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By AIME AIME

THE Petroleum Division will hold its first fall meeting in Tulsa, Okla., Thursday and Friday,' Oct. 2 and 3, preceding the. International Petroleum Exposition that opens there on Oct. 4. Headquarters will be at the Hotel Mayo, and members planning to attend should make reservations promptly because of the large attendance expected at the Exposition. The program for Thursday will feature production engineering problems and that for Friday the unit operation of oil pools. The principal papers planned for the various sessions are as follows:

Jan 1, 1930

By AIME AIME

THE fifth annual fall meeting of the Petroleum Division of the A. 1. M. E. went down into history as being one of the best ever held by this Division and marked progress was made in the concentration of sentiment regarding several matters-particularly the principles of unit control or operation of oil pools. The first day's program was devoted to the discussion of well spacing and many valuable data were assembled and presented and the discussions following the reading of the different papers was interesting and spirited. However, throughout the whole trend of the discussion it was noted that in the background there was the idea of unit control of the pool and if such a condition could be secured the well spacing theories could be applied much better than could be hoped for if each lease in the pool was treated as a separate and individual unit.

Jan 1, 1929

By W. E. Wrather

SERIOUS consideration was given by the Petroleum Division to a wide variety of subjects, during six busy sessions at the Annual Meeting. Beginning with a joint session on engineering research and production engineering, Tuesday afternoon, conducted by E. A. Stephenson and H. C. Fowler, problems of petroleum technology, domestic and foreign production, proved oil re- serves, economics, and stabilization were mooied almost without interruption until nearly everyone was "talked out,' and the meeting was adjourned at the end of the annual Petroleum Division dinner, late Thursday night.

Jan 1, 1933

Since production curtailment for other than engineering reasons is gradually disappearing, and more and more wells are now producing at capacity and showing declining production rates, it was considered timely to present a brief review of the development of decline-curve analysis during the past three or four decades. Several of the commoner types of decline curves were discussed in detail and the mathematical relationships between production rate, time, cumulative production and decline percentage for each case were studied. The well-known loss-ratio method was found to be an extremely valuable tool for statistical analysis and extrapolation of various types of curves. A tentative classification of decline curves, based on their loss ratios, was suggested. Some new graphical methods were introduced to facilitate estimation of the future life and the future production of producing properties where curves are plotted on semilogarithmic paper. To facilitate graphical extrapolation of hyperbolic-type decline curves, a series of decline charts was proposed, which will make straight-line extrapolation of both rate-time and rate-cumulative curves possible. Introduction During the period of severe production curtailment, which is now behind us, production-decline curves lost most of their usefulness and popularity in prorated areas because the production rates of all wells, except those in the stripper class, were constant or almost constant. While production-decline curves were thus losing in importance for estimating reserves, an increasing reservoir consciousness and a better understanding of reservoir performance developed among petroleum engineers. This fact, together with intelligent interpretation and use of electric logs, core-analysis data, bottom-hole pressure behavior and physical characteristics of reservoir fluids, eliminated a considerable part of the guesswork in previous volumetric methods and put reserve estimates, based on this method, on a sound scientific basis' At the same time, a number of ingenious substitutes were developed for the regular production-decline curve, which made it possible to obtain an independent check on volumetric estimates in appraisal work, even though the production rates were constant. with the now steadily increasing demand for oil to supply the huge requirements of this global war, proration for reasons of than prevention of underground waste is gradually disappearing. More and more wells are, or will be, producing at capacity or at their optimum rates, as determined by sound engineering practice. With this trend, the character of producing wells seems to regain, more or less, its "individuality," and the old and familiar decline curve appears to have had a comeback as a valuable tool in the hands of the petroleum engineer. It may be timely, therefore, to retrace the development of decline-curve analysis in the past by presenting a brief chronological review of bulletins and papers published during the past three or four decades, which have

