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By Sidney Wise

WHILE the installation of mine bulkheads to retain water under high pressure is y no means a rarity, the following points Which arose in the designing and placing of two of these bulkheads may be of interest: The Hibernia magnetite mine, located about 40 miles west of New York, in the State-of New Jersey, is partly filled with water. This mine is located on an ore lens, the outcrop of which is over a mile long. The ore has been mined from this lens from the surface to a depth of more than 1,500 ft. It was held desirable to- separate the old workings from the new, and to allow the former to fill to the 850-ft. level. Two weak places existed between the new and old workings below this level: namely, a temporary bulkhead on the 10th level and a rock bulkhead of indeterminate thickness on the 16th level. When the matter of allowing the old workings to fill was investigated, the fact was developed that if these old workings were filled, the bulkhead on the 10th level would be subjected to a water pressure of about 50 lb. per square inch, and that 200 lb. per square inch would act on the 16th-level bulkhead. As the above-mentioned barriers were not deemed of sufficient strength to permit of these pressures, it became necessary to design and install new bulkheads. Design As the 16th-level bulkhead was required to withstand a pressure of 200 lb. per square inch, it presented some difficulties. A careful consideration of the various types of mine dams now in use led to the adoption of a design of the form of a truncated wedge. In this, the pressure side of the dam is of greater area than the back, so that the resultant action is similar to driving the wedge. By cutting generous skewbacks in the walls, roof, and floor, this type in reality becomes an invisible arch. The wedge feature tends to compress the materials in the bulkhead, thereby adding to its imperviousness.

Jan 8, 1914

The members of the Institute will recall the account given in the March Bulletin of the inauguration exercises of the Engineering Foundation which was inhibited by an initial gift of $200,000 by Mr. Ambrose Swasey, to be administered by the United Engineering Society as trustees. The Engineering Foundation Board is now constituted as follows: GANG DUNN, Chairman, EDWARD D. ADAMS, Vice-Chairman FREDERICK R. HUTTON, Secretary, JOSEPH STRUTHERS, Treasurer, American Society of Civil Engineers. J. WALDO SMITH, CHARLES WARREN HUNT.

Jan 12, 1915

The following petition for amendment of the constitutional provisions relating to qualifications for membership in the Institute, signed by 75 members, of whom 27 are members of the Committee on Increase of Membership, was received by the Board of Directors, was printed on the program of the New York Meeting sent to all members early in January, and is now being voted upon by the membership: In accordance with the terms f Article X, we hereby propose the following amendment to the Constitution, Article II, Section 2: Members shall comprise all those persons who on the third Monday of February, 1918, were members of the Institute, and in addition thereto, all those thereafter, elected or transferred into the, class of Members. A person to he eligible for election or transfer into the class of Members must he at least 27 years of age and must have had at least six years' employment in the practice of engineering, mining, geology, metallurgy or chemistry, during at least three years of which he must have held positions of responsibility in one or more of these fields. Graduation from the scientific course of a college, approved by the Committee on Membership, shall be considered equivalent to two years' employment, as required in the previous sentence.

Jan 2, 1918

By AIME

Compiled by Mary Ann Gross, Department of Energy. Bruceton. PA. Supplemental data from Coal Age indicated by (*). Reprinted by permission from CoalAge magazine.

Jan 1, 1981

The following Nominating Committee having been already appointed and approved by the Executive Committee in accordance with authority vested in the Executive Committee by the Board of Directors, was approved by the Directors: John V. N. Dorr, Chairman, Percy G. Beckett, J. W. Hutchinson, Julian Kennedy, William H. Linney, Charles W. Merrill, and E. Gybbon Spilsbury. The question of the purchase of Liberty Bonds, as well as that of bringing to the attention of the members the advisability of the purchase of these bonds, was referred to the Finance Committee. Sixty Members, four Associates, and thirty-six Junior Members were elected. Two Members were reinstated. Eight resignations were accepted.

