Search Documents

By V. F. Marsters

THE oil-producing territory of Peru is confined to the province of Tumbes and the department of Piura, located in the extreme northern end of the republic and adjacent to the southern border of Equador. The first real production came from Zorritos field, located on the shore line and in the province of Tumbes. The production of this territory was soon exceeded by that of the Negritos field, also located along the shore line and in the northwest corner of the department of Piura. Talara, lying a short distance north of the original or early producing area was made the shipping port. This field was developed by the London Pacific Petroleum Co.; it is now-operated by the International Petroleum Ltd. (Toronto, Canada). A little later, the Lobitos field came into prominence; it was first exploited by the Lobitos Oil Co. At present, it is operated by the British Oilfields Ltd. This field is located between Talara, on the south, and Zorritos, on the north. It is now the second largest producing area in the country, the Negritos being by far the largest both in area and production. In other parts of Peru, there have been periods of desultory prospecting, particularly in the department of Puno. This work was carried on in the surrounding region of what,is locally known as the "Pirin" field, developed by the Brown Brothers. It lies between Juliaca, a railway junction point and Lake Titicaca. No favorable results from the latest prospecting have been reported. During the past few months, an opinion has been expressed in various journals that it is doubtful if commercial production will be found in the high plains of the Lake Titicaca region. It is, however, due to the Peruvian oil industry to remember that the Pirin field, although covering but a small area, was a fair producer even under adverse circumstances. If the author's interpretation of the geology of the Titicaca section is correct, certain sections of the high plains will be found to be commercially productive, not-withstanding the unfortunate geographical position from the standpoint of transportation; or its elevation.

Jan 3, 1925

By Joseph Pogue

IT is well known that one of the cornerstones of economic theory is the so-called law of supply and demand, which, really, is a group of economic laws, one of which may be succinctly stated A rise in price tends, sooner or later, to increase supply. It is the fear that, in the case of petroleum, a limited' natural resource, a point will soon be reached when supply will not respond adequately to price advances, which in recent years has prompted a movement for oil conservation. This movement has lately taken concrete shape in the appointment of 'a Federal Oil Conservation Board by the President. An important aspect of the law of supply and demand is that the supply of any commodity, is not an entity per se, but is a factor of price. Supply, without the specification of, price, has no exact meaning; and, in practice supply cannot be divorced from considerations of price. Mathematically, supply may be expressed by the formula SP, which means that supply varies with price, just as the value of 10 raised to the x power varies with x. In its technical usage, supply is the, quantity of a commodity that is bought currently on the market at a given price. In the case of a natural resource, however, this quantity will eventually depend not alone on price but on the physical volume of the reserve that exists and that, in consequence, can respond to the stimulus of price. If this reserve is fixed in size, we must sooner or later reach a point where supply can no longer respond to price in the usual degree and a permanent shortage will develop which no advance in price can correct, except in so far as higher prices may curtail demand or improve the efficiency of utilization. This statement brings us to the examination of amore fundamental aspect of the law of supply and demand as applied to natural resources; namely, that natural-resource reserves are not fixed in size: just as the current supply of a natural-resource commodity is a function of price, so its reserve is likewise a resultant of price. Natural-resource reserves; therefore, have no exact meaning without the specification of price, and in practice their measurement. cannot be divorced from considerations of

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 P. Martignan

UNTIL quite recently, Alsace was the only district in France where petroleum could be found in somewhat industrial quantities. The Pechelbronn fields produce, however, only about 80,000 tons a year, which represent approximately one-eighth of the domestic consumption. Much research work has been done in Alsace to find the prolongation of the Pechelbronn fields, but instead of oil the drillings revealed the existence of large deposits of potash. This can be easily explained when one remembers that the Pechelbronn oil is of the Oligocene period, and that in the Alsatian stratification the Oligocene lies immediately on the Keuper, i. e., on the strata that originate from a period during which the largest salt and potash deposits were constituted. Before the war, and mostly at the end of the last century, some wells were drilled in. various districts of France where some analogies could be found with the Alsatian geology, the borings being mainly made in the Triassic and Tertiary beds. They led to negative results. After the war, the growing importance of oil urged the necessity of resuming the explorations. But it. is our belief that this was greatly facilitated by the enacting of new legislation, which is embodied in the Mine Act of May 16, 1922.

