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By F. A. Howard, R. T. Haslam

In a broad sense automotive fuel is simply fuel in general and includes coal, coke, wood, charcoal and gas, in addition to the full range of liquid combustibles. All of these are actually used, or have been used, commercially to some extent as fuel for automotive vehicles. The steam lorry burning coal and coke is a common sight on the roads of England. The fact that these coal-fired steam lorries have a distinct advantage in taxes over the conventional gasoline-driven lorry probably explains the survival of this vehicle. The omnibus, or charabanc, operated by city gas carried in a balloon container on the roof, was also at one time a common sight in England, although not as common as the ubiquitous steam lorry. These gas-operated vehicles have, however, disappeared from the streets in recent years, and probably owed their existence entirely to war conditions. In France one of the largest motor vehicle manufacturers had last year more than 30 trucks equipped with regular gasoline engines in service in the Parisian area operating on producer gas obtained from a small gas producer mounted on the running board of the truck. Both wood and charcoal have been used in these gas producers. The authors were interested enough in this unique commercial development to spend some time examining the apparatus used and inquiring into the success which it had met. The picture is by no means an impossible one purely from the standpoint of practicability, but there is no doubt of the soundness of the conclusion that this is not a development which has any present important significance. Powdered carbonaceous matter, coal, coke or lignite, has been used experimentally in special forms of internal combustion engines, but so far as is known, these have never been applied to automotive practice. Range of Liquid Combustibles In the field of liquid combustibles the full range has been exploited to some extent. Heavy residual fuel oils from petroleum have been

Jan 1, 1928

By L. L. Davis

The rapid increase in the use of pulvcrulent adsorptive materials in the so-called "contact filtration" process for decolorizing lubricating oils makes it desirable to consider some of the basic principles involved. The commercial methods and types of equipment now used arc fairly well known, having been extensively described in the trade journals. In spite of this very little has been published concerning the factors which must be considered in the selection of a process or of a decolorizing ing material. It is commonly understood that contact filtration more or less closely follows the laws of adsorption. These principles have been thoroughly drscribed by Gurwitsch.' The contacting of neutral mineral oils seems to be adsorptive in character and apparently follows Freundlich's law of adsorption which may be expressed by the formula: X = Color material adsorbed hy the clay. M = Amount of clay used. C = Concentration of color material after equilibrium. A and P = Constants for a given oil and clay. Fig. 1 shows the decolorization curve for a natural, dark colored cylin-der stock when contacted with various quantities of clay, curve R being made with natural Riverside Texas fuller's earth and T being made with an acid-treated clay from Texas. As the Tag-Robinson color is inversely proportional to the depth of color, the reciprocal of these colors ran be assumed to be a funct ion of the concentratlion of coloring matter. The values of and C' can, therefore., br calculated by using the reciprocal Tag-Robinson colors, and when these

Jan 1, 1928

By R. S. Shoemaker, F. W. McQuiston

REFINERY SECURITY "Highgrading, " a polite word for stealing gold and silver, has been a way of life since the metals in native form have been mined or produced. Unfortunately, in the past, highgraders were not always severely prosecuted or even looked upon unfavorably in their communities. Recent high metal prices with attendent world wide publicity, however, has made highgrading or thievery again a serious problem in mines and plants. When a small button of gold the size of the end of ones little finger has a value equal to about one week's wages, the safe-guarding of gold production by enforcing tight security measures becomes a prime responsibility of management. The higher the gold price, coupled with unrestricted owner- ship, the greater the temptation to “get-your-cut”, and diligence by management must become an integral part of plant security. Primary security begins by knowing the expected gold production and the sampling of a gold ore mill feed for this determination has proved not reliable. However, solution flows can be accurately sampled and measured thereby closely predicting the gold recovered each day as precipitate. The progressive record of total ounces of gold contained in the precipitation press, referred to in cyanidation plants as I1solution calll1 predicts the accumulated production. The "callH is an important adjunct to security and extreme caution must be used so that the pregnant solution meter and sample are confined in a security area. It should be recognized that this key sample may be the target for Ifdoctoring" by trusted insiders (assay office employees) as a preliminary step for stealing precipitates and/or metal. Security measures similar to the following were adopted after one operation experienced a sizeable theft of gold precipitate and metal by trusted employees. The refinery area where precipitates are handled and melted to bullion and all other gold products are kept should be completely enclosed with a tight security fence preferably of solid construction. Access to this enclosure should be through one of two electrically controlled gates, one for personnel and another for occasional truck entrance. Admittance should be restricted to essential personnel who are required to sign a register in and out with the date and time. I£ there is a "back gate" to the restricted fenced area, it should remain locked except in an emergency and then opened only by a supervisor. Television monitoring cameras viewing the gate entrance and other sensitive areas connected to a viewing screen located in the general office afford visual observation at all times.