Jan 7, 1917

Executive JVW REYNOLDS, Chairman SYDNEY H BALL E DEGOLYER WILLIAM H BASSETT SAMUEL A TAYLOR Finance GEORGE D BARRON, Chairman H A GUESS GEORGE OTIS SMITH Membership ] H CALLOW, Chairman GEORGE D BARRON WILBER JUDSON JOHN A CHURCH, JR H N SPICER Alternates LEWIS W FRANCIS LOUIS D HUNTOON F T RUBIDGE

Jan 1, 1923

By David L. Holt, Walter A. Backofen, Anwar-ul Karirn

ANNEALING the binary alloy, Mg-0.5 wt pct Zr in a hydrogen atmosphere results in extensive precipitation of zirconium hydride. The morphology of these precipitates has already been investigated.lm3 Squires, Weiner, and phillips4 found, following creep testing of the hydrided alloy at 450" and 500°C, that hydride denuded zones formed along grain boundaries that were aligned approximately normal to the tensile axis. Zone formation was attributed to diffusional creep by magnesium transport down the prevailing stress gradients.4'5 Recently, electron microprobe analysis by Karim, Holt, and Backofen6 showed the zones indeed to be zirconium-free and furthermore it was shown that in compression, zones formed along boundaries approximately parallel to the stress axis. Thus it was confirmed that the zones are formed by diffusional creep. Typical zone-formation is shown in Fig. 1. Karim, Holt, and Backofen also measured the con- tribution to the total strain, from diffusional flow, slip creep, and grain boundary shear: results showed that diffusional strain tends to saturate with increasing imposed strain, while grain boundary shear eventually becomes the dominant deformation mode. It was suggested in explanation that the precipitate-denuded zones are soft and easily sheared, such deformation contributing to the grain boundary shear measurement. A point to be emphasized is that the Mg-0.5 Zr alloy was not superplastic for the index of strain rate sensitivity of flow stress, m = a log log 6 was only 0.25. It was recognized that diffusional creep in a poly crystalline aggregate must be accompanied by boundary shearing.' The suggestion was that the non Newtonian-viscous character of diffusional creep in the Mg-0.5 wt pct Zr alloy is due to resistance to sliding of boundaries lying approximately parallel to the tensile axis.= The work described in the present note should be seen against the above background for it represents initial efforts to observe in a similar way diffusional creep in a superplastic alloy. Previous work with the ternary-alloy Mg-6 Zn-0.5 Zr, pellet extruded, showed it to be superplastic however it does not contain resolvable precipitates to act as internal markers for diffusional creep. Also the fine grain size of the alloy (0.5 p) made conventional metallography rather difficult. Solubility relationships in the Mg-Zn-Zr system are not well known, however making reasonable guesses about the probable phase diagram of the ternary, Mg-Zn-Zr, various heat treatments were attempted to produce hydride precipitation. Finally a 16-hr anneal at 495' in hydrogen was found to pro-

Jan 1, 1970

By H. William Ahrenholz

Many technical meetings were attended by mining people during the past year in which rock mechanics was either the main subject for discussion or was a prominent part of the program. Several universities continued to offer short courses in the applications of rock mechanics for practicing mining engineers. At the beginning of the year, the AIME Committee on Rock Mechanics achieved standing-committee status. It is to assume responsibility for coordinating all AIME activities in this area. Eleven professional societies are now participating in a newly formed Intersociety Committee for Rock Mechanics. AIME and its constituent societies has three representatives. Delegates from the Intersociety Committee will serve on the U.S. National Committee for Rock Mechanics which is being formed by the national Academy of Sciences.

Jan 2, 1967

By W. Barbarowicz, H. E. Uhland

AT the Noralyn mine and mill of International Minerals & Chemical Corp. in Bartow, Fla., process instrumentation has been incorporated in three departments-mining, flotation, and preparation. Use of the dragline is the most difficult aspect of the mining operation to control automatically. At the Noralyn mine there are two draglines, a Bucyrus-Erie 1250-B with 29-yd bucket and 235-ft boom and a Bucyrus-Erie 1150-B with 21-yd bucket and 215-ft boom. These are equipped with a minimum number of instruments, but further instrumentation would increase the operator's efficiency.

