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nnp, of the petroleum indu,~try's vital contrihution',. to the war-Shell Oil Company's new catalJtic hydrogenation plant fit itsWilmiflgt.nn.nomi"guez "efinerr, California, producing an ingredient of IOO-oqane ga.~oline.
Development of Reserves Tra'ils New Discoveries;Olcler Fielcls Required to Produce Beyond Maximum Efficien·t Rates
'Foreword by W. S. MorrisVice-President and General Manager, East Texas Salt Water DisposalCo.; Chairman, Petroleum Division,
A.I.M.E.
PETROLEW\1'S importance inWorld War II can perhaps be better realized by the recitation of a
few facts and figures:Gasoline needs in this war are al
ready eighty times greater than in thelast war.
It takes nearly three pounds of gasoline to deliver one pound of bombs,filled wilh pelroleum explosives, on anfmemy obj ective.
Every American soldier overseas requires an average of more than fiftygallons of petroleum products per week,with Ihe. oil used by Navy and supplyships and America's Allies boosting theoonsumption of oil per soldier to aneven higher figure.
Every oil well in the United States1l0W m.ust produce each day an averageof four barrels of oil for war and combat jobs.
More than fifty million gallons ofgasoline, fuel oils, lubricants, and otherpetroleum products are now going directly to the fighting forces every day.
FEBRUARY. 1945
Sixty-five percent of the total tonnage of overseas shipping for the prosecution of the war consists of petroleum products.
It requires llOO gallons of high.octane gasoline for a bomber to fly fromLondon to Berlin and return. A 1000·plane raid would therefore require overa million gallons of gasoline.
This year (1944) the Navy's needfor Diesel oil 'Vas 2300 percent of its1941 needs, and fuel oil needs will be500 percent of our 1941 consumption.
The av('rage price of crude oil in thiscountry is about 0.40. per pound. Afterprocessing by the refiners, its averageprice is about 0.6c. per pound.
Production of crude oil in the UnitedSiaies reached an all-time peak late in1944 with an oulput of 4,766,300 barrels per day. The lowest productionin 1944 was at the beginning of theyear when 4,357,000 barrels of oil wereproduced per day. Even the lowest produclion during 1944 was greater thanthc highest for 1941 and 1942. Demandlfor crude oil has made it necessary toproduce practically all fields at theirmaximum efficient rales and in some in·stances, because o[ the special grade ofoil and the transportation facilities, themaximum efficient rates have been exceeded.
Likewise, an all·time peak for crudeoil ruu:; to stills was established for theweek ended Sept. 30, 1944, when 4,775,003 barrels daily was charged. The re-
o fined products have moved rapidly intochannels of war to the end that stocksof both crude oil and refined productswere maintained at low levels duringthe entire year.
During 1944, 24,345 wells were com·pleted compared to 19,245 during theyear 1943. The industry had been asked to drill 24,000 wells during 1944and this was done, but an objective of5,000 exploratory wells had been setwhereas only about 4,250 were actuallycompleled. For 1945, 5,003 wildcatshave been requested by P.A.W. and alolal of 27,000 well completions. Thefixing of crude oil prices at prewarlevels, together with the failure o[ manyefforls to increase the price level, arethe main reasons why more wildcalwells were not drilled. Discovery ofadditional oil reserves during 1944 didnol keep pace with the increased demand for crude which made it necessary 10 draw heavily on the producingability of older fields to maintain thenecessary production. As previouslymentioned, the maximum efficient ratefor some fields had to be exceeded toobtain the required crude.
105
AN'"
ProJuction Geology:
New Sources Being Studied Jor Our
Postwar Petroleum Products
Table I. Oil Shale Acreage Available for Oil ~action
By F. B. PlummerGeologist, Bureau of Economic Geology, The University of Texas; Chairman, Committee on ProductionGeology, Petroleum Division A.I.M.E.
gating the best methods of developinga supply of automotive fuel from oilshale, coal, lignite, and agricultural andforestry products. The investigationshave been entrusted to the fuel divisionof the Bureau. An experimental plantfor extracting oil from oil shale is beingbuilt at Rifle, Colo., and a research lab·oratory for oil·shale investigation hasbeen established at Laramie, Wyo. Anew building to house greatly enlargedresearch facilities will be constructedsoon.
Oil shale is known to occur in quan·tity in at least eighteen states: Arizona,Arkansas, California, Colorado, Idaho,Illinois, Indiana, Iowa, Kentucky,Maryland, Missouri, Montana, Nevada,Oklahoma, Pennsylvania, Wyoming,Texas, and Utah. Rough estimates 01the acreage available for mining areshown in Table 1.
Winchester conservatively estimatedthat these deposited shales containedaround 90 billion barrels of recoverableoil distributed as shown in Table 2.
Since the total known oil reserves ofthe United States are estimated to beonly twenty billion barrels, this 92 bil·lion is a siza1tle addition. ~uch figuresat best are only rough estimates butthey do indicate a possible sizable reoserve of liquid and gaseous hydrocar.bons in shale. The main problem indeveloping oil from oil shale is to develop a cheap and efficient method ofmining and retorting. A horizontal typeof large boring machine needs to be in·vented which will cut into a cliffside athousand feet or more, bring the shaleout in a screw conveyor, and deliverit into an electric or gas-heated retort.(A. H. Bell reports that a method ofhorizontal drilling in partly depletedoil sands has been carried on for sev·eral years in Pennsylvania. See Bureauof Mines Report of Investigations 3779,September 1944.) The retort needs tobe constructed so that it will receive theshale at one end and deliver automatically and continuously ash and clinkerat the opposite end. At the same time,the oil and gas are distilled off throughpipes and are delivered by gravity flowto a refinery. Only by devising meansof handling huge quantities of shale atlow cost can a plant be successful.American engineers undoubtedly willsolve this problem.
Oil is being obtained from shale inScotland, Estonia, Germany, Russia,France, Australia, Sweden, Manchuria,and Japan. Scotland now has six oilshale plants handling 5000 tons of shaledaily yielding 18 percent to 45 percentcrude oil. The quality of the refinedproducts obtained from shale oil islower and the costs of production arehigher than are the costs of light frac·
Estimated yieldof oil per tonin gallons ofbest grade
30 to 4010 to 3010 to 3030 to 4030 to 4010 to 40
Geological age
Tertiary .Devonian .Devonian .TertiaryTertiaryMississippian
The United States Government, conscious of future needs of oil, has duringthe past year appropriated $30,000,000to be expended by the Bureau of Minesduring the next five years for investi-
Oil from oil shales
Development of the West Edmondpool, a large stratigraphic trap type ofoil reservoir north of Oklahoma City inthe Mid-Continent, and the expansionof recent new discoveries in southernMississippi during 1944 indicate clearly that large, undiscovered, new sup'plies of oil st.ill exist in the UnitedStates. The d~culty of locating poolslike the East Texas pool and West Ed·mond pool in Oklahoma by ordinarygeological or geophysical.methods suggests that more intensive subsurface en·gineering and geological work is necessary-a search for every major buriedridge, a detailed study of the subsurfacestratigraphy, development of cheapercoring methods for locating petroliferous strata, and courage to test thefavorable pinched-out sands at the mostpromising spots. Such a program isbound to locate hidden new reserves.In this way large pools may be discovered in foreign countries where upto now, from Mexico to Iran, geological and geophysical work has concen·trated on the location of anticlines anddomes and few attempts have beenmade to locate an East Texas type ofpool. Undoubtedly, many stratigraphictraps adjacent to the larger oceanic islands, the Philippines, the NetherlandsIndies, and the West Indies are filledwith oil. Some of these chains of is·lands are simply ridges partly buriedbeneath overlapping sediments of thepresent seas. The subsurface strata contain rich source beds and probably oilpools exist along their borders. Suchpools will be difficult to find and difficult and costly to develop, but mayadd large reserves of' oil to our reosources.