Jan 1, 1975

By Walter Miller

PETROLEUM refining, like other industries in the United States in 1940, focused much attention on its duties and opportunities in the field of national defense. In counter-distinction to the situation during the World War; the industry is well constituted as LO existing equipment, processes, and capacity together with planned additions to handle any demands that may be made upon it by the defense program needs. Evident throughout was the growing sense of ability to manipulate oil molecules for the production of materials not hitherto considered as being available commercially from petroleum The development and application of catalytically-induced reactions on a broad front is one of the distinguishing characteristics of refining progress during the year.

Jan 1, 1941

By L. Dr. Edeleanu

CRUDE petroleum is a mixture of various groups of hydrocarbons and some bodies containing oxygen or sulphur. These constituents possess properties differing considerably one from another and the proportion in which they are contained in the crude oils is also very different. Owing to this complicated composition the practical use of crude petroleum is much restricted. For example it is sometimes used as a liquid fuel. But its employment in this way is uneconomical because various valuable qualities of the individual constituents are not made use of. The rational utilization of petroleum can only be accomplished if the various groups of hydrocarbons are separated. The mixture of hydro-carbons present in the crude oil must be split up in such a way that the hydrocarbons are divided into various groups having certain predominant characteristics and uses. To accomplish such a separation is the aim of the technical refining of petroleum. ORDINARY REFINING BY DISTILLATION AND CHEMICAL TREATMENT Hitherto this has been accomplished by two processes, namely, fractional distillation and chemical treatment of the distillates obtained. Distillation Process The process of distillation consists in the separation of the constituents of petroleum into various fractions, the boiling points of which lie within certain defined limits. The fractions so separated possess certain special qualities in common, which enable them to be applied for specific purposes in practice. For example, we have the fractions known as benzene, illuminating oils, heavy oils, lubricating oils, etc.

Jan 9, 1914

By H. W. Camp

In attempting to summarize and pick out the outstanding development,s in refinery engineering during the past 12 or 13 months, one is immediately impressed by the great strides that have taken place. It is, of course, difficult to obtain the proper perspective with the old year so fresh in our minds, and if relatively minor improvements seem to be given equal recognition with those of magnitude, it will be because the nature of the human mind causes us to place the trivial incidents of today with the important things of yesterday. For instance, the Twenly-Second Semiannual Motor Gasoline Survey (December, 1930) of the U. S. Bureau of Mines shows that the total gasoline yield per barrel of crude increased from 39.6 per cent.. in 1929 to 41.99 per cent. in 1930. This latter fact may appear rather confusing since the production of high-gravity crudes has been steadily increasing. However, during the past yew there has been a reduction in gasoline end point of approximately 8" F. which roughly corresponds to about 1.0 per cent. yield from the crude oil. It appears, therefore, that, if the gasoline mere based on a corresponding distillation basis 1930 would show better yields from the crude than 1929. Cracked gasoline increased from 14.83 per cent. in 1929 to 17.46 per cent. in 1930. Percentage of total gasoline from cracking stills has doubled since 192.5, thus indicating the extent to which this phase of refining has advanced over past years. Replacement of the old shell still batteries by a pipe still and single flash system, with an efficient fractionating tower, has proved advantageous both in fuel consumption and in decreasing space required for the installation. Considerable activity has been shown in the field of vapor-phase cracking, with the development of several new types of units. The production of a product with a high antiknock value makes the vapor-phase processes particularly attractive. Cracking equipment has shown a marked advance with the development of corrosion-resisting alloys. Nickel, chromium and vanadium have shown interesting possibilities, but as yet are fairly expensive. Ceramic material for lining reaction