Jan 7, 1957

By Henry J. Sandri

ACQUISITION JUSTIFICATION There are many reasons why companies consider acquisitions as a means to expand their operations. Some wish to reduce the impact of business cycles on their businesses. Others seek firms within the same industry for expansion and increased market share. Still others diversify in order to avoid takeovers. Whatever the reasons or justification, an evaluation of an acquisition candidate should be systematic and thorough. To many financial managers the concept of a systematic acquisition evaluation indicates the need for a regular set of evaluation criteria. While these are available from numerous sources, one basic parameter frequently overlooked is the application of these criteria to an industry which is different from the acquirer. This becomes particularly important when evaluating firms within the mineral industry. The mineral industry is significantly different from other industries to require different valuing techniques. • This paper will present a number of reasons why an acquisition candidate in the mineral industry should be evaluated differently from other acquisitions, including by other mineral firms. Additionally, this paper will review the most appropriate means of valuing a mineral firm. • Firms considering the acquisition of a mineral firm should understand the nature of the industry before ever making a tender offer. Some of the general considerations include the following: • Level of Capital Intensity: In the mid-1980's the start up cost for a gold mine has been between 20-200 million dollars and 500-1,500 million dollars for a bauxite operation. • Global Nature of Competition: Except for certain industrial minerals, most minerals and metals are traded worldwide and many on national exchanges, such as COMEX. • Start-Up Time: Many mining operations in developed and developing countries have long lead times, 7 to 10 years in some cases, prior to the start-up of production. • Long Term Nature of Investment: For most mineral operations payback usually occurs at least 7 years after production has started. Additionally, many mining operations will continue producing for 80-100 years. • High Level of Risk: The number of factors that a mining firm cannot control such as grade, volume, world supply and demand, plus the long payback periods tend to classify mineral firms at a higher than average risk compared to other investments. • Cyclical Nature: The mineral industry is cyclical in nature, experiencing long troughs and explosive peaks, thus making timing a critical issue. • Labor Intensive: Even with the large capital requirements needed to operate a mine, most mines are labor intensive in proportion to their capital equipment. • Location: Obviously, the nature of this industry requires operators to work in difficult locations, frequently far from civilized localities, in poor weather conditions and without proper supply and distribution infrastructure. One of the most important considerations is an understanding of asset replacement and asset value. Unlike manufacturing concerns, firms in the mineral industry are working toward the elimination, through depletion, of their asset base. Product flexibility is not available to a mining operation. A mineral firm basically has two options as its resource base is depleted: 1) replace the asset with new production, or 2) deplete the asset and close down operation, as in the South African gold mining model referred to later in this paper. An understanding of the

Jan 1, 1985

For the year ending February, 1936 PRESIDENT AND DIRECTOR HENRY A. BUEHLER ROLLA, Mo. PAST PRESIDENTS AND DIRECTORS FREDERICK M. BECKET NEW YORK, N.Y. HOWARD N. EAVENSON PITTSBURGH, PA. VICE-PRESIDENT, TREASURER AND DIRECTOR KARL EILERS NEW YORK, N. Y.

Jan 1, 1934

By Zay Jeffries

AMONG the various metals with low specific gravity, two, aluminum and magnesium, are used in the nearly pure state or as bases for light-weight alloys. Although the production of magnesium is only about one-twenty-fifth that of aluminum, a higher percentage of its output is used in the transportation industry than that of any other metal. The per-centage varies from year to year but, on the average, more than three-fourths of the magnesium production has been used for this purpose. In the United States, about 40 per cent of the aluminum production is used for transportation purposes. It seems obvious that equipment demanding repeated movement with need for rapid acceleration and deceleration should be as light in weight as the economics of engineering materials will permit. There are, however, differences of opinion with reference to both the economics and the engineering aspects of this subject. Tables 1 to 7 inclusive relate to the principal light-metal materials currently used in the transportation industry. These, with the accom-panying titles and footnotes, are in the main self-explanatory. Although the variations in mechanical properties can be easily seen from the tables, it should be kept in mind that the values given are for ordinary tempera-tures and that the changes in properties with temperature are not the same for the different alloys. Also, the corrosion properties cannot be deduced accurately either from the compositions or from the physical properties. Again, certain of these alloys are used because they possess desirable combinations of properties not listed in tine tables, including heat conductivity, coefficient of expansion, machinability, ease of casting or working, light reflectivity, anodic coating characteristics, etc. These, together with variations in prices, must be given careful analysis to effec-tively utilize the light alloys. Some of the alloys listed in the tables are new and some are old, but all are standard. Even the older alloys are available in new shapes and larger sizes than heretofore, and all are used in the transportation industry in structures of new design. Certain of the applications of specific alloys will be touched upon in the following brief history of the use of the light metals in transportation.

