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By William H. Spice

No devclopment of major importance has been made in the south central fault-line district of Texas during 1939. Four new fields have been discovcred, all of which appear to be of minor importance, with small wells in the Navarro sand, the Taylor marl or the Austin chalk. Drilling along the fault line has not developed any new prospects in the Edwards lime, the most prolific producing horizon of the district. At the close of the year, a few deep tests for lower producing horizons have been projected and should prove to be of interest, and plans are under way for further development of the Pearsall field, which has been under the control of a single company until recently. Production from the 46 producing fields was maintained at 8,460,000 bbl. for the year, a decrease of approximately 400,000 bbl. under 1938. This decrease is due in part to natural decline of production and in part to decreased allowed production. Approximately 55 producing wells were completed on proven acreage in the Darst Creek and Salt Flat fields. No new lease plays were made during the year, although approximately the same amount of land, 600,000 acres, remained under lease during the year. Some geophysical operations of various types were carried on along the fault-line area itself and also in the Edwards plateau and in the area south and southeast of the main fault line.

Jan 1, 1940

By John G. H. Crump, E. W. Owen, Peter P. Gregory

.Although oil Production in West Texas in 1939 reached the highest figure for any year since the inauguration of proration, drilling activity continued in the decline that had commerlced the previous year. Production totaled 79,469,341s bbl. of oil during 1939 as compared with 71,257,541s bbl. in 1938 and 75,743,000 in 1937. The number of wells completed in 1939 was 1850, compared with 2045 in 1938 and 2806 ill 1937. Several factors combined to cause the decrease in drilling activity, principally the contiriued increase in the length of time required to obtain a return of invcstment and the scarcity of important new discoveries during the past two years. Of the 1850 completions 1638 resulted in oil wells, 4 were gas wells, 168 were dry holes and 40 were abandoned locations; 1990 new locations were made during the year. The ratio of dry holes to producing wells completed was one dry hole to each 9.75 oil wells, compared with one dry hole to each 7.48 oil wells completed during 1938. This large decrease in dry holes was due to a marked decline in the number of wildcat wells drilled, there having been only 120 wildcat completions during 1939. In addition to the lessened exploration work, the deeline' in activity was largely accounted for by the slowing up of operations in the older pools of Ector, Howard and Winkler Counties. Ector County, which had led West Tcxas in 1938 with 622 new oil wells, furnished only 485 producers in 1939, but was still the leader for the West Texas district. The largest gain in activity was in Yoakum County, whew 350 oil wells were completed in the Denver-Wasson field against 152 during 1938. Most of the older oil fields have been almost completely drilled up, only a few new producers still being completed from time to time in

Jan 1, 1940

By David B. Reger

The discovery of prolific oil wells in old territory hitherto regarded as doubtful, if not worthless, and the rapid extension of a gas pool opened late in 1938 were the most interesting petroleum features in West Virginia during 1939. Oil activity in general was slow because of crude prices that were still fairly low at the end of the year, although substantially increased above those in January. Fewer oil wells were completed, but the average results were better than in 1938. Fewer gas wells, also, were completed, with greatly lessened average initial production. Many old oil and gas wells were abandoned, so that the total number of active wells has not changed appreciably. The account of operations, as gathered from trade journals and other sources, shows that 561 new wells were drilled, resulting in 101 new oil wells with 2261 bbl. of daily initial production; 366 new gas wells with 602,400,000 cu. ft. of daily open flow; and 94 dry holes. Besides these new wells, 61 old wells were drilled to deeper sands, with 12 bbl. and 13,328,000 cn. ft. of added production. On the new wells the oil average was 22.38 bbl. per well per day; and the gas average was 1,645,900 cu. ft. per well per day; the ratio of dry holes to completions was 16.76 per cent. From an exploratory standpoint one partly discredited oil area was revived by good new production, and another small oil pool may have been opened. Some of the results in gas exploration will require more drilling for true appraisal. It is certain, though, that one very considerable gas field in the sands of Mississippian age has been proved; and there is a probability of six new pools in the Middle Devonian shale. In the Oriskany sand (L. Dev.) the Elk-Poca pool has been extended considerably farther northwest into Jackson County; and farther north in Jackson County two widely separated wells, which may be pool openers, have been successfully completed. On the other hand, several important wildcats in various counties have been dry. Stratigraphically lower, some additional wells have been completed in the Newburg sand (Sil.) and one small producer has been completed in the Clinton sand (Sil.), the importance of which can scarcely be overestimated, because no Clinton production has previously been found in the state, although at least seven wells have been drilled through the sand.