Jan 1, 1945

By Sidney A. Swensrud

This paper reviews the subject of gasoline margins, discusses some of the more current marketing problems, and gives some consideration to the main urges to marketing expansion, or overexpansion, in the oil industry. Margins In an earlier paper1, some comparisons were shown for the years 1929, 1930 and 1931, of the margin between the refinery cost of gasoline in Oklahoma, the market price in Oklahoma, and the average retail price in 50 representative cities of the United States. These figures indicated a small margin for the refiner in 1929 between his gasoline cost and the wholesale price, which, however, had turned into a loss by 1931. The margin between either refinery costs or wholesale prices and the retail price in the 50 cities showed a continuous decline during the three years. We have now worked out these figures on a similar basis for a longer period—from 1928 through 1936. The figures for refinery gasoline cost are slightly different from those in the earlier study, owing to the use of

Jan 1, 1937

By G. A. Beiswenger

The application of the law of supply and demand to the sale of crude oil is generally conceded, but the motives underlying the buyer's (refiner's) demands are not always obvious to the seller (producer). In some cases this obscurity has led to the conclusion that the refiner may be unnecessarily particular when he selects one crude and rejects another. This preference, however, is very largely the reflection of the refiner's product demands and the quality of the stocks obtainable from the selected crude. The purpose of this paper is to point out critical characteristies of the major classes of refined products and to show how crudes vary in their suitability for such products. With relatively few exceptions, available processing methods and addition agents make it theoretically possible to produce any type of refined product from any crude source, although it may not be economically sound to do so. The widespread application of thermal cracking for converting higher boiling stocks into gasoline is well known. More recently cracking and refining in the presence of catalysts9 have been developed, as well as various processes for polymerizing lighter hydrocarbons into gasolines having desirable characteristics.6 For several years, selective solvents have been applied commercially to refining inferior quality kerosene, Diesel fuel and lubricating oil distillates.3 Improved methods for refining lubricating oils from crude residual4 formerly suitable only for fuel, are now in use and a number of special solvent processes are available for dewaxing lubricating oils to low pour point.5 These improved refining methods have been developed not only to meet the demand for improved product quality but also to enable the refiner to obtain quality products from crude sources that would not yield such products by the older refining methods. In many cases, the utilization of these modern refining tools necessitates an appreciable expenditure for equipment as well as added manufacturing costs, and their application therefore must be justified economically. Despite the availability of such tools, the added processing costs involved and yields obtainable may render their application entirely impractical. To illustrate this point, inspections of typical cuts from various crudes

Jan 1, 1940

By F. E. Minshall

FoR more than 30 years California has been one of the three leading oil-producing states. Present daily production of crude oil under curtailment, approximately 580,000 bbl., comes from three general areas: Los Angeles Basin, San Joaquin Valley, and the coastal region of Ventura and Santa Barbara Counties. This state produces approximately two-thirds of its oil from eight large fields, and obtains a daily average production of 48 bbl. of oil per producing well, whereas the average for the United States is but 8.15 barrels. During the closing stages of the first half of 1936, discovery of the Section Ten oil field was made, and credit goes solely to geophysical work. It is the first direct important discovery of oil in California that may be credited to geophysics. This discovery may furnish the cue to the means of discovering several fields in California, particularly in the San Joaquin Valley. It is a question, however, whether returns from geophysical work will play as important a part in the future supply of oil in California as have our former types of prospecting. Explobation Methods of prospecting have progressed in the oil industry through invention or improvement in scientific means of locating and defining structure and because of market improvements in drilling equipment. Present methods of prospecting include: 1. A detailed study of geology in an attempt to locate structural and stratigraphic conditions that would be favorable to the accumulation of oil. 2. Geophysical methods involving the use of the seismograph, torsion balance, magnetometer and electrical methods. (There is still much to be learned in California in the application of geophysical methods.) 3. Use of micropaleontology as an aid in correlation,. The principal improvements in drilling equipment are: 1. The Schlumberger dipmeter, which determines the direction of formation dip in an uncased hole.