Jan 1, 1936

WE the undersigned, being all persons of full age and citizens of the United States, and a majority residents of the State of New York, desiring to form a corporation pursuant to the provisions of the Membership Corporations Law for the purpose of incorporating, as provided in Section 5 of Article I. of said law, the existing unincorporated association known as American Institute of Mining Engineers, do hereby make, acknowledge and file this Certificate for that purpose, and do Certify as follows: I. That the American Institute of Mining Engineers is an unincor¬porated association organized and existing with the object of promoting the arts and sciences connected with the economic production of the useful minerals-and metals and the welfare of those employed in these industries by means of meetings for social intercourse and the reading and discussion of professional papers, and to circulate by means of publi¬cations among its members and associates the information thus obtained. II. That the persons duly appointed or designated to manage the affairs of said association are designated by the rules thereof Members of its Council; that the undersigned are all members of said Council as the same was constituted on the 29th day of December, 1904. III. That on said last-mentioned date a regularly called meeting of said association was held at its office in the Borough of Manhattan, City of New York; that thirty days before such meeting notice of the intention to incorporate said association was given by mail to each member thereof whose residence or post-office address is known; that at said meeting the following resolutions were offered, seconded and duly adopted by the unanimous vote of all its members then present, to wit: "Resolved, That it is the sense of the members and associates of the American Institute of Mining Engineers in general meeting assembled that it is desirable and necessary for the well being of said association and its members and for the furtherance of the objects for which the same has been formed, that said association incorporate under the Membership Corporations Law of the State of New York;

Jan 1, 1923

By I. A. Goddard

INTRODUCTION This paper deals with the development of the sublevel open stoping (SLOS) method in lead orebodies at the Isa Mine of Mount Isa Mines Limited, during the last ten years. Open stoping in different forms has been used at the Isa Mine for many years. Prior to the period under review, stopes were small, pillars were not always recovered, and scrapers extracted the ore. By the end of the sixties, the use of load-haul-dump units was becoming more widespread. Wagner ST5's were the mucking units for the lead cut and fill stopes. Some of the open stopes in 5 orebody above 13 level had 100 kW slushers, but the more southerly stopes were the sites for the introduction of diesel front-end loaders for extraction. In the early seventies, new methods were used in the block of six stopes in 2 and 5 orebodies between 8 level and 13 level and a trial stoping project was undertaken in 7 orebody between 11 level and 13 level to determine possible stope dimensions for the extraction of the Racecourse orebodies below 13 level. By the mid-19701s, stoping was well underway in 5, 7 and 8 orebodies between 13 level and 15 level, using the 'triplet' system, incorporating cemented hydraulic fill to allow greater pillar recovery. As the eighties were entered, development of the Racecourse orebodies below 15 level commenced, as did preparations for 1 orebody in the upper levels of the north end of the mine. In both cases, the pillar recovery method has been changed to reduce the amount of cemented fill required for pillar recovery. GEOLOGY Most of the lead orebodies at Isa Mine lie chiefly to the north of the central shaft complex. They are bedded sulphide deposits in a host rock called Urquhart Shale, which dips at roughly 650 to the west. The main minerals are galena and sphalerite, with the silver mineral, freibergite, being contained in the galena. To the hangingwall of the sequence are the Black Star orebodies (1, 2 and 5) which are relatively wide, pyritic and with low to above average grade lead. The Racecourse orebodies (6 to 16) lie to the footwall, and have a large variation in width, low to high grade lead, and gradation in the lead to zinc ratio from north to south. Stope outlines are often determined by economic or engineering considerations rather than geological. The published extraction reserves are 56 million tonnes of primary ore, containing 150 grams of silver per tonne, 6.4% lead and 6.5% zinc. Traditionally, it has been regarded as lead ore, although the dominant revenue earner varies from time to time. In the Black Star orebodies, the ore and hangingwalls are more competent and open stoping has long been used. The major Racecourse orebodies which have been open stoped are 7 and 8 orebodies. This has been where the orebodies are wider (to the south) and where hangingwall conditions allow. This latter aspect has been greatly influenced by the presence of 'silica dolomite1. This tough, relatively homogeneous, non-bedded rock is, in fact, the host rock for the copper mineralisation at Mount Isa, and provides a competent hangingwall for some of the lead stopes. While the shale's bedding and jointing has a major influence on the ground conditions, there is a major fault system which causes local problems. The principal virgin stress direction is perpendicular to the bedding, but the local stress situation is complicated because of shielding by filled stopes in the hangingwall copper orebodies and because of the interaction between orebodies being extracted to the footwall. Most development on strike is mined with a 'shanty-back’, with the back being as close to normal to the bedding as possible. This is near parallel to most jointing and the principal stress direction. Figure 1 is a plan view of 14 level north, which provides a representative horizontal section through the orebodies. A typical cross section is shown in Figure 2. The narrow, parallel footwall orebodies can be seen to differ from the wider hangingwall orebodies.

