Search Documents

By T. C. Craig

During the year, there were 570 oil wells completed for a total daily initial production of 365,352 bbl. The daily oil potential of the field, effective Jan. 1, 1935, as established by the Texas Railroad Commission, was 306,102 bbl. with a daily allowable of 58,800 bbl., whereas, on Dec. 31, 1935, the potential was 587,376 bbl. with a daily allowable of 57,800 bbl. Because of the limited market demand, the allowable decreased although the potential increased. In August, the five-day test for determining the potential production of a well was replaced by a 24-hr. test. The reason for this change was that some of the oil-pur-chasing companies contended that too much oil in excess of the limited market demand was produced during the five-day tests. Dry Gas.—During July, the Texas Railroad Commission supervised the first complete and accurate field-wide test of open flows that has been made in this area. The total open flow as determined at that time was 16,426,085,000 cu. ft, There were 79 gas wells drilled in '935, with a combined open flow of 2,408,000,000 cu. ft. and 50 depleted oil wells were plugged back for gas with a total open flow of 529,800,000 cu. ft. The total new gas production for the year was, therefore, 2,937,800,000 cu. ft. The 17 natural-gas pipe lines drawing on the Panhandle supply of fuel gas withdrew a daily average of 420,497,507 cu. ft., or a total of 153,481,-590,000 cu. ft. for the year. The 44th Texas Legislature passed a statute known as House Bill No. 266, which was designed to prohibit waste and protect correlative rights by compelling the ratable production of gas. The part of the law relative to withdrawal of sweet gas became effective Aug. 1, 1935, and the part referring to withdrawal of sour gas became effective Oct. 1, 1935. Three of the major pipe line companies attacked the validity of the ratable production feature of the new law and a preliminary injunction was granted by the Federal District Court. The final hearing on the incrits of the case is scheduled for the early part of January. Natural Gasoline.—Forty of the 42 natural-gasoline extraction plants in the Panhandle operated throughout the year. One plant discontinued

Jan 1, 1936

By Olin G. Bell

At the beginning of the year 1935 the older fields in Southwest Texas, and particularly those discovered during 1934, had been practically delimited and only normal development continued. As a result, operations in this area were somewhat slowed down. Shortly after the first of the year, however, activity in the area was greatly accelerated, due largely to the fact that the Loma Novio field, discovered during the last few days of 1934, indicated the presence of a new productive trend east of and parallel to the Government Wells field and also indicated the presence of a new productive horizon, the Loma Novio sand, approximately 100 ft. lower than the Government Wells sand zone. Other discoveries during the year greatly augmented the activity in the district. During the year there were 651 oil wells, 53 gas wells and 275 dry holes drilled in this area during the year. Most of the operations were in the Government Wells, Cole, Loma Novio, Seven Sisters and Lopez fields. New Fields Four new fields were discovered during 1935 as follows: Seven Sisters and Piedra de Lumbre in Duval County; Loma Alto in McMullen County; and Lopez in Webb County. Seven Sisters Field.—The Seven Sisters field, opened in May, was the direct result of a systematic search for new productive areas northeast of the Loma Novio field. The first producer, Harvey & Henderson NO. 1 Chernosky, survey 226, was completed in the Labbe (Chernosky) sand at 2220 ft. However, the second producer, Santa Clara Oil Co. No. 1 Welder in survey 385, drilled about one mile south of the discovery well, failed to find production in the Labbé sand and was carried on down and completed in the Government Wells sand at 2473 ft. with an initial production of 20 bbl. of oil per hour. These two discoveries, in the Labbé and Government Wells sand, started an active leasing and drilling campaign in this part of Duval County and drilling operations continued especially active throughout the remainder of the year.

