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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

By H. F. Beardmore

PETROLEUM consumption during 1946 broke all previous records and further increases are expected during 1947. U. S. consumption amounted to an average of 5,280,000 bbl a day, of which 4,745,000 bbl was domestic crude oil, with the rest from natural gasoline production and crude oil imports. World consumption during the past year, excluding Russia, is estimated at 7,200,000 bbl daily. Forecasts for 1947 indicate a U. S. consumption of 5,425,000 bbl daily of petroleum products. This is expected to be made up of 4,655,000 bbl of domestic crude oil production, 340,000 bbl of natural gasoline production, 400,000 bbl of crude oil imports, and the rest from stocks. Petroleum's principal use is still as a fuel. The field remains highly competitive, but petroleum has been continuously progressing. Less than fifty years ago, oil supplied only one twentieth as much of the nation's total energy as coal, but today it supplies over half as much.

Jan 1, 1947

By George A. Hill

WE of the oil industry, devoted to freedom of initiative, free competitive enter- prise, and free American institutions, applaud, with one voice, affirmation by the President of the national will and purpose to preserve and to protect, against all aggressors, "our American way of life with our individual and national freedom." We subscribe utterly and completely to this guiding declaration and seek its further definition as applied to the oil industry. Fortunately for all, the policy of the Government, after adequate study and deliberation, has been given precise definition. The National Defense Advisory Commission, with its patriotic, highly qualified, and distinguished personnel, has unanimously agreed to and adopted twelve general principles governing national defense contracts and also fair labor standard requirements. The President of the

Jan 1, 1940

By Joseph B. Umpleby

PROGRESS in the petroleum industry in 1929 has been characterized by outstanding accomplishments in the fields of new discovery of supply, economic control of production, increased efficiency and reduced costs of recovery, and lowered costs and greater flexibility in manufacture. Resources have been developed in an outstanding degree in the Kettleman Hills. California, the Oklahoma City field (which adds a large potential area in central Oklahoma), the discovery of Woodbine sand production in East Texas, and the discovery of Wilcox sand production in west-central Kansas. Engineering technique has progressed both along the lines of development and production, with a net result that costs have been reduced and extraction increased in notable degree, although it is impossible to give a close measure of either. In the field of re- fining crude oils variations to the end of promoting reduced cost and greater flexibility has been more important than genera! acceptance of innovations in practice.

Jan 1, 1930

By C. V. Millikan

THE year 1930 in the petroleum industry has been characterized by the establishment of large potential production of crude oil. This has resulted in closer cooperation between companies by proration and unit operation agreements in order to afford an equitable outlet to all, and to prevent a flood of oil being forced on the market with attendant tremendous material and economic waste. Drilling wells in proved areas and wildcat wells are fewer than in the past several years. Restricted production and low prices have caused greater effort to increase producing and recovery efficiencies. Increased refinery efficiencies have amplified the effect of overproduction. Pipe line departments have been especially busy. New oil lines have reached more refineries by new and shorter routes. Establishing greater gas reserves by new fields has justified new gas lines to industrial centers, and has brought this fuel to thousands of new domestic consumers. Two long gasoline lines, a new venture in pipe lines, are being built to obtain a lower cost of transportation and less loss between the refineries and their distribution centers. The chairmen of the various divisions have discussed the developments of their respective branches more fully in the following reviews.

Jan 1, 1931

By LESTER H. WOOLSEY

IT IS doubtful whether anything new can be said upon this subject and, therefore, it is with considerable hesitation that l prepare this paper. On account of my recent connection with the Department of State as its law- officer, perhaps I will be pardoned if I discuss this subject briefly from the point of view of that branch of the Government. , I cannot, of course, speak for that department, since I have-no connection with it at-present, but it may be helpful if I set down certain* of the factors which in my opinion and from my experience have a bearing on this international problem. With oil-burning ships, motor vessels, motor vehicles, airplanes-all consuming, astonishing quantities of petroleum or petroleum products; with the United States having within its borders only 12 per cent. of the petroleum resources of the world, and consuming about 70 per cent. of the world's output; with the more enterprising nations wide awake to the necessity ; of obtaining and preserving as large a share as possible of the oil resources extant ; the 'problem is peculiarly and in a, very practical sense an international one.

