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By V. H. Wilhelm

WITH rapidly diminishing oil reserves: a great percentage of which are uneconomical at present prices, some of the existing methods of development and production will have to undergo radical re- visions to meet the changes continually taking place in the petroleum industry. Imagination in an engineer is a great asset. The fancy of today is found to be the realization of tomorrow, and with this thought in mind, there is here presented a more or less imaginative picture which, to my mind, has a meritorious basis. Directed drilling has reached a stage of accuracy sufficient to allow the prediction that this art will be used in the future development of oil structures, especially those \\,it11 thin sand bodies 'and steep dips. Directional drilling in a number of fields in California has gratifying results. Wells which practically laid pipe lines through the oil sands have enjoyed a greater drainage radius with a consequent greater initial and cumulative production. In one field where the vertical thickness of sands was approximately 550 ft., wells drifting at an angle as great as 55 deg. fro111 vertical had over 1100 ft. of perforated pipe in contact with these sands. These wells were, and are, remarkable for their great initial pro-

Jan 1, 1936

By E. G. Gaylord

A BRIEF review of the oil conditions in California for a few years prior to 1923 is desirable for a clear comprehension of the development during that year and the results of the development. California's oil production during the five years preceding 1922 had been running from 100,000,000 to 115,000,000 bbl. annually. Crude oil stocks in storage had been declining steadily from 1915 to 1919, when there was a slight increase. They continued to decline through practically all of 1920, when they were drawn on to the extent of 11,350,000 bbl., leaving 20,930,000 bbl. on hand. In 1921, with production approximately 10,000,000 bbl. greater than the previous year, crude-oil stocks increased until, at the end of the year, there were 33,289,000 bbl. on hand. It would seem, therefore, that at the end of 1921 the so-called Pacific Coast province could absorb between 100,000,000 and 105,000,000 bbl. of oil per year, any in excess of this amount going into storage, not being, able to compete in other markets with oil outside the state. During 1922, daily production increased from 316,000 bbl. at the beginning of the year, to 500,000, at the end. This increase was the result entirely of production from the new fields, in the Los Angeles basin. In fact, considerable oil from the older fields of the state was shut-in beginning with March, 1922. As of 1922, the past development of the oil industry of California had been, in a general way, quite regular. As the need grew for more oil, pioneer drilling was increased, resulting in the discovery of new fields here and there. The good prices for crude oil that prevailed during the later part of the War and into 1921 had stimulated an extensive wildcatting campaign by California's larger oil corporations, as well as by smaller independent oil companies and by individuals. Many wildcat wells in California have required, two or three years for their completion, consequently the intensive wildcatting, which might be said to have started in California in 1917 and continued into 1922, found its greatest results with, the discovery of three very productive fields which, for all practical purposes, might as well have come in simultaneously.

Jan 3, 1924

By R. R. Templeton

THE year 1924 was particularly notable in the petroleum industry of California as it was a period in which extensive town-lot drilling, with attendant overproduction and allied problems, virtually ceased and the industry returned to a nearly normal condition. Nearly all major field operations were conducted by large operating and marketing companies; in contrast to 1922 and 1923 field operations, when small promotion companies set the pace and forced the large companies to follow. The outstanding features of petroleum development were: 1. The three major fields of 1923, namely Huntington Beach, Long Beach, and Santa Fe Springs, declined from a production of 13,042,939 bbl., in January, to 6,764,417 bbl., in December, a drop of nearly 52 per cent: During this period, Huntington Beach declined 35 per cent., Long Beach 42 per cent., and Santa Fe Springs 63 per cent. 2. Methods of pumping deep wells were improved in some particulars; this contributed toward sustaining the productions of these three famous fields above what was predicted. 3. Of the fields producing previous to 1924, only three increased in production to any appreciable degree, during the year, as the result of bringing in new wells. These fields are Dominguez, Torrance, and Wheeler Ridge. Dominguez, discovered in September, 1923, produced 56,851 bbl. in January and increased regularly to a production of 1,641,042 bbl. in December. Torrance increased from a production of 972,261 bbl. in January, to 1,783,670 bbl., in May, and then declined to 1,393,215 bbl. in December. Wheeler Ridge, discovered in January, 1923, produced 23,254 bbl., in January, 1924, increased to a high of 33,678 bbl., in September, and declined to 27,430 bbl. in December. 4. Nearly all the production that had been shut-in during 1923 was opened in 1924, except some wells chiefly in Coalinga, Fullerton, and Santa Maria districts. The opening up of this shut-in production, combined with the increased productions from Dominguez and Torrance, were the chief factors that held the rate of decline for the state to a gentle slope.

