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By I. J. Logan, Warren L. Baker

By 1950 or soon thereafter facilities will be available in foreign countries for the production, transportation, and refining of about 4,305,000 bbl per day of crude oil—a volume not far short of current United States output. This is indicated by announced plans for foreign expansion, - some of the work being already under way. The projected potential production is about 1,500,000 bbl per day or 50 pct above the record-setting foreign production of 2,810,000 bbl daily in 1946. The scheduled new foreign facilities are equivalent to almost one third of the present facilities of the United States. Fears that so much additional foreign oil may flood world markets and disrupt the domestic industry of the United States are not justified. The projected foreign expansion apparently has been planned on a sound business basis, with careful consideration of the world's actual need for all the projected additional production. Materially increased world demand for petroleum promises to absorb the increased supplies without ill effect upon the domestic industry. Even by applying conservative estimates of both foreign and domestic demand, it is indicated that world requirements can absorb the projected larger foreign output and still permit continued increase in United States production. World demand would have to increase only 5.7 pct per year in the 1947 to 1950 period to absorb the prospective supply. Such an increase may be conservatively projected, in view of past and current trends. Introduction Recent announcements of plans for expanding petroleum facilities in the Middle East and Venezuela foreshadow an unusually sharp increase in foreign production in the immediate future. Therefore, the next few years will bring far-reaching changes in world petroleum affairs, with foreign petroleum production and other activities assuming much greater importance than formerly. Tabulation of figures on development already under way or planned indicates that in the next several years facilities will be available for producing, transporting and refining twice the prewar production of foreign fields and about 50 pct or nearly 1,500,000 bbl a day above their record-level output of 1946. To say that foreign fields may be producing such an enlarged quantity by 1950 is, of course, a statement of great significance to everyone connected .with the oil industry and especially to those of the American petroleum industry. A production of 1,500,000 bbl daily is equal to the combined yield of the states of Oklahoma, Kansas, Illinois, Louisiana, Arkansas, Mississippi and New Mexico. This means that within the next several years foreign petroleum facilities will undergo a new expansion equivalent to one third of the present facilities of the United States. To think of such an expansion in foreign production is to raise at this meeting the question of what this prospective foreign development means for the United States, the American petroleum industry in general, and the American engineer and technologist in particular. It is only logical to question whether or

Jan 1, 1948

By Warren L. Baker, I. J. Logan

By 1950 or soon thereafter facilities will be available in foreign countries for the production, transportation, and refining of about 4,305,000 bbl per day of crude oil—a volume not far short of current United States output. This is indicated by announced plans for foreign expansion, - some of the work being already under way. The projected potential production is about 1,500,000 bbl per day or 50 pct above the record-setting foreign production of 2,810,000 bbl daily in 1946. The scheduled new foreign facilities are equivalent to almost one third of the present facilities of the United States. Fears that so much additional foreign oil may flood world markets and disrupt the domestic industry of the United States are not justified. The projected foreign expansion apparently has been planned on a sound business basis, with careful consideration of the world's actual need for all the projected additional production. Materially increased world demand for petroleum promises to absorb the increased supplies without ill effect upon the domestic industry. Even by applying conservative estimates of both foreign and domestic demand, it is indicated that world requirements can absorb the projected larger foreign output and still permit continued increase in United States production. World demand would have to increase only 5.7 pct per year in the 1947 to 1950 period to absorb the prospective supply. Such an increase may be conservatively projected, in view of past and current trends. Introduction Recent announcements of plans for expanding petroleum facilities in the Middle East and Venezuela foreshadow an unusually sharp increase in foreign production in the immediate future. Therefore, the next few years will bring far-reaching changes in world petroleum affairs, with foreign petroleum production and other activities assuming much greater importance than formerly. Tabulation of figures on development already under way or planned indicates that in the next several years facilities will be available for producing, transporting and refining twice the prewar production of foreign fields and about 50 pct or nearly 1,500,000 bbl a day above their record-level output of 1946. To say that foreign fields may be producing such an enlarged quantity by 1950 is, of course, a statement of great significance to everyone connected .with the oil industry and especially to those of the American petroleum industry. A production of 1,500,000 bbl daily is equal to the combined yield of the states of Oklahoma, Kansas, Illinois, Louisiana, Arkansas, Mississippi and New Mexico. This means that within the next several years foreign petroleum facilities will undergo a new expansion equivalent to one third of the present facilities of the United States. To think of such an expansion in foreign production is to raise at this meeting the question of what this prospective foreign development means for the United States, the American petroleum industry in general, and the American engineer and technologist in particular. It is only logical to question whether or