Jan 1, 1940

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Bahrein Petroleum Company

In Comodoro Rivadavia, well 8. 132, drilled in zone No. 2, has discovered between 5205 and 5297 ft., the dcepest pool yct found in this field. The oil production in Bahrein for the year 1939 totaled 7,588,554 bbl., a decline of 709,444 bbl. from the 1939 production of 8,297,998 bbl. The production for the first seven months of 1939 remained fairly constant, the daily average by months during this period ranging between 20,000 and 22,000 bbl. per day. The daily average rose in August to the year's high of 23,800 bbl. per day, then dropped gradually to the year's low of 18,787 bbl. per day for November. The daily average for the year was 20,791 bbl. At the end of 1939 there were 59 wells producing and 8 wells drilling.

Jan 1, 1940

By G. S. Hume

Production of petroleum and natural gas increased in Canada in 1939 principally because of new wells in Ontario and Alberta. Turner Valley The Turner Valley field, Alberta, yielded 7,456,000 bbl. of petroleum in 1939 in comparison with 6,703,548 bbl. in 1938, an increase of 11 per cent. Turner Valley now supplies 96 per cent of all petroleum produced in Canada (Table 1). The Turner Valley field (Table 2) has reached a position where it call supply much larger volumes of petroleum than the Prairie market is capable of consuming. The allowable production is under the jurisdiction of the Petroleum and Natural Gas Conservation Board of Alberta and the daily rate is set from time to time as warranted by the demand. During June the allowable reached a maximum of 27,000 bbl. a day. This, however, was a temporary situation due in part to the completion of a new British American Oil Co. refinery in Calgary capable of processing 5000 bbl. a day and with a storage capacity of about 100,000 bbl. The maximum consumption was reached during the harvest season with

Jan 1, 1940

By O. C. Wheeler

The total oil production from Colombia during 1939 amounted to 23,774,151 bbl., constituting a new high record. Of this amount the Tropical Oil Co. produced 22,374,151 bbl. from its De Mares concession and the Colombian Petroleum Co. produced 1,400,000 bbl. from its Barco concession beyond the eastern Andes. The Socony Vacuum Oil Co. produced a small amount of crude from its Las Monas wells north of the Sogamoso River in the Magdalena Valley for consumption on its own property, but this is not included in the figures given above. The South American Gulf Oil Co. provided the outstanding development in the country by the completion, late in the year, of its 12-in. pipe line from the Colombian Petroleum Company's Barco concession to the coast at Covenas. This was a notable accomplishment, achieved in the face of tremendous natural obstacles. With the completion of this line there are now two crude-oil outlets from the interior of Colombia to the coast, the other being the Andian National Corporation's line down the Magdalena Valley from Barranca Bermeja. The Barco property becomes the second major producing area in Colombia. The acquisition of prospectivc oil lands continued at about the same level as during the prcvious year. Most of the lands taken up or applied for had their subsurface rights vested in the National Government. Relatively little interest was taken in the leasing of privately owned lands. Tropical surrendered its Putana concession on the Sogamoso River after finding it to he nonproductive. The status of applications for National lands that had been accepbed or on which concession contracts had been awarded at the end of the year is shown in Table 3. In the Magdalena Valley wildcat drilling in the search of new fields was conducted to the east of Puerto Berrio by the Compania de Petroleo Shell de Colombia, Compania Coloinbiaila de Petroleos El Condor and by the Sociedad Nacional del Carare; further down the valley to the cast of Puerto Wilches, the Socony T'acuum was drilling two wildcats. No discoveries resulted from this exploratory work. On the Barco conces-

