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By Joseph E Pogue

Over a period of years the writer has presented a number of studies1 on various aspects of proration, in a progressive attempt to analyze critically and constructively the economic complexities of this interesting institution, which in a decade has revolutionized the economics of oil production in the United States. In the course of the investigations leading to these papers, the changing nature of proration and the principles underlying its evolution have gradually become clear, so that it is now possible to depart from the analytical method and to construct a synthesis of the steps that, if furthered by the industry, should carry proration past the economic hazards that still surround it to the goal of maximizing the value of the petroleum resource to the industry and the public alike. Nature of Proration Proration literally means the allocation of demand among competing producers on a pro rata basis, but the term now carries a much broader significance for it is employed to describe the entire process by which the production of crude oil in the United States is regulated. There is naturally much confusion of thought on the subject, for proration is an evolving system of control based upon principles of conservation and equity and embracing a body of practices that are tending to adjust themselves to the needs of the situation but are subjected to varying and divergent influences in the process. As it is now constituted, proration is a planned production measure designed to prevent waste, insure ratable takings, and balance supply and demand. The procedure is administered by State regulatory bodies through use of the police power of the States under authority of State conservation laws; the practice is supported by a considerable degree of voluntary conformance on the part of operators; and the Federal Government has accorded its cooperation by providing advisory quotas, circumscribing imports, checking movements of hot

Jan 1, 1939

By Joseph E. Pogue

Over a period of years the writer has presented a number of studies1 on various aspects of proration, in a progressive attempt to analyze critically and constructively the economic complexities of this interesting institution, which in a decade has revolutionized the economics of oil production in the United States. In the course of the investigations leading to these papers, the changing nature of proration and the principles underlying its evolution have gradually become clear, so that it is now possible to depart from the analytical method and to construct a synthesis of the steps that, if furthered by the industry, should carry proration past the economic hazards that still surround it to the goal of maximizing the value of the petroleum resource to the industry and the public alike. Nature of Proration Proration literally means the allocation of demand among competing producers on a pro rata basis, but the term now carries a much broader significance for it is employed to describe the entire process by which the production of crude oil in the United States is regulated. There is naturally much confusion of thought on the subject, for proration is an evolving system of control based upon principles of conservation and equity and embracing a body of practices that are tending to adjust themselves to the needs of the situation but are subjected to varying and divergent influences in the process. As it is now constituted, proration is a planned production measure designed to prevent waste, insure ratable takings, and balance supply and demand. The procedure is administered by State regulatory bodies through use of the police power of the States under authority of State conservation laws; the practice is supported by a considerable degree of voluntary conformance on the part of operators; and the Federal Government has accorded its cooperation by providing advisory quotas, circumscribing imports, checking movements of hot

Jan 1, 1939

By G. A. Beiswenger

The application of the law of supply and demand to the sale of crude oil is generally conceded, but the motives underlying the buyer's (refiner's) demands are not always obvious to the seller (producer). In some cases this obscurity has led to the conclusion that the refiner may be unnecessarily particular when he selects one crude and rejects another. This preference, however, is very largely the reflection of the refiner's product demands and the quality of the stocks obtainable from the selected crude. The purpose of this paper is to point out critical characteristies of the major classes of refined products and to show how crudes vary in their suitability for such products. With relatively few exceptions, available processing methods and addition agents make it theoretically possible to produce any type of refined product from any crude source, although it may not be economically sound to do so. The widespread application of thermal cracking for converting higher boiling stocks into gasoline is well known. More recently cracking and refining in the presence of catalysts9 have been developed, as well as various processes for polymerizing lighter hydrocarbons into gasolines having desirable characteristics.6 For several years, selective solvents have been applied commercially to refining inferior quality kerosene, Diesel fuel and lubricating oil distillates.3 Improved methods for refining lubricating oils from crude residual4 formerly suitable only for fuel, are now in use and a number of special solvent processes are available for dewaxing lubricating oils to low pour point.5 These improved refining methods have been developed not only to meet the demand for improved product quality but also to enable the refiner to obtain quality products from crude sources that would not yield such products by the older refining methods. In many cases, the utilization of these modern refining tools necessitates an appreciable expenditure for equipment as well as added manufacturing costs, and their application therefore must be justified economically. Despite the availability of such tools, the added processing costs involved and yields obtainable may render their application entirely impractical. To illustrate this point, inspections of typical cuts from various crudes

