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By O. B. Hopkins

The total production of oil in Peru in 1940 was 12,127,135 bbl., or about 10 per cent less than in 1939. Most of the reduction can be attributed to the fact that the export market under war conditions is much restricted and naturally is more than ordinarily competitive. Development and Exploration in Older Areas As evidenced by Table I, almost all production continued to come from the three established fields in coastal northwestern Peru. Zorritos Field.—Exploration in this small field, which was purchased by the Peruvian Government in 1939, continued with that in near-by areas in the adjoining National Reserve. Several wells were drilled, regarding which details are not as yet available. It is estimated that the production rate for a total of some 45 old and 15 new wells approximated zoo bbl. per day, or about 3 bbl. per well per day. Lobitos Fields.—The Lobitos area produced 2,435,504 bbl.; about 10 per cent less than the amount for 1939. La Brea-Pari9zas.—This property of International Petroleum Co. continued to account for nearly 80 per cent of Peru's production. During the year, drilling was stepped up to 139 wells, as compared with 73 wells completed in the previous year; 123 were producers and aggregated a total of 287,867 ft. Of this total, more than 85 per cent was drilled by rotary tools, which are steadily displacing other equipment. Although most of these wells were drilled in the proved or semiproved areas, eight

Jan 1, 1941

By O. B. Hopkins

The total production of oil in Peru in 1940 was 12,127,135 bbl., or about 10 per cent less than in 1939. Most of the reduction can be attributed to the fact that the export market under war conditions is much restricted and naturally is more than ordinarily competitive. Development and Exploration in Older Areas As evidenced by Table I, almost all production continued to come from the three established fields in coastal northwestern Peru. Zorritos Field.—Exploration in this small field, which was purchased by the Peruvian Government in 1939, continued with that in near-by areas in the adjoining National Reserve. Several wells were drilled, regarding which details are not as yet available. It is estimated that the production rate for a total of some 45 old and 15 new wells approximated zoo bbl. per day, or about 3 bbl. per well per day. Lobitos Fields.—The Lobitos area produced 2,435,504 bbl.; about 10 per cent less than the amount for 1939. La Brea-Pari9zas.—This property of International Petroleum Co. continued to account for nearly 80 per cent of Peru's production. During the year, drilling was stepped up to 139 wells, as compared with 73 wells completed in the previous year; 123 were producers and aggregated a total of 287,867 ft. Of this total, more than 85 per cent was drilled by rotary tools, which are steadily displacing other equipment. Although most of these wells were drilled in the proved or semiproved areas, eight

Jan 1, 1941

By G. S. Hume

Production of petroleum and natural .gas increased in Canada in 1940 over the previous year. Alberta produced more than 97 per cent of the total Canadian production of 8,718,053 bbl. of oil, an increase for this province of nearly 12 per cent, whereas in Ontario and New Brunswick, where the production is relatively small, there was a slight decline. In Alberta the main producing field is Turner Valley, on the eastern edge of the foothills southwest of Calgary, and development continued in this field in 1940 with the completion of 36 wells, all of which obtained production. In the Red Coulce field, close to the International Boundary, near Coutts, no new wells were drilled and the seven producing wells showed a decline of 900 bbl. below the previous year. Also, in the Wainwright field of east central Alberta, four wells, yielding heavy crude oil, produced 4000 bbl. less oil than in 1939, owing possibly rather to discontinuous operation than to actual decline in potential yield. This decline was more than offset by production from a new field 40 miles northeast of Wainwright, at Borradaile, producing oil of 14" to I 5° A.P.1. There was a small increase in production during 1940 from the Del Bonita field, in southern Alberta, where the production is from two wells. The outstanding development of the year was the completion of Standard Oil Princess No. 2 well in the Steveville area, on the Plains 100 miles east of Calgary. This well was completed late in December with an initial flow1 of 520 bbl. of 26.3" A.P,I. oil, and 12,750 M cu. ft. of gas from the upper part of the Mississippian limestone. It has opened up a new field and given a further proof of the potentialities of the Southern Plains. The production of petroleum in Canada is shown in Table I. Since most of the yield comes from Alberta, the production is shown from the various fields in Table 2. The sale value of the petroleum produced in Canada in 1940 exceeded 11.1 million dollars, which is still somewhat less than the value of the natural gas production, shown in Table 3. Table i.—Production of Petroleum in Canada" Barrels Province 1939 1940 New Brunswick........ 20,101 21,161 Ontario............... 206,196 186,471 Alberta............... 7,595,000 8,493,237 Northwest Territories. . 17,013 8,493,23717.184 Total............... 7,838,310 8,718,053 Value............... $10,353,351 $11.113,000 0 Bureau of Statistics, Ottawa. Turner Valley, Alberta Turner Valley continues to be by far the largest producing field in Canada (details are given in Table 4), The limits of the Pr in- field are now Known. On the east the oil area is bounded by the gas cap, which in turn is cut off on its east side by a major overthrust fault; on the west, ii is defined by edge water at a level of 4roc