Jan 1, 1948

By Joseph Pogue

THE past year in the petroleum industry was one of overproduction, rising inventories, low prices, and meagre to vanishing profits. This outcome was the result of a long period of intensive and uncompensated effort on the part of both financial and industrial interests, to stimulate supply on the theory that the primary problem facing the petroleum industry was the development of an adequate reserve of raw material to protect a large and ever-growing investment. The stimulus was applied in various forms and through diverse channels: capital had, long flowed into the industry in excessive amounts under the attraction of large expected profits; the price level for crude petroleum had persistently been influenced -by speculative considerations, with the result that prices declined slowly in periods of flush production and were quick to advance in anticipation of statistical improvement, thus maintaining a superfluous degree of stimulus on wildcatting and on drilling; speculation in inventories had led to the unsound, or at least unusual, business practice of accumulating huge stocks of oil; and, above all, the industry had directed the potent force of technology to the expansion of supply and achieved radical results in accelerating oil discovery, speeding up the rate of oil extraction, and enlarging the recovery of gasoline and lubricating oils from the raw material. In short, the economic conditions of 1927 were exactly those to which the objectively driven enterprise of the petroleum industry had long been directed; and the undesirable financial consequences arising. therefrom reflected no lack of success in what had been set out to be achieved, but rather the failure to have established concurrently the necessary means of economic control to prevent the immediate conversion of reserves into current supply, and likewise the oversight in neglecting to apply the technological force to the enlargement and diversification of the market for petroleum products. Perhaps, when viewed in its longer perspective, 1927 will stand out as the turning point in the economic policy of the petroleum industry, when the technique of rationalizing production made its, initial claim for recognition.

Jan 1, 1928

By Joseph E. Pogue

The past year in the petroleum industry was one of overproduction, rising inventories, low prices, and meagre to vanishing profits. This outcome was the result of a long period of intensive and uncompensated effort on the part of both financial and industrial interests, to stimulate supply on the theory that the primary problem facing the petroleum industry was the development of an adequate reserve of raw material to protect a large and ever-growing investment. The stimulus was applied in various forms and through diverse channels: capital had long flowed into the industry in excessive amounts under the attraction of large expected profits; the price level for crude petroleum had persistently been influenced by speculative considerations, with the result that prices declined slowly in periods of flush production and were quick to advance in anticipation of statistical improvement, thus maintaining a superfluous degree of stimulus on wildcatting and on drilling; speculation in inventories had led to the unsound, or at least unusual, business practice of accumulating huge stocks of oil; and, above all, the industry had directed the potent force of technology to the expansion of supply and achieved radical results in accelerating oil discovery, speeding up the rate of oil extraction, and enlarging the recovery of gasoline and lubricating oils from the raw material. In short, the economic conditions of 1927 were exactly those to which the objectively driven enterprise of the petroleum industry had long been directed; and the undesirable financial consequences arising therefrom reflected no lack of success in what had been set out to be achieved, but rather the failure to have established concurrently the necessary means of economic control to prevent the immediate conversion of reserves into current supply, and likewise the oversight in neglecting to apply the technological force to the enlargement and diversification of the market for petroleum products. Perhaps, when viewed in its longer perspective, 1927 will stand out as the turning point in the economic policy of the petroleum industry, when the technique of rationalizing production made its initial claim for recognition.

Jan 1, 1928

By Ernest R. Lilley

THOSE acquainted with the fundamental differences between the, educational .systems of Great Britain and. the United States would hardly expect .the training of men for the petroleum industry to proceed along the same lines- in the two countries. The youth entering an English university is, except in the case of-the student from some of the British colonies or from foreign countries, almost invariably a product of the English "public school." This is in no sense comparable .with the American public school. It is a private institution, frequently of considerable age and heavily endowed. In many aspects it seems to be comparable with the American preparatory school. Yet to some extent its activities remind one of the first years of the undergraduate: course in the American college. Certainly it takes to-itself many of the social, functions of the American college.