'Acreage
900,000320,000609,686
1,000... 2,700,000
25,000
State
ColoradoIndianaKentuckyNevadaUtahTexas
FEW papers on petroleum technologyand petroleum geology have been
written in the war years just ended, andfewer advances in the technology ofproduction geology have been made. Onthe other hand, 1944 has been a yearof taking account of stock, lookingahead, and planning for the future.Groups of geologists, groups of engi·neers, members of institutions, and executives of companies have formed com·mittees for the planning of postwar pro·grams and future developments. Groupactivities have concentrated on planningfor providing work for returning sol·diers and preventing unemployment. Inmany of these programs, the development of our natural resources and provision of a future supply of fuel for ourArmy and Navy and greatly expandedindustry have received highest consider·ation. Members of the ProductionGeology Committee have taken an ac·tive part in planning these programs.It is the purpose of this paper to reoview briefly one phase of these post·war discussions, namely, methods of ob·taining new sources for an adequatenational oil supply.
Four lines of approach are availablefor expanding future supplies of oil:(1) securing new national and largeforeign reserves; (2) developinlt amethod of cheap extraction of oil fromoil shales; (3) manufacturing cheaplythe combustible hydrocarbons fromcoal, lignite, and perhaps peat and agricultural products by the hydrogenationprocesses or new processes yet to bediscovered; and (4) developing methods of synthesizing cheaply the liquidhydrocarbons from natural gas. Plansof putting into effect each of these pro·posed projects are reviewed briefly.
106 MINING AND METALLURGY
ANNUAL REVIEW ISSLJE
Output of Crude Oil at New Peak in 1944,11 Percent Over 1943
Table 2. Estimate of Oil Recoverable From Oil Shale(in thousands of barrelsl
and coal and lignite in most of theRocky Mountain States. It appears tothe committee that the low-grade coalsof the Gulf Coast and Western Statesare a most important source for futuregasoline supplies. The process of hydrogenation of coal, when perfected, asAmerican technical skill is sure to im-
The United States has enormous reoserves of lignite in Texas stretchingfrom Texarkana on the northeast toEagle Pass on the Mexican border,large deposits of subbituminous coal innorthern Texas and southern Oklahoma,large reserves of coal in Illinois, Indiana, Pennsylvania, and the Virginias;immense lignite deposits in the Dakotas,
crude production in 1944 has beenraised at times in various areas abovethe estimated maximum efficient producing rates in order to meet the military products requirements.
Texas and California both established new annual peaks with dailyaverages of approximately 2,040,000barrels and 852,000 barrels, increasesrespectively of about 400,000 and 75,000 barrels daily over 1943. The Texasincrease came chiefly from West Texasand the Gulf Coast areas with gainsof 170,000 barrels and 175,000 barrelsper day respectively. This was obtainedin West Texas as a result of expanded
prove it, will make available a futuregasoline supply not only to supplementour future oil and gas discoveries but.eventually to meet all needs.
Gasoline from methane
Millions of cubic feet of natural gasare wasted in nearly all oil fields. Gasis blown off into the air and burned inhuge flares. The rest of the huge production, amounting to about 2112 trillioncubic feet per year, is used for heatingand generating steam and electricalpower. Methods have recently been perfected for converting natural gas intogasoline. The process and methods insome cases are in commercial use andin other cases are still being perfectedin research laboratories. The exactmethods and yields are not disclosedbut are reported to be successful. According to E. O. Thompson, memberof the Texas Railroad Commission, aplant is operating commercially atOlean, N. Y. Such a plant will handle64,000,000 cu. ft. of gas per day andyield about 6000 barrels of 83-octanegasoline or about one barrel per 10,000cu. ft. of gas. The United States hasabout 85 trillion cubic feet of provedgas reserves and probably another 85trillion of potential reserves. If all theproved reserves of gas were convertedinto gasoline by this process, the yieldwould be more than eight billion gallons of high-octane gasoline.
Truly the United States has a potential source for an abundant supply ofgasoline for its future industrial development. Well-educated and well-trainedgeologists and engineers will findplenty of work in mining, manufacturing, operating, and processing gas, coal,and oil shale during the postwar yearsto come.
Recoverableoil
47,625,5983,623
25,680,0001,826,4006,912,0009,880,704
8,2808,280
91,944,885
Total oil79,625,998
6,03948,800,0003,044,0007,680,000
10,978,500
13,80013,800
150,162,137
Yields of Oil from CoalOil Yield
Pressure, Gallonslb. per per Tonsq. in. of Coal4,500 1564,500 1763,300 1693,300 1554,600 1084,600 1233,300 79
Table 3.
ProJuction:
By W. P. HaynesGeologist, Standard Oil Co. (NewJersey): Chairman, Production Committee, Petroleum Division, A.I.M.E.
U NITED STATES crude oil production during 1944 is estimated
to have established a new annual highof 1,675,000,000 barrels, a daily average of 4,580,000 barrels, an increase of460,000 barrels daily, or 11 per centover the 1943 daily average. The waryears have seen a rather steady increasein production rates with the daily average of 1942 at 7 per cent over 1941,and 1943 at 8 per cent over 1942. The
I. C. C. No. 21, W. Va..Empire, Ala. . ....Columbia, UtahOrient No.2, III...Colstrip, Mont.Monarch No. 45, Wyo..Beulah, N. Dak...
Total
tions produced from petroleum. InSweden a new method has been devised for the direct extraction of oilfrom the shale beds by electrical heating. The process requires large amountsof electricity, but it increased the yieldof oil from shale in Sweden to over500,000 barrels in 1943.
Coal and lifjnite sourcesManufacturing fuel oil and gasoline
from brown coal, more than anyoneother single factor, has made it possiblefor Germany to build up her industrialnation and to carry on the Europeanwar. Oil is being made from coal inGermany, France, and England, and recently the Bureau of Mines has beencarrying on extensive research in thehydrogenation and liquefaction of coaland lignite in this country. Severalprocesses have been devised for theliquefaction of coal. The 1. G. Bergiushydrogenation process, as carried out inEngland, consists of mixing a smallamount of a catalyst, for example tinsulphide, with approximately equalparts of powdered coal and heavy oilpreviously obtained in the process. Themixture is then pumped through a preheater into a high-pressure steel vesselthrough which hydrogen gas is alsopum'ped at a pressure of 3000 lb. ormore per sq. in. The heater raises thetemperature of !pe mixture to about 860deg. F. The liquid product from thereaction vessel is separated from thesolid residue of ash and carbonaceousmatter and distilled into light, middle,and heavy oil tractions. The light oil isrefined to gasoline. The middle oil isagain hydrogenated to gasoline, and theheavy oil is mixed with more coal powder for another liquefaction run. Results of a few typical liquefaction yieldsfor optimum conditions of hydrogenation made by the Bureau of Mines aregiven in Table 3.
The experiments covered a widerange of rank of coals, including peat,brown coal, lignite, subbituminous andbituminous coal, and lead to the con·clusion that hydrogenation under op·timum conditions results in high lique·faction yield.
State TypeColorado . . . . . . . . . . ..TertiaryNevada . ..••TertiaryUtah .. . TertiaryWyoming TertiaryInedniatuncaky'" Devoniank DevonianTexas ..... . ...•MississippianPennsylvania ....Cannel coalWest Virginia ..Cannel coal
FEBRUARY, 1945 107
ANNUAL REVIEW ISSUE
TABLE I. Well Completions and Wells Being Drilled, 1941, 1943, and 1944
Table from Report of CommIttee on Production, Petroleum Industry War Council,December, 1944.