Jan 3, 1925

By J. A. Bownocker

THE production of oil in Ohio, in 1924, was characterized by no marked or surprising change. Low prices and the absence of promising territory made the year quiet. As is well. known, Ohio has reached a state of "settled production," and the most that can be expected for the ensuing few years is to maintain the output at approximately the present figure 1921 7,335,000 1922 6,781,000 1923 7,085,000 Geographically, the Ohio fields may be divided into three areas, each of which gets its main supply of oil from a different stratigraphic horizon.

Jan 3, 1925

By J. A. Bownocker

THE production of oil in Ohio, in 1924, was characterized by no marked or surprising change. Low prices and the absence of promising territory made the year quiet. As is well known, Ohio has reached a state of "settled production," and the most that can be expected for the ensuing few years is to maintain the output at approximately the present figure 1921 7,335,000 1922 6,781,000 1923 7,085,000 Geographically, the Ohio fields may be divided into three areas, each of which gets its main supply of oil from a different stratigraphic horizon.

Jan 3, 1925

By L. G. Huntley

THE only oil produced in Colombia during the past year has been that from the Tropical Oil Co. concession, operated by the International Petroleum Co. This has been about the same in amount as that of 1923, or approximately half a million barrels gross, which has been used to supply the domestic requirements of the republic and for the company's own use, in about equal proportions. The Tropical Oil Co.'s field at Infantas has 17 producing wells, for the most part shut in. The company claims an average initial production of about 1000 bbl. each for these wells, which would represent a total potential production of 10,000 bbl. However, the area already outlined by this work is considerable, as drilling has apparently been carried on with the idea in mind of blocking out the field, rather than developing the greatest possible production. Therefore, whether or not the pipeline of the Andian National Corpn. is being built to take care of the amount of crude production admitted by the Tropical Oil Co., or a greater prospective amount, it is certain that this production could be quickly increased if desired.

Jan 3, 1925

By Job Goostray

IN THIS paper, as in so many other discussions of historical nature, there is little chance for original material and much has had to be rewritten from older papers, documents, accounts, reports, and the like, some of which are of doubtful authorship or contain conflicting statistics. Fully aware of these little historical pitfalls, the authors have tried to quote the origin where possible, and also to seek further confirmation when the statement warranted it, but cannot assume responsibility for certain facts and dates. The Encyclopedia Britannica was frequently consulted. The authors wish to acknowledge assistance from MacKintosh-Hemphill Co.-formerly the Fort Pitt Works-and also from officials of the Watertown Arsenal who loaned valuable books and gave much necessary information. They are particularly indebted to Colonel Dixon of that institution. The data on modern guns were furnished by Mr. F. Brauer of the Watertown Arsenal; Mr. H. S. Chaffee assisted by obtaining records and data of work carried on by the Builders' Iron Foundry of Providence, R. I.

Jan 3, 1925

By H. Case Willcox

AERIAL photographic surveying and mapping is not new or unknown to geologists. However, it has been utilized but little before, principally because it is only within the last few months that practical means of adapting this method to the requirements of petroleum companies have been discovered. No American aerial survey company has taken up aerial surveying and mapping as an engineering service to be offered to petroleum companies and their geologists for use in undeveloped and jungle-covered petroleum areas. This method of surveying and mapping, however, is used by the War Department, the U. S. Reclamation Service, and Geological Survey, and the corresponding Departments of the Canadian Government. ADVANTAGES OF AERIAL PHOTOGRAPHIC SURVEYING AND MAPPING The advantages of aerial photographic surveying and mapping to petroleum companies and their geologists are many. One of the most valuable is presented in the very first phase, or the exploration period. It is assumed that, when convinced that petroleum possibilities are present, a petroleum company has secured a concession of 8000 sq. mi. of unexplored area in Eastern Venezuela. The company may either have the entire area surveyed and mapped by the aerial photographic method, or send its chief field geologist up in an airplane so that he, from-an aerial reconnaissance, may reject certain portions that, for geological reasons, the company would not be interested in. He will then point out the regions that are to be surveyed and mapped. After the air-work is completed, the results are brought down, developed, and printed; then the resulting "contact prints" are given to the field geologist. They may be roughly assembled to give a general idea of the property in its entirety, or they are in shape to be examined in adjoining pairs under the stereo-scope. With this instrument, the geologist is enabled to make a minute examination of surface indications. The work of assembling and constructing a complete general or detailed map, according to the scales desired by the petroleum company and for the later office use, is continued by the aerial photographic company.