Jan 1, 1941

By G. S. Hume

Production of petroleum and natural .gas increased in Canada in 1940 over the previous year. Alberta produced more than 97 per cent of the total Canadian production of 8,718,053 bbl. of oil, an increase for this province of nearly 12 per cent, whereas in Ontario and New Brunswick, where the production is relatively small, there was a slight decline. In Alberta the main producing field is Turner Valley, on the eastern edge of the foothills southwest of Calgary, and development continued in this field in 1940 with the completion of 36 wells, all of which obtained production. In the Red Coulce field, close to the International Boundary, near Coutts, no new wells were drilled and the seven producing wells showed a decline of 900 bbl. below the previous year. Also, in the Wainwright field of east central Alberta, four wells, yielding heavy crude oil, produced 4000 bbl. less oil than in 1939, owing possibly rather to discontinuous operation than to actual decline in potential yield. This decline was more than offset by production from a new field 40 miles northeast of Wainwright, at Borradaile, producing oil of 14" to I 5° A.P.1. There was a small increase in production during 1940 from the Del Bonita field, in southern Alberta, where the production is from two wells. The outstanding development of the year was the completion of Standard Oil Princess No. 2 well in the Steveville area, on the Plains 100 miles east of Calgary. This well was completed late in December with an initial flow1 of 520 bbl. of 26.3" A.P,I. oil, and 12,750 M cu. ft. of gas from the upper part of the Mississippian limestone. It has opened up a new field and given a further proof of the potentialities of the Southern Plains. The production of petroleum in Canada is shown in Table I. Since most of the yield comes from Alberta, the production is shown from the various fields in Table 2. The sale value of the petroleum produced in Canada in 1940 exceeded 11.1 million dollars, which is still somewhat less than the value of the natural gas production, shown in Table 3. Table i.—Production of Petroleum in Canada" Barrels Province 1939 1940 New Brunswick........ 20,101 21,161 Ontario............... 206,196 186,471 Alberta............... 7,595,000 8,493,237 Northwest Territories. . 17,013 8,493,23717.184 Total............... 7,838,310 8,718,053 Value............... $10,353,351 $11.113,000 0 Bureau of Statistics, Ottawa. Turner Valley, Alberta Turner Valley continues to be by far the largest producing field in Canada (details are given in Table 4), The limits of the Pr in- field are now Known. On the east the oil area is bounded by the gas cap, which in turn is cut off on its east side by a major overthrust fault; on the west, ii is defined by edge water at a level of 4roc

Jan 1, 1941

By Cecil Hagen

All of the production for Ecuador during 1940 came from the Santa Elena Peninsula, Province of Guayas; the major portion coming from the Ancon field, which is controlled mostly by Anglo-Ecuadorian Oilfields, Ltd. A small amount was produced from the shallow pumpers and pozos, or oil pits, at Cautivo-Achallan, Carolina, Santa Paula, Concepcion, El Tambo and Mina Tigre. Considerable exploration was carried on in the country during 1940 and numerous concessions were in force, as shown by the accompanyiag map. Anglo-Saxon continued its exploratory work in the Oriente by surface geological methods and some geophysical surveys. It is understood that this concern did considerable airplane mapping. International Petroleum, on its large concessions between the Andes and Pacific Coast, did considerable surface work as well as some geophysical. No exploratory test wells were drilled by either of these

Jan 1, 1941

By Cecil Hagen

All of the production for Ecuador during 1940 came from the Santa Elena Peninsula, Province of Guayas; the major portion coming from the Ancon field, which is controlled mostly by Anglo-Ecuadorian Oilfields, Ltd. A small amount was produced from the shallow pumpers and pozos, or oil pits, at Cautivo-Achallan, Carolina, Santa Paula, Concepcion, El Tambo and Mina Tigre. Considerable exploration was carried on in the country during 1940 and numerous concessions were in force, as shown by the accompanyiag map. Anglo-Saxon continued its exploratory work in the Oriente by surface geological methods and some geophysical surveys. It is understood that this concern did considerable airplane mapping. International Petroleum, on its large concessions between the Andes and Pacific Coast, did considerable surface work as well as some geophysical. No exploratory test wells were drilled by either of these