Total Well Completions Total Wells DrillingUnited States United States
First 10 months November 1
1941 1943 1944 1941 1943 1944
Arkansas ... .... 174 216 167 29 38 28California ... .. ... ' 974 1,149 1,684 186 197 284Illinois ..... .... ... 3,225 1,452 1,647 328 177 220Indiana .... ... .... 413 218 279 51 46 38Kansas .... ... 1,795 1,374 1,608 196 230 251Kentucky .. ........ 584 570 822 32 69 90Louisiana . ...... . 1,376 540 728 183 105 171Michigan. . .. 751 499 566 129 74 93New Mexico ...... 340 195 288 73 78 92N.Y.-Pa.-W.Va•.. , . 3,849 3,227 3,839 575 400 486Oklahoma .. , ... , .. 1,752 954 1,634 293 303 493Rocky Mountain ... 407 484 595 83 127 113Texas ... , ....... " 8,303 3,561 4,895 1,113 691 1,168Others ............ 1,698 1,060 1,206 248 194 221
-Total U. S..... 25,641 15,499 19,958 3,519 2,729 3,748
land Parish, and the further drillingof the Lake St. John and Holly Ridgefields, added substantially to the provenand potential reserves of this section ofthe State. The West Tepetate fie~d,
Jefferson Davis Parish, and the GoodHope field, St. Charles Parish, apparently were the most important discoveries in Coastal Louisiana. Continuingexploration of previously discoveredfields in this area has served to maintain the capacity for oil production.
Discovery of several new pools in theeastern Gulf area where Upper Cretaceous horizons in the Tuscaloosa,Eutaw, and Selma formations have pruvided major prospects, is onc of theoutstanding developments of 1944. TheHeidelberg field in southeastern 'Mississippi was discovered in February andgives promise of becoming of majorimportance. Farther east the discoveryof production in the Selma chalk atGilbertown, Choctaw County, Alabama,has added that state to the list. Gilbertown lies only fifteen miles east of theEuculta, Miss., field discovered in1943. In Mississippi later in the yearthe Gwinville field in Jefferson DavisCounty, the Ma1lalieu field in LincolnCounty, and the Baxterville field inLamarr County were discovered. Gwinville appears to be an important gas·condensate field from which some oilwill be produced. The other fields, inwhich only the discovery wells havebeen completed, are considered pros·pects for the development of substantial oil reserves.
The discovery of additional PrePermian production in several countieswas the outstanding development of theyear in the Permian Basin area of WestTexas. Zones in tht" lower Permian,the Silurian-Devonian, and the Ellenberger (Ordovician) produce oil withlow sulphur content. New areas andextensions of previously discoveredfields for all these formations were important. The largest increase in provenoil reserves was obtained through theexpansion of fields discovered in previ.ous years. Most important of thesewere the Keystone-Ellenberger and Ful·lerton fields, the former now having anestimated proven reserve of over 200million barrels. According to preliminary estimates, new discoveries andextensions to producing fields duringthe year made a net addition to theproven reserves of the Permian Basinarea in excess of 250 million barrels.
. The first production in Texas from theViola limestone (Ordovician) was recorded in a Montague County test inNorth Texas.
[n Oklahoma the extension of theWest Edmond pool, discovered' in 1943,deserves first mention. The field is nowten miles long and from two to three
. W. P. llaynes
or 15.8 per cent successful in 1943.The successful completions included440 oil wells in the ten months' periodof 1944 compared with 434 oil wellsfor the entire year of 1943.
The world's record for deep drillingwas held for part of the year by the"Ada Price" No.1 well in Pecos County,West Texas, which reached 15,279 ft.in May. However, by October a wellin Kern County, California, had ex·ceeded 16,000 ft. in depth.
Deeper production in the Haynesville field was probably the most important discovery of northwesternLouisiana. In northeastern Louisiana,the discovery of production from Cretaceous formations near Delhi, in Rich-
wirdcat and new pool completions for1944 fell considerably below the goal,but still were well above the 1943 fig·ure. Drilling had more favorab'e results, also, for, in the ten· month periodshown in Table 2,608 successful wellswere obtained out of a total of 3173completions, or 19.1 per cent comparedwith 556 wells out of 3512 completions
pipe-line transportation facilities aidedby transportation subsidies, on shipments to District II refiners, and in theGulf area producing rates were at timesincreased to relieve shortages of sweetcrude supplies for the "Big Inch" pipeline.
The increase in California produc·tion was chiefly due to new completionsand upward revisions of producingrates. Drilling restriction~ were relaxed as military requirements increased in the Pacific area. In June thedevelopment program for the Elk HillsNaval Reserve was approved with plansfor the drilling of about 300 we~ls andan increase in production from 15,000to 65,000 barrels daily. In Decemberthe Secretary of the Navy announcedthat Elk Hills production was in excessof 40,000 barrels daily.
In general, production rates in otherparts of the country showed slight vari·ations over 1943 with some declines inthe Eastern and Mid-Continent sectionsand almost no change in the RockyMountain district. Total well completions in the United States (Table 1)during the first ten months of 1944were considerably below completionsfor the equivalent period in 1941 butexceeded those of 1942 and were 28per cent over 1943. Throughout theyear the average number of rigs operating was only slightly less than in1941 but there were fewer completions,because of deeper producing horizonsand of decreased operating ,efficiency,due to scarcity of materials and manpower. Probably the most active drill·ing areas were the Elk Hills Naval Reserve, the West Edmond field in Oklahoma, and the Fullerton field, Texas.
The Petroleum Administration forWar set a goal of 5000 wildcats for1944 and a total of 24,000 wells. The
108 MINING AND METALLURGY
TABLE 2. Exploratory Well Completions, 1943 and First Ten Months 1944.
Table from Report of Commltee on Production, Petroleum Industry War Council.December, 1944.
I Year 1943 Ten Months 1944
Total Wildcat I Total Wildcatand New Pool Oil and Gas and New Pool Oil and Gas
Test Discoveries Test DiscoveriesCompletions Completions
Alabama ...... ...... .. , 8 ·. 20 1Arizona ...... , ... ... . 1 · . . . ·.Arkansas.......... " ., . 86 8 50 4California .... , ...... ... 207 29 224 46Colorado, ........... .. . 14 1 9 2Florida. ... . ......... . · . 7 1 3 ·.Georgia. .. . ........... . 3 0 4 ..Illinois. , . . . . . . . . . . . . . 331 81 302 57Indiana .. . . ........... 82 6 74 13Iowa ..... ............ . 1 4 ·.Kansas ... ........... 500 70 449 76Kentucky. ., . . . . . . . . . 160 21 148 30Louisiana .. ........... 182 35 137 40Maryland. .. , .......... 1 ·. 1 · .Michigan .... . . . . . . . . . 229 24 204 18Mississippi. . . . . . . . . . . , . 68 4 75 3Missouri ....... . ..... · . 17 3 10 3Montana, ..... , . ....... 42 6 35 3Nebraska ... ..... . .. . 29 · . 13 · .New Mexico ......... 28 7
I
39 7New York ... ... . . . . . . . . 14 · . 11 .-North Dakota .... . . 1 · .Ohio. .... . ......... 13 1 61 21Oklahoma., ....... 356 87 i 294 76.....Pennsylvania. .... . ... · . 14 3 7 2South Dakota. ........ . 1 · . ·.Tennessee .............. 6 i 3 2 · .Texas ......... ....... · . 1,056 155 924 170Utah. ............. . ... . 8 · , 5 -.West Virginia. ... 16 6 37 25Wyoming .. .... 31 5
1
31 11
Total. , .. 3,512I
556 3,173 608
Oil Wells.·1
434 440Gas Wells .... ... . · . 122 168
Total Successful I ' . 556 . . 608
! I
miles wide with about 20,000 acresproved, with possibility of further ex·tension to the Eouth and the northwest.Current production is around 45,000barrels daily, chiefly from the Huntonhorizon. The reserve situation in Oklahoma has been greatly improved by theprospects in the eastern AnadarkoBasin area where several deep horizonsare still to be tested. This prospectivezone lies along the western flank of theNemaha granite ridge and extendssouthward from West Edmond throughthe West Moore pool, discovered in1943, into the South Moore, Washing.ton, and West Noble pools now beingtested. A new producing depth recordfor Oklahoma was establ ished by thediscoyery well in Washington poolwhich was completed in the Wilcox(Ordovician) at 10,625·10,645 ft. Re·cent discoveries improve the prospectsfor deep production from this horizonthroughout this area. Althongh overforty discovery oil we'ls were completedin Oklahoma during the first ten monthsof 1944, most of them were extensionsand no other new areas of importanceare indicated.