Jan 7, 1925

By Gail Moulton

THE oilfields in Illinois are located principally along the LaSalle anticline in the southeastern part of the state. The oil produced comes most largely from beds of Pennsylvanian and Mississippian age, but there is an increasing important production from deeper horizons, as will be noted under new development. The oil is largely of paraffin base, and has an average specific gravity of about 35° Baume. The rank of Illinois as an oil producer has dropped from third since 1913, when its production was exceeded only by that of California and Oklahoma, to eighth in 1923. This has been the result of failure to find new pools of considerable size to offset the declining production of the old wells and of the greatly increased production of some of the other states. The noteworthy features of petroleum production in Illinois during 1924 are: the low rate of decline for the state as a whole; the smaller percentage of dry holes; and the larger average initial yield of the new wells.

Jan 3, 1925

By Gail Moulton

THE oilfields in Illinois are located principally along the LaSalle anti-cline in the southeastern part of the state. The oil produced comes most largely from beds of Pennsylvanian and Mississippian age, but there is an increasing important production from deeper horizons, as will be noted under new development. The oil is largely of paraffine base, and has an average specific gravity of about 35° Baume. The rank of Illinois as an oil producer has dropped from third since 1913, when its production was exceeded only by that of California and Oklahoma, to eighth in 1923. This has been the result of failure to find new pools of considerable size to offset the declining production of the old wells and of the greatly increased production of some of the other states. The noteworthy features of petroleum production in Illinois during 1924 are: the low rate of decline for the state as a whole; the smaller percentage of dry holes; and the larger average initial yield of the new wells.

Jan 3, 1925

By O. C. Wheeler

In order that the series of reports on oil and gas in Colombia may be complete, the report for the year 1941, which was not available for Volume 160 of the TRANSACTIONS, is given here. The report for 1945 begins on page 4o6.

Jan 1, 1946

By O. C. Wheeler

Peru, if it is judged on a basis of its annual production rate, can be ranked seventh among the oil-producing countries of the Western Hemisphere. In 1945, as in each of the three previous years, the country again produced about 14 million barrels of crude petroleum.

Jan 1, 1946

By A. STEPHENSON

EXPERIMENTAL work conducted at the Petroleum Engineering Laboratory of the University of California by L. C. Uren, J. Domercq, Jr., and J. Mejia has shown that small diameter wells offer tremendous resistance to the flow of fluids in their immediate vicinity. This resistance is due in part to the constriction of the area through which the fluids must pass as they approach the wall of the well, but is also accentuated by the increased volume which results from gas expansion. The latter in turn is a function of the deduction in pressure, the fundamental cause of fluid movement. If the diameter of the bore is enlarged several diameters, the capacity of the well, or the volume of fluid passing per unit drop in pressure per unit of time, is greatly increased without necessitating such high fluid velocities. The fundamental features which should be taken into consideration in the design of casing joints were stressed by J. B. Graham and E. E. Smith. These involved such points as correct thread design, high efficiency, and small diameter, together with the insurance that leakage will absolutely be prevented. The practical features of such design were ably discussed by engineers from leading steel manufacturers.