Jan 1, 1940

By F. G. Clapp

IT is to be hoped that no casual reader will erroneously refer to the latest publication' of the Division of Public Relations of the American Petroleum Institute, as being "Petroleum Facts and Fancies." The facts are so faithfully derived and the figures are so authentically sponsored by the highest sources that no person can read this valuable volume (287 pages and numerous tables) without being convinced that every- thing therein set forth is "the truth and nothing but the truth." Yet, having read the volume from the perspective of the world's petroleum industry and with a critical attitude that comes from years of study of the subjects discussed, I find myself tempted to cogitate and to envisage a few of the fancies that come to mind as a fitting sequel.

Jan 1, 1929

By B. R. T. Simoneit

The conversion of organic matter to petroleum by hydrothermal activity is an easy process, occurring in nature in many types of environments. Geologically immature organic matter of marine sediments is being altered by this process in Guaymas Basin (Gulf of California), Escanaba Trough and Middle Valley (northeast Pacific), Bransfield Strait (Antarctica), and Atlantis 11 and Kebrit Deeps (Red Sea). Contemporary organic detritus and viable microorganisms are also converted in part to petroleum-like products by the same process when present to become entrained, as for example on the East Pacific Rise at 13o N and 21o N and on the mid-Atlantic Ridge at 26oN. The hydrocarbon products (methane to asphalt) generated in all these areas have been elucidated in terms of composition, organic matter sources, and analogy to reservoir petroleum. This petroleum represents a major input of carbon to the primary chemosynthetic productivity of hydrothermal vent systems and may be important to interactions with metals in hydrothermal ore formation.

Jan 1, 1991

By Warren Smith

IT has been 5 years since the writer left the Philippine Islands and while in that country his chief work did not lie in this field, though he has visited all but one of the localities mentioned in this article. The principal field studies relating to oil were made by his colleague, Mr. Wallace E. Pratt. The writer's investigations dealt with the general stratigraphy and paleontology of the Philippines. With the exception of the investigations made by Mr. Pratt and the writer very little information on this subject is available. A number of geologists in the employ of large oil companies have visited the Islands from time to time but, following the general rule, the public has scarcely ever been permitted to learn anything of the results. The writer is indebted to the Bureau of Insular Affairs, Washington, for late information regarding recent legislation in the Islands relating to petroleum. All the known oil seeps, petroleum residues, such as ozocerite, and natural-gas emanations are associated with Tertiary sediments. The chief seeps and most promising prospects are located as follows: 1. Bondoc Peninsula (lower end), Tayabas Province, Southeast Luzon. 2. The west coast of the island of Cebú from Alegria north to, and perhaps beyond, Toledo. 3. Central Mindanao not far from Lake Lanao. 4. The ozocerite veins on the Island of Leyte in the northwestern part in the vicinity of the town of Villaba. 5. Natural gas from some deep wells in Tertiary shale formations on the eastern flank of the Cordillera and extending out under the plain on the island of Panay.