Jan 1, 1936

By H. W. Mathews, J. D. Wheeler

AS predicted by Messrs. Fuqua and Thompson, in last year's paper on West Texas1, 1935 saw a marked increase in activity in this area over recent years. Both major and independent operators shared in the increased wildcatting operations, which resulted in the discovery of eight and probably nine new fields in this area. During 1935 there were 700 wells completed as compared with 468 in 1934 and only 236 in 1933. Of these completions 579 were producers with a total 24-hr. potential of over 700,000 bbl. It is estimated that the new fields discovered during 1935 added from 200,000,000 to 400,000,000 bbl. to the known oil reserve in West Texas. In addition to these new fields, many of the older producing areas scored marked extensions during the year. New Fields Goldsmith.—-The Goldsmith field, in west central Ector County, gives promise of being the year's outstanding discovery in this area. The discovery well was completed by the Gulf Production Co. in June at a depth of 4177 ft.; it gaged 275 bbl. of 36° gravity oil in 3 hr. through 85/8-in. casing on its first production test. The field has been extended to the east by wells drilled by Phillips and Pure on their Cowden block. Present indications are that the field may contain 10,000 productive acres, and this, together with the large flush production from only a small penetration into the pay, leads to the belief that Gulf-Goldsmith No. 1 was the outstanding Permian lime discovery of 1935. It is quite probable that production will prove to be continuous to the Landreth-Scarborough No. 1, 33/4 miles to the northwest, which was completed for a small producer late in 1934. Sand Hills (Ordovician).—From the standpoint of creating excitement, the outstanding West Texas test of the year was no doubt Gulf-Waddell No. 1, on the northwest nose of the Sand Hills structure. This test was started late in 1934 as a deep test to the Ordovician. Thc Ordovician was topped above 6000 ft,., considerably higher than expected. Oil shows in the Simpson were passed and the well was drilled down to the

Jan 1, 1936

By E. W. Henderson

Development work in the state of Utah in 1935 consisted of additional work done on wildcat tests started in previous years and on a number of new wildcat tests started during the year. No effort was made to extend areas or to discover deeper productive horizons in proven fields. Principal areas of development were in Daggett County, northeastern Utah; Grand and Emery counties, east-central Utah; and in Washington County, southwestern Utah. Daggett County Clay Basin.—The Mountain Fuel Supply Co. deepened Murphy No. 2, sec. 21, T.3N., R.24E., from 6030 to 6790 ft. for a test of the Sundance formation. Two sandstone members at 6520 to 6644 ft. and 6737 to 6790 ft. contained water. The hole was plugged back to 5860 ft. and left as a future gas supply for the Salt Lake City-Ogden pipe line. The failure of the Sundance formation to produce in this test, in view of the recent Sundance discoveries in Colorado arid Wyoming, was disappointing Emery County Last Chance.—-Thc wildcat test of the Rainsey Petroleum Corporn-tion, Well No. 1-X, sec. 18, T.26S., R.7E., completed plugging back from total depth of 3168 ft. to 2771 ft. and was shut in as a gas well. A gas sand at 2724 to 2771 ft. produced approximately 21 million cubic fert. A deep test of the structure will be started upon approval of a wit plan of development. Grand County Cisco.—-The wildcat test of the Utah Southern Oil Co., sec. 33, T.22S., R.22E., of which the total depth was 1720 ft. on Dec. 31, 1935, is the most interesting operation ill the state. Location of the test was deter-

Jan 1, 1936

By David B. Reger

The year 1935 was mostly quiet in West Virginia, and devoted to routine drilling in old pools and extensions. A notable exception to this general rule, however, was the further development and proving of a field of gas discovered in 1930 in the deep Oriskany sand (L. Dev.) in Kanawha County, as later discussed. No new pools of oil were found and little or no attempt was made to search for them. No new pools of gas were recorded but various extensions of old pools were made. There were no new pipe line extensions of consequence, either for oil or gas. Operating technology was much the same as in recent years, there having been some further advances in repressuring oil wells and in the use of acid for treating small wells in calcareous formations, and some change in the technique of shooting gas wells. Financially, there has been a full market for all crude oil produced and a fair market for gas. There have been occasional transfers of producing oil or gas properties, mainly between established companies. Most of the attempts made to finance mergers and new developments have failed largely because of difficulties encountered under the Federal securities act. This situation has prevented the normal turnover of properties by small operators who frequently desire to sell partly developed interests and then step out into new ventures. New Development In 1935 the State issued 569 permits for drilling and records the same number of completions. One trade journal records 533 completions and another 483. A running record kept by the writer accounts for 713 completions, with 156 oil wells, 417 gas wells and 140 dry holes (Table 3). Some of these completions may be old wells drilled to deeper sands. Some, apparently, have been drilled without legal permit. Extensions of Producing Areas Ritchie County has again led all others in new drilling, with 137 completions as compared to 74 in Calhoun and 61 in Cabell. This Ritchie County drilling was done mainly to extend or further develop old pools