Jan 1, 1937

By George W. Doffing

Numerous contradictory statements have been made in the past regarding the importance of the seasonal influence of demand for motor fuel on prices of oil securities. It has often been said that the time to buy oil securities is in the spring, or just prior to the heavy consuming season for gasoline. The fallacy of this argument is brought out in the following paragraphs. Seasonality of Oil-security Prices The indexes used in this paper as indicators of prices of oil securities and general industrials are those compiled by Standard Statistics Co. The oil producing and refining stock index includes 14 representative petroleum companies, while the all-industrials index is made up of 347 issues. All figures are stated as relatives, with 1926 = 100. The primary basis of the index, and one that gives a good weighting of the relative importance of the company within the industry, is the total market value of the stock issue outstanding; i.e., the market price times the number of shares outstanding. Adjustments are made for the addition or elimination of issues from the group index, for stock dividends, split-ups, stock rights, et cetera. At the present time the oil producing and refining index includes the following companies: Atlantic Refining Co., Consolidated Oil Corporation, Continental Oil Co., Gulf Oil Corporation, Humble Oil & Refining Co., Ohio Oil Co., Royal Dutch Co., Shell Union Oil Corporation, Socony-Vacuum Oil Co., Standard Oil Company of California, Standard Oil Co. (Indiana), Standard Oil Co. (New Jersey), Texas Corporation, Union Oil Company of California. In calculating the seasonal for oil-security prices several periods have been selected as indicat,ive of major changes in the industry, as follows: 1. 1918 through 1936. This gives an over-all picture of the industry during the motor-vehicle, motor-fuel era. 2. 1927 through 1936. This period includes the control stages, both voluntary and coercive. 3. 1927 to September, 1933. This is the pre-code period of control.

Jan 1, 1937

By Ernest R. Lilley

THOSE acquainted with the fundamental differences between the, educational .systems of Great Britain and. the United States would hardly expect .the training of men for the petroleum industry to proceed along the same lines- in the two countries. The youth entering an English university is, except in the case of-the student from some of the British colonies or from foreign countries, almost invariably a product of the English "public school." This is in no sense comparable .with the American public school. It is a private institution, frequently of considerable age and heavily endowed. In many aspects it seems to be comparable with the American preparatory school. Yet to some extent its activities remind one of the first years of the undergraduate: course in the American college. Certainly it takes to-itself many of the social, functions of the American college.

Jan 1, 1931

By Harry H. Power

WHILE the attention of all engineering branches is focused today on changes and improvements in the several curricula, we are concerned here with the many questions arising in industry and college concerning the preparation for the petroleum engineering profession. The succession of problems confronting the petroleum engineer demands a degree of versatility not ordinarily encountered in other professions. As a consequence, the student cannot acquire mastery of all the several engineering branches represented in field practice, and as an alternative, he has learned to appreciate the value of thorough training in the basic or fundamental sciences as a preliminary foundation for professional work. While our attention is directed primarily to the training of engineers in educational institutions, it is necessary that the ultimate education of the professional engineer be kept in mind. It is apparent that his success as an engineer is limited not only by his educational and job experience, but by his native endowments: mentality, personality and health. The engineer's lack of job experiences often proves as much a handicap as the lack of adequate college training. If the final product proves to be satisfactory, both industry and technical institutions are to be congratulated. However, if the product is found wanting, the one most responsible should be apprehended. FITNESS FOR PROFESSION For the most part, students of engineering colleges have had their interests in applied science awakened at a relatively early age. Many of them entered college as a convenient means of acquiring a technical education, but undoubtedly would have had better prospects in a shorter program offered by institutions of noncollege grade. The activating motive of practical interest is also strong in students suitable for college training, but in many cases an intellectual interest must be awakened in order that it may survive graduation. Numerous engineers believe that this progressive process of selection and determination of career aims is one of the essential services rendered by the engineering colleges. Industrialists, who are more interested in quality than quantity of petroleum engineering graduates, have pointed out the good that should result if more empha¬sis were given to the work of eliminating the misfits. They also point out the protective measures that have been taken by other professions for the betterment of professional standards. Mention has been made of the beneficial results to be obtained by collective determination of the market for the products of engineering schools, particularly in that the students unsuited to the profession would have an opportunity to prepare themselves for employment more suited to their personalities and other qualifications. In the event that such a system of coordinated personnel direction is developed by the