Jan 2, 1920

By George Macready

TRINIDAD, British West Indies, is an island near the north coast of South America, situated between latitudes 10° and 11° N:, and. opposite the numerous outlets of the Orinoco River Delta. It is separated from Venezuela by the Gulf of Paria (salt, water) and straits over 5 mi. (8 km.) wide. The area of the island is approximately 1750 sq. mi. (453,- . 250 hectares) and the population is approximately 400,000. The climate is tropical with an annual rainfall of from 45 to 60 in. (114 to 152 cm.). The oil fields consist of several units, or fields, located in the southern half of the island. Approximately 90 per cent. of the total production has been yielded by fields situated within 7 mi: (11.3 km.) of the famous asphalt lake and on the southwest peninsula. The most important producing fields, or units, are the following, which are shown on the accompanying map: Brighton, or Pitch Lake Field, operated by the Trinidad Lake Petroleum Co., Ltd., is situated beside the famous Pitch Lake; it, even encroaches on the lake. Vessigny Field, operated by the Trinidad Lake Petroleum Co., Ltd., is situated 2 mi. (3.2 km.) south of Pitch Lake. Lot One Field, operated by the Petroleum Development Co., Ltd., the United British Oilfields of Trinidad, Ltd., and Stollmeyer, Ltd., is situated 3 mi. south of Pitch Lake upon Lot One of Morne 1'Enfer Forest Reserve and adjoining properties. Parry Lands Field, operated by the United British Oilfields of Trinidad, Ltd., and the Petroleum Development Co., Ltd., is situated 3;2 mi. south of Pitch Lake on Lot Three of Morne l'Enfer Forest Reserve and adjoining properties. Point Fortin Field, operated by the United British Oilfields of Trinidad, Ltd., is situated at Point Fortin, 6 mi. southwest of Pitch Lake. Fyzabad Field, operated by Trinidad Leaseholds, Ltd., is situated several miles southwest of Fyzabad Village and 6 mi. south-southeast of Pitch Lake. Barracpore Field, operated by Trinidad Leaseholds, Ltd., is situated several miles south of. San Fernando and 15 mi. (24.14 km.) east of Pitch Lake.

Jan 9, 1920

By R. L. Dunsmore

Introduction If one had been called upon to describe petroleum oil refining seventy-five years ago, he could have acceded to the request quite satisfactorily in about fifteen minutes. Fifteen years ago, an hour and a half would have been sufficient to give a general idea of oil refining, and of the equipment used for this purpose. Today, so extensive has been the research into all phases of the refining and manufacturing of petroleum products, and so rapid the strides in improvement in technique and equipment, that I doubt if a week would suffice to give an adequate outline of ail the ramifications of present-day oil refining. I propose to only 'hit the high spots', dealing particularly with the equipment and methods employed at the Imperoyal refinery, which you are to visit. Crude oil, the refiner's raw material, contains essentially only two elements, hydrogen and carbon. These are not present in the free state but are combined in various proportions as 'hydrocarbons'. A given crude oil is not made up of just one hydrocarbon, but of myriads; some solid, others liquid, and still others gaseous at atmospheric temperature and pressure, ail dissolved one in the other. Moreover, the nature and the relative amounts of the several hydrocarbons vary very considerably in crude oils from different sources. That is, a 'crude' from Oklahoma will contain hydrocarbons not present in crude from Mexico, and is different again from the Venezuela crude. Not only this but oil in a certain well in, say, Peru may be differently constituted from that in a well half a mile distant from it.

Jan 1, 1931

By J. S. Stewart

THIS paper was prompted by a persistent demand for what information we have that will throw light on the oil and gas possibilities of the Maritime Provinces. The problems involved were made familiar to the writer during three seasons of field work in New Brunswick and Nova Scotia. The reasons for renewed interest are: (1) In many parts of that region, the surface is underlain by a thick series of unaltered sedimentary rocks. (2) Oil seepages occur, and oil in commercial quantity has been exploited' near Moncton, New Brunswick, for many years. (3) In recent years, a new method of attack has been developed toward the finding of stratigraphic traps. This method is based on a detailed study of the geological history of the region, as revealed in surface outcrops and samples from deep wells. The well samples show the lateral variation of strata, far from any possible surface outcrop of the same beds. Sufficient work has now been done in the Maritime Provinces to reveal the broad features of the geological history and the character and distribution of the various rock formations. Comparatively little deep drilling has been done in this region, but the holes are widely scattered and the samples from them have added much to the information obtained from the numerous outcrops of bed-rock. The following discussion gives a summary of available information that has a bearing on the subject.