Jan 1, 1931

By H. W. Camp

Although the situation in the oil industry during the past year has not been conducive to large expenditures for development and research, there is little indication that such expenditures have been curtailed. While few outstanding achievements have been reported, considerable progress has been made in the development of new product,s and the adaptation of petroleum derivatives to new uses. The most important question facing the refiner today is the antiknock quality of his gasoline. This year has seen the widespread adoption of the term "octane number" as a measure for anti-knock values, and in the latter months of the year the public has been made acutely aware of this condition through competitive advertising. Gasoline is no longer priced on volatility and gravity alone, but on octane number as well; and premiums are being paid for material of relatively high octane rating. The situation has grown more and more competitive and has forced refiners continually to raise the octane rating of their regular and competitive grades, and at this writing the same situation exists for premium grades which have possessed relatively high anti-knock properties for some time. Straight-run gasoline produced from paraffin-base or semiparaffin-base crudes has an inherently low anti-knock value, and in order to convert this material to a higher quality it has been found necessary to crack an increasing percentage of the crude oil charge. By completely cracking the heavier portions of the crude and blending back with the straight-run gasoline, it has been possible to produce an average of 63 to 65 octane number gasoline on average Mid-Continent crude. This operation carried to the fullest extent does not suffice, however, and the recent and rapid development of the so-called '(reforming unit," has resulted. The straight-run gasoline fraction is cut into two parts: a light, low boiling point gasoline; and a heavy gasoline or naphtha. The latter containing the low anti-knock portions of the gasoline, is sent through a re-forming unit and subjected either to high temperature or pressure, or both, which materially increases its octane number. On average Mid-Continent the blend of low boiling point straight-run,

Jan 1, 1932

By Walter Miller

Any review of the engineering progress made in 1932 in the petroleum refining industry must necessarily be broad and general, improvements having been made in practically all major branches of this activity. Several factors contributed to an advancement on a wide front, much of it coming from those active in refining, considerable from those not, immediately in it but engaged in designing and installing equipment and maintaining large and capable staffs of experts in both engineering and development work. Another factor has been the ability of the refiner, because of less than capacity operation, to carry on experimental and development work in regular plant equipment. The movement to higher antiknock value gasoline has continued through 1932, and the average improvement of the more widely sold branded gasolines is from 3 to 4 points higher in the octane scale. A very great improvement was brought about during the year in the method of determining the octane number of gasoline. While the procedure and equipment for determining this value as developed by the Cooperative Fuel &search Steering Committee prior to 1932 had received fairly general acceptance, evidence that it did not always evaluate in a measure consistent with road performance quickly accumulated, and led to further effort to synchronize laboratory results with actual use. As the result of some really brilliant work on the part of the C.F.R. Committee and a large number of collaborators, it was found that a comparatively minor modification of the previously developed equipment and method gave surprisingly concordant results between laboratory tests and trial per-formance on the road. This method has been officially accepted by the Society of Automotive Engineers and the American Petroleum Institute, and will according to present plans go into general use on April 1, 1933. The American Society for Testing Materials has studied the method but at the time of writing this had not reached a final decision regarding it. Improved Volatility of Gasoline The most notable trend during the year, in addition to a very considerable increase in antiknock value referred to above, has been in the

Jan 1, 1933

By Walter Miller

With returning prosperous conditions in all industries, oil-refinery engineering has found opportunity for the more extensive application of improvements developed during the several years of depression. The year has brought out little of an entirely new nature, but much in wider application of previous worth-while developments. The greatest volume of work done has been in modernizing the distillation and cracking units of existing refineries, particularly by substitution of combination skimming and cracking units for older equipment, and the installation of cracking plants in smaller refineries where formerly only skimming was practiced. A number of entirely new refineries were installed during the year, two of the most important being the 20,000-bbl. refinery by the Atlantic Refining Co., at Atreco, Tex., and a 12,000-bbl. plant by the Wilshire Oil Co., at Norwalk, Calif., these two embodying some of the latest developments in cracking and treating. Total refining capacity for the United States is now reported as being something over 4,000,000 bbl. per day, but a movement is on foot looking to a complete revision of these figures, as experience has indicated not only some overstatement of capacity of equipment but that considerable equipment is included which because of obsolescence and location will probably never be run again. The 3,000,000-bbl. figure which the industry reached during the year's high consuming period required the operation of probably 95 per cent of the country's efficiently usable capacity. Cracking and Polymerization There were no new outstanding developments in the cracking field, progress being made largely in the further refinement of known principles. Improvements in furnace design and operation have been largely in permitting closer control of the heating curve through the cracking-tube system, assisting in more uniform yield and in the lessening of coke deposition, and permitting longer trouble-free operating time as well as reduction in furnace-maintenance cost. Actual operating polymerization capacity has been increased little during the year, but a number of projects have been started, some nearing completion, the production from which will be available during 1937.