Jan 1, 1941

By D. C. Porterfield

-4s a result of world economic conditions brought about by the European war and the consequent loss of European markets for Venezuelan crude, production in Venezuela decreased from 205,433,000 bbl. in 1939 to 186,134,000 bbl. in 1940, or 9.4 per cent. This decline interrupted a steady annual increase in production from the country, which had been continuous since 1932. The Maracaibo Lake Basin in western Venezuela accounted for 135,738,000 bbl. during 1940, or 73 per cent of the total, as against eastern Venezuela's production of 50,396,000 bbl., or 27 per cent of the total for the country. Corresponding figures for 1939 were 167,688,000 bbl., or 82 per cent of the total from the Lake Basin, and 37,744,000 bbl., or 18 per cent from the east. These comparisons indicate the increasing importance of the newer developments in eastern Venezuela, but it is unlikely that production from the east will ever exceed that from the west. In all, 429 new wells were completed in Venezuela during 1940 as compared to 438 in 1939. Of the 1940 completions, 411 were in proved areas and 18 were wildcats; 389 (95 per cent) of the exploitation wells drilled were producers, I was a gas well and 21 were dry holes, while 6 (33 per cent) of the wildcats drilled were producers and 12 (67 per cent) were dry; 263 of the exploitation wells and 4 of the wildcats were in the Maracaibo Lake Basin and 148 exploitation wells and 14 wildcats were in the east, mostly in the State of Anzoategui. Exploration of the light-oil areas in the Tia Juana and Lagunillas fields was con- tinued during the year with favorable results. Along the lake shore, drilling was confined principally to fill-in wells in the La Kosa, Tia Juana, Laguni!las and Bachaquero fields, although some important semi-exploratory drilling was done in the Pueblo Viejo area between Lagunillas and Bachaquero fields. The only other developments of particular interest in the west were the successful completion of a step-out well lying to the south of the former southern limit of Mene Grande field, which adds considerable proved acreage to that field; and the failure of two wildcats that were drilled near the Colombian border to determine whether the productive sands of the Petrolea field in the Barco Concession, Colombia, extend into Venezuelan territory. In the east no new fields were discovered during the year, although five wildcats were completed as producers. Three of these, Guario No. I, Jusepin-56 and LM-I (Leona), discovered important extensions to previously proved areas and the remaining two, Cantos-I and SPN-I (Socororo), were subsequently proved to have tapped productive sands of small extent and operations in these areas have been suspended. The greatest activity in the east was concentrated in the Oficina field, where 105 new wells were completed during the year and production was increased from 22,540 bbl. per day during January 1940 to 57,627 bbl. per day during December 1940. Important development work was also done in the Jusepin. San Joaquin and El Koble fields.

Jan 1, 1941

By D. C. Porterfield

-4s a result of world economic conditions brought about by the European war and the consequent loss of European markets for Venezuelan crude, production in Venezuela decreased from 205,433,000 bbl. in 1939 to 186,134,000 bbl. in 1940, or 9.4 per cent. This decline interrupted a steady annual increase in production from the country, which had been continuous since 1932. The Maracaibo Lake Basin in western Venezuela accounted for 135,738,000 bbl. during 1940, or 73 per cent of the total, as against eastern Venezuela's production of 50,396,000 bbl., or 27 per cent of the total for the country. Corresponding figures for 1939 were 167,688,000 bbl., or 82 per cent of the total from the Lake Basin, and 37,744,000 bbl., or 18 per cent from the east. These comparisons indicate the increasing importance of the newer developments in eastern Venezuela, but it is unlikely that production from the east will ever exceed that from the west. In all, 429 new wells were completed in Venezuela during 1940 as compared to 438 in 1939. Of the 1940 completions, 411 were in proved areas and 18 were wildcats; 389 (95 per cent) of the exploitation wells drilled were producers, I was a gas well and 21 were dry holes, while 6 (33 per cent) of the wildcats drilled were producers and 12 (67 per cent) were dry; 263 of the exploitation wells and 4 of the wildcats were in the Maracaibo Lake Basin and 148 exploitation wells and 14 wildcats were in the east, mostly in the State of Anzoategui. Exploration of the light-oil areas in the Tia Juana and Lagunillas fields was con- tinued during the year with favorable results. Along the lake shore, drilling was confined principally to fill-in wells in the La Kosa, Tia Juana, Laguni!las and Bachaquero fields, although some important semi-exploratory drilling was done in the Pueblo Viejo area between Lagunillas and Bachaquero fields. The only other developments of particular interest in the west were the successful completion of a step-out well lying to the south of the former southern limit of Mene Grande field, which adds considerable proved acreage to that field; and the failure of two wildcats that were drilled near the Colombian border to determine whether the productive sands of the Petrolea field in the Barco Concession, Colombia, extend into Venezuelan territory. In the east no new fields were discovered during the year, although five wildcats were completed as producers. Three of these, Guario No. I, Jusepin-56 and LM-I (Leona), discovered important extensions to previously proved areas and the remaining two, Cantos-I and SPN-I (Socororo), were subsequently proved to have tapped productive sands of small extent and operations in these areas have been suspended. The greatest activity in the east was concentrated in the Oficina field, where 105 new wells were completed during the year and production was increased from 22,540 bbl. per day during January 1940 to 57,627 bbl. per day during December 1940. Important development work was also done in the Jusepin. San Joaquin and El Koble fields.