Jan 1, 1940

By Robert H. Palmer

Sacuranao Field.—Bacuranao field is about 12 miles east of Havana, along the contact between Cretaceous sediments and a serpentine intrusion. The zone lies within an extensive anticlinorium. The field had no developments during the year 1939. The production of 9½ bbl. per day is distilled and the gasoline and kerosene are extracted. The asphalt residue. is sold for road construction. The gas is compressed and

Jan 1, 1940

By E. Escobar Pallares

Footnotes to column heads and explanation of symbols are given on page 239. H.C.T. means the deep zone for High Cold Test crude oil. L.C.T. means the shallow zone for Low Cold Test crude oil. They occur in the same area. In the same area there are many shallow pits and some wells. In the column showing total oil production to the end of 1939 are included 355,997 bbl. from shallow pits before 1939. During the last year there was no production from shallow pita.

Jan 1, 1940

The separate outputs of Burma and India in 1937 were 274,664,365 gal. valued at £4,474,147 and 75,657,857 gal. valued at £1,030,591, respectively. The corresponding figures for the year 1938 were 263,823,-265 gal. valued at £3,766,810 and 87,082,371 gal. valued at £1,234,563, respectively, which is a slight increase in total quantities but a fall in value for the combined outputs of Burma and India. The appreciable increase from India in 1938 is due to an increase of over 11 million gallons from Attock and a little from Digboi, while the decrease from Burma is due to a fall of nearly 9 million gallons from Yenangyaung, over 3 million gallons from Yenangyat (and Lanywa) and half a million gallons from Minbu (Table 1). The 'amount' of gasoline produced from natural gas during the year 1938 was 10,587,291 gal. in Burma and 496,163 gal. in the Punjab.

Jan 1, 1940

Masjid-i-Su1aiman.—There have been no new developments in the Masjid-i-Sulaiman field during the year. Drilling, deepcning and acidizing operations for maintenance of production havc continued normally. Reservoir conditions have been unchanged, the rate of fall of dome prcssure remaining very low—at about 0.4 lb. per sq. in. per million tons net production. Drilling on the Lali structure northwest of Masjid-i-Sulaiman has continued but oil has not been encountered in commercial quantities. Haft Kel.—The progressive drilling program extending the production capacity of the Haft Kel field was completed carly in the year and the field is now on a routine maintenance basis. Drilling has continued on the white-oil springs structurc northwest of Haft Kel. Naft-i-Shah.—No developments of interest have occurred in Naft-i-Shah field. Offtake is for local markets only. A further large produeer was completed during the year. Gach Saran.—By the end of 1939, work on plant and pipe lines to put, the field on a production basis was approaching completion. Two substantial producers were also drilled in the initial production area. Pazanun and Agha Jari.—No further drilling was carried out on the Pazanun structure during the year, gas only having been obtained to depths exceeding 8000 ft. On the adjacent Agha Jari structure, however, a second satisfactory oil producer was completed.

Jan 1, 1940

By T. R. Armstrong

During the year 1939, Mexican production totaled 42,479,000 bbl.; a daily average of 116,381 bbl. or a little over 2 per cent of the estimated world production. The Mexican Government operates 100 per cent of the refining branch of the industry, 100 per cent of the domestic distribution, 96 per cent of the crude production and 92 per cent of the total exports. No discussion of the Mexican petroleum industry in 1939 is adequate without reference to the "expropriation" of the foreign-owned oil properties in Mexico by executive fiat on March 18, 1938. The forcible seizing of the properties culminated a long series of efforts on the part of the Mexican Government to obtain control of the oil properties developed through foreign initiative and with foreign capital in Mexico. The heart of the issue is whether the Mexican nation or any nation may with impunity confiscate the legally acquired properties of American citizens. The Department of State of our Government has in its communications to Mexico emphasized the fact that its "expropriation" of American properties was confiscatory because Mexico had failed to make "adequate, effective and prompt compensation"; that the taking was no less confiscatory "because there may be an expressed intent to pay at some time in the future," and that, consequently, "Mexico has assumed and continues to assume to exercise a right without compliance with the condition necessary to give such exercise a recognizable status of legality." Mexico has professed its willingness to pay for the oil properties but at the same time through its Supreme Court it has declared that the owners or lessees do not have the exclusive right to extract and dispose of the oil in the subsoil. This is a reversal of the Mexican position with respect to oil as set forth in the Mexican mining laws, affirmed by Mexican Supreme Court decisions, and as clarified in the Warren-Paync and the Morrow-Calles agreements, as well as in diplomatic correspondence. Efforts to Settle the Controversy Responding to suggestions from the State Department, representatives of the principal oil companies undertook in 1939 to effect a direct