Jan 1, 1935

By AIME AIME

ALTHOUGH the present economic depression is felt in the petroleum industry, probably as much as in any other branch of American industry, the Petroleum Section of the Institute was well represented at the general sessions on Monday and at all of the seven division sessions on Tuesday, Wednesday and Thursday. The seven sessions of the Division were so arranged as not to conflict and thus permitted members to hear the programs of all sessions.* The first meeting of the Petroleum Division was held on Tuesday afternoon; a joint session on engineering research and production engineering. The following papers were presented:

Jan 1, 1931

By AIME AIME

THE Petroleum Division opened its proceedings on Wednesday morning, with two simultaneous sessions on engineering and economics. The first paper at the engineering session, over which A. W. Ambrose presided, was "Underground Surveys of Oil Wells," by Alexander Anderson of Los Angeles, Calif., was presented by John Suman of the Humble Oil & Refining Co., Houston, Texas. Following this, the paper of E.'H. Griswold of the Mailand Oil Co., Houston, Texas, was presented by C. V. Millikan of the Amerada Petroleum Corp., Tulsa, Oklahoma. Following the presentation of these two interesting papers a general discussion followed on the subject of "Crooked Holes." The discussion was entered into by F. H. Lahee, Sun Oil Co., Dallas, Texas;'Messrs. Bigelow of Tulsa, H. W. Hixon of New York City, Van Court Warren of Los Anyeles, Calif; H. L. Wheeler of St. Louis, Mo.; R. R. Brandenthaler, United States Bureau of Mines, Bartlesville, Okla.; H. H. Riggs, Indiana Territory Illuminating Oil Co., Bartlesville, Okla.; C. V. Millikan and John R. Suman

Jan 1, 1929

THE fall meeting of the Petroleum Division of the American Institute of Mining and Metallurgical Engineers will be held in Fort Worth on Oct. 19 and 20. The Texas Hotel will be headquarters. for this meeting, the technical sessions being held in the ball-room of the hotel. During the evening of the nineteenth a smoker will be held at the Fort Worth Club. In working out the program for this meeting, J. B. Umpleby, vice-chairman for production engineering, considered it especially desirable to offer as complete a discussion as possible of the subject of air-gas lift, its theory and practice, and its relationship to gas-oil ratios. The entire first day will be devoted to sessions on this subject. One session of the second day will be devoted to the use of electricity in oil-field operations and the second to the handling of congealing oils and paraffin. In addition to this program there will be one or more sessions when petroleum engineering research problems will be discussed. This meeting of the Division is primarily devoted to production engineering, as will be seen from the pro-gram. During one of the sessions, however, a brief review with forecasts of the production situation will be presented.

Jan 8, 1927

By AIME AIME

TWO days of solid discussion, with barely time out for meals, characterized the Tulsa meeting of the Petroleum Division. It was preeminently an earnest gathering devoted to technical matters. Sessions were held in the Crystal room of the Mayo Hotel with luncheon served each day in the back of the same room so that talk of methods, while slightly less formal, extended right through the lunch hour. Thursday evening the Committee did provide a little relaxation in an informal dinner at the Tulsa Club where, after a brief musical program and an amusing skit by the local Herman the Great, brief addresses in non-technical vein were made by President Farish and Vice-president Rice of the Humble Company, Henry L. Doherty of Cities Service, Secretary. Bain of the Institute, and others. The presence of leading executives of a number of the oil companies at the dinner and the sessions, and the cordial approval they expressed of the work of the Division were especially gratifying. The total registration was 215 with 100 at the dinner and 70-to 80 lunching together each day.

Jan 1, 1930

By AIME AIME

THE Petroleum Division will hold two meetings this fall, one on the Coast at Los Angeles, Sept. 29, with the technical sessions in the assembly room of the California Oil and Gas Association and a banquet Friday evening at the Richfield Cafe atop the Richfield building; the other in the Southwest, at Dallas, Texas, Oct. 6 and 7, with the Baker Hotel as headquarters. Dr. Frederick M. Becket, President of the Institute, and A. B. Parsons, Secretary, will attend both meetings. Arrangements for the meetings are not yet complete but the respective local committees, working in close touch with the officials of the Division are rapidly shaping up the programs and other detail.