Jan 1, 1936

By John Guillermo Bartram

The oil industry continued relatively quiet in Wyoming in 1935, although production increased about 8 per cent over the previous year; 55 oil wells were completed in 1935, compared to 34 in 1934, and at the end of the year 44 wells were drilling, 33 in proven fields and 11 in wildcat locations. The total drilling a year ago was only 30. In the year 1935 Wyoming produced a total of 13,451,000 bbl. of oil, a gain of 912,000 bbl. over the 1934 figure of 12,539,000 bbl. Approxi-mately two-thirds of the increase, or 630,000 bbl., was from black oil fields and one-third, or 285,000 bbl., from light oil pools. Salt Creek, with production of 6,357,000 bbl., is still many times the largest field in Wyoming but in 1935 it made less than 50 per cent of the state's total, after producing more than all other fields in the state for 24 years; however, its decline was only 3.8 per cent from the previous year. Oregon Basin, a black oil field, held second place again with production of 1,163,-000 bbl., a good increase over 1934. Grass Creek, with increases in both its light and black oil, jumped into third place; and Lance Creek, with its new Sundance light oil production, was in fourth place in the amount of production. Frannie, which was in third place in 1934, dropped far back on the list because of lack of market. Byron and Garland, two other black oil fields in the Big Horn Basin, increased considerably. Big Muddy, a prominent light-oil field, was down with a natural decline; and Elk Basin, also light oil, produced less because of market conditions. During 1934 only three gas wells were drilled in Wyoming and 29 dry holes, 13 in proven fields and 16 at wildcat locations. Of the latter, 5 were on wildcat structures of considerable interest. Of the 55 wells completed during the year, 53 were in proven fields and of these 17 were small ones in the shallow Osage field and 10 were light-oil wells good for 1500 to 3000 bbl. each in the Lance Creek field. Discoveries Two of the oil wells were discoveries at Medicine Bow and Sheep Creek. Medicine Bow is a very large anticline with more than 3500 ft. of closure and is located in Carbon County in the south-central part of the state. In 1923 it showed some oil in the Upper Cretaceous Frontier

Jan 1, 1936

By Guillermo Hileman

In March the President approved the new oil bill, .which became effective as Law No. 12161, providing among other things a contribution or tax on all producers varying from 8 to 12 per cent payable monthly. The new regulations, for chapter VI bearing on the tax feature, of this

Jan 1, 1936

By Walter M. Small

Austria produced approximately 800 cisterns of 10,000 kg. each (56,000 bbls.) of crude oil of a 0.9428 sp. gr. during 1935. Of this Gosting II well near Zistersdorf, owned by the Erdolproduktions-Gesellschaft m.b.H., produced 86 per cent of the total, averaging a little over 1.8 cisterns, or about 125 bbl., per day. Gosting IVa of the same company was put in production early in December and produced a total of about 70 cisterns (4900 bbl.). Gosting IV was a failure, but a directional hole drilled from the same derrick produced Gosting IVa. Gosting I, a well owned jointly by the company above mentioned and the Raky-Danubia, was deepened late in the year and made about 2800 bbl. of oil at the rate of 70 bbl. per day. Completions during the year were as follows: In the Gosting pool, Gosting IV and IVa, drilled with rotary tools, the latter producing from Sarmat at a depth of 934 meters (3065 ft.); Kronberg I, of European Gas & Electric Co. with cable tools in Flysch at a depth of 566 m. as a dry hole; in the Oberlaa gas pool, one cable-tool well of the same company at a depth of 266 m. as a dry hole and one Fauck-Haiek system well of the Vacuum Oil Co. at a depth of 483 m. as a dry hole; one rotary hole of the European Gas & Electric Co. at Enzersdorf a/d. Fischa plugged and abandoned in Sarmat after a blow out and gas eruption at a depth of 699.5 meters. The status of drilling wells at close of the year is as follows: In the Gosting pool, Erdol Bohr- und Verwertungs G.m.b.H., north of the producing area, was drilling with rotary at 990 m., Raky-Danubia is rigged up to deepen the old Windisch-Baumgarten hole, Rohoel-Gewin-nungs A.G. (Vacuum-Shell combination) rigging up rotary south of the production, and Steinberg-Naphta G.m.b.H. (Musil) was deepened with light rotary to 830 m.; at Enzersdorf a/d. Fischa, the European Gas & Electric Co. E-2 rotary-drilled hole stood at 1533 m. in Miocene waiting

