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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

By William H. Spice

The area on which oil and gas development is reported covers 30 counties, which are included in the Texas Railroad Commission's District No. I. This area not only includes the old established Balcones fault-line group of producing fields but also includes the southwest extension of this trend and some of the deeper Wilcox (Eocene) exploratory development. (Fig. J.) In the old Balcones fault-line zone, three new fields were discovered during 1941. These fields are comparatively small, producing from Dale limestone or Austin chalk. No new fields were discovered during the year in the Edwards (Lower Cretaceous) limestone horizon. One new shallow field was discovered in the Reklaw (Eocene) sand horizon and, in the southwestern part of the district, one oil field and one gas field were discovered in the Navarro (Upper Cretaceous) sand horizon. An extremely important extension was made to the one producing Wilcox (Eocene) field of the district in the Washburn Ranch field of La Salle County. The district produced 6,650,357 bbl. during 1941, which was a 12 per cent decrease under production for 1940. Approximately 4,954,000 bbl. of this total production was produced by the three Edwards limestone fields, Luling, Salt Flat and Darst Creek, the remaining production coming from the other 43 active fields in the district. In all, 3694 wells were producing at the end of 1941, compared with 3559 wells at the end of the previous year. During the year, 139 new producing wells were completed and 29 wells were abandoned in the producing fields. The increase in producing wells represents an increase in new wells over abandonments in these fields, together with a decrease in wells temporarily shut down as of the end of 1941. The majority of production drilling was carried on in the following fields; Bee Creek, Chicon Lake, Elm Creek, Gas Ridge, Pearsall and Tenney Creek. Approximately 250 wells were drilled during 1941, of which 110 were exploratory wells completed as failures throughout the district. Considerable exploratory work was continued during 1941 along the Wilcox trend. Geophysical work employing various types of geophysical methods and leasing activity was continued along this trend, particularly by the major companies. The significance of this activity is apparent from the successful extension and development in the Washburn field of La Salle County, where several well-developed gas-and-oil producing horizons have been developed in the lower Wilcox section between 5100 and 5600 ft. as noted in the following paragraphs. Continued exploratory activity along this general trend as far as present conditions will permit is predicted for 1942. New Fields Elgin Field, Bastrop County.—No. I-A Hiram Walker, Marts and Beaven, Inc., discovery well of the Elgin field, was com pleted on Apr. 22, 1941, in broken Austin chalk from 2820 to 2840 ft., pumping 105 bbl. per day, 36.8°A.P.I. gravity. The well apparently is producing from a crevice in

Jan 1, 1942

By James J. Halbouty, Michel T. Halbouty

Drilling activity in the South Texas area, which includes the South Corpus Christi and Laredo districts, showed a marked decline during 1941 from that of the preceding year. The rate of new discoveries, however, 'compared favorably with exploratory results of 1940 because of the many new productive sands opened in existing fields. South Texas completions for 1941 were about 12.3 per cent below the 1940 figure, compared with an increase of approximately 5.5 per cent in the total number of completions in the United States during 1941 over the 1940 total. During the year, 1452 wells were drilled in this area; of these, 1205 were drilled in or as extensions to the proven fields, and 247 were rank wildcats drilled in search of new producing pools. The comparable 1940 figures were: 1320 field or extension wells and 336 rank wildcats, a total of 1656 completions. This represents a decline in 1941 of approximately 8.7 per cent in proven-area wells, and of about 26.5 per cent in rank wildcats. It must be stressed that wells that were considered rank wildcats at the beginning of operations, but which opened production later classified as additions to existing fields, are not regarded as rank wildcats in this and previous annual reports on this same area. These wells are classified as semiwildcats (Table 2). There were 13 new oil or distillate fields and 4 new gas areas opened during the year, as listed in the next column. This listing represents a decline of 32 per cent from the 25 new areas found during the previous year, and to a great extent can be attributed to the 26.5 per cent decline in wildcatting. The rate of new discoveries based on the 247 wildcats was 14.5 to I, which compares somewhat unfavorably with the 13.4 to I ratio obtained in 1940 (Table 5). Dry wildcats totaled 230. The proof of the prolific character of the South Texas area as a source of petroleum reservoirs is to be found in the fact that of the 1205 field or extension (semiwildcat) wells completed during the past year 61 opened production from new sands or found crude in formerly distillate-producing sands. The 1940 total of 1320 such wells accounted for 50 horizons that provided either new production or crude in distillate sands, and in this respect the 1941 rate of discovery shows to greater advantage, the ratios for new sands being 19.7 to I for 1941 and 26.4 to I for 1940. The 1205 field or semiwildcat wells completed in 1941 resulted in 926 oil or dis-

