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By Henry Rogatz

Oil.—During the year 1938, there were 434 oil wells drilled in the Texas Panhandle, increasing the daily initial production by 192,706 bbl. —that is, 229 fewer oil wells drilled than in the previous year, with a decrease in total daily initial production of 129,626 bbl. The total daily potential of the field on Dec. 1, 1938, as determined by the Texas Railroad Commission, was 1,250,645 bbl., an increase of 210,663 bbl. over the previous year. On Dec. 1, 1938, the daily allowable of 82,466 bbl. was assigned to the field to be produced from 3931 wells. The total amount of oil produced for the year was 23,227,170 bbl. The total proven productive area includes 148,298 acres. This is 30,248 acres more than for last year, and represents a more accurate calculation of the areas and not new discoveries. Gas.—There were 103 gas wells drilled during 1938, having a combined open flow of 3,166,300,000 cu. ft.; that is, 65 less than the number of wells drilled in 1937, with a decrease in the open flow of 3,144,488 cu. ft. per day. Pipe-line Gas.—The pipe-line companies withdrew 230,307,854,000 cu. ft. of gas (a daily average of 630,980,000 cu. ft.). The total withdrawals by pipe line decreased 5,624,481,000 ft. from that of 1937. Natural Gaso1ine.—Throughout the greater part of the year, 46 gasoline-extraction plants processed 1,376,186,000 cu. ft. per day, a total of 502,308,010,000 cu. ft. for the year. This gas yielded about 275,875,000 gal. of natural gasoline. The total daily capacity of all the plants is 2,519,500,000 cu. ft. During the latter part of 1938, one of these plants was shut down, leaving 45 plants operating at the close of the year. Carbon Black.—Thirty carbon-black plants operated during 1938, burning 266,881,000,000 cu. ft., or a daily amount of 731,180,000 cu. ft. This produced approximately 400,000,000 lb. of carbon black. During the year one plant was dismantled and two plants were shut down.

Jan 1, 1939

By Joseph M. Dawson

Although eight new fields were discovered along the south central fault-line district of Texas during 1938, only one can be considered as of major importance. and as a whole the year was one of no very great development. Several prospects, particularly two, were condemned through drilling, which had been considered important for probable Edwards limestone production. The oil produced was approximately the same as during 1937; namely, about 9 million harrels. This, of course, does not represent potential production but that allowed under proration. The year witnessed the very rapid decline of operations and interest in Austin chalk production. It has been found that only in rare instances mill chalk production pay for itself, because the wells decline extremely rapidly and the recovery per acre, formerly estimated at 2500 bbl., is now considered to he around 1000 barrels. There was an intent interest in the drilling arid producing of edge and abandoned properties in the three Edwards lime producing fields; namely, Luling, Salt Flat and Darst Creek. Many good wells were completed on properties formerly considered below the water level or produced beyond the economic limit The Edwards is penetrated only a few inches and a very small charge of acid is used. The results have been surprisingly

Jan 1, 1939

By Michel T. Halbouty

The area for which oil and gas development is reported for 1938 in this paper is larger than that covered by the report for 1937, in that besides Duval, Jim Hogg, McMullen, Starr, Webb and Zapata Counties, comprising the Laredo district, this paper also includes the South Corpus Christi district, which is composed of the following counties: San Patricio, Nueces, Jim Wells, Kleberg, Kenedy, Brooks, Willacy, Hidalgo and Cameron, all heretofore included in A.I.M.E. Gulf Coast reports. In the map, Fig. 1, the area known as South Texas is represented by the counties south of the heavy black line. Production in the South Corpus Christi district, which covers an area that extends inland for 50 miles and follows the coast line, is primarily in zones ranging from the Catahoula, through the Frio sands, into the Vicksburg horizon. General exploration is done mainly with geophysics because in this district production is directly dependent upon structural conditions. In the Laredo district most of the production is from sand lenses; therefore, because these shallow sand lenses represent old shore lines which are monoclinic in character, the most satisfactory method of exploration in the Laredo district is drilling. This type of production centers around Duval County and follows a northeast-southwest trend along the Mirando district. Although drilling operations showed a decline from the preceding year, 1938 was highly successful as far as new discoveries and developments were concerned, and results of the year's operations should have an important effect on the near future trend of exploration and drilling. Besides the discovery of several new fields and many new sands in established fields, 1938 saw the discovery of a new Vicksburg sand trend and the first marine drilling off the South Texas Gulf Coast. Many new fields were discovered during the year, but only a few were subjected to an extensive drilling program. Several already established fields, especially in the Laredo district, received a large amount of drilling as new sands and extensions enlarged the producing areas, a