Jan 1, 1941

During 1940, the Bahrein Island field produced a total of 7,073,919 bbl. of crude oil- an average of 19,328 bbl. per day. This is a decline of 514,635 bbl. from the I939 production of 7,588,554 bbl. At the end of 1940, there were 70 producing wells.

Jan 1, 1941

During 1940, the Bahrein Island field produced a total of 7,073,919 bbl. of crude oil- an average of 19,328 bbl. per day. This is a decline of 514,635 bbl. from the I939 production of 7,588,554 bbl. At the end of 1940, there were 70 producing wells.

Jan 1, 1941

In the special number of the magazine Ocl und Kohle (Oct. 22, 1940) dedicated to the petroleum industry of southeastern Europe, there appeared several articles relating to Yugos1avia.t In the first article the author calls attention to the fact that there are two fields in Yugoslavia that have been explored and exploited by more than 100 wells at variable depths during the last 50 years. These are on the Island of Mura, at the confluence of the Mura and the Drave. Additional exploration drilling in various other parts of the country has been without result, but certain ones of these explorations have revealed the existence of gas horizons that have some value, which are being used for industrial purposes. Table I shows the production of oil and gas between the years 1900 and 1939. TaBle —Production of Oil ad Gas in Yugoslavia . n,i Natural Natural Years oil Years Gas, Cu. Years Gas, Cu. Meters Meters T900-1929 10,000 1923 507,000 1934 1,388,000 1930 277 1924 567,000 1935 1,401,000 1931 202 I92S 691,000 I936 1,483,000 t932 289 19261 1.472,000 1937 1,841,000 1933 629 1927! 1,732,000 193s 2,431,000 1934 324 1928 2,515,000 1939 2,628,000 1935 260 1929 4,700,000 1936 137 I93O 5.345,200 1937 463 1931 6,376,153 1938 1,091 1932 1,661,737 1939 1,114 1933 959,574 The number of wells drilled from 1884 to the present time was in the neighborhood of zoo and the total footage drilled was 65,000 m. up to July I940 They may be divided roughly as follows: 12 wells in the region produce natural gas; 134 wells in the two old fields of the Island of Mura and about zo wells for the exploration of the zone of the Flysch, in Bosnia. The depths of 50 of these wells was roo to 200 m.; the depths of 50 wells oil the Island of Mura ran from zoo to 500 m.; of 2 ; wells, 500 to I000 m.; of ro wells from rooo to 2000 meters. The deepest well drilling in Yugoslavia has reached 2000 in. In the Valley of Morave, in the region of Selnica, I00 km. south of Nish, there have been discovered asphalt-bearing limestones, which contain about 15 per cent asphalt and are associated with bituminous clays. Later, at Paclenica, important deposits of natural gas were found. A zone rich in gas and oil seepages runs through Pracec, Miklenska, Bujavica, etc. The author studied these regions from the point of view of stratigraphy and tectonics. The anticlines and gas-bearing domes are concentrated in two zones: the region of the Drave (Island of Mura) and the region of the Save, southeast of zagreb, which contains the gas field in exploitation in the region of Bujavica. A full description of the productive region of the Island of Mura has been given by Egon Bohm, a geologist, in the second article mentioned. This includes a history of the exploration and exploitation that took place under Hungarian rule in this region. The most important exploration was effected between 1884 and 1885 by Stavenov and Stinger, of Vienna. In 1927 work was done in the same region by Anton Raky, a well-known explorer who makes work of this kind his specialty.