Jan 1, 1942

By William T. Schneider, Taylor Cole

Drilling in West Texas during 1941 was more active than in any year since 1937, a total of 2325 wells having been drilled. Pre-Permian exploration was the greatest in the history of the area; 106 wells tested pre-Permian formations during the year. Wildcatting reached the peak since 1937, with 135 wildcats, of which 20 per cent were producers. The wells were drilled to a greater average depth than in any previous year. Slim-hole drilling was the common practice, using drilling equipment that is largely portable. Because of deeper drilling, more attention was paid to mud fluids, especially the use of materials to reduce water filtration. There has been slight improvement in the protection of the pay horizons while drilling by the use of reverse circulation, and drilling-in with oil as well as low water-filtration muds. The practice of setting and cementing the oil strings through the producing formation and perforating opposite the pay zones has increased in the fields producing from sands. It is doubtful whether this practice is of unusual value in dolomitic limestone fields. There have been few if any technological improvements in obtaining necessary information on the pay sections penetrated, by coring, core analyses, better sampling, and more detailed drilling time. However, more operators are beginning to realize the necessity of good samples. For a proper study of the reservoirs in West Texas, it is essential that better samples be obtained, that more core analyses be run, and that better methods of obtaining drilling time be initiated. It should be noted that increased drilling speeds and slim-hole drilling have tended to reduce coring and core recovery and have not aided in obtaining good subsurface samples. In fact, fast drilling speeds and slim-hole drilling have reduced the cost of drilling operations, but with the sacrifice of much needed subsurface information. Larger quantities of slower-reacting acid are being used per well. There has been improvement in shooting, in that a greater number of quarts per foot have been used and an attempt has been made to concentrate the shots opposite the pay zone. The use of mud logging to determine the characteristics of the pay section increased considerably over the year 1940. There has been a slight increase in obtaining reservoir information in the new fields, such as bottom-hole sampling, bottom-hole pressures, and records of gas, oil, and water withdrawals. However, there is great need for more data on these subjects, particularly accurate information regarding gas and water volumes. There are three repressuring projects and a fourth is nearly ready for operation in the Kermit field. There is one repressur-ing project in the Payton field and one in the North Ward field. So far, the gas-injection projects have not shown very impressive results. As yet, there are no water-flooding projects or water-disposal projects in West Texas. Not including gathering lines within the fields, 222 miles of feeder pipe lines were