Jan 1, 1939

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

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By C. E. Shoenfelt

There was very little oil activity in Utah in 1938. A few wildcat tests were drilled and the well at Cane Creek, started in 1937, was in active operation, but failed to reach its objective by the close of the year. The Clay Basin field in Daggett County, northeastern Utah, was extended about a mile east by the Mountain Fuel Supply Co. with the completion early in June of No. 3-D Murphy, NW. NW. SW. of sec. 23-3N-24 E. This well had an initial production of 16,000,000 Cu. ft. of gas a day under 2160 Ib. pressure, from Dakota sand at 5918 to 5925 ft. after plugging back from a total depth of 6035 feet. The Clay Basin field, in the few years it has been in operation, has developed into a gas field of major importance. Approximately 1300 acres has now been proved by development. Six wells are on production, five of which were completed in Dakota sand and the sixth in a sand in the Frontier formation. The field was connected to the Salt Lake line

Jan 1, 1939

By David B. Reger

Exploration for new pools of gas in the Oriskany sand and continued exploitation of areas already known to be productive in that sand were the main features of petroleum activity in West Virginia during 1938. To a considerable extent the exploration program resulted in failure, but the extension of former areas was eminently successful. Throughout the state, in general, less drilling was done than in 1937. According to the West Virginia Department of Mines, only 631 permits to drill were issued, as compared to 1034 in 1937. The account of operations, as reported by trade journals and other sources, shows that 766 wells were drilled, resulting in 131 oil wells with 1609 bbl. of daily production; 484 gas wells with 1,232,216,000 cu. ft. of daily open flow; and 151 dry holes. Several discoveries indicate new pools of oil and gas; and several extensions of old gas pools have been made. In spite of a decreased number of total wells, the figures for new gas and oil are both larger than in 1937. The new oil average is 12.3 bbl. per well per day; the gas average is 2,545,900 cu. ft. per well per day, the ratio of dry holes to completions is 19.71 per cent. No general attempt was made to discover new pools of oil. A continued low price, coupled with reduced takings, combined to make drilling unattractive. The principal oil wells completed, by counties are: Boone, 6; Calhoun, 10; Clay, 7; Gilmer, 5; Kanawha, 5; Lincoln, 7; Pleasants, 13; Ritchie, 32; Roane, 6; Tyler, 7; and Wirt, 14. Production for the year, according to the Oil and Gas Journal, was 3,724,750 barrels. The leading counties in gas, with the number of successful wells in each, are: Boone, 16; Braxton, 13; Cabell, 47; Calhoun, 29; Doddridge, 10; Gilmer, 55; Kanawha, 127; Lincoln, 18; Ritchie, 29; Wayne, 19; and Wetzel, 26. Production for the year is estimated as 150,000,000,000 cubic feet. Pipe-line construction, which was extensive in 1937, was insignificant in 1938. Exploration was not as active as in 1937. Field prices of both oil and gas have severely declined.