Jan 1, 1943

By J. S. Stewart

THE Mackenzie River Valley proper extends from Great Slave lake to the Arctic ocean (see map, Figure 1). From Fort Providence, near Great Slave lake, to Aklavik, near the Arctic coast, the distance by river is 1,000 miles. This will give some idea of the extent of the region. Throughout the length of the river valley, the Precambrian complex rocks are overlain by unaltered sedimentary rocks several thousand feet in thickness. These sediments are dominantly marine and Palaeozoic in age. In places, the Palaeozoic strata are overlain unconformable by Cretaceous an Tertiary sediments. The strata have been folded and, in general, the inclination of the beds to the horizontal is comparatively gentle. Here, then, we have the essentials for potential oil fields covering an area over 1,000 miles in length. This is probably the largest comparatively unexplored potential petroleum region in North America, and surface evidences of oil in the form of seepages occur in several places. Many of these seeps were known to the early explorers, and the first Geological Survey report on the Mackenzie River region, containing the results of field work carried out by R. G. McConnell in 1887-88, noted the petroliferous character of the Devonian strata and the indications of petroleum(l). This region is, however, handicapped by distance from markets and sources of supply of materials; by lack of modern transport facilities; by short season for river transport, and mountainous country separating the valley from the Pacific seaboard; and by the long winter season with weather that makes outdoor work difficult. These factors have tended to discourage the enthusiasm of would-be promoters, and so development in this region has been slow In 1920, a test well drilled about fifty miles northwest of Fort Norman discovered oil in commercial quantity, and three additional wells proved a small area to be productive.

Jan 1, 1944

By R. V. Whetsel, Valentin R. Garfias

Mexican petroleum production for 1928 was approximately 50,000,-000 bbl., the lowest in 12 years, showing a decrease from 1927 of over 14,000,000 bbl. The steady downward trend for the past 7 years has allowed Russia to outrank Mexico by a wide margin for third position and if the expected decline continues during 1929 it should place Persia ahead of Mexico as fourth in rank. The year 1928 was characterized by a continuation of the reentrench-ment previously begun by the oil industry in Mexico in an attempt to adjust itself to the adverse conditions caused by the steady depletion of the fields, the rapidly increasing competition from Venezuela and the United States and the as yet unsettled petroleum legislation and taxation situation. With the exception of the Isthmus of Tehuantepee, drilling in proved fields was considerably curtailed and although the number of wildcats completed exceeded those of the previous year, no extensive drilling programs were undertaken. Practically without exception, the major companies reduced personnel and operations to a point where they could meet existing conditions and mark time while awaiting a more stable basis for the future testing of unexploited regions. Many terminal and transportation facilities were abandoned during the year. Development Only 371 wells were completed during 1928, as against 583 in the previous year and 808 during 1926, and although the percentage of producers in 1928 was 34 per cent., compared to 26 per cent. in 1927, the initial production of -wells was considerably lower than during the previous year, a great number of the wells showing salt water and becoming "strippers" from the time they started to flow. Development is summarized in Table 1. Drilling in the Northern fields did not prove any new pools of importance, the most successful wells being located in the old producing areas of Cacalilao, Panuco and Topila. (Fig. 1 Very few of the producers made more than 1000 bbl. daily, and a great many less than 300 bbl. a day.