Jan 3, 1925

By C. H. Jr. Herty

THE removal of sulfur from steel has been studied by many investigators, but the quantitative relationships between the factors involved have not been determined. This is undoubtedly due to the number of variables encountered in practice, an attempt to study any one reaction or relation being affected by other reactions the relative importance of which cannot be estimated. The factors that affect the extent of removal of sulfur in the basic open-hearth process are generally considered to be: 1. Basicity of the slag: (a) Iron oxides in the slag; (b) carbon in the metal, or carbide in the slag; (c) temperature. These factors affect the reactions: FeS + CaO = CaS + FeO FeS + CaO + C = CaS + CO + Fe. 2. Amount of sulfur in the gas. 3. Amount of manganese in the metal. The factors which affect the rate of removal of sulfur include, in addition to these 4. Fluidity of the slag: (a) Normal changes in fluidity with temperature; (b) changes in fluidity because of the addition of special reagents such as fluorspar. 5. Agitation of the bath.

Jan 3, 1925

By L. G. Huntley

THE only oil produced in Colombia during the past year has been that from the Tropical Oil Co. concession, operated by the International Petroleum Co. This has been about the same in amount as that of 1923, or approximately half a-million barrels gross, which has been used to supply the domestic requirements of the republic and for the company's own use, in about equal proportions. The Tropical Oil Co.'s field at Infantas has 17 producing wells, for the most part shut in. The company claims an average initial production of about 1000 bbl. each for these wells, which would represent a total potential production of 10,000 bbl. However, the area already outlined by this work is considerable, as drilling has apparently been carried on with the idea in mind of blocking out the field, rather than developing the greatest possible production. Therefore, whether or not the pipeline of the Andian National Corpn. is being built to take care of the amount of crude production admitted by the Tropical Oil Co., or a greater prospective amount, it is certain that this production could be quickly increased if desired.

Jan 3, 1925

By A. Beeby Thompson

ALTHOUGH the exclusion of foreigners and private owners from participation in the development of the Russian oil fields prevents first-hand information being obtained, both official and private news indicate a growing appreciation of the value of the country's oil resources. Notwithstanding the suppression of that initiative and energy which only ambition can adequately stimulate, the industry is progressing and exports of products are assuming an importance that cannot be disregarded as an economic factor in the world's oil business. The following notes and observations must be regarded mainly as the views of one who has closely followed the fortunes of Russian oil, when considering the changes that have taken place in geological knowledge and oil-field technique, which have so profoundly modified oil-fields methods. Russia is fortunate in having retained the services of a few scientists and technologists whose devotion to science has superseded their personal inclination, and to these few men must be attributed the slow, but nevertheless striking, progress that has been made. The productive oil fields of Russia are centered around the Caspian Sea which, with its connected river system, constitutes such an ideal means of internal distribution for products. From the group of oil fields of which the city of Baku forms a center, oil is pumped to Black town, a suburb of Baku, where all the refineries are situated. The next important group of oil fields is located in the Terek district near Grosny, where refineries are erected and the products are piped or carried by tank cars to Petrovsk for the internal Russian market, or sent to the Black Sea by rail. A third oil field is spread over the province of Uralsk, north of the Caspian Sea, the main port of outlet being Gourief, at the mouth of the River Ural. In Trans-Caspia there are two oil-field centers, one near. Krasnovodsk on Chelekan Island, and one in Central Asia at Ferghana. The product of the former fields is transported to Baku for treatment, while the output of the Turkestan field is refined and consumed locally, mainly by the railway.