Jan 1, 1937

By Walter Miller

Developments in oil refining were so varied during 1938 that a refiner had to be alert or be left behind. The long-talked-of conversion of oil refining into a true chemical industry using petroleum as a raw material was hastened, particularly in the realm of motor-fuel manufacture, by the increased understanding and use of catalytic processes. The petroleum refiner's vocabulary has been extended to include alkylation, cyclization, aromatization, and isomerization. There are other devel: opments of a similar nature, but these are now considered commercially feasible under proper conditions. New Equipment Less expensive equipment and processes encouraged new construction and replacement. Estimates of money spent in the United States on building new plants and remodeling existing installations during 1938 place the sum at not less than $200,000,000, a noteworthy amount in a year marked by a business recession. The commercial application of small-scale catalytic polymerization of refinery gases made one of the latest advances available to the smaller operators, who usually are faced with unit installation and production costs higher than the large refinery enjoys. Competition was thereby fostered. Outstanding in this respect was the construction of two or more polymerization plants in small refineries at extremely low installation costs, with amortization measured in months instead of years. Houdry Processes Bursting like a bombshell late in the year was the disclosure of the extent of the development of the Houdry processes of catalytic cracking, viscosity breaking, gasoline treatment, desulphurization, and polymerization, said to be applicable to almost any raw petroleum stock and yielding gasoline of exceptionally high octane number. This process is claimed to be particularly adapted to once-through cracking of aliphatic hydrocarbons, and when combined with any of the conventional thermal

Jan 1, 1939

By Walter Miller

Developments in oil refining were so varied during 1938 that a refiner had to be alert or be left behind. The long-talked-of conversion of oil refining into a true chemical industry using petroleum as a raw material was hastened, particularly in the realm of motor-fuel manufacture, by the increased understanding and use of catalytic processes. The petroleum refiner's vocabulary has been extended to include alkylation, cyclization, aromatization, and isomerization. There are other devel: opments of a similar nature, but these are now considered commercially feasible under proper conditions. New Equipment Less expensive equipment and processes encouraged new construction and replacement. Estimates of money spent in the United States on building new plants and remodeling existing installations during 1938 place the sum at not less than $200,000,000, a noteworthy amount in a year marked by a business recession. The commercial application of small-scale catalytic polymerization of refinery gases made one of the latest advances available to the smaller operators, who usually are faced with unit installation and production costs higher than the large refinery enjoys. Competition was thereby fostered. Outstanding in this respect was the construction of two or more polymerization plants in small refineries at extremely low installation costs, with amortization measured in months instead of years. Houdry Processes Bursting like a bombshell late in the year was the disclosure of the extent of the development of the Houdry processes of catalytic cracking, viscosity breaking, gasoline treatment, desulphurization, and polymerization, said to be applicable to almost any raw petroleum stock and yielding gasoline of exceptionally high octane number. This process is claimed to be particularly adapted to once-through cracking of aliphatic hydrocarbons, and when combined with any of the conventional thermal