Jan 1, 1940

By O. B. Hopkins

Essentially all production for Peru came from the three established fields in coastal northwestern Peru (Fig. 1). These fields are known as La Brea-Parinas, Lobitos, and Zorritos, in order of importance. Together they produced 13,496,880 bbl., as compared with 15,838,605 bbl. in 1938. Zorritos Field.—Of the total production shown on Table 1, the Zorritos field was responsible for a relatively negligible amount estimated at 40,000 bbl. This small field, which is over 50 years old, was purchased by the Peruvian Government in the spring of 1939 from the Piaggio interests. The Government operated this field along with its near-by National Reserve areas, largely under supervision of Department of Mines officials, and the total production rate for both old and newa-areas was estimated to have increased by Oct. 1 to 166 bbl. per day. as compared with the 1938 average of 110 bbl. per day. Construction is said to have begun on a refinery that is to have a capacity of 1000 bbl. per day and is to include a gasoline-extraction plant, and on a pipe line to bring fresh water 20 miles from the Tumbes River. Lobitos Fields.—The Lobitos fields, some 70 miles south of Zorritos, produced approximately 2,650,000 bbl., or almost the same amount a* in 1938. La Brea-Parinas.—The International's La Brea-Parinas property, immediately south of the Lobitos property, produced 10,806,880 bbl., or 80 per cent of Peru's production. During the year 73 wells were drilled on the Estate, mostly in the semiproved area: 44 by rotary, 13 by cable and 16 by star rigs, as compared with 34 by rotary, 11 by cable and 20 by star in 1938. The most important of the several semiexploratory wells sunk was No. 3075, which late in December was brought in at a depth of 4500 ft. with an initial production of 1500 bbl. per day, based on

Jan 1, 1940

By Eugene Jablonski

Statistical data on the Polish producing business are available only for the first half of 1939. Because of the invasion of the country during September by Germany and Russia all sources of information have stopped, and it is impossible to get even an approximate picture of the status of the industry after that date. The long declining trend of Polish production, which was finally checked during 1938, kept a further upward tendency during the first half of 1939, and there is good reason to believe that the upward trend would have been maintained. It is true, there was little hope of reviving the slowly dying Boryslaw field, although there still remained a slight possibility for an extension in its southwestern direction. Repressuring plans were still discussed, but. could not be put into effect because of extremely complicated and split-up lease ownership. The Gorlice-Lipinki ficld continued to be the main factor in the increase of the country's production. During the first half of 1939 this field received a further important extension in a southern direction. The Schodnica field continued to use repressuring with success. At the end of June, 21 exploratory wells were drilling, 14 of which were within thc Carpathians and 7 in the Miocene geosyncline of the Carpathian Foreland. All of the wildcat wells drilled within the Carpathians were on the struct,ural cxtcnsion of old established fields, but part of the wildcats of the Foreland were on new geological and geophysical prospects. The Opary gas field of the Foreland discovered last year has been further developed. The Government-owned Polmin completed its third gasser. This well penetrated two sands; the upper one, 118 ft. thick, was found at 1312 ft., with an initial pressure of 570 lb. and capable of produeiring 10 million cu. ft. per day. The second sand, 91 ft. thick, was found at 1690 ft., yielding 20 million cu. ft., with a pressure of 760 lb. The well Mieczyslaw, drilled about 3 miles further north on the flank of the structurc, found the first sand watered. The Pioneer No. 5, at Chodonice near Przemysl, which reported somc gas last year, was 5696 ft. deep at the end of June, still drilling in Miocene. Anothe well in the same vicinity drilled by the Gasolina was 1708ft. deep.