Jan 3, 1925

By Valentin Garfias

ALTHOUGH Mexico still ranks second in importance as produce for petroleum, the output in 1924 was 7 ½ per cent. less than in 1923 and 30 per cent. less than the peak production of 1921. The decrease may be partly accounted for by labor troubles and revolutionary activities early in the year, although undoubtedly the main factor was the continuous rise of the salt-water level in the South Fields, causing a decline of 24,000,000 bbl. in the production of light oil. Since the middle of 1923, the production of heavy crude has been greater than that of the lighter grade and, in 1924, the output of heavy crude was 2 ½ times that-of the light oil. DEVELOPMENT Drilling operations in the Mexican fields were probably more active in 1924 than in any other year, the greatest activity taking place in the Cacalilao and neighboring fields; toward the end of the year there was an added number of wells drilling in wildcat areas. The number of wells drilled in proved territory was almost twice that of the previous year, the increase taking place in the heavy-oil fields north of Panuco, as only 78 of the 710 wells completed were drilled in the Southern Fields. The percentage of successful completions decreased from 45 per cent., during 1923, to about 38 per cent., during 1924; there was also a noticeable decrease in the average flush production of the new wells. It is interesting to note that notwithstanding the increased drilling activity, the total production declined over 10,000,000 barrels. In the heavy-oil district, 632 wells were completed but only 231, or 36 ½ per cent., were commercially productive. The develop-ment in the Cacalilao area reached its peak in April and May, or about the time the first serious salt-water encroachments took place. Development in the old Panuco and Topila fields was more active than during the previous year, although the salt-water level continued to rise, the high price of crude making such development advisable especially for companies having to protect large-investments.

Jan 3, 1925

By David Donoghue

THE. years 1901, 1910, and 1924 may be considered as the beginning of new eras in the history of the oil industry of the Gulf Coast of Texas and Louisiana. Spindletop, in 1901, with its enormous cap-rock production revealed the possibilities of the salt domes. The lateral sand development at Vinton, in 1910, renewed interest in the then known domes which were non-producing, or were producing from the cap rock or from sands above the cap rock. The discovery of three domes, Nash, Orchard and Long Point, in the year 1924, by means of the torsion balance and the seismograph, is the beginning of intensive explorations of the Gulf coastal plain by geophysical methods. Domes other than those mentioned have no doubt been found during the last few months of the year but tests have not been drilled to confirm the evidence of the instruments. DISCOVERY OF DOMES BY GEOPHYSICAL METHODS The Rycade Oil Corpn. operated the first torsion balance on the Gulf Coast in October, 1922, and the Roxana Petroleum Corpn. brought in one of these instruments and began work in December, 1922. The U. S. Coast and Geodetic Survey made some gravity observations at Damon Mound, in 1923, with a pendulum apparatus. In March, 1924, the Marland Oil Co. placed the first seismograph on the Gulf Coast and the Gulf Production Co. followed with one in May. In June, 1924, the Gulf Production Co. began operations with a torsion balance. The Atlantic Oil Producing Co., The Texas Co., and others have experimented with several types of instruments involving various principles. During the next few years, a great advance in geophysical methods may be expected, especially if one of the newly discovered domes should be productive. The first dome discovered was the Nash, in Fort Bend County, Tex., about 6 mi. east of Damon Mound. A slight elevation and two shallow wells containing sulfurous waters made the locality somewhat interesting from the standpoint of surface indications, and the torsion-balance measurements indicated the presence of a dome. On July 20, 1924, the Rycade Oil Corpn. No. 1 Wisdom encountered lime at a depth of 634 ft. and anhydrite at 639 ft. The hole was abandoned on Sept. 8, 1924, at 769 ft. in anhydrite. A cavity in the anhydrite caused much delay and the final abandonment of this test.