Jan 1, 1921

By AIME AIME

TWO technical sessions, an excursion through the Midwest refinery and a smoker, marked the first day of the meeting of the Petroleum Division at Casper, Wyo., on Aug. 28. Ninety-nine members and guests registered and there was an excellent attendance at 'all functions. The -local committee under the general chairmanship of J. C. Lindsay, general manager of the Western Pipe Line Co., had made every possible arrangement for the convenience and comfort of the visiting members and the Program Committee under E. L. Estabrook, vice-chairman of the Petroleum Division, had brought together a most interesting series of technical, papers. The meeting centered mainly on the various features of the Salt Creek field but there were also contributions from the technology of production in California, the Mid-Continent, and the Texas fields. The opening session was called to order by Mr. Estabrook at the Townsend Hotel on Friday morning. The members and visitors were welcomed appropriately by Ex-Governor B. B. Brooks, president of the "Rocky Mountain Oil and Gas Association, who recalled the changes that had taken place as Casper, a frontier cow town, became a thriving oil metropolis. F. Julius Fobs, chairman 'of the Petroleum Division, responded and then took the chair. He introduced H. Foster Bain, Secretary of the Institute, who expressed the regret of those members members who found it impossible to stop over en route to Salt Lake City and his own pleasure at meeting with the Division in the field. Following these introductory ceremonies the technical session began with a "Sketch of the Geological Formations of Central Wyoming," presented by J. G. Bartram of the Midwest staff. It was brief and to the point and contributed greatly to the easy under¬standing of the succeeding papers by those unfamiliar with the region. The talk was illustrated by a large scale columnar section -and a copy of the excellent, geological map of the State recently issued by the U. S. Geological Survey.

Jan 1, 1925

By R. L. Dunsmore

Introduction If one had been called upon to describe petroleum oil refining seventy-five years ago, he could have acceded to the request quite satisfactorily in about fifteen minutes. Fifteen years ago, an hour and a half would have been sufficient to give a general idea of oil refining, and of the equipment used for this purpose. Today, so extensive has been the research into all phases of the refining and manufacturing of petroleum products, and so rapid the strides in improvement in technique and equipment, that I doubt if a week would suffice to give an adequate outline of ail the ramifications of present-day oil refining. I propose to only 'hit the high spots', dealing particularly with the equipment and methods employed at the Imperoyal refinery, which you are to visit. Crude oil, the refiner's raw material, contains essentially only two elements, hydrogen and carbon. These are not present in the free state but are combined in various proportions as 'hydrocarbons'. A given crude oil is not made up of just one hydrocarbon, but of myriads; some solid, others liquid, and still others gaseous at atmospheric temperature and pressure, ail dissolved one in the other. Moreover, the nature and the relative amounts of the several hydrocarbons vary very considerably in crude oils from different sources. That is, a 'crude' from Oklahoma will contain hydrocarbons not present in crude from Mexico, and is different again from the Venezuela crude. Not only this but oil in a certain well in, say, Peru may be differently constituted from that in a well half a mile distant from it.

Jan 1, 1931

By Donald J. MacNeil

THE opinion, based upon geological knowledge, that certain areas within the Province of Nova Scotia might yield commercial quantities of petroleum, is not new. It dates back to at least 1864, when the Pioneer Oil and Salt Company drilled some shallow holes in search of oil near lake Ainslie, Cape Breton. As a matter of fact, several companies were engaged in oil exploratory work near lake Ainslie at about that time; included among them were the Inverness Oil and Mining Company, the Victoria Oil Company, the American Oil Company, and the Cape Breton Oil and Mining Company. Oil exploration by these and other companies was conducted sporadically on Cape Breton island until 1914. In several instances, the depth of the test holes exceeded 1,000 feet; the deepest was carried to 3,260 feet. The Lake Ainslie area was selected because oil seepages were present along certain sections of the lake shore, but the tests that were drilled to tap the oil-bearing zone failed to yield anything of commercial value. Currently, there are three areas in Nova Scotia wherein active exploratory work is being conducted, namely, at Pugsley Siding close to Amherst; at Kennetcook, Hants county; and near Mabou, Inverness county. The Pugsley Siding test is being drilled by the Sun Oil Company, of Philadelphia; the work at Kennetcook is under the direction of the Nova Scotia Oil and Gas Company; two relatively deep holes were drilled by the Lion Oil Refining Company in 1944 near Mabou, and, as a result of the additional geological information derived therefrom, another test probably will be drilled by this Company in the same area. Aside from these activities in the search for petroleum, the oil possibilities of several other sections of the Province are being studied by means of surface geological mapping.