Jan 1, 1931

By AIME AIME

ON March 14, the University of Tulsa was accepted as a member of the North Central Association of Colleges, which ranks Tulsa among the leading universities of the country. A. G. OIiphant recently donated to the new school of petroleum engineering a splendid collection of books on geology, valued at $25,000. Waite Phillips, an oil producer and chairman of directors of The Independent Oil & Gas Co., donated $150,000 for a petroleum engineering building

Jan 1, 1929

By C. W. Brown

In the author's experience and contact with engineering students the old form of recitations had grown into the lecture system in which the student was a passive receiver of digested material. Later, the tutorial system was developed because it was felt that the lecture system was breaking down. The student was too passive and was simply trying to absorb what was given him. The seminary method was then introduced and for the particular field the author believes that there is no better method, but that for 20 years he has been trying to change the attitude of the student in certain courses from a passive, almost noncommittal, to an active participation, to change him from a receiver to a doer. The student cannot look over the whole field. That must be presented by the instructor in charge. A topic such as structure or glaciation is taken up and from that standpoint are argued all the geologic problems that might confront the engineer. Problems relating to dams and foundations, and structures, tunnels and excavations, are particularly adaptable to the method. Usually, however, the problem comes to the engineer in more complicated form. By virtue of the character of the material the same topic cannot be assigned to the entire class. Different phases of the topic must be assigned. The greatest difficulty in after life comes in that the student cannot analyze the problem and has not the ability to see that there is a problem. He has had little or no training in the gathering of material and very little training in the arrangement of a report. Consequently, selecting different problems, putting them before small groups, and then starting the student on the way to make the knowledge of his particular topic an integral part of his own mentality, is something that will fix that part of the work firmly in his mind. Professor Brown has insisted on an introductory step in a great many classes, in that without the student knowning very much more than the general outline of the topic or problem, he is made in inductive fashion to take up the entire problem, look it over, and prepare an outline as far as he can; in other words, to expose the problem to his own mind. This preliminary outline is discussed with the student and if the arrangement or logic, with regard to the end in view, are faulty, he is shown where

Jan 1, 1929

By L. C. Uren

Some of US have been impressed with the need for a better understanding of the future place of the engineer in the petroleum industry. In academic work we are continually asked to advise students as to the opportunities in different directions, to guide them in their selection of professions, and it would be extremely helpful to those in academic lines of work to have the opinion of engineers from the industry relative to the need for petroleum engineers. IS the industry going to require a continually growing number of engineers in the future years, or have we perhaps reached equilibrium in that regard ? In anticipation of this meeting, I undertook to canvass opinion among a number of engineers of my acquaintance and I have been rather astonished to learn that the expenditure on engineering salaries in the producing branch of the oil industry is extremely low. I have figures from eight or 10 of the larger oil companies and it seems to be a fair statement on the basis of these figures to say that the average American oil company is devoting less than 2 per cent. of its gross expenditures in oil production to the payment of engineering salaries. A few examples will be of interest. I shall not mention names of individual companies, but one large Mid-Continent company is spending slightly less than 1 per cent. of its gross expenditure—that is, less than 1 per cent. of the total expenditure in the producing department—on engineering salaries and about as much on engineering research, which might properly be regarded as a phase of its engineering work. Another Mid-Continent company is spending about 11/4 per cent. on engineering salaries. A large California company is spending about l1/2 per cent. The largest figure that has come to my attention is that of an important Rocky Mountain and Mid-Continent company that is spending a little more than 6 per cent., but that is apparently an extreme case. The petroleum producing industry is a highly technical business in these days. It is spending in excess of $500,000,000 annually in new