Jan 1, 1939

By C. E. Shoenfelt, E. W. Krampert

The major oil discovery in 1938 for Wyoming was the General Petroleum Corporation's So. 1 Government, C.NW.SE. of sec. 21-35N-77W, on the Cole Creek structure in central Wyoming, 14 miles northeast of Casper. This well found commercial oil production in basal Cloverly sand (Lakota) at 7978 ft. and was completed on May 28, 1938, at 8019 ft., 3 ft. in Morrison shale. It had an initial produrtion of 10 bbl. of oil an hour but at the end of a 7-day test made 336 bbl. of oil in 24 hr. During 1938, the well produced a total of 23,161 bbl. of oil. It has been agitated about 10 days out of each month to provide fuel for lease and drilling operations, the balance of the time it has been shut in pending the completion of the second well on the structure. The Cole Creek oil is of intermediate base and has an A.P.I. gravity of 32.7". The record of the well contains the "tops" listed in the accompanying tabulation. Tops in General Petroleum Corporation's No. 1 Government Well Feet 2210 Top of the Mesa Verde (Teapot sandstone) 2960 Top Steele shale 4500 Shannon sand; good show of oil and gas 6740 Top Frontier sand; some oil saturation 6840 Halliburton test of Froutier did not show much oil, but at 6878 ft. the oil showing amounted to 50 barrels 6878-7051 Shale 7051-7062 Sand with some oil saturation 7062-7920 Shale (sandy phase of Thermopolis shale 7779 to 7788 ft.) 7920-7926 Sand (Muddy); oil-saturated 7926-7974 Shale 7974-7979 Hard, coarse, limy sand (Dakota); some oil saturation 7979-7997 Soft sand; high oil saturation 7997-8002 Shale with pyrites 8002-8016 Sand (Lakota) 8016-8019 Variegated Morrison shale 5600 Elevation Lance Creek Field.—Important extensions to the Lance Creek field in eastern Wyoming were made in 1938 by the completion of a number of

Jan 1, 1939

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Arthur Wade

During the year 1938, there was some drilling in Queensland, New South Wales and Victoria, as follows: Queens1and.—At Hutton Creek, lat. (approx.) 25° 45' S.; long (approx.) 149°, drilling was done by Drillers limited (subsidiary Oil Search) to a depth of 4688 ft., to the Lower Permian(?). There were small gas showings. The hole mas abandoned. At Mt. Bassett, lat (approx.) 26" 20' S.; long. (approx.) 149", Roma Blocks Oil Co. No Liability drilled to a depth of 4033 ft. The hole bottomed in granite. There were small showings of' oil and gas above bedrock in what may be Permian but is not yet determined. The company intends to run a formation tester. New South Wales.—At Kulnura, lat. (approx.) 33" S., long (approx.) 151°, the Kamilaroi Oil Company Ltd. (subsidiary of Oil Search Ltd.) drilled to a depth of 6293 ft. The Permian, probably Upper Marine Series, was reached. Drilling is to continue. Victoria.—At Romawi, lat. (approx) 37" 50' S., long. (approx.) 147" 45', a dry hole 3246 ft. deep bottomed in the Jurassic and was abandoned. It was drilled by the Governments of the Commonwealth and the State of Victoria. At Lakes Entrance, 1st. (approx.) 37" 50' S.; long. (approx) 748", a small showing of' oil (a few pints a day) was obtained from a well drilled 1275 It., to the Upper Oligocene-Glaucnnitc series, by the Austral Oil Drilling Syndicate, No Liability. Future Drilling Preparations is are being made by companies fur further test drilling in 1939, and the Governments of the Common wealth and the State of Victoria are continuing test holes for information only in the Gippsland district of Victoria. In Papua and New Guinea, no test drilling was done in 1938, but several companies are carrying on geological investigation and it is expected that, some test holes will be drilled during 1939.