Numerous small discoveries and poolextensions in the Illinois Basin areaadded sufficient new producing capacityto offset the decline of the older wells,and the daily production was main·tained in excess of 200,000 barrels perday during the year, apparently withlittle change in the net reserves.
Exploration efforts in Kansas haverecorded a similar n umber of discoveries, but with no outstanding prospective areas defined at this time.
In the Rocky Mountain district theprincipal increase in oil reserves hasbeen in extensions of the proven areafor Tensleep sand production in ElkBasin and new completions in this horizon in some other fields. Most of thenew oil fields were discovered by deeperdrilling on structures which had beenknown for some time.
California oil discoveries for the firsteleven months of 1944 are estimatednot to have exceeded 20 per cent ofcurrent output, thus completing fiveyears in which findings have beenmuch below current withdrawals. Wildcat discoveries and deeper zone pooldevelopments have been numerous butuniformly small in size. Increase ofreserves by wildcat discoveries, deeperzone developments, and field extensionshave probably not exceeded 54,000,000barrels, or at a rate somewhat less than1,000,000 barrels for each new find.Notable among these are the J acalitosnorthwest field on the western side ofthe San Joaquin Valley in the Miocene,and the Sheep Springs field in theMiocene, also in the Valley. Deeperzone discoveries worthy of mention in-
clude a Hew poo:~ at the base of thePliocene :m, the Bnen a Vi~ta jie' d onthe western side (,f the San .roaquinValley, probably accounting for morethan half of the State's new discoveries,and a new zone at around 7200 ft. inthe San Miguelito field in VenturaCounty.
In contrast to oil, dry gas discoveriesduring the year have been important.The active play for dry gas from theEocene and Cretaceous in the Sacra·mento Valley now seems likely toestablish this part of Ca'ifornia asamong the country's great natural gasareas and 0\ importance to the econ·omy of the San Francisco Bay region.Four discoveries in 1944 appear ofmajor importance, including three newfields, Honker, Suisun, and Dixon, allin Solano County, as well as a deepzone addition to the Rio Vista field inSolano and Contra Costa Counties, thelargest gas field in the State.
During 1944 the world's record for
drilling depth again returned to Cali·fornia, Standard of California's deeptest in the South Coles Levee field hav.ing reached 16,246 ft., nearly 1000 ft.greater than the previous record, theobjective being the Vedder sand hori·zon, important as a producer along thewestern side of the San Joaquin Valley.The same company's Fullerton No. 1in the Semitropic field drilling 8 %·in.hole at 14,584 ft. on Dec. 16, for thesame objective, had made an addi·tional world's record for size of holeat the depth attained.
In general, the industry's productiondepartment has done itself proud inresponse to the emergency, fulfilling alldemands of the war effort in spite ofgreatly restricted drilling activity.
In compiling this report I acknowl·edge the assistance of L. F. Terry andGail F. Mou'ton, of the ProductionCommittee; also of H. M. Staiger andothers of the Standard Oil Co. (N. J.)staff.
FEBRUARY, 1945 109
K. A. Covell
of the disposal systems use the following steps in preparing the water forinjection:
(I) Surface skimming(2) Aeration(3) Chlorination(4) Settling with a coagulant(5) FilteringWhere a closed system can be used,
the water may not be aerated, chlorinated, or settled.
Either because of the material in thewater or because of an extremely permeable disposal reservoir the salt waterproduced in many areas often does notrequire full treatment before injectioninto wells.
Secondary recovery in the form ofwater-flooding has been spreading tonew areas. As reserves from the usualmethods of operation diminish, more attention is directed to the prospect ofconcentrated water drives for shallowfields and the injection of water aroundthe flank of deep fields. These projectsinvolve many problems in reservoirbehavior, well spacing, economics,plant design, and water treatment forthe production engineer.
Co-operating with the Federal wartime curb on the use of critical materials, a more general use has been madeof combination casing strings designedfor minimum factors of safety, simplified well-head connections, smaller tankbatteries, minimum pipe-line requirements, and of repaired used equipment.A general trend is seen toward betterhousekeeping in the field where operators have salvaged idle pipe lines andequipment, and have cleaned their junkbins to contribute to the salvage drives.The lessons learned from these oper-
ANNUAL REVIEW'ISS\JE
ProJuction Engineering:
Progress Reported in Co-operative Reservoir
Studies, Salt-Water Disposal, SecondaryRecovery, Deep Drilling
By K. A. CovellThe Pure Oil Co.; Chairman. Committee on Petroleum Engineering.
Petroleum Division, A.I.M.E.
PRODUCTION engineering has beenbroadened by the wartime program
of efficiently producing oil at increasedrates linked with the disposal of saltwater, the stepped-up program of sec·ondary recovery, the appropriate use ofcritical war materials, and the improvements i~ drilling and producing techniques. With the close of the war demand for oil should continue above theprewar level and exploration for newreserves on even a wider scale, whichconditions call for imaginative engineering as well as increased effort andactivity.
As a conservation measure, co-operative reservoir studies have been madeas a basis for establishing efficient ratesof withdrawals as among fields. Theseinvestigations have covered comprehen.sive surveys of field geological conditions, water encroachment, and pressuredecline and gas-oil ratio history, compared to the rate of withdrawals. Extensive studies have also been made forthe purpose of analyzing gas-pressuremaintenance projects. A necessity forthe recovery of distillate in condensatefields and a major factor in increasingthe recovery of oil and the conservationof gas in gas-cap reservoirs-the practice of cycling or return of gas to theproducing formations-calls for a thorough analysis and design of program tobest meet varying conditions.
One of the most noteworthy practicesaffecting reservoir behavior has beenthe improvements and the wider application of the return of salt water to theproducing formation. Not only does useof this method serve to avoid contamination to fresh surface waters andvegetation but it is a means of reducingpressure drop, and ensuring a greaterultimate recovery of oil Probably themost extensive example of this practiceis in the East Texas field where thedaily production has been about 377,500 barrels of oil and 454,300 barrels ofwater. Of the total water produced,362,000 barrels per day were being returned to the reservoir at surface pressures ranging from various vacuums to300 lb. per sq. in.
To avoid plugging the imput wellsin this area with algae or fungi, most
110
ations will fit into the postwar program.Since the search for oil reserves has
required deeper drilling, and with theprospect of increased activity, to replenish the present reserves, rotarydrilling equipment and technique offera field for improvement. One of thepresent problems is an economicmethod of drilling chert sections, whereactual costs when using present-dayequipment al}d methods are as much as$1200 per ft. Proper interpretation ofcorrelative data from instruments showing rate of rotation, true weight of thebit on bottom, together with the useof low-water-loss muds have been majorfactors in reducing the costs of drilling. With the prospect of further reduction in drilling cost, more extensiveexploratory drilling is practical.