Jan 1, 1941

By Harry H. Power

WHILE the attention of all engineering branches is focused today on changes and improvements in the several curricula, we are concerned here with the many questions arising in industry and college concerning the preparation for the petroleum engineering profession. The succession of problems confronting the petroleum engineer demands a degree of versatility not ordinarily encountered in other professions. As a consequence, the student cannot acquire mastery of all the several engineering branches represented in field practice, and as an alternative, he has learned to appreciate the value of thorough training in the basic or fundamental sciences as a preliminary foundation for professional work. While our attention is directed primarily to the training of engineers in educational institutions, it is necessary that the ultimate education of the professional engineer be kept in mind. It is apparent that his success as an engineer is limited not only by his educational and job experience, but by his native endowments: mentality, personality and health. The engineer's lack of job experiences often proves as much a handicap as the lack of adequate college training. If the final product proves to be satisfactory, both industry and technical institutions are to be congratulated. However, if the product is found wanting, the one most responsible should be apprehended. FITNESS FOR PROFESSION For the most part, students of engineering colleges have had their interests in applied science awakened at a relatively early age. Many of them entered college as a convenient means of acquiring a technical education, but undoubtedly would have had better prospects in a shorter program offered by institutions of noncollege grade. The activating motive of practical interest is also strong in students suitable for college training, but in many cases an intellectual interest must be awakened in order that it may survive graduation. Numerous engineers believe that this progressive process of selection and determination of career aims is one of the essential services rendered by the engineering colleges. Industrialists, who are more interested in quality than quantity of petroleum engineering graduates, have pointed out the good that should result if more emphasis were given to the work of eliminating the misfits. They also point out the protective measures that have been taken by other professions for the betterment of professional standards. Mention has been made of the beneficial results to be obtained by collective determination of the market for the products of engineering schools, particularly in that the students unsuited to the profession would have an opportunity to prepare themselves for employment more suited to their personalities and other qualifications. In the event that such a system of coordinated personnel direction is developed by the

Jan 1, 1941

By H. H. Kaveler

Education is for the purpose of developing citizenship, and, if it is pursued for the additional purpose of preparing for a professional career, such as engineering, it is also directed to developing a knowledge of essential science, aptitude for the application of science to practical situations, and a knowledge of the industrial art in which the engineer will be engaged. The process of education required for engineering must of necessity extend beyond the classroom into industry. For that reason, the education of engineers should be divided as between the university and industry. Specialization in engineering should logically come as a result of experience in an industry. The student cannot take the time in a university, and, the university cannot teach the skills required to develop a specialist without sacrifice to the more essential broad purposes of formal education. In addition to talent in science, aptitude in the application of scientific fact, and knowledge of the industrial art, the engineer should possess certain personal qualities which are helpful in the pursuit of a professional career. Those personal qualities are: the ability to work as a partner in an enterprise, the ability to do jobs in a way whereby job performance is a means of gaining experience and increased responsibility, the capacity to write and speak in an understandable manner, and, a Proper regard for the "significance of answers." These pcrsOnal qualities may be of almost equal importance to acabemic accomplishments in the field of science. Development of such personal qualities are an essential part of the student's training in the university and in industry. They can be developed effectively through the leadership of instructors. Compulsory Education Nature played a mean trick On the human race when the evolutionary Process failed to develop in the individual a capacity to inherit knowledge. Were knowledge transmissible in a cumulative manner from generation to generation, mankind would be by inheritance wise beyond measure within a few generations. Then there would be little if any need for a "system of education." As matters stand, however, all must suffer the burden of starting life at the "zero " level of learning from which station each rises depending upon individual capacity to assimilate knowledge left of record by our predecessors and the individual effort exerted to compensate for Nature's failure to endow the offspring with intelligence. In the United States some degree of education is generally regarded as essential and necessary. Therefore, all citizens are subjected by law to an educational process covering the primary school age from six to sixteen years. Beyond the schooling required by law, many attend secondary schools, and beyond that, schools of higher learning. Our standard of living is at a level that permits an increasingly large fraction of the population the opportunity to go through all of the formal educational process. As a result, education in the colleges and universities has almost reached a mass production level. In spite of the high