Jan 1, 1939

By Walter Miller

The focus of attention during 1939 was on increasing the octane number of gasoline. The "octane race" resumed full swing. The averagc octane number of house-brand gasoline by the end of the year had easily reached two numbers higher, with several companies in the field actually purveying house-brand gasoline of 78-80 "research" octane number, equivalent roughly to from 74 to 77 A.S.T.M. octane rating, compared with the 70 A.S.T.M. ceiling of two or more years ago. Whether this trend toward much higher octanes is the result or the cause of the many t,echnical developments in the motor-fuel field of recent, years, progress has really been startling. In addition to the advance in catalytic cracking and catalytic re-forming, other important contributions to the technical ability to produce higher octane values include: installat>ions involving increased capacity in thermal re-forming, with improved economic status both as to yields and octane number, by coupling with catalytic polymerization; more widespread adoption of catalytic and thermal polymerization, and a surge toward extensive installations of newly developed alkylation processes for making iso-octane, neo-hexanr and other high antiknock products; and greater use of improved desul-phurization processes, and application of superfractionation methods for segregation of practically pure hydrocarbons with superior octanr qualities from gas and highly volatilc liquids. The approaching of practical limits in the use. of tetracthyl lead (t,hr well-known "law of diminishing returnsn coming into the picture at the higher octane levels being approached) has given impetus to development of the methods listed above. In particular, processes that improve the octane rating and also increase ethyl lcad sc.nsitivity have had considerable study durirlg the year. CatSlytic Re-foRming Although the interesting report on the Houdry catalytic cracking process presented at the annual meeting of the American Petroleum

Jan 1, 1940

By Walter Miller

The focus of attention during 1939 was on increasing the octane number of gasoline. The "octane race" resumed full swing. The averagc octane number of house-brand gasoline by the end of the year had easily reached two numbers higher, with several companies in the field actually purveying house-brand gasoline of 78-80 "research" octane number, equivalent roughly to from 74 to 77 A.S.T.M. octane rating, compared with the 70 A.S.T.M. ceiling of two or more years ago. Whether this trend toward much higher octanes is the result or the cause of the many t,echnical developments in the motor-fuel field of recent, years, progress has really been startling. In addition to the advance in catalytic cracking and catalytic re-forming, other important contributions to the technical ability to produce higher octane values include: installat>ions involving increased capacity in thermal re-forming, with improved economic status both as to yields and octane number, by coupling with catalytic polymerization; more widespread adoption of catalytic and thermal polymerization, and a surge toward extensive installations of newly developed alkylation processes for making iso-octane, neo-hexanr and other high antiknock products; and greater use of improved desul-phurization processes, and application of superfractionation methods for segregation of practically pure hydrocarbons with superior octanr qualities from gas and highly volatilc liquids. The approaching of practical limits in the use. of tetracthyl lead (t,hr well-known "law of diminishing returnsn coming into the picture at the higher octane levels being approached) has given impetus to development of the methods listed above. In particular, processes that improve the octane rating and also increase ethyl lcad sc.nsitivity have had considerable study durirlg the year. CatSlytic Re-foRming Although the interesting report on the Houdry catalytic cracking process presented at the annual meeting of the American Petroleum

Jan 1, 1940

By Walter Miller

Although confident of its ability to meet any demands that 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 cooperative 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 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. Refining, by constant study and development, by willingness to experiment and install new processes, and to replace older plants with more efficient equipment, had kept on a high plane of efficiency and progress. Working under the free competitive system, it built up its establishments until, as expressed in last year's report, it was easily able to supply any domestic demand that might be placed on it. Turning the United States into the arsenal not only of itself but of the united nations resisting aggression, however, in- creased the call for practically all petroleum products and in particular 100-octane aviation gasoline and high-viscosity aviation lubricating oils. Refining Capacity With over four million barrels a day of crude oil being charged to stills at the year's end, oil refining had broken all records and faced the necessity of further increasing its size to supply the ever-increasing demand for products, some of which, like 100-octane aviation gasoline, were research laboratory curiosities a few years ago. Although the refining capacity of the United States is listed at 4,860,000 bbl., about 800,000 bbl. of this is economically unavailable because of plant location or type. To meet the increasing needs, additional capacity of another half million barrels may have to be built in suitable locations and designed with an eye toward maximum production of aviation gasoline but with inherent flexibility to make it possible to vary and interchange with production of motor gasoline, furnace oils, and other products as necessity dictates. An interesting side light on this refining capacity question was an enquiry from official Washington for knowledge as to any idle refineries of something of the order of 10,000-bbl. daily crude capacity that might be purchased for bodily removal to Russia. 100-Octane Aviation Gasoline Largest of the tasks confronting refiners at the year's end was that of raising