Jan 1, 1941

In the special number of the magazine Ocl und Kohle (Oct. 22, 1940) dedicated to the petroleum industry of southeastern Europe, there appeared several articles relating to Yugos1avia.t In the first article the author calls attention to the fact that there are two fields in Yugoslavia that have been explored and exploited by more than 100 wells at variable depths during the last 50 years. These are on the Island of Mura, at the confluence of the Mura and the Drave. Additional exploration drilling in various other parts of the country has been without result, but certain ones of these explorations have revealed the existence of gas horizons that have some value, which are being used for industrial purposes. Table I shows the production of oil and gas between the years 1900 and 1939. TaBle —Production of Oil ad Gas in Yugoslavia . n,i Natural Natural Years oil Years Gas, Cu. Years Gas, Cu. Meters Meters T900-1929 10,000 1923 507,000 1934 1,388,000 1930 277 1924 567,000 1935 1,401,000 1931 202 I92S 691,000 I936 1,483,000 t932 289 19261 1.472,000 1937 1,841,000 1933 629 1927! 1,732,000 193s 2,431,000 1934 324 1928 2,515,000 1939 2,628,000 1935 260 1929 4,700,000 1936 137 I93O 5.345,200 1937 463 1931 6,376,153 1938 1,091 1932 1,661,737 1939 1,114 1933 959,574 The number of wells drilled from 1884 to the present time was in the neighborhood of zoo and the total footage drilled was 65,000 m. up to July I940 They may be divided roughly as follows: 12 wells in the region produce natural gas; 134 wells in the two old fields of the Island of Mura and about zo wells for the exploration of the zone of the Flysch, in Bosnia. The depths of 50 of these wells was roo to 200 m.; the depths of 50 wells oil the Island of Mura ran from zoo to 500 m.; of 2 ; wells, 500 to I000 m.; of ro wells from rooo to 2000 meters. The deepest well drilling in Yugoslavia has reached 2000 in. In the Valley of Morave, in the region of Selnica, I00 km. south of Nish, there have been discovered asphalt-bearing limestones, which contain about 15 per cent asphalt and are associated with bituminous clays. Later, at Paclenica, important deposits of natural gas were found. A zone rich in gas and oil seepages runs through Pracec, Miklenska, Bujavica, etc. The author studied these regions from the point of view of stratigraphy and tectonics. The anticlines and gas-bearing domes are concentrated in two zones: the region of the Drave (Island of Mura) and the region of the Save, southeast of zagreb, which contains the gas field in exploitation in the region of Bujavica. A full description of the productive region of the Island of Mura has been given by Egon Bohm, a geologist, in the second article mentioned. This includes a history of the exploration and exploitation that took place under Hungarian rule in this region. The most important exploration was effected between 1884 and 1885 by Stavenov and Stinger, of Vienna. In 1927 work was done in the same region by Anton Raky, a well-known explorer who makes work of this kind his specialty.

Jan 1, 1941

By Basil B. Zavoico

Production of crude oil in the U.S.S.R. during 1940 is estimated at 222,600,000 bbl., as compared with the revised figure for the preceding year of 220,866,000 bbl., an increase of 0.79 per cent, and at least 20 per cent under the planned output. Baku district (Transcaucasus) remained the outstanding producing area, accounting for 72.33 per cent of the country's production, and this relative importance of the Apsheron Peninsula oil fields will probably continue lor many years to come. In the North Caucasus the Grozny-Dagestan area further extended its decline and the current production in this district amounts to only 6.06 Per cent Of the total U.S.S.R. output, as compared with 35.76 Per cent in 1931 The production of the Kuban-Maikop district remained virtually ullchanged from the preceding year, amounting to 7.64 per cent of the country's total. The Caucasian Province, therefore, in I940 produced 86.03 Per cent of the total production of the U.S.S.R. The promising new Permian Basin district, called Ural-Volga, and referred to sometimes as the "Second Baku," increased its production appreciably during 1940 and the output of that area amounted to 8.31 per cent of the country's total, as compared with 6.35 per cent during 1939. Production in the secondary districts of Russia continued unchanged though some new discoveries in the Emba salt-dome basin suggest that the output of that district may show some increase during the coming years. The drilling operations in Russia during 1940 reached a stage of virtual breakdown and the original footage plans were fulfilled only to the extent of around 50 per cent, while exploration drilling schedules were fulfilled only to the extent of about 25 to 35 per cent. This condition was due to the obvious lack of modern drilling rigs, of good drill pipe and of strong casing. Extended breakdowns occurred with deeper drilling, particularly because with few good drilling rigs available speed was being attempted with rotation rates that the inferior drill pipe and bits could not stand. Twistoffs and endless fishing jobs resulted. The difficulties became so serious a handicap to the Soviet oil industry that it was found imperative to order American drilling equipment and pipe in quantity, a policy that was never favored in the U.S.S.R because it requires expenditure of gold or exchange in major volume, and such exchange usually is reserved only to less bulky key items or to orders directly connected with armaments; also, oil-field machinery is very bulky and the prevailing lack of bottoms makes the transport of the indicated equipment a major problem. But little progress was similarly made in other branches of the Soviet oil industry. NO new major pipe-line construction work was undertaken, consequently the railroads continued to be overburdened with traffic that could be much more effectively handled by pipe lines. No new refinery construction of any magnitude was initiated, though several plants that had been in course of construction for several years were completed during 1940 and operation 554