Jan 1, 1945

By J. S. Stewart

THE Mackenzie River Valley proper extends from Great Slave lake to the Arctic ocean (see map, Figure 1). From Fort Providence, near Great Slave lake, to Aklavik, near the Arctic coast, the distance by river is 1,000 miles. This will give some idea of the extent of the region. Throughout the length of the river valley, the Precambrian complex rocks are overlain by unaltered sedimentary rocks several thousand feet in thickness. These sediments are dominantly marine and Palaeozoic in age. In places, the Palaeozoic strata are overlain unconformable by Cretaceous an Tertiary sediments. The strata have been folded and, in general, the inclination of the beds to the horizontal is comparatively gentle. Here, then, we have the essentials for potential oil fields covering an area over 1,000 miles in length. This is probably the largest comparatively unexplored potential petroleum region in North America, and surface evidences of oil in the form of seepages occur in several places. Many of these seeps were known to the early explorers, and the first Geological Survey report on the Mackenzie River region, containing the results of field work carried out by R. G. McConnell in 1887-88, noted the petroliferous character of the Devonian strata and the indications of petroleum(l). This region is, however, handicapped by distance from markets and sources of supply of materials; by lack of modern transport facilities; by short season for river transport, and mountainous country separating the valley from the Pacific seaboard; and by the long winter season with weather that makes outdoor work difficult. These factors have tended to discourage the enthusiasm of would-be promoters, and so development in this region has been slow In 1920, a test well drilled about fifty miles northwest of Fort Norman discovered oil in commercial quantity, and three additional wells proved a small area to be productive.

Jan 1, 1944

By Gilbert P. Moore

Bolivia does not yet have any production which is being marketed. It does have a potential production, however, from wells which have been completed by the Standard Oil Co. of Bolivia, a subsidiary of the Standard Oil Co. of New Jersey. No other company is active in drilling and development work to date. The total potential production from wells now completed is about 6000 bbl, daily. Wells Completed Completions during 1928 and their initial daily productions. if any, were as follows: Camatindi No. 1, 350 to 1000 bbl.: Camiri No. 1, 500 bbl.; Sanandita No. 3, 100 bbl.; Tatarenda No. 1, dry hole, and Bermejo No. 2, deepened 50 ft. made 1000 barrels. The most striking development of the year was the Camiri No. 1 well which, after just entering the sand, made 500 bbl. per day of 52" B. oil. This well is the northernmost good producer which the Standard has brought in to date. Oil from this well is used without refining in the tractors and trucks of the company. A small topping plant has been installed from which high-grade gasoline is obtained for use in motor cars and some is being produced for the use of air plants stationed at Villa Montes. The results for Sanandita No. 13 were somewhat disappointing since Sanandita No. 2 was rated at about 3000 bbl. Tatarenda NO. 1, located on a large unbroken structure, was drilled to 4000 ft. and abandoned as a dry hole. Bermejo No. 2 was deepened 50 ft. to 2085 ft.. and on a 10-day test averaged 1000 bbl. per day. This well is on the border between Bolivia and the Argentine. Wells Drilling The wells drilling are Camiri No. 2, Sanandita No. 5, Machareti No. I and Bermejo No. 5. This is the smallest number of drilling wells which the Standard has had for several years but is principally due to