Jan 1, 1942

By Walter Miller

Although confident of its ability to meet any demands that 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 cooperative 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 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. Refining, by constant study and development, by willingness to experiment and install new processes, and to replace older plants with more efficient equipment, had kept on a high plane of efficiency and progress. Working under the free competitive system, it built up its establishments until, as expressed in last year's report, it was easily able to supply any domestic demand that might be placed on it. Turning the United States into the arsenal not only of itself but of the united nations resisting aggression, however, in- creased the call for practically all petroleum products and in particular 100-octane aviation gasoline and high-viscosity aviation lubricating oils. Refining Capacity With over four million barrels a day of crude oil being charged to stills at the year's end, oil refining had broken all records and faced the necessity of further increasing its size to supply the ever-increasing demand for products, some of which, like 100-octane aviation gasoline, were research laboratory curiosities a few years ago. Although the refining capacity of the United States is listed at 4,860,000 bbl., about 800,000 bbl. of this is economically unavailable because of plant location or type. To meet the increasing needs, additional capacity of another half million barrels may have to be built in suitable locations and designed with an eye toward maximum production of aviation gasoline but with inherent flexibility to make it possible to vary and interchange with production of motor gasoline, furnace oils, and other products as necessity dictates. An interesting side light on this refining capacity question was an enquiry from official Washington for knowledge as to any idle refineries of something of the order of 10,000-bbl. daily crude capacity that might be purchased for bodily removal to Russia. 100-Octane Aviation Gasoline Largest of the tasks confronting refiners at the year's end was that of raising

Jan 1, 1942

By Walter Miller

During the second year of America's active ia in the war the inain objectives of the petroleum-refining industry were again to provide the four most important product needs for war: 100-octane aviation gasoline, toluene for T.N.T. production, high-quality lubricating oils for the needs of aviation and the armed forces, and petroleum chemicals for synthetic rubber manufacture. All other materials supplied by the petroleum industry took an inferior priority ranking, depending on the degree of essentiality. To accomplish the above objectives the industry initiated and carried on a building program during 1942 and 1943 which will put those two years down in petroleum-refining history as the greatest construction years of all time, a record which will hold for decades to come. Led by an estimated total of $ 900,000,000 going into 100-octane and contributory plant investment, it is easy to picture a total of two billion dollars and more going into additional refining-industry plant investment during 1942 and 1943, most of it privately paid for, but a substantial part covered by R.F.C. Government money financing. Some of the new plants will not be completed until 1944, but a large proportion of the program was finished and put into operation, adding substantially to the output of the four principal products during 1943- lne most important and spectacuiar activity of the refining industry is of course the 100-octane gasoline program necessitated by the fact that nearly 90 per cent of the requirements of the United Nations is being furnished by the United States. Recent P.A.W. figures mention $goo,-ooo,ooo as the cost of the construction looking to increasing the output of this all-important munition. Thirty-four major plants have been completed, 11 of them during the last quarter of the year. Thirty-eight more will be completed and put into operation during the first four or five months of 1944. Twenty-two additional plants authorized during 1943 are already well under way and scheduled for production late in 1944. Early in 1942 the aim was to treble the capacity for making 100-octane gasoline then existing; later, plans were to make it five times as great, to match the increased warplane building program; and toward the end of the year the sights had been set at a still higher but unannounced target, representing six to seven times the early 1942 figure. Comparative figures issued at the end of 1943 enable one to guess a program by the middle of 1944 of eight to nine times the former production, with an ultimate production in 1944 of eleven or more times the early 1942 output. It became obvious in 1943 that building of new units would be materially slowed because of delay in getting construction materials and that they would reach operation at considerably later dates than