Jan 1, 1949

By L. C. Uren

Some of US have been impressed with the need for a better understanding of the future place of the engineer in the petroleum industry. In academic work we are continually asked to advise students as to the opportunities in different directions, to guide them in their selection of professions, and it would be extremely helpful to those in academic lines of work to have the opinion of engineers from the industry relative to the need for petroleum engineers. IS the industry going to require a continually growing number of engineers in the future years, or have we perhaps reached equilibrium in that regard ? In anticipation of this meeting, I undertook to canvass opinion among a number of engineers of my acquaintance and I have been rather astonished to learn that the expenditure on engineering salaries in the producing branch of the oil industry is extremely low. I have figures from eight or 10 of the larger oil companies and it seems to be a fair statement on the basis of these figures to say that the average American oil company is devoting less than 2 per cent. of its gross expenditures in oil production to the payment of engineering salaries. A few examples will be of interest. I shall not mention names of individual companies, but one large Mid-Continent company is spending slightly less than 1 per cent. of its gross expenditure—that is, less than 1 per cent. of the total expenditure in the producing department—on engineering salaries and about as much on engineering research, which might properly be regarded as a phase of its engineering work. Another Mid-Continent company is spending about 11/4 per cent. on engineering salaries. A large California company is spending about l1/2 per cent. The largest figure that has come to my attention is that of an important Rocky Mountain and Mid-Continent company that is spending a little more than 6 per cent., but that is apparently an extreme case. The petroleum producing industry is a highly technical business in these days. It is spending in excess of $500,000,000 annually in new

Jan 1, 1929

By W. W. Scott

The application of engineering methods to the problems connected with drilling and producing in the oil industry has led to the development of the science that is variously termed "petroleum engineering," "production engineering," "petroleum production engineering," and even Itpolitical engineering." It would require much detail to enumerate the qualifications of a petroleum engineer, just as it would for an engineer in any major industry. For those who have a genuine liking for the oil industry, there is a wide selection of pathways to achievement. The oil industry is now highly specialized. Its products are necessary to all civilized people and are indispensable in the security of our nation and also in the well-being of our families. The business structure of our country depends in a large measure upon oil, and the welfare of this group as individuals is certainly linked with the welfare of the oil industry. What Is the Trend of Engineering? The oil industry offers a fertile field of opportunity for engineering; probably more so than any other industry. The sciences of geology, physics, chemistry and mathematics are all used in some phase of the oil industry and to a very considerable extent in the production division, which embraces the geological, drilling and producing departments. In drilling and production alone, research programs of considerable magnitude are being carried on at this time, and no doubt the future will see a great deal more of this kind of work. Through the cooperation of the engineer, the equipment manufacturer, and the American Petroleum Institute, immense savings have been made by the standardization of drilling and production equipment. Drilling equipment in itself offers a wide scope for study, in that continued efforts are being made to improve the equipment so that it can be made to drill faster and to greater depths. The improvements in drilling equipment are required because new reserves of oil are being found at progressively greater depths. In order to produce such oil in competition with oil now being produced from reservoirs

Jan 1, 1937

By F. B. Plummer

PETROLEUM ENGINEERING deals with the production, transportation, and refining of crude oil. Refining is chiefly the work of the chemical engineer; production, that of the petroleum engineer. Production engineering only is discussed in this paper. Petroleum production engineering is closest related to and, in fact, is a branch of mining engineering. Formerly, many petroleum engineers were trained as mining engineers or mining geologists. The profession is related also to mechanical and civil engineering to about the same extent that mining engineering is. Petroleum production draws upon the mechanical branch for drilling and pumping machinery and upon civil engineering for the construction of transportation lines, water supplies, and water-disposal plants. Fundamentally, petroleum production engineering deals with the removal of the oil from the reservoir rocks, just as mining is concerned with the removal of ore. The process of oil production demands a specialized knowledge just as distinct from mechanical and civil engineering as mining is distinct from operating a Diesel engine. Even though the chief tools of the petroleum engineer are the drill and the pump, these may be of little avail, and certainly not efficient, if their selection and use is not based on a knowledge of the physical chemistry of oil, the geology of the formations, the structure of the oil sand, the hydrodynamics of the reservoir, and the interrelation of all these many factors.