Jan 1, 1941

By Basil B. Zavoico

Production of crude oil in the U.S.S.R. during 1940 is estimated at 222,600,000 bbl., as compared with the revised figure for the preceding year of 220,866,000 bbl., an increase of 0.79 per cent, and at least 20 per cent under the planned output. Baku district (Transcaucasus) remained the outstanding producing area, accounting for 72.33 per cent of the country's production, and this relative importance of the Apsheron Peninsula oil fields will probably continue lor many years to come. In the North Caucasus the Grozny-Dagestan area further extended its decline and the current production in this district amounts to only 6.06 Per cent Of the total U.S.S.R. output, as compared with 35.76 Per cent in 1931 The production of the Kuban-Maikop district remained virtually ullchanged from the preceding year, amounting to 7.64 per cent of the country's total. The Caucasian Province, therefore, in I940 produced 86.03 Per cent of the total production of the U.S.S.R. The promising new Permian Basin district, called Ural-Volga, and referred to sometimes as the "Second Baku," increased its production appreciably during 1940 and the output of that area amounted to 8.31 per cent of the country's total, as compared with 6.35 per cent during 1939. Production in the secondary districts of Russia continued unchanged though some new discoveries in the Emba salt-dome basin suggest that the output of that district may show some increase during the coming years. The drilling operations in Russia during 1940 reached a stage of virtual breakdown and the original footage plans were fulfilled only to the extent of around 50 per cent, while exploration drilling schedules were fulfilled only to the extent of about 25 to 35 per cent. This condition was due to the obvious lack of modern drilling rigs, of good drill pipe and of strong casing. Extended breakdowns occurred with deeper drilling, particularly because with few good drilling rigs available speed was being attempted with rotation rates that the inferior drill pipe and bits could not stand. Twistoffs and endless fishing jobs resulted. The difficulties became so serious a handicap to the Soviet oil industry that it was found imperative to order American drilling equipment and pipe in quantity, a policy that was never favored in the U.S.S.R because it requires expenditure of gold or exchange in major volume, and such exchange usually is reserved only to less bulky key items or to orders directly connected with armaments; also, oil-field machinery is very bulky and the prevailing lack of bottoms makes the transport of the indicated equipment a major problem. But little progress was similarly made in other branches of the Soviet oil industry. NO new major pipe-line construction work was undertaken, consequently the railroads continued to be overburdened with traffic that could be much more effectively handled by pipe lines. No new refinery construction of any magnitude was initiated, though several plants that had been in course of construction for several years were completed during 1940 and operation 554

Jan 1, 1941

By Arthur Wade

The most important development in connection with the search for oil in Australia during 1940 was on the legislative side. Prior to 1939 legislative enactments in the various states with regard to prospecting for petroleum were such as to prohibit large-scale effort and to bar the major oil companies from operating. The preparation of the Wade Model Bill for the Commonwealth Government in 1939 and the acceptance of the Bill in principle by all States, has gone far to remove these obstacles. Amending Acts, largely based on the Alodel Bill, have now been passed by all States with the exception of New South Wales and Tasmania. In New South Wales an Amending Bill is being drafted, while the Govern-ment of Tasmania is preparing to introduce an Amending Bill provided there is any demand for it. Noteworthy developments followed immediately on the passing of these Amending Acts. The Shell Company (1)1 and the Superior Oil Company of California (2) too$ up large areas in Queensland and com-menced work during 1940. Caltex acquired a big tract of country in the Kimberley district of Western Australia (3) and has made application for an area in the Territory of Papua. An Australian company, The Phoenix Oil Extraction Co., has obtained a permit to prospect over an extensive area bordering the south coast of Western Australia (4). Other developments are foreshadowed. The Shell Company is making an intensive examination of its area in Queensland (I). Geological, geophysical and aerial surveys are in progress. Caltex has three geological parties in the held in Western Australia while Superior Oil Company of California has done some geological work in the interior of Queensland (2). None of these concerns envisages a drilling campaign in the near future. Much exploratory work is necessary. Further work has been done by the companies that were already operating in 1939, though an important Australian company - Oil Search—has abandoned the work of prospecting in Australia. This company has subleased its holdings, at North West Cape in Western Australia (;), to Caltex on a royalty basis. The company also maintains its holdings in, and connection with, the Australasian Petroleum Company Proprietary Limited, which is a combination of Standard Oil (New Jersey), Anglo-Iranian and Oil Search. This company is operating in the territories of Papua and New Guinea. Drilling Victoria.—Although a good deal of drilling was done in the LaBes Entrance Tertiary Basin of Victoria (7), no appreciable production of oil was obtained. In order to test the extent and possibilities of the oil-bearing sand in this region, the Commonwealth and State Governments jointly put down six scout boreholes to depths of between 1200 and I500 it. The results were nega tive. A deeper exploratory horehole put down by the Governments at Seacornbe, or 26