Jan 1, 1940

By W. P. Haynes

DuRing 1939. there were no discoveries of oil and gas in Rumania worthy of mention. and the only important extension was the anticipated

Jan 1, 1940

By Basil B. Zavoico

Production of crude oil in the U. S. S. R. during 1939 is estimated at, 226,111,000 bbl., as compared with 219,778,000 bbl. in 1938, an irlcreasc of 2.88 per cent but some 6.00 per cent under the planned output. During the past year a major readjustment took place in Russian oil fields, with the Grozny district falling into the third place, its former place having been taken by the fields of the Maikop-Kuban area of northwestern Caucasus. Production continued to grow in the Ural-Volg:t district and further large increases in this province in the coming years are certain. The drilling operations continued to be most unsatisfactory, falling far behind the plan, possibly as much as 25 per cent undvr the set objectives, and thereby interfering with the production plans, mora particularly since the Soviet oil industry is still based primarily upon the production from the naturally flowing wells without any proration whatsoever rather than upon stabilized production from either prorated oil wells or those operated with various mechanical lifts. The year 1939 started with the fulfillment of the drilling programs to the extent of about 90 per cent, but the situation rapidly deteriorated arid by the second half drilling programs were being fulfilled only to the extent of 60 per cent or less. Such breakdown in drilling operations was possibly due to poor equipment, which has not been able to stand increasing demands upon it, and this is substantiated by the rccent orders plaeed in the United States by the Soviet Government for some 60 drilling rigs of the latest design. Production Baku District.—-The fields of the Apshcbron Peninsula (Baku district) made a notable progrress during the past year and were able slightly to increase their production, to 166,000,000 bbt. as compared with 164,692,-000 bbl. during 1938. The c.rnphasis of production in the Baku district remained on the flowing wells, about 20 per cent of the total number of wells flowing about 70 per cent of production. During 1939 some 550 wells were complr.tcd in the Baku district with active rigs averaging

Jan 1, 1940

By J. O. Nomland

DuRing the year 1939 the program of the California Arabian Standard Oil Co. in eastern Saudi Arabia consisted of drilling wells to increase the production of Dammam Dome. (This structure is also sometimes referred to as Dhahran Dome.) In addition, in other areas of the concession, wildcat wells are being drilled on geologically favorable structures. In the early wells drilled at Dhahran, production was at a depth of 2000 to 2200 ft. Since discovery of the "Arab zone" below 4300 ft., all of the later wells have been drilled to the deeper productive members. At present there are at Dhahran fivc wells in various stages of drilling or completion. In addition, 15 wells previously were drilled to the upper or lower zones. Although some of the early locations are exceptions, in general the spacing of the wells is at 3000 feet. Prospect testing consisted in drilling one well at Abu Hadriya and one at Ma'agala, about 100 miles northwest and 120 miles west of Dhahran. The first had attained a depth of 8655 ft. without encountering the main Darnmam productive zone, while the second was at a depth of 1372 ft. Both of these wildcat wells are on large dome structures. Production.—During the year 3,933,903 bbl. of approximately 35" gravity oil was produced, all from flowing wells. A part of this production was shipped in barges to the refinery at Bahrein. In early May a 40-mile 10-in. pipe line was completed to the deep-water terminal at Ras Tanura. The ceremony of first opening the valve for flow of oil into an ocean tanker was performed by King Abdulaziz Ibn Saud. Since that time tanker shipments have continued, both to Bahrein and to world markets. Only sufficient gas for camp purposes has been produced. Equipment.—A stabilization plant has been completed at Dhahran and plans have been made for a refinery at Ras Tanura. A modern camp is being built including power plant, central air-conditioning plant, radio station, employees' club and housing facilities for both married and single employees. Both the offices and dwellings are being air-conditioned. There is a hospital, with medical staff and nurses, providing facilities for both Saudi Arabs and Americans.

