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By F. N. Speller

Interest in the corrosion problem seems to continue without abatement and is bringing practical results. At least four important conferences on this subject have been held during the last 5 months. Those interested in steel-frame structures are taking steps to study vulnerable points on account of the failure of some minor parts in certain buildings after 35 years of service. The steam power-plant group, including the railroads, realize the importance of a better knowledge of corrosion, especially under modern high-temperature boiler operations. The chemical and refrigerating industries have already conducted a systematic study of depreciation of metals by corrosion, for which they have spent considerable money and time during the last 2 years with encouraging results. More has probably been done to control corrosion in the atmosphere and in closed water systems, because the work on these phases of the problem started over 15 years ago and the important factors are now fairly well understood. As a result of all this work, there is now little excuse for corrosion in water conduits, recirculating condensers and cooling systems, since economical means of prevention have been worked out to meet nearly all situations where such corrosion occurs. The entire Baltimore water supply was treated with lime at a cost of only 35 c. per million gallons and the rate of attack on the pipes has been reduced to not over 20 per cent. of what it was before the treatment. Yearly damage to water mains in Baltimore is estimated at $300,000, and in New York City at $5,000,000, not including damage to water conduits in buildings. In some cities corrosion is now recognized by water works' engineers as a major problem. In the oil industry, there are evidently three general classes of corrosion, relating to: (I) Production, (2) transportation, and (3) refining. (1) Production.—Some fields, those of California for example, have little corrosion trouble in the wells. In others this is a major problem and should be a strong incentive to the development of more resistant metals at a reasonable cost. E. G. Woodruff,' consulting geologist, has pointed out that more of the oil of the future will probably come from the

Jan 1, 1927

By Arthur Knapp

The petroleum industry is confronted with the problem of conservalion. This is not a simple problem in view of a wide difference of opinion among authorities as to whether conservation is necessary and the specific direction that it should take. Many writers accuse the petroleum industry of wasting the natural resources of the country. Others link the consuming public with the industry in this waste. Let us define our terms; agree, if possible, on where and when waste occurs in connection with either the recovery or use of petroleum and select such plans for conservation as appear most practical. A plan for conserv3tion which appears to be logical today may not meet the problem tomorrow. The conservation of petroleum is closely linked with the advancement of marly arts and sciences and as these advance, the plan of conservation has to change. The need for conservation does not necessarily rest upon the elimination of waste. There is not necessarily a fixed connection between waste and conservation. Conservation may be necessary or desirable although there is no waste. Definitions Waste: Useless or unnecessary expenditure. Conservation: The preservation of the natural resources for economical use. Both definitions contain adjectives the interpretation of which is extremely difficult. It is the determination of what expenditures are "unnecessary" or what uses are "economical" that will require study and agreement. If one lets his automobile engine run in cold weather in order to keep it hot, it is difficult to measure that necessity. If an automobile is driven two blocks, when the driver is physically capable of walking, what is the measure of necessity. This question is in the realm of one of the oldest of sociological problems, "What is a luxury?"—a problem which has not been solved. The history of society indicates that the measure of a man's wealth has been the measure of necessity. What he can afford to buy without stinting himself in some other direction, is not a luxury to him and, if it fulfills his desires, may be considered his necessity.

Jan 1, 1927

By AIME AIME

A SPECIAL meeting arranged by the Petroleum and Gas Committee of the American Institute of Mining and Metallurgical Engineers was held on Tuesday and Wednesday, Sept. 21 and 22, in the Assembly Room of the American Annex Hotel, St. Louis, Mo. Preceding the first session on Tuesday morning, the members and guests were registered and presented with the usual Institute badges. The morning session was opened at 10:30 by Ralph Arnold of Los Angeles, Calif., Chairman of the Petroleum and Gas Committee. In his opening remarks, he suggested that the petroleum section specialize more and more on the technical problems of the oil industry and that an effort be made to enlarge the membership of the Institute among the technical men of the industry. The following program was presented : OIL FIELDS OF RUSSIA, by A. Beeby Thompson and T. G. Madgwick, of London, England. Presented by H. A. Wheeler; discussed by Arthur Knapp and R. VanA. Mills. This most comprehensive paper was one of what is hoped to be a series to be presented by some of our foreign members. It is by far the best description in English of the world-famous Baku and other fields of Russia.

Jan 1, 1920

By Ralph H. Espach

Wyoming contains many petroleum and natural-gas fields, and more than 250 geological structures have been mapped; however, only about 85 have been found (July 1938) to contain petroleum or natural gas, or both, in commercial quantities. To January 1938 approximately 434 million barrels of oil and 915 billion cubic feet of gas have been produced, and it was estimated that proved oil reserves in Wyoming amounted to 300 million barrels.' The Salt Creek field, the largest in the Rocky Mountain area, alone has produced 64 percent of the State's oil and 46 percent of its gas. This field ranked thirteenth among the producing fields of the United States in total cumulative production as of January 1, 1938. On this basis it ranks with the Kern River and Huntington Beach fields of California and the Butler County fields of Kansas. The Salt Creek field has declined in relative importance; in 1937, while still the largest oil-producing field in the State, it produced 31 percent of the oil and 11 percent of the gas extracted from all wells in Wyoming.