Jan 1, 1929

By A. M. McQueen

Activity in the oil industry in Peru was somewhat above normal in 1928. Probably the most significant feature was the interest displayed in the oriental region in the northeast part of the country (Fig. 1). This region, though little known, has long been considered potentially rich in oil! gold, coal and other minerals, lacking only transportation to make it the country's most valuable source of income. The Standard Oil Co. of New Jersey, through its recently formed subsidiary the Standard Oil Co. of Peru, has acquired various tracts along the Maranon and Ucayali rivers in the neighborhood of the Brazilian border. Standard Oil Co. interests have had geological and surveying parties in this part of Peru since 1921, and as a result of the work done, we understand they have under lease at the present time some 2,500,000 acres of prospective oil lands. Development in the coastal region continued along normal lines during the past year. Production figures for both the International Petroleum Co. and Lobitos Oilfields show a small increase over the last few years. Total production figures since 1924 for the International Petroleum, Lobitos Oilfields and Zorritos companies, only in a minor degree estimated, are as follows: 1924, 7,924,700 bbl.; 1925, 9,138,042 bbl.; 1926, 10,750,676 bbl.; 1927, 10,110,696 bbl., and 1928, 11,969,677 barrels. International Petroleum Co., Ltd. Operations on the La Brea-Parinas Estate during 1928 continued with satisfactory results; nearly all branches showing improvement over the previous year. The average daily production for 1928 was 25,966 bbl., compared with 21,282 bbl. for 1927, an increase of 22 per cent. During the last two or three years, production methods on the company's property have been improved in line with the advance in scientific technique throughout the oil fields of the United States. Extensive investments were made in compressor equipment for handling surplus gas with the result that the gas-lift and repressuring operations are in no small way responsible for the increase in the 1928 production. In addition, the company's three casinghead plants produced 24,847,708 gal. of gasoline compared with 17,240,865 gal. in the previous year.

Jan 1, 1929

By Jose M. Sobral

The approximate production of petroleum in the various fields and for the country as a whole is shown in the following table, the figures for the later months of the year being estimated. Among the developments of the year may be mentioned the finding by the Standard Oil Co. of a small production, about 6290 bbl., at Aguas Blancas in the Province of Salta near the Bolivian border, and of about 88,000 bbl. at Lomitas, near Tartagal in the same province. The Government (Yaciementos Petroliferos Fiscales) in the last four months of the year also obtained about 6290 bbl, from Quebrada Galarce. .The oil found in Salta is of good grade and while the quantity is small great hopes of larger production are entertained. Approximate Total Argentine Production for 1928 Barrels Barrels Comodoro Rivadavia............................... 8,165,615 Plaza Huincul..................................... 783,514 8,949,129 Distribution of Production Government, Comodoro Rivadavia................... 5,165,159 Government, Plaza Huincul......................... 306,166 5,471,325 Private, Comodoro Rivadavia....................... 3,000,456" Private, Plaza Huincul............................. 477,348b 3,477,804 a The companies represented are Astra, 649,474 bbl.; Oriente, 42,237; Ferrocar-rilera, 1,337,380; Comp. Indust. y Comm., 609,092, Solano, 64,158; Diadema, 298,114. b Standard Oil Co. and a few smaller companies, Exploratory drilling has also been conducted around the Comodoro Rivadavia field. The Government is drilling at Vuela del Senguer south of Colonia Sarmiento and about 200 km. west of the main field hut the prospect of success is not as yet large. The country around Castillo, where the Royal Dutch Co. has property, is regarded more favorably. perhaps the most interesting event of the year was the discovery of a productive horizon at Comodoro Rivadavia about 200 m. below that previously exploited. This new horizon was found by the Ferrocarrilera Co. at 769 m. in its well No. 81, the previous yield for this

Jan 1, 1929

By Arthur Knapp

The economics of fuel oil must be considered in two aspects; viz., fuel oil as one of a number of competitive fuels and fuel oil as a refined product of petroleum. "Fuel oil" is usually defined as that product of petroleum which is used in furnaces for the generation of heat by simple combustion. It is true that any product of petroleum used in an internal combustion engine is essentially a fuel oil, but such oils are not included in the class known as "fuel oil." Fuel Oil as One of Several Fuels For a number of years, the petroleum industry has believed that the petroleum reserves were very limited and that petroleum products would begin to become scarce within a few years. The industry has believed that there would be a gradual but continual rise in prices as a result of this impending scarcity. The industry, therefore, has informed the users of fuel oil thai., once they were eliminated by price, they were eliminated for all time. The petroleum industry believed and made the consumer believe that there would never be any appreciable recession in price which would make it