Jan 1, 1942

By David B. Reger

The expansion of the previously discovered gas pools and an intensified search for additional pools in the Oriskany and deeper sands were the principal petroleum activities in West Virginia during 1941. One small oil pool was discovered and another was considerably extended. One small gas pool was discovered, several isolated well discoveries were expanded into definite pools, and various recognized pools were substantially increased. The proved oil territory of the state was increased about 600 acres and the proved gas territory about 45,000 acres. The new discoveries of oil did not equal withdrawals but gas reserves added were greater than gas withdrawals. Oil activity, as in the past several years, was slight because of unfavorable crude prices. Most operators prefer to leave oil in the ground rather than to drill for it without a better return. Gas activity increased greatly because of better demand, even though the price of gas did not improve. The account of operations, as gathered from trade journals and other reporting services, shows that 838 new wells were drilled, resulting in 114 new oil wells with 2606 bbl. of daily new production; 558 new gas wells with 949,226,000 cu. ft. of daily open flow; and 166 dry holes. Also, 86 old wells were drilled to deeper sands with 9 bbl. and 56,030,000 cu. ft. of added production. On the new wells the oil average was 22.86 bbl. per well per day; and the gas average was 1,701,000 cu. ft. per well per day. On new wells the ratio of dry holes to completions was 13.61 per cent. On deeper drilling to other sands the ratio of failures was 15.12 per cent. From an exploratory standpoint one strictly new oil pool (Higginbotham Run) was opened in Kanawha County and one strictly new gas pool (Lost Run) in Taylor County. One entirely isolated wildcat gave commercial Oriskany-sand gas production and may open a pool. Various other wildcats greatly extended the boundaries of known Oriskany-sand gas pools and various others may have opened new pools in the shallow sands. On the other hand, various Oriskany tests in Harrison, Monongalia, Roane and Wood Counties were dry and all five tests to the White Clinton sand (Sil.) in Boone, Harrison, Kanawha and Wood Counties failed to find commercial production. The principal oil wells completed, by counties, were: Calhoun, 24; Clay, 7; Gilmer, 6; Hancock, 9; Kanawha, 9; Pleasants, 10; and Ritchie, 14. Production for the year was estimated by the Oil Weekly as 3,421,000 bbl., compared with U. S. Bureau of Mines final figures of 3,444,000 bbl. in 1940. The leading counties in gas-well completions were: Boone, 32; Braxton, 19; Cabell, 16; Calhoun, 46; Clay, 20; Gilmer, 37; Jackson, 94; Kanawha, 82; Lincoln, 17; Putnam, 46; Ritchie, 33; Upshur, 20; and Wayne, 33. Production for the year is estimated by the author as 210,000,000,000 cu. ft., as compared to the U. S. Bureau of Mines' final figures of 188,751,000,000 cu. ft.* in 1940.

Jan 1, 1942

By T. R. Armstrong

Total crude oil production in Mexico in the year 1941 is estimated at approxi- mately 41,000,000 bbl.; a daily average of 112,700 bbl. and a decrease of about 5 per cent as compared with the daily average of 120,000 bbl. produced in the year 1940, and nearly 11 per cent decrease as com-

Jan 1, 1942

By G. S. Hume

The largest development program in the history of Alberta was undertaken in 1941 in an effort to increase oil production. The drilling record is as follows: In Alberta there was the largest exploratory campaign for oil in the history of the Province, although drilling of wildcat wells was somewhat less than in the previous year. A great deal of geophysical work was done. This included three gravimetric and five seismic parties as well as a number of geological survey parties by the major oil companies and by the Geological Survey of Canada. Seismic work was done by one party in southern Saskatchewan. The production of petroleum in Canada is shown in Table I. About 98 per cent of the total production comes from Alberta and the yield of the various fields is shown in Table 2. The greatest developments in Turner Valley have been in the north end. In 1941 about two miles of new productive area was proved by drilling, extending the field to a length of 20 miles. The wells at the

Jan 1, 1942

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By Mario L. Villa

During the year 1941, there was another increase in the production of oil in Argentina, to which the fields in the Comodoro Rivadavia zone in the Territory of Chubut and those of the Provinces of Salta and Mendoza all contributed. The total production for this period reached 22,013,472 bbl., which represents an increase of 6.8 per cent over that of 20,609,538 bbl. in the preceding year. This result is again attributable to the Government oil company, the Yacimientos Petroliferos Fiscales, which had a total production of 14,006,559 bbl. representing an increase of 1,531,904 bbl., or 12.3 per cent over that of the 12,474,655 bbl. of the year before. The other companies