Jan 1, 1944

By Walter Miller

During the second year of America's active ia in the war the inain objectives of the petroleum-refining industry were again to provide the four most important product needs for war: 100-octane aviation gasoline, toluene for T.N.T. production, high-quality lubricating oils for the needs of aviation and the armed forces, and petroleum chemicals for synthetic rubber manufacture. All other materials supplied by the petroleum industry took an inferior priority ranking, depending on the degree of essentiality. To accomplish the above objectives the industry initiated and carried on a building program during 1942 and 1943 which will put those two years down in petroleum-refining history as the greatest construction years of all time, a record which will hold for decades to come. Led by an estimated total of $ 900,000,000 going into 100-octane and contributory plant investment, it is easy to picture a total of two billion dollars and more going into additional refining-industry plant investment during 1942 and 1943, most of it privately paid for, but a substantial part covered by R.F.C. Government money financing. Some of the new plants will not be completed until 1944, but a large proportion of the program was finished and put into operation, adding substantially to the output of the four principal products during 1943- lne most important and spectacuiar activity of the refining industry is of course the 100-octane gasoline program necessitated by the fact that nearly 90 per cent of the requirements of the United Nations is being furnished by the United States. Recent P.A.W. figures mention $goo,-ooo,ooo as the cost of the construction looking to increasing the output of this all-important munition. Thirty-four major plants have been completed, 11 of them during the last quarter of the year. Thirty-eight more will be completed and put into operation during the first four or five months of 1944. Twenty-two additional plants authorized during 1943 are already well under way and scheduled for production late in 1944. Early in 1942 the aim was to treble the capacity for making 100-octane gasoline then existing; later, plans were to make it five times as great, to match the increased warplane building program; and toward the end of the year the sights had been set at a still higher but unannounced target, representing six to seven times the early 1942 figure. Comparative figures issued at the end of 1943 enable one to guess a program by the middle of 1944 of eight to nine times the former production, with an ultimate production in 1944 of eleven or more times the early 1942 output. It became obvious in 1943 that building of new units would be materially slowed because of delay in getting construction materials and that they would reach operation at considerably later dates than

Jan 1, 1944

By Walter Miller

Hundred-octane aviation gasoiine, toluene for T.N.T. production, high-quality lubricating oils for the needs of aviation and the armed forces, and synthetic chemicals for rubber manufacture again commanded the top priorities of the petroleum refining industry in 1944, the third year of America's active participation in the war. The objective continued to be to produce more and more of these materials—to keep up with increasingly greater requirements. By the end of the year all of the new installations projected before 1944, with the exception of possibly two or three that will tail over into January or February of 1945, had been completed and put into operation. And with the completion and putting into operation of these various units and the consequent lessening of construction responsibilities and problems, the industry was put into position to concentrate on the new operations and devote much more of its time and effort looking toward maximum output, both as to quantity and quality from the new facilities. Aviation Gasoline Making high-octane aviation gasoline continued to be the prime requisite of refining activities during 1944 as it was in the two previous war years, with the sights at the end of the year set to still higher figures than those which had been previously projected. About July I the daily output had been raised to 400,000 bbl., with some few large plant installations still to be completed and put into operation. Indications were that by December production would be up to all requirements, with good inventories. However, although by the end of the year the industry was turning out something over 500,000 bbl. a day, the estimated requirements of the armed services had been raised by a considerable figure, owing to the greatly increased aerial activities both in the European and Far Eastern combat areas. By the end of the year, therefore, the picture had changed, with the prospect for a much longer continuation of the European war, so that even with the completion and putting into operation in the United States by January 1945 of the last two or three 100-octane units authorized prior to 1944, it was evident it would be necessary to make still greater efforts to increase output of existing facilities to keep safely ahead of the game. Efforts of the industry and the Petroleum Administration for War as well as the Technical Advisory Committee and other research and development groups are concentrated therefore on methods and means of further augmenting the produc. tion of all existing refinery facilities engaged in making 100-octane aviation gasoline and components entering into it. The goal will be reached.