Jan 1, 1928

By D. E. Buchanan

The: volatility of a motor fuel is an index to its quality and to the satisfaction that will attend its use as an internal combustion engine fuel. Natural gasoline is concentrated volatility; threfore, it is quite natural that the most important market for natural gasoline should be for blending with less volatile refinery gasolines. Progress in the art of manufacturing natural gasoline, particularly in fractionation, which has made possible the elimination of the fixed gases and lighter hydrocarbons having a tendency to gasify at atmospheric pressure and temperature, has made it possible and desirable for refiners to utilize an ever-increasing percentage of natural gasoline in their finished product. This, in turn, has enabled the industry at large with each succeeding year to supply to the consuming public a better grade of gasoline. While cracking processes and improved fractionation in refinery operation have resulted in higher yields of gasoline per barrel of crude oil refined, natural gasoline has also played a large part in this respect because it has enabled the refiner to cut deeper into the crude and still maintain proper standards of volatility by blending natural gasoline with the product from his stills. There is, of course, with even the present improved grades of natural gasoline, a limit to the percentage that may properly be used. This percentage varies with different grades of crude oil, varies according to the facilities employed at the refinery and varies according to the grade of motor fuel manufactured; therefore it is not possible to say that for a certain predetermined amount of motor fuel to be manufactured in a given area, a certain definite amount of natural gasoline will be required. It is, however, generally conceded, and statistics bear out the statement, that the average gallon of motor fuel sold in this country contains approxi-matcly 11 per cent. of natural gasoline. Isolated cases may be found where in a very few refineries during certain seasons no natural gasoline is used, while in other plants as high as 35 per cent. and 40 per cent, natural gasoline is used in certain grades of motor fuels. Production Statistics The total production of natural gasoline for 1927, including California, is estimated at 1,627,600,000 gal. This represents an increase of 20 per

Jan 1, 1928

By H. W. Camp

The past year has had no revolutionary change in the process of petroleum refining, although there have been improvements and developments in practically every phase of operation, due largely, perhaps, to economic pressure. A few years ago, a Mid-Continent skimming plant using 35 gravity crude obtained 28 per cent. gasoline and naphtha; 9 per cent. kerosene, and the remaining yield gave gas oil and fuel oil. Figuring manufacturing cost, but not including sales, transportation, overhead and depreciation, the realization was $1.45 per bbl. of crude. Today, a thoroughly modern and up-to-date skimming plant, having all latest equipment, shows a realization of $1.74 per bbl. on the same basis. Thus it is evident that progressive developments have taken place in the last 2 or 3 years when potential earnings have been increased about 20 per cent. The average refiner is compelled to exert his utmost ingenuity in order to operate with a profitable margin. He has two factors to consider—recovery of maximum yields of profitable oils and the reduction of operating expenses. For the past 8 years, the margin between price of gasoline and cost of crude has grown narrower, constantly. Both these prices are determined by external conditions and not by the refiner himself, but the refiner might have been able to increase that margin had he more carefully controlled his output, limiting his production of light oils to current consumption. Be that as it may, this same economic pressure has given impetus to progress in improvements of primary distillation equipment, including stills, towers and heat-saving devices. A pipe still and bubble cap fractionating equipment can now replace a battery of shell stills, giving better yields, better control, elimination of rerunning and lowering of operating costs. The most recent pipe stills are being equipped either with radiant-heat furnaces or air-preheating systems and improved heat exchange equipment. These can be operated on a fuel consumption as low as 1 per cent. of the charge as compared to a fuel consumption of

Jan 1, 1929

By Walter Miller

ALTHOUGH confident of its ability to meet any demands which may be made, the petroleum refining industry is not complacent about the situation and realizes that the quantities of petroleum products to be furnished are so enormous and so far beyond what was previously estimated that the full co-operative effort of the industry must be exerted. Establishment by the President in May of the Office of Petroleum Coordinator for Defense with Secretary of the Interior Ickes at its head, plus the formation of the Petroleum Industry Council for Defense, in November, provide the channels for united endeavor within the industry and the means for gearing that endeavor within the industry and the means for gearing that endeavor in full harmony with the nation?s needs. Great strides have been made and a rapid understanding of the situation and the magnitude of the task is being attained by all concerned.

Jan 1, 1942