Jan 1, 1942

By Basil B. Zavoico

The World War I1 spread to Russia on June 22, 1941, when the German Armies began their invasion. The Soviet industries, which were already engaged in a tremendous armament program, further accelerated the flow of munitions, and equipment and supplies for all purposes not directly military were either entirely eliminated or reduced to an absolute minimum. With the occupation by German armies of the Dniepr and Kharkov industrial regions, this trend was necessarily further accentuated. The oil industry of Russia, in consequence, was left to rely more and more upon itself, its own very limited manufacturing facilities, extensive repair shops and probably much used equipment out of order stacked in the warehouses. All evidence available to date points to the fact that the new situation not only did not affect the production either quantitatively or qualitatively, but, on the contrary, caused a larger flow of much needed fuels to the country's war machine, primarily by renaissance of both management and labor. The oil industry of the Soviet Union, left to depend entirely upon itself for equip ment and supplies, and even for new workers and technicians to replace those called into the services, did and is still doing a good and effective job. Since it could not hope for new equipment and parts and could not blame any other industry for the delays in delivery, it dragged out old machines from storage and repaired them in its own machine shops. Often such stored and used equipment was but slightly defective, waiting for some small part from factories in Central Russia, plants that now were either in German hands or entirely converted to the manufacture of munitions. More particularly, instead of the pipe that could not be taken to the Caucasus from Central Russia, casing reclaimed from abandoned or submarginal wells was used, or pipe from the abandoned or but slightly used pipe lines; and this practice is being continued even now on a large scale, to create an ample reserve for the duration of the conflict. Indirectly such a development was even an improvement on pre-war days, when many wells about to be completed had to wait for weeks, even months, for the arrival of new pipe, all blame then being placed outside of the industry on the factories in Central Russia. For the purpose of reclaiming equipment and pipe still usable, special crews were organized. The war also caused much quicker adaptation of certain American practices and introduction of many emergency measures, such as: removal of derricks upon completion of wells and the use of drilling equipment mounted on skids for rapid transfer from location to location—both of these practices, while standard in the U.S.A., being new in Russia; installation of simplified surface pumping units; substitution of wooden bearings in the surface pump equipment; completion of wells in the Ural-Volga district, where formations are hard and tight throughout the sedimentary column, without either casing or

Jan 1, 1942

By Walter Miller

Although confident of its ability to meet any demands that may be made, the petroleum-refining industry is not complacent about the situation and realizes that the quantities of petroleum products to be furnished are so enormous and so far beyond what was previously estimated that the full cooperative effort of the industry must be exerted. Establishment by the President in May of the Office of Petroleum Coordinator for Defense with Secretary of the Interior Ickes at its head, plus the formation of the Petroleum Industry Council for Defense, in November, provide the channels for united endeavor within the industry and the means for gearing that endeavor in full harmony with the nation's needs. Great strides have been made and a rapid understanding of the situation and the magnitude of the task is being attained by all concerned. Refining, by constant study and development, by willingness to experiment and install new processes, and to replace older plants with more efficient equipment, had kept on a high plane of efficiency and progress. Working under the free competitive system, it built up its establishments until, as expressed in last year's report, it was easily able to supply any domestic demand that might be placed on it. Turning the United States into the arsenal not only of itself but of the united nations resisting aggression, however, in- creased the call for practically all petroleum products and in particular 100-octane aviation gasoline and high-viscosity aviation lubricating oils. Refining Capacity With over four million barrels a day of crude oil being charged to stills at the year's end, oil refining had broken all records and faced the necessity of further increasing its size to supply the ever-increasing demand for products, some of which, like 100-octane aviation gasoline, were research laboratory curiosities a few years ago. Although the refining capacity of the United States is listed at 4,860,000 bbl., about 800,000 bbl. of this is economically unavailable because of plant location or type. To meet the increasing needs, additional capacity of another half million barrels may have to be built in suitable locations and designed with an eye toward maximum production of aviation gasoline but with inherent flexibility to make it possible to vary and interchange with production of motor gasoline, furnace oils, and other products as necessity dictates. An interesting side light on this refining capacity question was an enquiry from official Washington for knowledge as to any idle refineries of something of the order of 10,000-bbl. daily crude capacity that might be purchased for bodily removal to Russia. 100-Octane Aviation Gasoline Largest of the tasks confronting refiners at the year's end was that of raising

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