Jan 1, 1929

By W. W. Scott

The application of engineering methods to the problems connected with drilling and producing in the oil industry has led to the development of the science that is variously termed "petroleum engineering," "production engineering," "petroleum production engineering," and even Itpolitical engineering." It would require much detail to enumerate the qualifications of a petroleum engineer, just as it would for an engineer in any major industry. For those who have a genuine liking for the oil industry, there is a wide selection of pathways to achievement. The oil industry is now highly specialized. Its products are necessary to all civilized people and are indispensable in the security of our nation and also in the well-being of our families. The business structure of our country depends in a large measure upon oil, and the welfare of this group as individuals is certainly linked with the welfare of the oil industry. What Is the Trend of Engineering? The oil industry offers a fertile field of opportunity for engineering; probably more so than any other industry. The sciences of geology, physics, chemistry and mathematics are all used in some phase of the oil industry and to a very considerable extent in the production division, which embraces the geological, drilling and producing departments. In drilling and production alone, research programs of considerable magnitude are being carried on at this time, and no doubt the future will see a great deal more of this kind of work. Through the cooperation of the engineer, the equipment manufacturer, and the American Petroleum Institute, immense savings have been made by the standardization of drilling and production equipment. Drilling equipment in itself offers a wide scope for study, in that continued efforts are being made to improve the equipment so that it can be made to drill faster and to greater depths. The improvements in drilling equipment are required because new reserves of oil are being found at progressively greater depths. In order to produce such oil in competition with oil now being produced from reservoirs

Jan 1, 1937

By F. B. Plummer

PETROLEUM ENGINEERING deals with the production, transportation, and refining of crude oil. Refining is chiefly the work of the chemical engineer; production, that of the petroleum engineer. Production engineering only is discussed in this paper. Petroleum production engineering is closest related to and, in fact, is a branch of mining engineering. Formerly, many petroleum engineers were trained as mining engineers or mining geologists. The profession is related also to mechanical and civil engineering to about the same extent that mining engineering is. Petroleum production draws upon the mechanical branch for drilling and pumping machinery and upon civil engineering for the construction of transportation lines, water supplies, and water-disposal plants. Fundamentally, petroleum production engineering deals with the removal of the oil from the reservoir rocks, just as mining is concerned with the removal of ore. The process of oil production demands a specialized knowledge just as distinct from mechanical and civil engineering as mining is distinct from operating a Diesel engine. Even though the chief tools of the petroleum engineer are the drill and the pump, these may be of little avail, and certainly not efficient, if their selection and use is not based on a knowledge of the physical chemistry of oil, the geology of the formations, the structure of the oil sand, the hydrodynamics of the reservoir, and the interrelation of all these many factors.

Jan 1, 1936

By Lester C. Uren

Today, a dozen or more universities and colleges in the United States are offering curricula designed for the specialized training of engineering students who plan to enter the petroleum industry. Many hundreds of students are following these curricula in their academic preparation, with the expectation that by so doing they will be better equipped to enter the petroleum industry in an engineering capacity than their competitors that seek to do likewise with training of less specialized character. Those who have helped plan and develop these curricula believe that such specialization should and does afford the student a superior preparation for his task. Others have questioned this and urge a broad preparation in fundamentals without specialization. Still others are suggesting even greater specialization than present petroleum engineering curricula afford. Some would have the student first prepare himself in one of the more general divisions of engineering, such as civil, mechanical or electrical engineering, and then seek some degree of specialized preparation in a graduate program. Which of these views is correct; or, if there is merit in each, which plan offers the greater advantage to the student? It is time that we paused to take stock of our objectives and of our way of attaining them. Is the training received by our petroleum engineering students what it should be? To what extent is the product of our petroleum engineering schools meeting the requirements of the industry? How may graduates be better equipped for the work they are called upon to do? These are questions that educators interested in the training of petroleum engineering students are ever asking. They must depend upon engineers and executives engaged directly in the industry for advice and helpful suggestions in better planning the training to be offered to our future engineers. This paper will have served its purpose if it is successful in focusing attention of men active in the industry on some of these educational problems, to the end that the ideas of men close to the needs of the industry may be made known to those who have responsibility in the control of our educational programs.