Jan 1, 1941

By Arthur Wade

The most important development in connection with the search for oil in Australia during 1940 was on the legislative side. Prior to 1939 legislative enactments in the various states with regard to prospecting for petroleum were such as to prohibit large-scale effort and to bar the major oil companies from operating. The preparation of the Wade Model Bill for the Commonwealth Government in 1939 and the acceptance of the Bill in principle by all States, has gone far to remove these obstacles. Amending Acts, largely based on the Alodel Bill, have now been passed by all States with the exception of New South Wales and Tasmania. In New South Wales an Amending Bill is being drafted, while the Govern-ment of Tasmania is preparing to introduce an Amending Bill provided there is any demand for it. Noteworthy developments followed immediately on the passing of these Amending Acts. The Shell Company (1)1 and the Superior Oil Company of California (2) too$ up large areas in Queensland and com-menced work during 1940. Caltex acquired a big tract of country in the Kimberley district of Western Australia (3) and has made application for an area in the Territory of Papua. An Australian company, The Phoenix Oil Extraction Co., has obtained a permit to prospect over an extensive area bordering the south coast of Western Australia (4). Other developments are foreshadowed. The Shell Company is making an intensive examination of its area in Queensland (I). Geological, geophysical and aerial surveys are in progress. Caltex has three geological parties in the held in Western Australia while Superior Oil Company of California has done some geological work in the interior of Queensland (2). None of these concerns envisages a drilling campaign in the near future. Much exploratory work is necessary. Further work has been done by the companies that were already operating in 1939, though an important Australian company - Oil Search—has abandoned the work of prospecting in Australia. This company has subleased its holdings, at North West Cape in Western Australia (;), to Caltex on a royalty basis. The company also maintains its holdings in, and connection with, the Australasian Petroleum Company Proprietary Limited, which is a combination of Standard Oil (New Jersey), Anglo-Iranian and Oil Search. This company is operating in the territories of Papua and New Guinea. Drilling Victoria.—Although a good deal of drilling was done in the LaBes Entrance Tertiary Basin of Victoria (7), no appreciable production of oil was obtained. In order to test the extent and possibilities of the oil-bearing sand in this region, the Commonwealth and State Governments jointly put down six scout boreholes to depths of between 1200 and I500 it. The results were nega tive. A deeper exploratory horehole put down by the Governments at Seacornbe, or 26

Jan 1, 1941

By James Terry Duce

The symposium on production for the year 1940 contains few papers on the foreign situation. It is probable that the foreign part of next year's symposium will be even shorter. This is due to rigid censorship in various countries, as the question of the volume of petroleum supplies has become one of great strategic importance. This is even more true than in the last war, owing to greater mechanization of armies. 'It has always been the policy of officers in charge of the symposium to refrain from publishing information that might possibly injure national or private interests. At the close of the war we hope again to publish full and accurate records of production abroad. Excerpts from Circular to Authors In order to facilitate interpretation of the data in this chapter, we print the following excerpts from the Circular to Authors. The field is the unit in this tabulation. In cases of fields extending across State boundaries, such as Rodessa, it is suggested that each State author treat the section of the field in his State as a unit, and by a footnote indicate that the field extends into an adjacent State. Each space in Table I may represent one of four possibilities; either it is not applicable to the particular field, or the proper entry is not determinable, or the proper entry may be determinable but is not determinable from data available to the author, or the proper entry is determinable. When spaces are not applicable, leave blank; in spaces where the proper entries are determinable but not de-terminable frod data available to the author, please inserty; in spaces where the proper entries are determinable by the author, make such entries. y implies a hope that in some future year a definite figure will be available. The entry of a zero is a positive declaration, and an important declaration where it is in order. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In sucli cases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces the correct entries represent the opinion of the author (for example, "Area Proved') and in such cases the entry need not be hedged to such extent as when the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use x. It is thought that the nearest whole numbers are sufficiently accurate for our purposes except as to percentage of sulphur in oil. If an author desires to report any other figures to tenths, he may do so. The quantity of gas produced should include, where possible, gas sold or otherwise marketed, and gas blown into the air, burned as flares or otherwise wasted. Segregation of these figures would be interesting if the authors can make such segregation. In any event, the figures should represent as nearly as possible the total quantity of gas removed from the reservoir. Under the columns on "Depth," the average depth to the top of the productive zones and to the bottom of the productive wells, when