Jan 3, 1925

By C. Max Bauer

THE most important development in the petroleum industry in Montana, during 1924, was the bringing in of the Hepp well on May 12, by the Midwest Refining Co. This followed three years of active prospecting and drilling in the state by this company. The well is located 35 miles west of Billings, in Stillwater County, and makes a high-grade paraffin oil from the Dakota sand at a. depth of 3825 ft. After flowing for several months at the rate of 150 bbl. per day, the well has been shut in for lack of storage, awaiting further development in the field. TABLE 1. Production Cat Creek and Kevin-Sunburst Fields Month Kevin-Sunburst Pipe- Estimated Cat Creek Pipeline Estimated line Runs Fuel Oil Used Runs Fuel Used January 3,214 0 133,400 140 February 3,250 0 134,248 490 March 11,989 595 163,129 910 April 116,897 1,155 125,918 980 May 179,726 2,310 152,179 770 June 126,131 2,697 122,270 910 July 132,173 2,170 118,034 770 August 202,001 2,695 142,313 1,120 September 187,201 2,135 110,012 350 October 162,589 1,995 121,683 350 November 130,392 2,520 139,900 350 December 107,465 1,780 124,169 0 Total 1,363,028 20,052 1,581,255 .7,140 There are two producing oilfields in the state-the Cat Creek and the Kevin-Sunburst, which produced a total of 2,971,475 bbl. in 1924. The only other field of proved value is Soap Creek, which contains a heavy black oil and is shut in for lack of marketing facilities. Gas is produced for local use at Havre, Chinook, and Baker, and a carbon-black plant is located at Baker.

Jan 3, 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 W. Francis

OF THE methods that have been used for studying the chemical composition of coal, attack by reagents has not, in general, yielded much information. Most of the reagents used have been strong oxidants such as nitric acid or Schulze's solution. The use of a milder oxidizing agent, such as air at low temperatures, enables progressive changes in the character of the coal substance to be studied and thus helps toward an understanding of its constitution. British bituminous coals frequently have a banded structure. These bands (of four types) can be separated one from another and have been found to possess markedly different chemical characteristics, even when taken from contiguous portions of the same lump coal. It has been found convenient to give each of the ingredients of banded coal a distinctive name, more or less descriptive of its appearance, and the study of the chemistry of bituminous "coal" in England has resolved itself into a study of each ingredient separately. . The coal chosen for this work was taken from the Top Hard seam at East Kirkby colliery, Nottinghamshire, a detailed chemical analysis of which has been recorded by Baranov and Francis.1 The banded structure was well marked and the bands could readily be separated. The research was confined to the brilliant vitreous bands (vitrain), the dull hard bands (durain) and the "sooty partings" (fusain); for previous work had shown that the fourth type, to which the name clarain has been given, is intermediate in character, chemically, between vitrain and durain.

Jan 3, 1925

By John Cobb

THE attempts of British investigators to arrive at definite knowledge concerning the nature of the nitrogenous constituents of coal have been mainly made through studies of the behavior of coal on carbonization and gasification. There have been carried out numerous determinations of ,the distribution of nitrogen in the products of carbonization under laboratory and large-scale conditions; and by a careful consideration of the extent to which nitrogen is liberated, say as ammonia, at different temperatures and under different conditions of operation as regards atmosphere, it has been possible to form some general notions as to the nature of the nitrogenous compounds present in the coal, and at the same time to arrive at clearer ideas as to what are the important operative factors in determining the ammonia yield under working conditions. This work has been spread over many years and is summarized below. The difficulties of connecting the results in such a way as to allow of the nitrogenous constituents of the coal being described in terms of specific organic structure are great. They arise, for example, in the carbonization process, because the phenomena of decomposition observed at any one temperature can only refer to compounds decomposing at that temperature, each of them with a previous history of chemical transformations occurring at lower temperatures. To put it in another way, the compounds occurring in the coke at any stage are not in the least likely to be those present in the original coal. The same difficulty, in a milder form, occurs when the method of differential solution is attempted. There is always the preliminary question, almost impossible to answer, as to how far the separation by the use of the solvent has involved some form of decomposition of the original compounds. In the following summary, an attempt has been made to bring together results obtained by British workers.