Jan 1, 1929

By H. J. Wasson, E. B. Hopkins

Throughout 1928, production of oil from Venezuela steadily increased, and at the close of the year, the output was at the rate of nearly 400,000 bbl. a day. The total for the year was approximately 106,500,000 bbl., representing an increase of about 66 per cent. over the 63,000,000 bbl. produced in 1927. Venezuela now stands next to the United States as the second largest oil-producing country in the world; and there is abundant evidence to suggest that this relationship will endure for a number of years. Reserves were notably increased in the Lake shore fields, and the potential output of the Maracaibo Basin is much greater than the current production. In spite of this, the percentage of production increase was comparatively moderate, and the rate of this increase continued to fall off slightly, as has been the case for the last three years. This does not suggest that further annual increases in Venezuelan output will not materialize; only that the rate of these increases appears to be on the decline, and that with every succeeding year the future tendency will be in the direction of a stabilized level of output. The following table shows the production trend of the country since 1925: 1925 increase over 1924, 132 per cent. 1926 increase over 1925, 80 per cent. 1927 increase over 1926, 75 per cent. 1928 increase over 1927, 66 per cent. Many factors will work to prevent a reversal of this trend, but the principal ones are strong ownership in large-acreage units, and the probable indisposition of the world market to absorb a more rapidly increasing Venezuelan output at prices profitable to the producers. The distress oil element is not a factor in Venezuela; also, any unforeseen jump, such as results in the United States from the discovery of a Seminole or a deep sand at Long Beach, or Santa Fe Springs, is impossible in Venezuela, on account of lack of means for transporting a sudden surplus of oil, and the slowness with which additional transportation equipment in the form of shallow-draft tankers can be obtained.

Jan 1, 1929

By Basil B. Zavoico

The production of all Russian fields incressed from approsimatctly 74,000,000 bbl. during 1926-27, to approximately 83,000,000 bbl. during 1927-28. Of this amount Baku was responsible for 54,.500,000 bbl., Grozny for 25,800,000 bbl., and Emba for 1,200,000 bbl. Accordingly, the proportional importance of the Grozny oil field has been considerably increased, the present production being twice that of 1913. The most notable factor of production during 1927-28 was the importance of gushers; 40.8 per cent. of the total was thus obtained. In the Baku fields 26 per cent. of the total, and in Grozny 74.2 percent'. of the total were produced by naturally flowing wells. This may be explained by the reduction in authorizations for drilling by the central authorities, and, accordingly, the local trusts increased the production to the planned figures at the expense of the proved prolific reserves. In Baku region, the Surnkany oil field produced 36.1 per cent. of the total Baku production, or an equivalent of 53,800 bbl. per clay, the largest percentage coining from the fifth horizon. Nest year's plans call for continual development of that horizon as well as of the sixteenth horizon in the Bibi-Eibat field, which was opened lately. In the Grozny fields the New Area (Bellik) WAS responsible for 79.4 per cent. of the total production. The authorized plan for 1928-29 production calls for 92,200,000 bid., and a reasonably accurate estimate for 1932--33 production is placed at. 156,000,000 bbl., with Baku contributing 101,800,000 bbl., Grozny 44,100,000 bbl., Emba 6,200,000 bbl., Kuban 2,100,000 bbl., Saghalien Island 1,400,000 bbl., and Russian Turkestan 400,000 bbl. In connection with recent discoverices in the Baku area these figures art. quite conservative. The average production per well per day in the Baku oil fields was 49.2 bbl., in Grozny 175 bbl.; in detail, Surakany oil field averaged 250 bbl., and the New Area in Grozny 514 bbl. per day. New completions in all Baku fields averaged 264 bbl. per day, and in Grozny 970 bbl. pel. day. These figures show a considerable progress in the technical developnlent of all fields, compared even with the prerevolution figures, since all the mprovements are noted in the fields that arc over 30 years old.

Jan 1, 1929

By AIME AIME

Annual net production of crude oil from the Anglo-Iranian, Oil Company's fields in Iran for the years 1940 through 1945 amounted to: YEAR TOTAL PRODUCTION (Long Tons) 1940 8,626,639 1941 6,605,320 1942 9,399,231 1943 9,705,769 1944 13,274,243 1945 16,835,000 (preliminary figure) All developed fields were on almost continuous production throughout the war, though their operation naturally was hampered by war conditions, which affected particularly supplies of equipment.

Jan 1, 1946

By J. HUNER

Twenty-four new fields were found in Louisiana during 1945. Of this number 15 were oil fields, eight were gas condensate, and one a dry gas field. None of these fields, with the exception of West Delhi, is as yet of any great consequence. The Weeks Island field in Iberia Parish may eventually develop into a considerable reserve.