Rotary mud treatment and controlhave been developed to satisfactorilymeet many conditions; yet there appears room for improvement in thetreatment of muds used in drilling saltsections and in the economical treatment of muds to halt fermentation ofstarch or water-loss admixtures. Itwould be admirable to use a' drillingfluid having a low coefficient of frictionwhich would minimize the surface pressures required to pump the fluidthrough long strings of drill pipe. Inthis connection, use of triplex or multicylinder mud pumps instead of the conventional duplex fluid-end pumps mayresult in a reduction in surface circulating pressures and a correspondingsaving in horsepower.
In the field of well repair and production, studies have been made in theuse of plastics for back plugging, selective acidizing done in conjunctionwith pilot contact control and formation permeability profiles, chemicaltreatment for scale deposits, techniqueof removing liners, and the use of corrosion resisting materials for variousservices. New materials developed for'war needs will, no doubt, have a wideapplication as superior substitutes formany of the materials and much of theequipment used now in the oil industry.
In response to the need of butane,isobutane, and propane for high-octanegasoline, rubber, alcohols, plastics, andother products, natural gasoline plantshave been revamped to separate andsave these hydrocarbons. Although demand for these products has been stimulated by the war requirements, it isbelieved that peacetime aviation andautomotive demands, rural fuel requirements, and the development of newproducts will absorb the future production of the lighter fractions.
Based on the present outlook, pro·duction engineering calls for intensifiedapplication during the war to peaceconversion and the postwar period.
MINING AND METALLURGY
ANNUAL REVIEW fSSU~ . "
fuel oils and to some extent distillatesgave rise to this change and the yieldsof the two combined categories rosefrom 37.6 per cent to 42.1 per cent.
The significance of natural gas in theeconomy of petroleum and to industryin general became increasingly evident.Completion of the large natural ga!lpipe line from the Corpus Christi,Texas, area into the industrial regiomof the Middle Atlantic States is a casein point. Heavy demands for naturalgas to manufacture furnace black forthe compounding of synthetic rubberand the widespread interest in the com·mercial feasibility of producing liquidhydrocarbons by the Fischer-Tropschsynthesis characterized the trend.
Activities of American CQmpanies inforeign countries continued to expand,with a large number of newcomers evident among those acquiring concessions, particularly in South and CentralAmerica. The proposal for the construction of a pipe line from the Arabianoil fields into t.he Mediterranean underthe auspices of the United States Government was under wide discussionfrom military, political, and economicviewpoints, but now the issues appearto have been resolved and the proposal is dormant. Another outstandinginternational feature was the AngloAmerican petroleum agreement whichamong other things proposed to trans·late into a world agreement severalprinciples, including the conservationof reserves and the availability of supplies assured to all nations. A numberof divergent interpretations of this document were heard; and active objectionsto it, largely from independent American operators who were most vitallyaffected, appear to have resulted in rejection of the original program.
Earnings of petroleum companies in1944 may exceed the levels of 1943 byabout 20 per cent, continuing the upward trend of the past several years,and dividend payments may in somecases be advanced correspondingly.These financial results are comparatively good inasmuch as it is not expected that the aggregate income ofindustrial concerns generally will showany material change. Securities marketsappear to have been indifferent to thismoderately favorable record, for oilstocks have moved fairly closely withthe market as a whole.
Petroleum Industry Stabilized Under
Wartime ConditionsBy Norman D. FitzGerald
Director, Oil & Gas Division. GreatLakes· Carbon Corp.: Chairman.Committee on Economics, Petroleum
Division, A.I.M.E.
Norman D. Fit:gerald
of this sort. In some areas the interpretation of the regulations is so broadthat it appears likely that sooner orlater the subsidy may be translated intoa higher price level. The lack of priceincentive to motivate oil explorationand development drilling may be responsible in part for the limited marginof producing capacity over minimumwartime requirements.
One of the features of the adjustmentof the petroleum industry to wartimerequirements was evident in the shiftswhich have taken place in the production of refined products. Results inthe first nine months of 1944, in comparison with those in the similar periodof 1941, showed a rise of 14 per centin the output of cracked gasoline anda drop of 4 per cent in the productionof straight run. Requirements of warspecialty products were largely responsible for this upset in the refining balance. The total yield of gasoline fromcrud,e dropped from 43.9 per cent ofthe barrel to 39.0, 11 rather suhstantialshift. Higher requirements for residual
sired assurance that productive capac·ity will be fully adequate to sustainhigh levels of demand indefinitely.
Crude oil prices have been of criticaleconomic significance to the industrythroughout the war period. It has appeared from time to time that underone sponsorship or another a generalprice advance would be permitted. Increases have been allowed in certainpools and in regions where conditionswere unusuaJ., but by lind large thegreat volume of production has notbeen affected. During the year a program of subsidy prices was adoptedfrom which operators in some stripperpools have gained considerable individual advantage, but it is not clearthat the supply situation can be appreciably improved through a mechanism
Economics:
STABIUZATION to wartime condi·tions was probably the outstand
ing characteristic of the petroleum in·dustry in 1944. Practical adjustmentsbetween supply and demand were effected through the completion ofemergency transportation facilities andthe continued rationing of productusage. Some evidences of the heavystrain on limited capacities to produce,transport, refine, and distribute petroleum products began to develop. However, difficulties will probably not in·crease to the point of causing anotherinterval of crisis conditions. This isparticularly true if, as seems likely,the peak af military demands has justrecently been passed or lies immediately ahllad. The relatively new andhighly specialized contributions whichthe oil industry is making to the wareffort in preparing special chemicals,synthetic rubber, and aviation gasolineon a vast scale appear to have fulfilledexpectations. Any further heavy de·mands on the petroleum economy arelikely to be for increased output of allproducts rather than for specialties.
The rapid increase in the total demand for petroleum has drawn heavilyon proven reserves and continues togive concern, for new discoveries ap.pear to have been lagging behind con.sumption in recent years. Even the bestinformed differ in their opinion aboutthe total oil discovered in any particular year or the number and quality ofprospects available for future testing.There can be no gainsaying the facts,however, that an increasing number ofour pools are yielding oil at rates violating the best engineering conservationpractice. The increased rate of output from older pools is required tomeet urgent demands, for the flow fromnewly discovered pools is inadequate tolift production materially. Just howlong such a liquidation of reserves cancontinue is not definitelv known, butthe strain should not be prolonged.
DUTing the first ten months of theyear the number of exploratory wellsdrilled increased approximately 20 percent and the numLer that were productive some 22 per cent. Apparently,however, no pools of outstanding sizewere located or any major petroliferousprovinces opened which might have im·portant hearing on the petroleum supply situation over the next year or two.Additions to reserves have consistedlargely of lateral or vertical extensionsof known pools and the discovery ofpools small in size. Although to someextent this broadened thc base of petroleumsupply, it does not give the de·
FEBRUARY, /945 III
Refinery Engineering:
ANNUAL REVIEVll'SSttlE
Petroleum pipe orgall. A sectioll of the cumene plant at the Wood River, Ill.refinery of the Shell Oil Co. Here propylene and benzene are alkylated t(1 make
cumene. a blending agent for lOO-octane aviation gasoline.'
New Construction About Completed
Triptane Tested for a New Super-FuelBy Walter MillerVice-President, Continental Oil Co.;Chairman, Committee on RefineryEngineering, Petroleum Division.