Jan 1, 1936

By W.G. Woolnough

There has been no noteworthy increase in production during 1935; but, on the other hand, there have been ample manifestations of a considerable increase in interest and activity in connection with petroleum prospecting. The Lakes Entrance field, in the State of Victoria, on the coast some 120 miles east of Melbourne, remains the only actual producer; and this production, consisting of lubricating stock devoid of light fractions, is very small in amount. Arrangements have been completed under which a series of "scout bores" for structure testing in the region of Lakes Entrance will be sunk by the Government of the State of Victoria, assisted by a subsidy from the Federal Government. Prospecting In the State of New South Wales, brilliant geological research in very difficult country, carried out by geologists of Oil Search Ltd., has revealed several previously unsuspected domal structures in the Sydney-Newcastle coal basin. These have been mapped in detail, and a test well is being sunk at Kulnura, 10 miles west of Wyong and 40 miles north of Sydney. At the date of writing this well has reached a depth of 1250 ft., 10-in. casing having been set at 1248 feet. Superficial formations consist of the Hawkesbury sandstone and Narrabeen beds of the Hawkes-bury system (fresh-water Triassic). It is anticipated that the upper coal measures of the Kamilaroi (Permo-Carboniferous) will be entered almost immediately. The objectives of the drilling are the upper and lower marine beds of the Kamilaroi system, which are regarded as promising as potential source—and reservoir—beds for oil. At Mulgoa, 30 miles west of Sydney, a bore is being sunk by the same company, Oil Search Ltd., to test for natural gas on a well defined structure located by the company's geologists. Noteworthy flows of gas have been encountered, but nothing approaching a commercial supply has been struck. It is considered probable that the gas has been derived

Jan 1, 1936

By O. Nomland

The work of The Bahrein Petroleum Company, Ltd., on Bahrein Island consisted mainly in continuing development work and prospecting previously reported. The exploratory work, however, has been greatly minimized and new wells are being drilled, chiefly for the development of larger production; 20 wells had been completed by the end of 1935 and 8 were being drilled. In addition to what has been referred to as the ''main pay," two deeper productive horizons have been discovered, which apparently will greatly increase the potential of the field although the areal extent of this lower production has not yet been determined. The proven acreage of the "main pay" is more than 12,500 acres. Current production (principally from the upper horizons) is about 13,400 bbl. a day. The construction of a 10,000-bb1.-a-day refinery has begun and is to be in operation by July, 1936. It is expected that the capacity will be considerably increased at a later date. The construction of office buildings and a permanent camp has been almost completed. In Saudi Arabia the California Arabian Standard Oil Co., a wholly owned subsidiary of the Standard Oil Company of California, spudded in a well in April, 1935, near the village of Dammam, on the Persian Gulf coast of A1 Hasa. Although several important showings of high-gravity oil and considerable gas have been found, the well is not yet considcred a commercial producer. Dammam well No. 2 has been started farther south on the same structure. A great deal of reconnaissance and some detailed geological work has been completed during the last three field seasons. In order to overcome difficulties of transportation over the desert sand, unusual methods have been used. The parlies penctrating the interior by the use of automobiles and trucks have been supplied with gasoline and provisions by caravans of camels. Mail and supp1ies of lighter weight urgently needed have been carried to the field men by an airplane operated by the geological division of the company. Each party has been supplied with a radio receiving and transmitting set to keep in contact with the airplane as well as with geological headquarters at Jubail on the coast of A1 Hasa.

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The officers and staff of the Petroleum Division are the servants of the members, and to the extent that the wishes of the members are made known and are practicable they will be carried out. The tentative plans outlined here are in general accord with previous custom, but modified by suggestions received recently from various members. The advice of all members is solicited, and it is hoped that the general expression on matters of policy can soon be facilitated by circulation of a questionnaire. Plans for two mid-year meetings of the Petroleum Division and for participation in the annual meeting at New York were inaugurated at the last annual meeting and are being carried forward as rapidly as possible in the belief that an early start will increase the possibility of finding the best available program material and permit the careful preparation, review, editing, and advance discussion of papers. While a number of papers have already been solicited, both members and nonmembers are hereby invited to submit additional papers, with the assurance that such papers will be given just as favorable consideration as the papers that have been requested. Mid-year meetings will be held at about the same time both in the Mid-Continent and California. The time will be selected if possible to coincide with the visits of President Lovejoy, who expects to be in California the last of September and in Texas early in October. Fort Worth, Dallas and Austin have been suggested for the Mid-Continent meeting. The Pacific Coast meeting will be held at Los Angeles. It is to be noted particularly that a Pacific Coast meeting was waived last year in favor of the annual meeting of the American Petroleum Institute, which was held at Los Angeles for the first time in nine years. It is hoped, and it was the understanding at the time among a number of individuals interested in both organizations, that in view of this action of the Petroleum Division the industry will give more than the usual support to the A.I.M.E. meeting this year. Ultimate Recovery is being considered as the keynote topic for the mid-year meetings. In view of trying financial conditions combined with an exceptionally high current potential rate of production, it is natural that the attention of the industry should be focused upon means of controlling production and reducing cost of operation. It seems that the Petroleum Division of the A.I.M.E., as a professional group, might