Jan 1, 1941

By James Terry Duce

In order to facilitate interpretation of the data in this chapter, we print the following excerpts from circulars to authors, compiled by Mr. Frank A. Herald when he was Vice-chairman for Production of the Petroleum Division: Generally in Table 1 the unit for presentation of data is a field. For our purposes a field is defined as the whole of a surface area wherein productive locations are continuous. Such unit commonly includes and surrounds nonproductive areas. Such unit commonly includes a great variety of geologic conditions-several units of continuous productive reservoirs of distinctly different structure and of distinctly different stratigraphy. Therefore it is hoped that our authors will subdivide "field" so as to enable students to make analyses that may have scientific and/or commercial value. As to each space in the tabulation, it is either (I) not applicable, (2) the proper entry is not determinable, (3) the proper entry is determinable, but not determinable from data available to the author, (4) the proper entry is determinable by the author. In spaces not applicable, the author will please draw horizontal lines; in spaces where the proper entries are not determinable, the author will please insert x; in spaces where the proper entries are determinable but not determinable from data available to the author, the author will please insert y; in spaces where the proper entries are determinable by the author he will, of course, make such entries. Generally, y implies a hope that in some future year a definite figure will be available. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In such cases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces, the correct entries represent the opinion of the author (for example, "Area Proved") and in such cases the entries need not be hedged to such extent as in cases where the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use x. For example, if the total production of a field is known to be between 1,800,000 and 1,850,000, the author may report 1,8xx,xxx; or if the production is between 1,850,000 and 1,900,000, the author may report 1,9xx,xxx. Where a numeral is immediately to the left of x or y, such numeral represents the nearest known number in that position. As to quantity of gas produced from many fields the question will arise as to whether the figures should include merely the gas marketed or should include also estimates of gas used in operations and gas wasted. Although rough approximations

Jan 1, 1938

By James Terry Duce

The symposium on production for the year 1940 contains few papers on the foreign situation. It is probable that the foreign part of next year's symposium will be even shorter. This is due to rigid censorship in various countries, as the question of the volume of petroleum supplies has become one of great strategic importance. This is even more true than in the last war, owing to greater mechanization of armies. 'It has always been the policy of officers in charge of the symposium to refrain from publishing information that might possibly injure national or private interests. At the close of the war we hope again to publish full and accurate records of production abroad. Excerpts from Circular to Authors In order to facilitate interpretation of the data in this chapter, we print the following excerpts from the Circular to Authors. The field is the unit in this tabulation. In cases of fields extending across State boundaries, such as Rodessa, it is suggested that each State author treat the section of the field in his State as a unit, and by a footnote indicate that the field extends into an adjacent State. Each space in Table I may represent one of four possibilities; either it is not applicable to the particular field, or the proper entry is not determinable, or the proper entry may be determinable but is not determinable from data available to the author, or the proper entry is determinable. When spaces are not applicable, leave blank; in spaces where the proper entries are determinable but not de-terminable frod data available to the author, please inserty; in spaces where the proper entries are determinable by the author, make such entries. y implies a hope that in some future year a definite figure will be available. The entry of a zero is a positive declaration, and an important declaration where it is in order. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In sucli cases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces the correct entries represent the opinion of the author (for example, "Area Proved') and in such cases the entry need not be hedged to such extent as when the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use x. It is thought that the nearest whole numbers are sufficiently accurate for our purposes except as to percentage of sulphur in oil. If an author desires to report any other figures to tenths, he may do so. The quantity of gas produced should include, where possible, gas sold or otherwise marketed, and gas blown into the air, burned as flares or otherwise wasted. Segregation of these figures would be interesting if the authors can make such segregation. In any event, the figures should represent as nearly as possible the total quantity of gas removed from the reservoir. Under the columns on "Depth," the average depth to the top of the productive zones and to the bottom of the productive wells, when

Jan 1, 1941

By C. P. Watson

It is perhaps significant that a few years ago the sessions held here were chiefly occupied with production. In the last two years these sessions have been concerned with production curtailment, unitization and conservation, notwithstanding that production in the United States in 1929 reached a total in excess of 1,000,000,000 barrels. A study of the leading producing units in the United States shows that Oklahoma, Texas and California in 1929 yielded 84 per cent. of the total production from 33.5 per cent. of the total number of producing wells. Production in the United States in 1929 showed an increase of 107,000,000 bbl. over the 1928 figures. This increase in itself perhaps is not enough to have caused the serious situation that is now confronting the industry. However, taking into account the gradual encroachment on the consumption of fuel oil through the greater utilization of natural gas, probably we have reached the point in the United States where prices will determine to a large extent,' in 1930, the amount that will be produced. In the states of Texas, Oklahoma and California, the most significant developmcnt of 1929 has been the desire of operators to reach some agreement to bring production more or less in control with the estimated demand. In November, production in California, particularly in the Santa Fe Springs field, was drastically cut to meet a certain requirement. Similarly, in Texas, the Yates field has been developed and has been producing under an agreement on the part of the operators; and more recently in Oklahoma City, serious efforts have been made to keep produetion in line with consumption. For the year 1930 we can see nothing in sight except drastic curtailment. This is a matter that I am sure is occupying the attention of all the leaders of the industry.

Jan 1, 1930