A.I.M.E.
HUNDRED-OCTANE aviation gasoline, toluene for T_N.T. produc
tion, high-quality lubricating oils forthe needs of aviation and the armedforces, and synthetic chemicals for rubber manufacture again commanded thetop priorities of the petroleum refiningindustry in 1944, the third year ofAmerica's active participation in thewar. The objective continued to be toproduce more and more of these materials-to keep up with increasinglygreater requirements.
By the end of the year all of the newinstallations projected before 1944, withthe exception of possibly two or threethat will tail over into January orFebruary of 1945, had been completedand put into operation. And with thecompletion and putting into operationof these various units and the consequent lessening of construction responsibilities and problems, the industrywas put into position to concentrate onthe new operations and devote muchmore of its time and effort looking tomaximum output, both as to quantityand quality from the new facilities.
Aviation gasoline
Making high-octane aviation gasolinecontinued to be the prime requisite ofrefining activities during 1944, as it wasin the two previous war years, with thesights at the end of the year set to stillhigher figures than those which hadbeen previously projected.
About July I the daily output hadbeen raised to 400,000 barrels, withsome few large plant installations stillto be completed and put into operation.Indications were that by December production would be up to all requirements, with good inventories. However,although by the end of the year theindustry was turning out somethingover 500,000 barrels a day, the estimatedrequirements of the armed services hadbeen raised by a considerable figureowing to the greatly increased aerialactivities both in the European and FarEastern' combat areas. By the end ofthe year, therefore, the picture hadchanged, what with the prospect for amuch longer continuation of the European war, so that even with the completion and putting into operation in the
112
United States by January, 1945, of thelast two or three lOO-octane units authorized prior to 1944, it was evidentit would be necessary to make stillgreater efforts to increase output of existing facilities to keep safely ahead ofthe game.
Efforts of the industry and P.A.W. aswell as the Technical Advisory Committee and other research and development groups are concentrated thereforeon methods and means of further aug
.menting the production of all existingrefinery facilities engaged in makinglOO-octane aviation gasoline and components entering into it. The goal willbe reached.
One of the means to increase comingproduction wiII undoubtedly be themore extensive use of stronger syntheticcatalysts in many of the catalytic cracking units.
Announcement has been made ofpriorities having been granted for twoadditional large-sized l00-octane plants,one of which wiII possibly be completedin 19<5 and the other early in 1946,neither in time, however, to help materially during the coming year.
Another possihility which has beenworked on extensively during the yearis the hydrocarbon compound known astriptane--2-2-3 trimethylbutane. This
has an octane blending value considerably in excess of toluene, and a gasoline made using triptane and tetraethyllead is one of the most powerful combinations so far developed. A twelvecylinder Allison engine, with rated takeoff power of ISOO hp. with lOG-octanegasoline, is said to have developed over2500 hp. with triptane and lead tetraethyl blends. Triptane was practicallya laboratory curiosity up to a short timeago. A pilot plant has been developedcapable of producing 10 barrels a day,which has made possible some fairlyextensive testing in airplanes and otherwar equipment. Details of this development are, of course, secret, and no information is available as to whetherand when large-scale plants can or willbe installed.
Plans have been announced for themanufacture of a new "super-fuel" offar greater power, developed by tech·nologists of our refining industry, designed primarily for use of planestaking off from the decks of aircraftcarriers, the flat-tops of our Navy, andin the B-29 bombers and the like. Onlyabout half as much of this type of fuelcan be made from a barrel of crudeas the present regular lOO-octane mate·rial, but no extensive changes in existing plants are required to produc;:e it.
MINING AND METALLURGY
Many refineries are ill position to startmaking this fuel quickly, but extensivemanufacture will be delayed until theproduction of the present lOO-octanematerial reaches an excess as themaking of the super-fuel entails a reduction in the ratio of about two barrels of the present fuel for every bar·reI of the new fuel produced.
Toluene for T.N.T.At the end of 1943; refiners manufac
turing toluene were in the position ofmaking considerahly in excess of thequantity needed for the T.N.T. requirements of the armed services, andthe lOO-octane gasoline program washelped by having the surplus divertedto it as a blending component for whichit is highly suitable and valuable. Despite some increase in the productionrate of some of the plants, the excessis being reduced rapidly. The same factors which increased the need of aviation gasoline, namely greater aerial andbombing activities in the war areas, areresponsible for higher T.N.T. requirements and the surplus of toluene available for lOO-octane gasoline blendingoperations is therefore being lessenedby something of the order of 5000 barrels a day, increasing to that extentthe burden on aviation gasoline manufacturers.
Efforts are also continuing to increasethe output of existing facilities by research and development activities.Toluene is one of those petroleum materials which is critically important tothe war program in more than one use.
Toluene is being produced by petroleum refiners in this war at rates ten tofifteen times as great as the quantityavailable in World War I, at which timethe coal-tar industry was practically theonly source of supply.
HiCJh.quality lubricatinCJ oilPractically all the large and small
projects authorized prior to 1944 havebeen completed and put into operation.A number of minor additions to exist·ing plants were authorized, includingalterations to remove bottlenecks andincrease output.
On the whole the available supply exceeded the demands of the armed services, and there is no apprehension ofany impending shortage. Global inventories of the armed forces have, ofcourse, been largely supplied, and current production has taken care of con·tinuing needs. Should an unexpectedlylarger consumption develop it might benecessary to take part of it from suitable quality lubricants now being usedfor civilian purposes, but such a situation is not expected to develop.
A large number of new plants havebeen projected on paper and submit-
fEBRUARY, 1945
ANNUAL REVIEW ISSUE"
ted to Washington for postwar development and for quality improvement,some of which may be authorized before the end of the war, presumably depending largely upon the availabilityof materials and labor necessary fortheir construction. Three projects ineasy man-power localities are under im·mediate consideration in Washington.but none of them is authorized as yet.The high-quality lubricating oil situation is well in hand.
RubberSynthetic R"{bber from Petroleum
The petroleum refiners' contribution tothe synthetic rubber program apparently is being fulfilled as projected.No additional butadiene plants areplanned; previously projected units areall completed and in operation. Mostof them are capable of producing atbetter than designed rates, and all as agroup are turning out raw material forsynthetic rubber faster than the tiremanufacturing plants can use it. OnRubber Director Bradley Dewey's recommendation his division of the WarProduction Board was dissolved the latter part of the year, and the continuingof the rubber program taken over bythe War Production Board as part ofone of their other regular divisions. Unfortunately for civilians, it will still bea long time before tires will be freelyavailable. Estimates have been madethat restrictions will continue, in spiteof ample raw material for syntheticrubber, at least throughout the year.Part of the difficulty responsible forthis situation is, of course, the vastly in·creased requirements of the armed services beyond previous estimates, due tothe extension of the European war andthe increase in land activities in theAsiatic area. It may be well into 1946before the average civilian will be ableto get tires except under the most justifiable conditions.
A great lack of finished tires continues, because the tire plants are suf·fering from a man-power shortage andexcessive absenteeism. However, atleast two new tire manufacturing plantshave recently been completed, one inOklahoma and one in Texas, which willhelp that situation somewhat, and theproblem of the manpower shortage hasbeen checked to the War ManpowerCommission. The fact remains that therefining industry has made and is making good on its assignment in the synthetic rubber program.
The situation is not yet clear as tothe postwar cost of producing synthetkrubbers and the competitive position ofsynthetic with natural rubber in thepostwar era, but many indications arethat the synthetic costs will be at satisfactorily low levels. Reliable figures
should be available during the comingyear, as the plants build up records oncontinuing operations.
