of 100" F. INTRODUCTION The conditions under which natural gases form hydrates when liquid water is present have been studied by several investigators up to pressures of about 4,000 pounds per sq. in. The early work by Villard on hydrates of methane and ethylene13, ethane'', and propane14 included references to critical decomposition temperatures of the hydrates. Villard's work raised the question as to whether the pressure-temperature curve for methane-water hydrate continued above a temperature of 70.7°F. or whether this was the maximum temperature at which hydrates would form. This paper extends the experimental data on methane hydrate to 11,200 pounds per sq. in. A discussion of phase relations in the hydrate region for the hydrocarbons and of the methane-water system at high pressures is included. PREVIOUS WORK Villard suspected that methane hydrates could not be formed at temperatures above 21.5°C. (70.7°F.)la irrespective of the pressure of the liquid-vapor system. However, he was limited in his studies by his apparatus in 1888 to pressures not greater than 300 atmospheres (4,410 pounds per sq. in.) so that there has remained some doubt as to the existence of such a maximum temperature in this region. For the case of ethylene hydrates, however, Villard does specifically state the occurrence of what he terms a "critical temperature for the decomposition of the hydrates"13. Fig. lB shows a pressure-temperature projection of the three-phase locus, hydrate-ethylene rich liquid-vapor (H-L2-V) terminating at the critical locus in which L² and V assume similar properties. Throughout this paper the following phase designations will be used: H for hydrate, Ll for the water rich liquid. L2 for the

Jan 1, 1949

By Sidney A. Swensrud

About a year ago, I attempted in a general way to trace the origin and development of some of the marketing problems of the petroleum industry, and to describe certain trends which it then seemed possible to foresee. To summarize briefly, it was pointed out that the consumption of gasoline, after increasing for more than a decade at an almost unbelievable rate, was slowing down, but that the two factors which determine the supply of gasoline —-namely, the production of crude oil and the percentage of gasoline derived therefrom—were tending steadily to mount. It was suggested that, while the increase in gasoline outlets began with and probably was justified at the start by the rapidly increasing demand, long after all reasonable requirements as to number of outlets had been met the number continued to increase—if anything, at a still more rapid rate—because by that time the overproduction of crude had begun to exert an impelling urge upon the owners of that crude to seek assured outlets for it in the form of gasoline. As more and more companies became integrated all the way from crude oil to marketing, there took place an ever-increasing competition among them, not only for the existing outlets but for new ones. The wide margin between wholesale cost and retail price, which is characteristic of the early stages of most new industries, persisted in the oil industry longer than in most industries, for various reasons. The existence of that wide margin provided in large measure the means of attracting new outlets, for as the gallonage per outlet declined with the increasing number of outlets, competing companies simply offered the dealers a larger part of the total margin. The very nature of competition suggests that such a process would continue until practically all of the available margin was thus given away, and such was clearly the tendency. It was a system that in turn produced increasing marketing expense per gallon on account of the diluted gallonage per outlet; this increased expense might seem to have provided a justification for continuing wide margins. Economics, like its parent, nature, however, progresses by mutations and so began to throw out new types of marketers, in the form of tank-car service stations, cut-price jobbers, and the like—heretics or

Jan 1, 1932