Jan 1, 1937

By Harry H. Power

INDUSTRY has the right to expect the petroleum engineering schools to supply more than the minimum technical qualifications necessary to obtain or discharge the responsibilities of a particular job. The basic training, social and economic orientation, should go far beyond these minimum requirements. Petroleum engineering students should also be well grounded in the history of the oil business so that they may understand the industry's progress since the advent of the Drake well. Furthermore, according to P. H. Bohart, the schools "have a definite duty to help the students form a workable philosophy of life, which includes an appreciation of the service of science to mankind, and a belief in the obligation of the individual who enters a profession to exalt himself by continuing his studies and growth so that he may never cease making contributions to the advancement of science and industry."

Jan 1, 1948

By E. DeGolyer

WAR has wrought sharp and sudden changes in the pattern of the oil industry. The most obvious and most striking of such changes have been in the fields of transportation and refining. A third of the world's total oil production formerly started to market, tanker-borne, over the waters of the Gulf and Caribbean. Most of this oil went to our North Atlantic ports, supply points for the world's greatest consuming center. This tremendous traffic, disrupted by the loss of tankers as a result of requisition for military purposes and by the activity of enemy submarines, has had to be substituted largely by such lines of supply as could be improvised without loss of too much time. No single solution for this gigantic problem has been found nor is it likely to be entirely solved for some time to come. It has been solved in part, however, by rearrangement, reversals, and patching up of existing pipe-line systems; by overland transport of crude and products in tank cars on a scale never before attempted; by barging over inland waterways; and through the construction at long last of the "big-inch" line, the first leg of which is just being put into operation as far as Norris City, III. The tank-car traffic alone, reaching a peak of deliveries of 856,710 barrels per day into District 1 during the week ending Sept. 19, 1942, and accomplished at an expense of millions of dollars in extraordinary transportation costs, defrayed by the Defense Supply Corp. and by the mobilization of tank cars from all over the nation, is a story worth the telling but by some of those who directed it.

Jan 1, 1943

By F. G. Clapp

IT is to be hoped that no casual reader will erroneously refer to the latest publication' of the Division of Public Relations of the American Petroleum Institute, as being "Petroleum Facts and Fancies." The facts are so faithfully derived and the figures are so authentically sponsored by the highest sources that no person can read this valuable volume (287 pages and numerous tables) without being convinced that every- thing therein set forth is "the truth and nothing but the truth." Yet, having read the volume from the perspective of the world's petroleum industry and with a critical attitude that comes from years of study of the subjects discussed, I find myself tempted to cogitate and to envisage a few of the fancies that come to mind as a fitting sequel.

Jan 1, 1929

By H. F. Beardmore

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

Jan 1, 1947

By George A. Hill

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

Jan 1, 1940

By Ernest Robinson

SINCE the early nineties, there has been a persistent belief in some minds that petroleum in commercial quantities exists in Montana. It is, however, only comparatively recently that commercial produc-tion has been secured. . The earliest deep boring in the plains region of Montana was made in what is now Blaine County, in 1890, by the town of Chinook in an effort to secure artesian water. The well reached a depth of 956 ft. without developing an adequate supply of fresh water, but the drillers reported shows of oil and gas. In 1892, the Quartermaster's Depart-ment of the U. S. Army drilled a hole at Fort Assini-boine, northwest of the Bearpaw Mountains, in essentially flat-lying sediments to secure water for the military establishment. This well reached a depth of 1500 ft. and shows of oil and gas were reported. In 1903 and 1904, two wells were drilled within what is now the Glacier National Park in an effort to develop oil production. Shows of oil and gas were encountered at several horizons but no commercial production was brought in. The extraordinary geological conditions in the area where these wells were drilled should be mentioned. The thrusts from the southwest which, in other places along the Rocky Mountain front, resulted in folding, here developed the great Lewis overthrust fault. It is in fact largely to this fault that the magnificent scenery of the Glacier Park is due. A great thickness of Algonkian strata belonging to the Belt series was thrust northeastward over the upper Cretaceous sediments. The derricks under which the wells referred to were drilled were in moun-tains composed of very old rocks but the holes were drilled through Cretaceous sediments.

Jan 7, 1923

By C. V. Millikan

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

Jan 1, 1931

By LESTER H. WOOLSEY

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

Jan 1, 1921

By R. L. Dunsmore

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

Jan 1, 1931