Jan 1, 1939

Production of crude oil in Bahrein Island during 1938 reached the new high of 8,297,998 bbl., an increase of 535,734 bbl, over the 1937 production of 7,762,264 bbl. The monthly average during 1938 was 691,500 bbl. and the daily average 22,734 barrels. To the close of December 1938, a total of 52 producing wells have been drilled. During the year 13 producing wells were completed and 11 wells were drilling or partly completed as of Dec. 31, 1938. The total footage drilled as of Dec. 31, 1938, amounted to 165,339 ft., of which 60,739 ft. was drilled during 1938. The production from the main pay comes from a depth of approximately 2200 ft. and the gravity of the oil is 33" A.P.I.

Jan 1, 1939

By G. S. Hume

TuRneR Valley, on the eastern edge of the foothills of Alberta, 35 miles southwest of Calgary, continues to be the major oil field in Canada. This field began production of gas and naphtha from the Mississipian (Madison) limestone in 1924, and until 1936 all wells were drilled for these products. At the end of 1938 there were 104 gas wells. In 1936 proof was found of a crude oil zone in the same horizon but lower on the west flank of the structure, which is a large fold cut off on the east side by an overthrust fault of great displacement. Since 1936 drilling has been done for the development of crude oil and at the end of 1938 there were 64 crude oil wells. On test through a 1-in. choke these flowed at the rate of 50,000 to 60,000 bbl. a day, but on production would not be expected to make this volume. The output has been prorated according to the capacity of the Prairie market. During the harvest season, when the demand for oil and oil products was at its maximum, the allowable production of Turner Valley was 28,363 bbl. per day. With the arrival of winter, this was cut to 11,500 bbl. per day but later was raised to 12,500 bbl. Production in 1937 from Turner Valley was 2,767,221 bbl., which was more than double that of the previous year. Production in 1938 was 6,691,075 bbl., which is considerably more than double that of 1937.

Jan 1, 1939

By O. C. Wheeler

During 1938, Colombia witnessed greater activity in oil prospecting and development than in any previous year in its history; more wells were drilled, more potential production established, more geological and geophysical work was accomplished, and more leases and concessions were acquired. Many companies, including the Texas, Socony Vacuum, Richmond (subsidiary of the Standard Oil of California), the Shell, and Tropical, contributed to this activity. Probably the most noteworthy development was in connection with the Barco Concession, which forms part of the Maracaibo Basin in eastern Colombia, adjacent to the Venezuelan frontier. There a great deal of preparatory work was accomplished in addition to camp and other construction, 20 producing wells were drilled and work was begun on the construction of a 12-in. pipe line to transport the oil to the port of Covenas, a distance of 260 miles. It is reported {hat 58,000 bbl. daily initial production was established during the year and is awaiting an outlet through this pipe line. Leasing and exploratory operations in Colombia continued active throughout the year; applications were made for concessions covering more than 1,100,000 acres of national lands and, in addition, leases were taken up on large areas of privately owned lands. Under Colombian law

Jan 1, 1939

By Roy E. Dickerson, W. M. O Connor

The production of crude petroleum of the Bacuranao field, Cuba, fell off rapidly because no new wells Mere drilled. In December 1938, the total was 15 bbl. per day. The estimated average from this serpentine field for the year is 20 bbl. per day. The Motembo area produced an estimated average of 160 bbl. per day. Production in July was 215,946 gal of gasoline, or 165 bbl. per day. In August production was higher because a new well in the concession, the Luisa Marcela, produced 189 drums the first day and required pit storage. The Atlantic Refining Company of Cuba started a deep test upon a long, narrow, surface-defined anticline 3 km. south of Remedios, a town on the north coastal plain of Santa Clara province, in December 1938. The Atlantic Refining Co. is doing extensive seismograph arid gravity-meter work in Matanzas arid Santa Clara provinces. The Shell company was rigging for a deep test in western Havana province at a location about 2 km. west of the town San Antonio dc los Banos New Petroleum Law More serious attention was given by some of the major oil companies to the development of petroleum in Cuba as a, result of the passage of a Petroleum Law ill that country on May 9, 1938. Under the old mining lam of Cuba, which gave no special treatment to petroleum, the usual provisions giving reasonably satisfartory guarantees to encourage investmerit of foreign capital were either entirely lacking or were 30 ambiguously expressed as to require legislative action. Under the new law, Government royalty is fixed at 10 per cent with the provision that it will be reduced to 9 per cent on crude petroleum that is refined in Cuba. Royalty to the surface owner is 1 per cent. A surface tax on a sliding scale from 10¢ to 406 per hectare per year is applicable to all exploitation concessions granted under the law or adapted to its provisions. So export tax is payable upon petroleum. Stability of taxation