Jan 1, 1933

By W. E. Wrather

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

Jan 1, 1933

By C. L. Burrill

The forecasts presented in this paper constitute an attempt by the writer to predict the pattern of the consumption of petroleum products in the United States during the period of transition from war to peace. Although, in preparing the estimates, secular trends were not overlooked, greater emphasis was placed upon considerations of a cyclical character, or upon influences which might be peculiar to parts of the period. The estimates do not extend beyond the year 1950 because by then conditions in the industry should have returned to normal. The consumption of petroleum products is affected, of course, by changes in the condition of business in general. Before estimates of petroleum consumption could be prepared, therefore, it was necessary to predict the pattern of general business during the period under review, particularly the economic series that in the past have shown the closest relationships with petroleum consumption. It is the writer's view that business activity in this country (as measured by industrial production) will be higher on the average during the period between the end of the war and the year 1950 than it ever was before during a peacetime period of the same duration. When the war is over, consumers will have saved amounts of money that will be very large as compared with any previous accumulations. There is little question, therefore, as to the financial ability of consumers to purchase goods. The production of many durable consumers' goods, such as automobiles, refrigerators and radios, has been completely stopped since early in the war; also, many semidurable and nondurable consumers' goods have not been available in the quantities or the qualities desired. There is considerable needi therefore, for consumers to purchase goods after the war. The important question is whether consumers will purchase goods in "1arge enough quantities to keep our economy running at a high level. The writer answers this question in the affirmative. The mere existence of very large consumer savings lends considerable support to this view because, with such backlogs of " security," consumers can afford to spend more of their current earnings than they otherwise could. Also, several polls have been taken, which indicate that consumers expect to buy large quantities of a variety of goods. Some of the savings, therefore, probably will go into current consumption. Even though this percentage is relatively small, so that the bulk of the funds accumulated by consumers during the war continues to remain as savings during the period under review, spending should be great enough to start the production cycle and keep it

Jan 1, 1945

By G. A. Beiswenger

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

Jan 1, 1940

By G. A. Beiswenger

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

Jan 1, 1940

By A. H. Hand

When considering the question of future demand for crude petroleum in California, one must first decide whether it is to be approached in the light of the definition of "demand" when used in economics; i.e., "The quantity of any commodity required or sought in the market," or in the light of markets developed to dispose of total supply. Therefore, is the California demand of future years to be predicated on a continuation of supplying markets developed following the surplus production commencing in 1922, or predicated on supplying what would be termed economic markets ? If the latter, what are economic markets ? Obviously, the Pacific Coast States and Canada, Alaska, Hawaii and probably the Pacific side of Central and South America, can be considered as normal markets for California petroleum products. While there have been small quantities of gasoline shipped into the PacSc Coast from East Texas, transportation costs, plus import taxes in the case of foreign oil, are a sufficient barrier to justify considering that these markets will be retained. But how about our participation in Atlantic and Pacific foreign and intercoastal markets? During the five years preceding 1931 California shipped substantial quantities of gasoline to the United Kingdom and to France, Germany and Italy. During recent years our business in European markets has been restricted to occasional shipments of gasoline and Kettleman crude. This loss of business is occasioned by the development of production in the Mid-Continent, principally East Texas, and in Iraq, Rumania, Venezuela and other closer producing areas, which makes it impossible at the prevailing crude-oil prices for California to be competitive in supplying any substantial portion of these markets. It is therefore apparent that under a stabilized price structure that will return the California producer a reasonable price for his oil, future Atlantic foreign -business will be restricted to occasional spot cargo sales. As to Pacific foreign shipments which, in addition to Central and South America, consist principally of shipments to Japan, China, Australia and New Zealand: A considerable portion of the business we had with Australia and New Zealand until four or five years ago is now being