Jan 1, 1940

By D. B. Williams

For the first time in the history of the Venezuelan petroleum industry production exceeded 200 million barrels. The total production for all fields amounted to 205,430,869 bbl., which is more than 9 per cent of the world's 1939 total. This is an increase of over 15 million barrels or 8.0 per cent above the 1938 figure, which, compared with the slightly less than 2 per cent increase of the 1938 figure over 1937, shows the marked activity in Venezuela during the past year. The Maracaibo Lake fields are still the predominating factor in Venezuelan production, showing an increase of approximately 9½ million barrels over last year's figure and accounting for 71.8 per cent of Venezuela's total. Lagunillas continues to hold precedence as a single field, having yielded 47.1 per cent of the accumulative total and 39.4 per cent of 1939's total. This field showed an increase of slightly more than 3½ million barrels over 1938. Tia Juana, the second largest field, attained a record production, increasing its percentage of the Venezuelan total from 23.4 in 1938 to 23.7 in 1939. The La Rosa field, which includes Punta Benitez and Ambrosio, declined from 13.7 to 12.0 per cent; Bachaquero, the southernmost Lake field, which came into regular production at the end of 1938, contributed over 31/3 million barrels. Quiriquire, in eastern Venezuela, ousted La Rosa as the third largest producing field, and, although production increased by 11/3 milliorl barrels, percentage of the total declined from 13.2 to 12.9. Mene Grande, the oldest field, declined from 6.6 per cent in 1938 to 5.9 in 1939. Tem-blador produced for a whole year for the first time and yielded 3,647,867 bbl. The Colon district, in the Maracaibo Lake area, comprising the Tarra-Los Manueles fields, showed slight increases, as also did Cumarebo and Pedernales. Construction of the 16-in. pipe line from Oficina to Puerto La Cruz (Guanta), the longest line of this size in the world, was completed toward the end of the year and this new field in eastern Venezuela started shipping oil in December. This field is operated by the Mene Grande Oil Co. and was credited with a production of 2,347,625 bbl. in 1939. Jusepin field, some 25 miles southwest of Quiriquire in eastern Venezuela,

Jan 1, 1940

By Walter Miller

The focus of attention during 1939 was on increasing the octane number of gasoline. The "octane race" resumed full swing. The averagc octane number of house-brand gasoline by the end of the year had easily reached two numbers higher, with several companies in the field actually purveying house-brand gasoline of 78-80 "research" octane number, equivalent roughly to from 74 to 77 A.S.T.M. octane rating, compared with the 70 A.S.T.M. ceiling of two or more years ago. Whether this trend toward much higher octanes is the result or the cause of the many t,echnical developments in the motor-fuel field of recent, years, progress has really been startling. In addition to the advance in catalytic cracking and catalytic re-forming, other important contributions to the technical ability to produce higher octane values include: installat>ions involving increased capacity in thermal re-forming, with improved economic status both as to yields and octane number, by coupling with catalytic polymerization; more widespread adoption of catalytic and thermal polymerization, and a surge toward extensive installations of newly developed alkylation processes for making iso-octane, neo-hexanr and other high antiknock products; and greater use of improved desul-phurization processes, and application of superfractionation methods for segregation of practically pure hydrocarbons with superior octanr qualities from gas and highly volatilc liquids. The approaching of practical limits in the use. of tetracthyl lead (t,hr well-known "law of diminishing returnsn coming into the picture at the higher octane levels being approached) has given impetus to development of the methods listed above. In particular, processes that improve the octane rating and also increase ethyl lcad sc.nsitivity have had considerable study durirlg the year. CatSlytic Re-foRming Although the interesting report on the Houdry catalytic cracking process presented at the annual meeting of the American Petroleum

Jan 1, 1940

Jan 1, 1940