Jan 1, 1939

By E. Escobar

Jan 1, 1939

At the end of June, 1938, a new oil field was opened in Egypt, the Ras Gharib. Five wells were completed during the year and gave a total production of 512,988 barrels.' In the Hurghada field production was as follows: Hurghada Field Age of field to end of 1938, years..................... 25 Producing area for gas and oil, acres................ 1,050 Barrels1 Total oil production to end of 1938............... 31,207,754 Total oil production during 1937................ 1,141,356 Total oil production during 1938.................. 1,019,520 Average oil production per acre to end of 1938... 29,719 Average oil production per acre-foot to end of 1938. . . 243.6 Daily average: production in December 1938.......... 2,603.54 Daily average production per well in December 1938. . 34.90 Millions Cu. Ft. Total gas production (Aug. 1925 to end of 1938)... 4,356.7 Total gas production during 1937.................. 222.5 Total gas production during 1938....... . 167.6 Maximum gas daily average of 1938 (ill May 1..... 0.6 Wells Number of producing wells completed to end of 1938 . . 100 Number of producing wells completed during 1938..... 3 Number of wells abandoned during 1938.............. 2 Producing wells at end of 1938 (all pumping)......... 78 Abandoned wells at end of 1938...................... 22 Dry wells at end of 1938......................... 21 Feet Average depth of bottom of producing horizon........ 1,720 Average depth of top of producing horizonlt 1,598 Character of oil, approximate average ill 1938: specific gravity at 60" F'., 0.900; base, mixed. Character of gas, approximate average for 1938: gallons gasoline per 1000 cu. ft. of gas, 6.4. Main producing formation: Nubian sandstone, Cretaceous (PI; sand rock and sandstone.

Jan 1, 1939

By H. De Cizancourt

Jan 1, 1939

By Walter Kauenhowen

The crude-oil production of Germany without Austria during 1938 amounted to 3,864,518 bbl., representing an increase of 21.7 per cent over the 3,173,373 bbl. produced in 1937. Adding the Austrian production, the crude-oil production of the new German Reich totaled 4,259,717 bbl. during 1938, representing an increase of 25.3 per cent compared with the respective figures of the previous year. According to published official data, and using a conversion factor of 1 metric ton equaling 7 bbl., the oil production of Germany in 1938 was as shown in Table 1. A semiofficial publication1 states that the program of the crude-oil industry for the second year (1938) of the four-year plan was successfully accomplished. According to the same source, new drilling developments at the following localities were promising: Reitbrook near Hamburg, Heide in Holstein, Eicklingen-Sandlingen near Celle, Steimbke near Nienburg, Worms in the Rhine Valley, Gifhorn near Braunschweig, Mölme near Oberg, and at other places. The drilling activity for oil is illustrated by the figures in Table 2.