Jan 1, 1937

By Albert J. McIntosh

With petroleum consumption declining temporarily after V-J day, the oil industry is urged to use this period as a kind of stopgap to rebuild its war-depleted inventories and help cushion the effect of this decline on producers and refiners. Higher inventories should be reestablished, since recent experiences have indicated that, by and large, the present inventories of crude oil are too low even with the tremendous current production available. The following analysis indicates that inventory levels could be built up to about 490,000,000 bbl. by the end of 1947, an increase of about 40,000,000 bbl. over the reported stock estimated for the war's end. If at the end of the war the military have some 20,000,000 bbl. on hand, this inventory will either be resold to the industry or certain demands that have been assumed to be met by industry will be supplied out of these military stocks, which would leave about 20,000,000 bbl. (net) to be built up from current production. For stock rebuilding the industry could use 10,000,000 bbl. of crude plus 10,00,000 bbl. of products, totaling 20,000,000 bbl. If this were spread over a year, this would mean 55,000 bbl. a day. By analyzing the average inventories held in a year with the total quantity of goods handled during the year, the following study and tables indicate how far the inventories should increase in the immediate postwar period. Introduction For the period immediately following V-J day, most of the petroleum economists have forecast a considerable decline in the total consumption of petroleum and its products in the United States. This will be caused by the elimination of most of the military demands and the inability of civilians to immediately replace automobiles, burners, etc., and thus increase their requirements to make up for the military decline. When the automobile industry has been back on full production for two or three years, civilians will be able to consume much larger quantities of gasoline. Delay in the manufacture of new oil burners and the time it takes to construct new homes, adds up to the same story for distillate fuels. In reviewing this outlook, the question has arisen whether the petroleum industry should not use this period of lower consumption as a kind of stopgap to rebuild its war-depleted inveritories and help cushion the effect on producers and refiners of this sudden drop in requirements. Some persons have indicated that hundreds of thousands of barrels a day could be used for this purpose extending over a year or more. Refineries will be in existence, which could run over 5,000,000 bbl. of crude oil a day and crude-oil production might be running 600,000 to 700,000 bbl. a day above the demands now forecast for the period after V-J day. Reasons for. Making Inventories In order to plan intelligently for this period, the petroleum industry should determine the needs for the establishment of higher inventories for crude and petroleum products than have been carried during the war. The reasons for trying to make such a determination are as follows:

Jan 1, 1945

By C. V. Millikan, Herbert F. Beardmore

Declining Productivity Index, as considered herein, is a productivity index that has a substantially and consistently decreasing value when measured over a period of a few hours. If not recognized, it may be interpreted as representing an unsettled or unstable condition in a producing well. It forms the basis of a number of predictions as to future performance compared with the performance of wells in which the productivity index does not decline. The nost important of these are that: (I) the rate of oil production will decline more rapidly, (2) the gas-oil ratio will usually increase abnormally, (3) the amount of water ultimately produced will be negligible, if any, (4) stop-cocking will increase current production and decrease gas-oil ratio. When such relative well performance is indicated, it follows that certain reservoir performance and operating practices may be anticipated: (I) disappointing recovery, (2) longer natural flow, (3) no active water drive, (4) better evaluation of acidizing, shooting and reworking, (5) intermittent operation of wells, (6) smaller pumping equipment required. It is significant that the basis of these important predictions is bottom-hole pressure tests that can be made immediately after completion of the wells. Introduction "'Productivity index" is the number of barrels of oil produced per day per pound per square inch of differential pressure between the reservoir and the bottom of the well. "Declining Productivity Index," as considered herein, is a productivity index that has a substantially and consistently decreasing value when measured over a period of a few hours. Productivity index can be determined only when the rate of production can be stabilized. In most wells the rate of production and bottom-hole pressure are easily stabilized to give a constant productivity index for a period of many hours. A few produce so erratically as to preclude probability of an acceptable test in the usual sense. A satisfactory productivity index can be determined in some wells only by gauging the production accurately by hours, measuring the bottom-hole pressure continuously, and from these data calculating the productivity index for successive hours. Such figures frequently will have a decreasing value—that is, a declining productivity index—and when plotted on double. logarithmic cross-section paper with productivity index as ordinate and time as abscissa will be a straight-line curve. The angle between the curve and the abscissa is referred to as the rate of decline. Declining productivity index may appear to be the result of change in permeability to oil due to decreasing saturation of oil and increasing saturation of gas in the reservoir. It is possible that such is in fact the cause, but if so, more is involved than merely relative saturation of oil and gas. This seems evident because the rate of decline in productivity index is substantially the same regardless of the pro-

Jan 1, 1945