Jan 1, 1941

By H. D. Wilde

GREAT emphasis is being placed today on petroleum as a source of chemicals. Such prominence is well merited, for rapid strides have been made in developing processes for the conversion of petroleum into synthetic chemical products, which are now being made on a huge scale. These marvelous accomplishments have resulted in some highly optimistic predictions as to what can be expected in the future. Many of these forecasts are well justified, but some writers, especially those contributing to the Sunday supplements and the popular-cience type of publications, have let their imagination run wild and present a rather distorted picture of the possibilities in this field in the postwar period. Commercial manufacture of synthetic organic chemicals had its beginning in England with the establishment of a plant by Sir William Perkin in 1857 for the manufacture of "Aniline Purple" or "Mauve." The preceding year he had discovered in the laboratory how this dyestuff could be made from aniline, one of the many derivatives of coal tar, and he soon made commercial application of his discovery. Influenced largely by his success, organic chemists began research on production of a vast array of synthetic dyestuffs, medicinals, flavors, scents, and explosives. Rapid progress was made and by the turn of the century hundreds of these products were being manufactured. Most of these synthetic chemicals were derived from materials obtained as by-products in the conversion of coal into coke. These by-products are generally referred to as "aromatics" and are obtained by processing coal tar recovered in the coking process, so they are popularly known as "coal-tar chemicals." During the early years of this century, coal-tar chemistry was the wonder of the age, and rightfully so, since the products so made seemed limitless.

Jan 1, 1944

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 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 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 D. B. Williams

The end of the war in Europe and the Pacific failed to curb the upward trend of production in Venezuela,- which easily surpassed that of any previous year. The total production for 1945 amounted- to 323,369, 430 bbl., which was 26 per cent over the total for 1944, the previous peak in the history of the oil industry of the country. This increase was caused mainly by the greater demand for petroleum in the last stages of the war; the fact that the danger from enemy submarines had been overcome, which allowed all oil companies to use increased shipping facilities, and the fact that more materials were available for drilling operations. However, the materials supplied were by no means adequate and considerable credit is reflected on the Venezuelan petroleum industry for the increased production obtained by utilizing all available equipment to its fullest extent.

Jan 1, 1946

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

DESPITE the fact that its membership is spread over every continent of the globe, the Petroleum Division was able to report a very substantial attendance at its meetings. Careful planning on the part of its chairman, J. B. Urnpleby, and his associates resulted in the presentation of a program that was of timely interest -and led to discussions that will unquestionably prove to be of major value to the petroleum engineer and to the oil industry in general. Scheduling of meetings so as to avoid all conflicts made it possible to obtain a higher average attendance at the several sessions* than in previous years, and gave everyone a chance to hear all of the papers that he was interested in. The chairmen of the various meetings are to be congratulated especially for their skill in handling them so that at .no time was there the least indication of lagging interest.

Jan 1, 1930

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

By AIME AIME

THIS year the Petroleum Division holds its fall meeting at Houston, Texas, Oct. 2 and 3, with head- quarters at the Lamar Hotel. Technical sessions will be held in the morning and afternoon of both days. A smoker on Friday afternoon will afford an opportunity to get together socially. Saturday evening is left free for private parties to the beach at Galveston, where a wide variety of entertainment is available. On Oct. 4 there will be an excursion to Sugarland oil field, with luncheon at Boling and a visit to Boling sulfur mine and plant in the afternoon. There are nine technical papers on the program for Friday. Saturday morning will be devoted to oil production control and it is planned to make the discussion more

Jan 1, 1931

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 AIME AIME

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

Jan 1, 1930

By 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 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 Campbell Osborn

From the viewpoint of practical economic engineering the main value in studies of demand and supply lies in the information they give concerning the next movement of price. The title of this discussion is too comprehensive for detailed analysis and it will, therefore, be narrowed to the question of price measurement. The oil operator is interested primarily in net profits. Prices, costs and production determine them. Production is here used in its broadest sense. It includes refining and marketing. It is an operating problem. Prices and costs are economic considerations. Though costs are an important element of prices and profits, the subject is too large to be treated in a brief paper of this sort. In the long run, costs govern prices, but for the purpose of gaging prices in the immediate future the relationship of current demand and supply are more significant. Operating, expansion, retrenchment, sales and storage policies of oil companies are largely influenced by the feeling of executives concerning this relationship. The stockholders of companies whose executives are wrong may suffer. Investors who err in their judgment may likewise lose. On the other hand, oil companies and investors who appraise these factors correctly and move accordingly will profit. It is an important subject worthy of careful consideration. The author has been asked to discuss the subject for 1928. From the beginning of the year until the first of June, as illustrated by Fig. 1, over-supply prevailed in the face of restricted production, but from June to September, with record consumption, demand slightly exceeded supply and oil came out of storage in the United States as a whole. One of the main problems of the oil man is to decide whether this condition will continue and what the next movement of prices will be. Before he can do so he must have an understanding of the underlying conditions and of the facts that led to the present situation. With these facts in mind he is in a position to measure the effect of the present relationship of demand and supply on price and is afforded a perspective that may enable him to look ahead for a short period of time. The practical

Jan 1, 1929