Research and developmentAs in previous war years, research
and development efforts continued cooperatively under the joint auspices ofthe Petroleum Industry for War Council and Petroleum Administration forWar, largely through the activity channels of the Aviation Gasoline AdvisoryCommittee, the Toluene Technical Committee, and the Technical AdvisoryCommittee. The number of petroleumtechnologists actively engaged in thisco-operative research and developmentwas considerably increased by enlargement of membership of the working.subcommittees.
A definite broadening of process development work was seen as the newplants went on the production line, necessary because of the incompletely developed new methods. The ellorts ofmany of those who had been engrossedin the construction and preparation ofthe new units became available forproblems concerned with the perfectingof operative technique, improving thecontinuity of operations, the furtherstudy of corrosion and erosion difficulties, and the establishing, for largescale operations, of the most practicaland efficient conditions.
Much is being accomplished by having regular meetings at about sixty-dayintervals in the various P.A.W. refiningdistricts of the operating and technological staffs of the plants engaged in 100octane and components production. Aforum is thus provided for a free andfull discussion of all the questions affecting production rate, quality, and ingeneral continued improvement in theutilization of these important manufacturing facilities-a pooling of experience and knowledge gained py thosemen in the line of immediate directionand supervision, men actually on theground about the facilities and in intimate contact with all operating stepsand problems.
A development worth noting, although not near enough to be applicableto war production, is the growing interest in possible applications of theFischer-Tropsch process, or modifications thereof, to some of our large gasreserves. This is one of the sou,rceswhich are looked to for augmenting future crude oil supply as and when theoil wells fail to completely fill the demand. Three or four pilot plants, thelargest with a capacity of between 15and 20 barrels per day of liquid oiloutput, are in operation developing information as to engineering data forlarge plants, yields, costs, and commer·cial feasibility of such operations. There
113
Interest Currently Centers in More Efficient
Production and Intensified Exploration
is even some thought that plants maybe designed to be economical underpresent-day or immediate postwar conditions. Quite possibly all the researchand development activities known to beunder way now may lead to definite andencouraging conclusions during thecoming year.
Research and brDader operating experience are adding much to catalyticcracking and other catalytic operationssuch as isomerization and alkylation,information and developments utilizedin operations as available, but the veilof secrecy, except for those in positionto make practical applications in thewar effort, still holds.
Crude and 'JeneraI productsCharge of crude oil to stills increased
to unprecedently high figures.Compared with an average of about
4,200,000 barrels per day in December,1943, we have a figure close to 4,600,000 barrels average in December, 1944.The 1943 year's average of approximately 3,910,000 barrels is exceeded, aswill be shown when final figures areavailable, by about 600,000 barrels perday for a 1944 average of approximate·ly 4,525,000 barrels per day. Doingthis cut into the country's over-all crudeoil stocks by about 20,000,000 barrels:
Motor gasoline rationing continuesTransportation difficulties decreased tosome extent but increased diversion ofpetroleum products to war 'purposesprevented any easing up of gasoline ra·tioning. Daily military uses of gasolinehave increased by 200,000 plus barrels10 a total of more than 800,000 barrelsper day, so it has taken the increasedrefinery runs and the somewhat greatertransportation capacities to avoid thenecessity of still further reducing gljso,line for the public. The situation isnot likely to change until at least theEuropean war is ended.
Tetraethyl lead for gasoline againdeveloped into a problem. The greatquantitative increase in 100-octane gaso·line with its 4.6 c.c.'s per gallon con·sumption (with much of it at 6 c.c.'sper gallon for several months), as wellas increased quantities of other wargasolines, made it necessary to restrictthe use of lead materially in civiliangasoline, thereby reducing the quantityuf high-octane premium·grade gasolineavailable to the public. Production ofpremium gasoline was quantitativelycut in June to 50 per cent of the baseperiod .(October, 1943, to March, 1944)and again to 25 per cent of the samebase period on Oct. 1. An improvementin the supply permitted raising production of premium gasoline to 371j2 percent effective the last week in December.
During the year there were a few
114
ANNUAL REVIEW ISS'UE
scares on keJOsene and the lighter fueloils used for household heating, but thesituations were worked out to the bestpossible degree by the control effortsof P.A.W. with the co-operation of theindustry. The expedient of shippingkerosene in drums in railroad boxcarsfrom the Gulf Coast refineries to theNew England States was again resortedto at the end of the year. Juggling backand forth between light and heavy gasoils, between kerosene and domesticburner oils by P.A.W. and the indus·try will continue as needs arise.
The industrial heavy fuel oil situationis, however, ~onsiderably changed. Withthe high crude runs there was a naturalincrease of heavy fuel oil which more
Engineering Research:
By A. G. LoomisAssociate Director, Shell Development Co.; Chairman, Committee onEngineering Research, Petroleum Divi-
sion, A.I.M.E.
D URING 1944 the American petroleum industry has maintained its
monumental contribution toward winning the war by supplying nearly 80per cent of the war oil requirements of
A. G. Loomis
the United Nations. Present productionof about 4.7 million barrels per day isapparently near the maximum amountthat can be withdrawn without irrevocably damaging our reservoirs. However, increased demand, particularlyduring the last quarter of the year, forhigher gravity sweet crudes means thatadditional fields will have to be operated regardless of maximum efficientrates. This fact causes the current accent in engineering research to center
than over·balanced any decrease effect·ed by catalytic cracking operations, andso at the end of the year some 4,000,000barrels more supplies were on handthan at the first of 1944, and the outlook is for further inventory additions.
In general, national inventories ofpetroleum products are in somewhatbetter position than a year ago, butmerely enough to reduce some of theapprehension previously felt. This heavyfuel oil situation is the only comfortableproduct inventory picture.
In the industry and in P.A.W. thereis every confidence that we will continue to meet all demands and handleexigencies and emergencies as theyarise.
around more efficient and less damag·ing methods of crude production and aneven greater intensification of exploratory activities, with increased attentionto possible methods, such as soil-gasand soil-bacteria analyses, for the location of the stratigraphic type of structure. Studies on secondary recovery andthe difficult subject of reservoir mechanics are predominant in engineeringresearch. This trend, fortunately, wasbecoming evident before we entered thewar, and is now the major one. Evenwith the cessation of hostilities, it willdoubtless continue to occupy the greater part of engineering effort.
In the following paragraphs some ofthe year's activity in several branchesof production research will be reviewed.
Secondary recoverySecondary recovery is becoming in
creasingly important and this trend maybe expected to accelerate as our pri.mary reserves dwindle and the priceof crude rises. A considerable fractionof the research in reservoir mechanicsis motivated by the desire to increasethe efficiency of secondary recoverymethods. Fundamental laboratory investigations of the past ten years arebeing evaluated on a full field scale inan elaborate research program in theBradford district, the cradle of secondary recovery methods. Typical problems awaiting macro-scale solution are:(1) effect on recovery of. water-inputpressure gradients (or velocities) as afunction of saturation, permeability,connate water saturation, etc.; (2)evaluation of newly.discovered wettingagents giving high oil recovery; (3) de-
MINING AND METALLURGY
. ,-
velopment of new wetting agents notabsorbed by sand grains; (4) evaluation of selective plugging agents; (5)development of more efficient ex·plosives; and (6) water- treatment andcorrosion problems. Indicative of theincreased interest jn secondary recoveryis the extension of water-flooding operations to California as an experimentalproject.
Reservoir mechanicsMany papers have appeared in which
various phases of the complex subjectof reservoir mechanics are attacked byfield studies or laboratory experiments.The theoretical aspect of the problemhas not been neglected, and at least oneimportant theoretical study of an idealized reservoir was completed during theyear but has not yet appeared in print.A valuable summary has, however, beenpublished crystallizing our ideas of reservoir mechanics that have arisen during the past few years in the form of aclassification of reservoir types and aqualitative discussion of the behaviorof the several types. The problem ofwell-spacing continued to receive intensive study and discussion.