Jan 1, 1936

By Harry H. Power

WORK of the Committee on Education of the Petroleum Division has been under way for approximately-one year. Although some progress has been made, further activities of the Committee are necessary in order to discuss mutual problems more thoroughly by a unified group interested primarily in this field of specialization.

Jan 1, 1944

By Harry H. Power

INDUSTRY has the right to expect the petroleum engineering schools to supply more than the minimum technical qualifications necessary to obtain or discharge the responsibilities of a particular job. The basic training, social and economic orientation, should go far beyond these minimum requirements. Petroleum engineering students should also be well grounded in the history of the oil business so that they may understand the industry's progress since the advent of the Drake well. Furthermore, according to P. H. Bohart, the schools "have a definite duty to help the students form a workable philosophy of life, which includes an appreciation of the service of science to mankind, and a belief in the obligation of the individual who enters a profession to exalt himself by continuing his studies and growth so that he may never cease making contributions to the advancement of science and industry."

Jan 1, 1948

By E. DeGolyer

WAR has wrought sharp and sudden changes in the pattern of the oil industry. The most obvious and most striking of such changes have been in the fields of transportation and refining. A third of the world's total oil production formerly started to market, tanker-borne, over the waters of the Gulf and Caribbean. Most of this oil went to our North Atlantic ports, supply points for the world's greatest consuming center. This tremendous traffic, disrupted by the loss of tankers as a result of requisition for military purposes and by the activity of enemy submarines, has had to be substituted largely by such lines of supply as could be improvised without loss of too much time. No single solution for this gigantic problem has been found nor is it likely to be entirely solved for some time to come. It has been solved in part, however, by rearrangement, reversals, and patching up of existing pipe-line systems; by overland transport of crude and products in tank cars on a scale never before attempted; by barging over inland waterways; and through the construction at long last of the "big-inch" line, the first leg of which is just being put into operation as far as Norris City, III. The tank-car traffic alone, reaching a peak of deliveries of 856,710 barrels per day into District 1 during the week ending Sept. 19, 1942, and accomplished at an expense of millions of dollars in extraordinary transportation costs, defrayed by the Defense Supply Corp. and by the mobilization of tank cars from all over the nation, is a story worth the telling but by some of those who directed it.

Jan 1, 1943

By F. G. Clapp

IT is to be hoped that no casual reader will erroneously refer to the latest publication' of the Division of Public Relations of the American Petroleum Institute, as being "Petroleum Facts and Fancies." The facts are so faithfully derived and the figures are so authentically sponsored by the highest sources that no person can read this valuable volume (287 pages and numerous tables) without being convinced that every- thing therein set forth is "the truth and nothing but the truth." Yet, having read the volume from the perspective of the world's petroleum industry and with a critical attitude that comes from years of study of the subjects discussed, I find myself tempted to cogitate and to envisage a few of the fancies that come to mind as a fitting sequel.

Jan 1, 1929

By B. R. T. Simoneit

The formation of petroleum is normally thought of as a geologically lengthy process, involving the accumulation of organic matter, its gradual burial, diagenetic breakdown via geochemical reactions, maturation, heating within a 75-150'C "oil window" induced by normal geothermal gradients in the subsiding basin, and slow product migration into structural traps (Tissot and Welte, 1984, Hunt, 1979). The entire process can take millions of years and, indeed, most oil reservoirs probably formed in this manner. How-ever, today in sedimented, submarine rift basins (Fig. 1), Cl to >C40 hydrocarbons with the chemical and physical properties of crude oil are forming in demonstrably much shorter time by rapid thermal maturation of immature organic matter in hydrothermal regimes that are unusually high for sedimentary basins (Brault and Simoneit, 1988a, b; Didyk and Simoneit, 1988; Kawka and Simoneit, 1987; Peter et al., 1988; Simoneit, 1983; 1984; 1985a,b; 1988; Simoneit et al., 1984; 1987; 1988).

Jan 1, 1989