Jan 1, 1945

By Walter Miller

Crude oil stocks were some 10,000,000 bbl higher on June I, 1947, than at any time during 1946 but the extremely heavy refinery runs the last half of 1947 cut crude inventories to approximately the 1946 closing level of 225,000,000 bbl. Many refiners were seriously short of crude oil during the year. This shortage was reflected in numerous advances in the posted price of crude, justified in part as an incentive for more production but more generally due to competitive bidding. Some purchasers of crude, endeavoring to keep their plants running, resorted to the payment, either directly or indirectly, of premiums above the posted price. Another common practice employed by some suppliers of crude oil was to demand refined products in exchange or trade for their raw material. The refined products picture has darkened in spite of record throughputs. Stocks of gasoline and light and heavy fuel oils were uncomfortably low at the beginning of the year and were in general still lower at the close. The rationing of some products, principally gasoline, to dealers and stations? initiated during the year, gained momentum as stocks continued to diminish. The emphasis placed by the manufacturers of oil-burning equipment on the convenience and economy of heating with oil, together with the tight situation in coal, has developed a tremendous demand for burning oils. Consumption of liquefied petroleum gas for domestic and household fuel had more than doubled in 1946 over 1943, and the demand seems to be limited only by the ability of the equipment builders to furnish necessary storage. transportation, and burning equipment. The supply situation is likely to become more acute in 1948. Demand for petroleum products is being pushed to new heights not only by the unprecedented domestic market but by a sudden and drastic upswing in estimates of military and governmental requirements. Additionally, oil exports are running far below the volume requested, amounting to less than forty percent in a recent quarter, and export licenses are reportedly being approved on the basis of urgent need *only. AX recent White House release sees little likelihood that estimated requirements of the sixteen nations participating in the proposed Marshall Plan can be met in full over its projected life—1948 to 1951. Present demand dictates maintenance of refinery operations at the highest possible level and the Bureau of Mines has forecast daily average crude runs in 1948 of 5,265,000 bbl. The Economics Advisory Committee of the Interstate Oil Compact Commission recently estimated the 1948 demand for petroleum products at nearly 6 pct above 1947. They further estimate daily average crude runs of 5,375,000 bbl in 1948, some 2 pct higher than forecast by the Bureau of Mines. Projected demand exceeds supply to the extent that Capitol Hill is reportedly investigating ways of enabling oil companies to act in concert without danger of antitrust prosecution, such as elimination of crosshauls, pooling of products, and lowering of octane.

Jan 1, 1948

By Walter Miller

Crude oil stocks were some 10,000,000 bbl higher on June I, 1947, than at any time during 1946 but the extremely heavy refinery runs the last half of 1947 cut crude inventories to approximately the 1946 closing level of 225,000,000 bbl. Many refiners were seriously short of crude oil during the year. This shortage was reflected in numerous advances in the posted price of crude, justified in part as an incentive for more production but more generally due to competitive bidding. Some purchasers of crude, endeavoring to keep their plants running, resorted to the payment, either directly or indirectly, of premiums above the posted price. Another common practice employed by some suppliers of crude oil was to demand refined products in exchange or trade for their raw material. The refined products picture has darkened in spite of record throughputs. Stocks of gasoline and light and heavy fuel oils were uncomfortably low at the beginning of the year and were in general still lower at the close. The rationing of some products, principally gasoline, to dealers and stations? initiated during the year, gained momentum as stocks continued to diminish. The emphasis placed by the manufacturers of oil-burning equipment on the convenience and economy of heating with oil, together with the tight situation in coal, has developed a tremendous demand for burning oils. Consumption of liquefied petroleum gas for domestic and household fuel had more than doubled in 1946 over 1943, and the demand seems to be limited only by the ability of the equipment builders to furnish necessary storage. transportation, and burning equipment. The supply situation is likely to become more acute in 1948. Demand for petroleum products is being pushed to new heights not only by the unprecedented domestic market but by a sudden and drastic upswing in estimates of military and governmental requirements. Additionally, oil exports are running far below the volume requested, amounting to less than forty percent in a recent quarter, and export licenses are reportedly being approved on the basis of urgent need *only. AX recent White House release sees little likelihood that estimated requirements of the sixteen nations participating in the proposed Marshall Plan can be met in full over its projected life—1948 to 1951. Present demand dictates maintenance of refinery operations at the highest possible level and the Bureau of Mines has forecast daily average crude runs in 1948 of 5,265,000 bbl. The Economics Advisory Committee of the Interstate Oil Compact Commission recently estimated the 1948 demand for petroleum products at nearly 6 pct above 1947. They further estimate daily average crude runs of 5,375,000 bbl in 1948, some 2 pct higher than forecast by the Bureau of Mines. Projected demand exceeds supply to the extent that Capitol Hill is reportedly investigating ways of enabling oil companies to act in concert without danger of antitrust prosecution, such as elimination of crosshauls, pooling of products, and lowering of octane.

Jan 1, 1948