Jan 1, 1939

By A. H. Taitt

During 1938, the exploratory drilling by the D'Arcy Exploration Co. Ltd., subsidiary of the Anglo-Iranian Oil Co. Ltd., was continued. The original basis of the search for oil and results to the end of 1937 have already been described.' During 1938 two further wells were drilled in the south, making a total of five wells completed in that part of England. Test wells were also commenced in the Midlands, East Yorkshire and Scotland, where one well, which proved natural gas, was completed during the year. Southern England.—The test well at Kingsclere, in Hampshire, which at the end of 1937 had reached a depth of 5032 ft. in the Lower Lias, entered the Trias at 5060 ft. and was abandoned in that formation at a depth of 5125 ft. A shallow test well was also drilled near Pevensey, in Sussex, to test the lower horizons of the Wealden series and the Purbeck and Portland beds. Traces of oil were encountered in the Wealden series but no production was obtained and the well was abandoned at a depth of 842 ft. in the Kimeridge clay, which underlies the Portland beds. A geological borehole was begun north of Lulworth in Dorset, where the outcropping Wealden series, Lower Cretaceous, is strongly impregnated with oil, to determine whether a more pronounced pre-Albian anticline underlies the very gentle arch of the unconformable Upper Cretaceous. Drilling is not yet completed. Nottinghamshire, Lincolnshire ad Yorkshire.—Geophysical investigations were continued in the eastern part of England where the structural conditions of the Carboniferous rocks are concealed by an unconformable blanket of Permian and younger sediments. Seismic methods failed to confirm the structural picture obtained by the previous gravity traverses, but confirmation of a structure near Ollerton, Nottinghamshire, which was suspected on evidence from colliery workings, was obtained. A location was made for a test well on this structure. Eskdale No. 1, begun on the Eskdale pericline near Whitby, in Yorkshire, to test the magnesian limestone of Permian age, was abandoned at a depth of 2486 ft. in the Trias after protracted fishing operations. A

Jan 1, 1939

By Brandon H. Grove

The rapid development of the Budafa-Puszta field during 1938 advanced Hungary a considerable distance along the road to self-sufficiency in domestic crude-oil supplies. Seven wells were completed in the field during the year, at depths averaging 4100 ft., and there have been no dry holes. Initial productions have ranged from 150 to about 400 bbl. per day. At the end of the year daily average production amounted to about 1400 bbl., which is equivalent to 33 per cent of Hungary's daily internal consumption. Production increased somewhat in the Government-controlled oil field at Bükkszek, also discovered in 1937, but nothing occurred to alter previous indications that this field would be capable of only relatively insignificant development. A further test of the Miocene-Oligorcene basin containing the Bükkszek field is being made by a well now drilling

Jan 1, 1939

The production of petroleum in India (including Burma) increased from 334,811,624 gal.' ill 1936 to 350,322,222 gal. in 1937, the highest figure in the history of the industry. The increase in 1937 was clue to an increase of some 20 million gallons from Singu, 51/2 million gallons from Attack, 11/4 million gallons from Thayetmyo, and 1 mi1lien gallons from Digboi, accompanied by decrcases of 91/2 million gallons from Yenan-gyaung and 2 million gallons from Yenangyat,. The amount of gasoline produced from natural gas during the year was 10,616,313 gal. in Burma and 456,780 gal. in the Punjab. Yenangyaung Field.—The Yenangyaung field maintained its reputation of being one of the most wonderful oil fields in the world. The total production during 1937 was less than in the previous year but the resources of the field as a whole are sufficient to ensure an adequate supply of oil for many years. At the end of 1037 there were 2910 wells producing in the field. Besides a large number of ells drilled to shallow sands, this total includes 180 hand-dug wells, whose continued existenice is one of the interesting features of the field. During the year the deep drilling activities of 1936 in the southern part of the field died down, owing to the disappointing results obtained. On the eastern flank the limit of present economic extension of the oil sands was approximately demareated. Satisfactory results continue to be obtained from gas drives in the leased blocks; gas is also injected for repressuring and storage. Casing policies continue to be carefully designed to protect the oil sands against the danger of flooding by water and, in general, production methods throughout the field are characterized by a realization of the importance of the conservation of oil and gas and the prevention of waste, whether simple or underground. Singu Field.—-In 1937 the increase in the output from the Singu field was continued. This increased production was due not only to the rapid development of the valuable area in the southern part of the field but also to the successful results obtained from the first wells to produce from behind the practically completed river training wall of the Burmah Oil

Jan 1, 1939