Jan 3, 1925

By Everett Carpenter

THE average daily production of crude oil-in Kansas a1 the beginning of the year was about 71,000 1 bbl. and, at its close, 82,000 bbl.-an increase of 11,000 bbl. per day. The total production for the state during the year was about 28,250,000 bbl., or an average of practically 77,500 bbl. per day for the year. This increase in the production was the result of the discovery of several new pools of high-grade oil. COWLEY AND SUMNER COUNTIES One of the principal factors in bringing the production of the. state back to its former level was the newly discovered pools in western Cowley County. During December, 1923, the Waite Phillips Co. completed its Johnson No. 1 in Sec. 20, T. 33 S., R. 3 E., which opened up the Rainbow pool about 12 miles southwest of Winfield. In this pool, the production comes from the Burbank sand, locally called the "Rainbow," found at a depth of 3200 ft. The sand varies in thickness from 25 to 40 ft. in the seventeen wells completed during the year, and the initial productions ranged from 300 to 3000 bbl. per day of 40° Be. oil. The Rainbow pool is purely a wildcat discovery, for no. rocks suitable for the use of the geologist are present. To determine the geologic conditions, the larger companies core-drilled the Rainbow area immediately after the discovery. The Marland Refining, Co., drilling on the Graham farm in Sec. 9, T. 33, R. 3, failed to find the Burbank sand and continued to the Siliceous lime, often erroneously called the Wilcox, at 3505 ft., where a well with an initial production of 900 bbl. of 40 Be. oil was obtained. In the development following this discovery, 4 additional wells were completed, 3 of which encountered pay sand at 2500 ft., the initial productions each being about 200 barrels. Judging by the sands already proved and the area indicated as probably oil bearing by the development to date, these pools have a very promising outlook for the future. It is not unlikely that a field second only to El Dorado may have been opened.

Jan 3, 1925

By G. S. Hume

IN. THE autumn of 1922, British Petroleums Ltd. found oil of 14° Baumé in a sand 17 ft. thick in its. No. 2 well at Wainwright, 120 miles southeast of Edmonton. This greatly encouraged drilling in the Wainwright-Irma area and this past summer several wells were started, three of which are now completed and the others still being drilled. Of the three completed, No. 4 British Petroleums contains oil; No. 3 British Petroleums gave a show of oil but so far has not given much hope, of becoming a commercial producer; and No. 1 Maple Leaf Co., as now finished, is a. gas well with a daily flow of gas of about 2,500,000 cu. ft. at a closed pressure of 700 lb. An oil sand is reported to have been encountered below the producing gas horizon in the Maple Leaf well but has not been tested. Operations on this well have been suspended for the winter. The Geological Survey of Canada this past summer undertook a geological investigation of this area with the object of defining the structures with which the oil and gas are associated. The structure underlying this portion of the plains was supposed to be a terrace with the western edge dipping into the Alberta syncline and with a monoclinal structure to the east. By accurate leveling on known geological horizons on this terrace, a number of gentle folds were located and -it is in these folds that the oil and gas are found. At the British Petroleums Nos. 2 and 4 oil wells, the western flank of the fold has a gentle dip of only a few feet to the mile to the southwest whereas the strata on the eastern flank dip to the northeast about 40 ft. in ½ mile, the strike of the fold being northwest and southeast. How far oil will be found down the gentle southwest dip is unknown but probably the productive part of the fold will not exceed 1 mile in width, and possibly less. No. 3 British Petroleums well is on the strike of the fold 1 mile southeast of the two oil wells. The sand that was productive in Nos. 2 and 4 wells was not present in this well or, if present, was very thin and unproductive. Two other sand horizons, however, were encountered. The upper of these

Jan 3, 1925