Jan 1, 1936

Jan 1, 1936

By M. Albertson

The purposes of this statement are to define a problem that exists in regard to the estimation of developed petroleum reserves, to analyze the problem in an abstract manner, and to discuss it as an introduction to certain papers that follow. The problem is to devise and develop a suitable procedure to permit more accurate estimates of developed petroleum reserves. Part of the problem is to make such estimates available earlier in the life of any particular pool. The problem of securing more accurate estimates of developed petroleum reserves existed prior to curtailment of production. With curtailment, however, the problem became acute, some of the more prominent reasons being as follows: 1. The standard method of estimation depended on production-decline curves. This method is inapplicable while curtailment prevails and available methods arc insufficient. 2. The retarding influence imposed by wide open flow conditions upon overdevelopment is absent. Great losses of capital by overdevelopment can now occur before realization of the true situation occurs, or before effective steps can be taken to stop such wastage. This increases the need for early, accurate estimates. 3. Above-ground stocks have diminished and the equivalent of such supply tends more and more to be retained underground in the natural reservoirs. It becomes increasingly necessary to know accurately the amount of these stocks. To direct attention to an additional point of different nature: improved accuracy of reserve estimation can be obtained only by closer scrutiny of the factors that determine recovery. This examination and the resulting efforts to measure the effect of these factors in terms of ultimate recovery must tend to improve ultimate recovery. The statements regarding the acute nature of the problem also indicate to some extent the importance of the problem and the necessity of finding a solution. Developed reserves of the industry, and of individual opera-tors, are one of the great factors that properly should determine explora-

Jan 1, 1936

By D. L. Katz

In the management of oil properties, it is always desirable to know the future behavior of oil wells and oil reservoirs. Some estimation of the quantity of oil and gas that will be produced must be made as a basis for decisions on possible returns on investments in lifting equipment, drilling of additional wells, and other operating expenditures. In new or wildcat areas, operating expenditures are considered highly speculative, but in the completion of partly drilled and the operation of producing fields it is good business to remove as much speculation as possible. An accurate knowledge of oil and gas reserves in such cases would solve many management problems. The term "oil reserves" usually signifies the future ultimate recovery without specifying the method of production. Thus with changing methods and innovations in the production industry, reserves of any definite reservoir may be increased by increasing the portion of oil recovered. The usual reserve estimates are made by comparisons of well and formation characteristics, by using a percentage recovery on the oil content of the formation volume using porosity data, by extending production curves on non-prorated wells, or by extending bottom-hole pressure-production curves. The most reliable method would appear to be one that would estimate the initial quantity of oil and gas present and then obtain percentage recovery values for various productive methods and formations from experience. It is the purpose of this paper to describe a method of estimating the initial quantity of oil and gas present in a reservoir. The method is based on field operating data and the properties of crude oil-gas mixtures. The principles involved, the data required, the assumptions necessary, and an example of the method will be given. The method is entirely independent of sand volumes and formation porosities. Principles of Method The method of estimating the initial quantity of oil and gas present is based upon the premise that the volume occupied by oil and gas in the reservoir is constant and that a mixture of crude oil and gas will behave in

Jan 1, 1936

By R. J. Schilthuis

In 1929, Coleman, Wilde, and Moore1 undertook an investigation of the theoretical decline in reservoir pressure as related to the production of oil and gas. The most important part of this work was presented in an equation defining the relationship between the reservoir pressure, the quantities of oil and gas produced, the oil and gas content of the reservoir, and the properties of the reservoir fluids. With this equation, it appeared that, with sufficient data, it would be possible to calculate the oil content of the reservoir and predict quantitatively the effect of gas-oil ratio on the decline of reservoir pressure. Needless to say, such an expression would be highly important in evaluating fields and in arriving at a choice of production methods to be used. Unfortunately, at the time these investigators published their work, there were not sufficient data available to permit application of the equation. The technique of measuring reservoir pressures had not been developed, gas measurements were uncommon, oil and water production records were in most cases inadequate, and little was known of the properties of the complex hydrocarbon mixtures making up the oil and gas in the reservoirs. For these reasons, little additional work of a similar nature could be done. However, during the past four years many data have been systematically accumulated on reservoir pressures and the properties of oil and gas, and it is now possible to use these data in furthering the studies on the behavior of oil and gas reservoirs. It is the purpose here: first, to present the derivation of a modified form of the equation given by Coleman, Wilde and Moore, which will permit the calculation of what later will be defined as the "active oil" content of a reservoir; second, to derive formulas for calculating the reservoir-energy changes that occur during the course of production, and finally, to discuss the limitations and application of the equations developed.

Jan 1, 1936