Jan 1, 1946

Domestic: Middle West-,11.. B. Newcombe Eastern District-J. French Robinson1 Kansas-Henry A. Ley 2 Oklahoma-Henry A. Ley 3 Texas, except Gulf Coast and Panhandle-M. G. Cheney 5 Texas Panhandle-W. E. Hubbard and H. E. Crum 6 Gulf Coast-L. P. Teas 7 South Arkansas, North Louisiana and Mississippi-H. K. Shearer 8 Foreign Mexico-V. R. Garfias and C. 0. Isakson 9 Canada-Line M. Farish 10 Venezuela-C. W. Hamilton 10 Colombia-J. T. Duce 12 Peru-O. B. Hopkins 12 Trindad-Williaim J. Millard 13 Dutch East Indies-Fred B. Ely 13 Rumania-I. I. Gardescu . .. . 14 India-Eric J. Bradshaw 14

Jan 1, 1931

CONTENTS RUSSIA-R. C.-BECKSTROM 3 VENEZUELA-F. H. KAY 9 TRINIDAD-W. J. MlLLARD 20 RUMANIA-1. I. GARDESCU 26

Jan 1, 1932

CONTENTS KANSAS-H. S. BRYANT 3 TEXAS, EXCEPT GULF COAST-M. C. CHENEY 14 GULF COAST-L. P. TEAS 21 TEXAS PANHANDLE-W. E. HUBBARD 29 LOUISIANA, ARKANSAS AND MISSISSIPPI L H. K. SHEARER 37 ROCKY MOUNTAINS-R. C. COFFIN 43 CALIFORNIA-V. H. WILHELM 51 MICHIGAN AND THE TRENTON FIELDS OF OHIO AND INDIANA-M. G. GULLEY 65 ILLINOIS, WESTERN KENTUCKY AND WESTERN INDIANA-A. H. BELL . . . 73

Jan 1, 1932

By J. Morgan Clements

PETROLEUM has been known in Japan since at least 668 A. D., for a picture shows the presentation, during that year, to the Emperor Tenchi (Tenji) of "burning water" and." burning earth" by his subjects from Echigo Province, which today is the largest producer of petroleum in Japan. The burning water was doubtless petroleum and the burning earth either bituminous shale or oil-soaked earth or rock from near the oil seepages. The early methods of getting the oil were simple and similar to methods used today in Japan and in China. Where the seepages occurred, trenches or shallow wells were dug along the seepages and allowed to fill with oil which was then bailed out; in some cases, they filled with oil and water and overflowed. During the 300 years following 1500 A. D:, the use of petroleum in Echigo Province seems to have increased considerably, as compared with earlier centuries, and records show that in 1818 the depth of the wells had been greatly increased. Doubtless, they passed through the seepages and tapped the shallow oil-bearing strata; probably some of these deeper wells were dug before that time. The real value of petroleum was not recognized until early in the Meiji era, which began in 1868, when the Japanese learned that the kerosene that was being imported was derived from petroleum. Guided solely by information obtained from books, they refined the oil and increased the depth of their wells in order to increase the production. The deepest well, dug by hand, about this time was 894 ft.1 (273 m.) and by 1874 the recorded production reached 3499 barrels. In 1876, Benjamin Smith Lyman prepared geological maps of the Echigo oil field, which were the first. of such geological maps made in Japan, and based on these a more enlightened development of the oil fields began; the. Japanese, however, still dug the wells by hand. Toward the end of the '80s, an American well-drilling outfit was secured, but the efforts to use it failed from lack of experience by the operators. In 1888, a complete well-drilling outfit was, purchased and American oil-well

Jan 7, 1922

By J. W. Ristori, V. R. Garfias

ONE of the most serious problems now confronting Gel- many-and one that will affect Italy even more seriously if she goes to war against England and France -is that of supplying her navy, mechanized army, and air force as well as her industrial and other needs with the necessary and related products. This problem, serious even now, will become vital should hostilities on a large scale develop.

Jan 1, 1939