The appearance of a discussion ofthe peculiar characteristics of limestone reservoirs compared with sandstone or idealized reservoirs, togetherwith statistical studies of the variationof permeability and the most suitableaverage to use, perhaps indicate a tentency away from the use of idealizedmodels toward a more realistic accountof the complex relations that actuallyexist. The same tendency is shown inthe study of formation materials by theappearance of two papers on the measurement of the influence of capillaryforces in actual oil-field core samplesarid one paper on the difficult problemof accurately measuring permeabilitieswith salt water.
The electrical device known as theAnalyzer, development of which wasannounced last year, has been successfully applied to the study of the Smackover limestone formation and the reservoir behavior of its oil and condensatepools.
An interesting paper has also appeared summarizing the remarkable results secured by maintaining reservoirpressure in the East Texas field by injection of salt water.
Shales and bituminous sandsThe possibilities and dangers to our
economy of exhaustion of our recoverable reserves, even in the next 25 or50 years, has caused national concernand the Synthetic Liquid Fuels Bill, S.1243, introduced in 1934, was approvedby Congress on April 5. 1944. Bureauof Mines has definitely embarked upon
FEBRUARY, 19.f.5
ANNUAL REVIEW ISSUE·
a long-range research program including laboratory studies and the construction and operation of demonstrationplants for the direct hydrogenation ofcoal or lignite by some modification ofthe Bergius process, the indirect hydrogenation of coal or lignite by theFischer-Tropsch process, and the distillation of oil shale. We may confidently predict that the research program along these lines now under wayby government bureaus will be accelerated, with increasing participation byprivate industry.
Physical prolMrties studiedReliable and accurate phase-equilib
ria data up to pressures of 10,000 lb.per sq. in. are becoming available inincreasing quantities. These additionalmeasurements, contrasted to those available a few years ago, extend the rangeof calculations and the applicationswhich can be made by the engineer.Ethane, normal butane, and methanewater mixtures were studied in one instance in this extended range, as wellas the ternary system, methane-n-butane-decane. In other cases, pressurevolume-temperature relationships werereported for normal butane and water,for natural gas and water, and forcrude and natural gas mixtures. Theproperties of surface tension and viscosity received some attention, as didhydrate formation in natural gas. However, further accurate data on equilib.rium constants of hydrocarbon mix-
Soaring sky.ward and sug·gesting cr 0 lV' S
nest plnt/ormson ,a battleshipare. these tow·ers in the al·kylation unitrecentl,· com..pleted at Rich·field Oil Cor.poration's reofiner,. near LosA n!reles. Here,isopentane andisobutane arecombined intoalkylate, blend.inl{ a~ent loraviation gaso·
lin....
tures, particularly at high pressures,are still much to be desired in view
.,of the great importance of the subject.Valuable work on the precipitation of
asphaltic material from certain crudescontinued to be published from at leasttwo laboratories, one investigating electrical effects due to flow and the otherthe effect of temperature and pressure(change of composition with increasingpercentages of gas in solution) on theseparation of bitumen or occurrence ofmultiple condensed phases. These studies promise to be of great importancein explaining the precipitation of plastic material from asphaltic oils; thenext step will be development of practical methods for preventing precipitation in tubing and flow lines, andpossibly in the formation itself adjacentto the well.
A published series of papers on theelectrical resistivity and the self-potentiallogs will serve to indicate the futuredevelopment needed and establish a better understanding and interpretation.One impartial observer reported on theuse of the gamma-ray radioactivity logfor accurate depth measurement, comparing the results secured by this instrument with those found by electricallogs and by rate-of-drilling logs.
Lack of space precludes even a briefreview of excellent progress made withpositive colloid, oil-base, and oil-emulsion drilling fluids, development of newand improved plastics for water shut-
115
ANNUAL REVIEW ISSUE
Petroleum Production Economicsy'aluation, Management, and Eco-
nomics .. ., .... 1Oil and Gas Land Valuation. . . . . 1Valuation of Oil and Gas Lands. 2Oil and Gas Reserves IValuation and Manage~~~;..... 1Petroleum iEconomics and Vallllltion IEquipment Design and Selection.. 2Refinery Engineering 1Unit Processes IFluid Mechanics 2"
Although no unanimity of opmtonwas expressed by the institutions answering the questionnaire, th~ fonowingnomenclature is suggested for the basiccourses in the specialized field of petroleum engineering.
(1) Petroleum Production Engineer.ing-Oil Field Development. (Engineering principles and problems relatedto the drilling and development of oilan d gas fields.)
(2) Petroleum Production Engineering-Reservoir Performance. (Engineering principles and problems related to the flow of fluids in oil andgas reservoirs.)
(3) Petroleum Production Engineering-Production Technology. (Engi.neering principles and problems related to the production, measurement,storage, transportation, preliminaryprocessing, and disposal of oil, gas, andwater from petroleum reservoirs.)
The above nomenclature coveringboth lecture and laboratory courses, issufficiently broad to cover specialized"key" courses. An additional subhead"Petroleum Refinery Engineering" canbe added to the above list for thoseschools offering such a course.
In addition to the "key" courses mentioned, additional specialized coursesinclude: Valuation of Oil and Gas Properties, Petroleum Production Economics,etc.
Up to this time, schools of petroleum engineering have been accreditedby the Engineers Council for Professional Development. Although definiteprocedures have been worked out byother engineering Founder Societies,nothing has been done as yet for petroleum engineering. Some agreementon the general content of the specialized courses with appropriate course designations should be of value for purposes of accreditment. In addition, theschools should agree upon a recognizedprocedure for inspection by petroleumengineering educators in conformitywith the procedure of other engineeringbranches.
Up to a certain point, educationalstandards in petroleum engineering caDbe developed by co-ordinated teamworkbetween schools. Beyond this point, individual initiatives will continue tofunction with respect to the general ad-
vancement of the profession.
Numberof Institions
1553
An oil rig insOllthwesternWyoming. Photo by lloland
D. Parks.
ricula throughout the United States.As a result of a questionnaire on spe
cialized curt'lcula submitted to the various schools, answers were returnedfrom ten institutions. A general summary of specialized course titles follows:
with confidence to even greater engineering efficiency in the production ofcrude as the principles of basic scienceand sound engineering practices are applied to our industry.
Course TitleIntroductoryOil Field DevelopmentReservoir Engineerin~
Production EngineeringPrinciples of Petroleum Engineer.~g 2
Principles of Petroleum Technology 1Production Methods . . . . . 4Subsurface Correlation Methods. 2Petroleum Engineering Laboratory 6Natural Gas Engineering. 4Storage and Transportation. 2
EJucation:
Uniformity in Course Nomenclature in
Petroleum Engineering Recommended
By Harry H. PowerChairman, Department of PetroleumEngineering, The University of Texas:Chairman, Committee on Education,
Petroleum Division, AI.M.E.
off and plug-back operations and manywell-conditioning advances.
Altogether, engineering research hasmade rapid and constructive advancesduring 1944, and we may look forward
ACONSIDERABLE amount of correspondence developed between
the various schools of petroleum engi.neering during the past year, with special reference to the specialized curricula. Although course contents are amatter of individual selection, it wouldappear to be desirable to adopt coursenomenclature having some degree ofuniformity. This procedure is particularly necessary if petroleum engineering schools are to be accredited in conformance with the yardsticks appliedin general to other engineering cur-
116 ~INING AND METALLURGY