Jan 1, 1981

By K. A. Natarajan, I. Iwasaki

With a platinum electrode the Eh-pH response in aqueous systems follows an empirical relation [Eh = E- 0.059 pH](1) where E usually carries a value between 0.8 and 0.9 v. The same potential (E) is observed with a number of other noble metal electrodes in the absence of surface poisoning and of other well-defined redox couples. Many sulfide mineral electrodes also respond in a similar manner in solutions containing their respective ions over wide pH ranges, especially in the alkaline pH region. Such a parallelism between noble metal and sulfide mineral electrodes points to certain implications of their surface conditions, and the flotation and leaching behaviors of sulfide minerals under aerated conditions may be inferred with respect to the foregoing Eh-pH response. Comparison of Sulfide Mineral and Noble Metal Electrodes [Fig. 1] shows the Eh-pH response of pyrite, galena, chalcocite, and pyrrhotite electrodes, reported by Sato, and some experimental points obtained with a platinum electrode in distilled water. [Eq. 1] is seen to be followed by all these electrodes. It is interesting to note that the response of the pyrite electrode as shown is identical to

Jan 1, 1973

Since this paper was written, some changes have taken place, materially reducing the cost of iron-making as estimated in the text. These are chiefly reductions in the prices of ore and fuel. The charcoal used is now made in bee-hive ovens, and the price is con-

Jan 1, 1895

By J. T. Mackenzie

Henry Marion Howe, in whose memory we are gathered together, was one of the great thinkers who develop from time to time to whom is given the rare gift of synthesis. Analysis is given to few, but synthesis, the ability to show the relation of all parts to each other and thus to give a clear picture of the whole, is reserved for the very few. Analysis can be achieved by honesty, intelligence, and industry, but synthesis is only given to genius. Professor Howe's crowning achievement is the picture of the whole iron-carbon series shown in Fig. I, which places steel, malleable, gray iron, mottled and chilled irons in their proper relation to each other and shows the essential unity of the series. Perhaps his best statement of the case is found on page go of the Metallography of Steel and Cast Iron in these words: " Each member of the gray cast-iron series consists of the metallic matrix approximately equivalent to that member of the steel-white-cast-iron series to which it corresponds in percentage of combined carbon with its continuity broken up—by masses of graphite ..." Apparently he had taken considerable interest in this idea around the turn of the century, for he refers to a discussion at the Franklin Institute in I900 in which he said: "Though many others had probably conceived this relation between the steels and cast irons, it was here enunciated for the first time, so far as I know. It was received with great incredulity." The concept was explained in some detail in a paper on "The Constitution of Cast Iron" presented before the A.S.T.M. in 1902 when Professor Howe was retiring president of that young society. In the discussion Dr. Sauveur stated that he was "very well acquainted with Professor Howe's theory of the constitution of cast iron," and went on to say that while he "shared it to the fullest extent, some foundrymen . . . claim cast iron is a metal entirely different from steel . . . that steel and cast iron have very little in common, and that therefore the knowledge gained in the study of steel is of little or no value in the study of cast iron." Dr. Moldenke, in discussing the same paper, said he had been working on the same theory for 12 years but he laid no claim to publication. Discussing the difference in the micro-structure of the metallic matrix, Professor Howe pointed out that "such minor structural differences are indeed to be expected, because of the difference in the conditions under which these constituents are generated. "One difference in these conditions is that the steel of most micrographs has been either forged or at least treated thermally in such a way as to give a new structure radically different from that which formed during the initial solidification, whereas the cast irons have not. Hence what we see in the steels is a transformation structure, but in the cast irons a solidification structure. By giving the cast

Jan 1, 1944

By J. T. Mackenzie

Henry Marion Howe, in whose memory we are gathered together, was one of the great thinkers who develop from time to time to whom is given the rare gift of synthesis. Analysis is given to few, but synthesis, the ability to show the relation of all parts to each other and thus to give a clear picture of the whole, is reserved for the very few. Analysis can be achieved by honesty, intelligence, and industry, but synthesis is only given to genius. Professor Howe's crowning achievement is the picture of the whole iron-carbon series shown in Fig. I, which places steel, malleable, gray iron, mottled and chilled irons in their proper relation to each other and shows the essential unity of the series. Perhaps his best statement of the case is found on page go of the Metallography of Steel and Cast Iron in these words: " Each member of the gray cast-iron series consists of the metallic matrix approximately equivalent to that member of the steel-white-cast-iron series to which it corresponds in percentage of combined carbon with its continuity broken up—by masses of graphite ..." Apparently he had taken considerable interest in this idea around the turn of the century, for he refers to a discussion at the Franklin Institute in I900 in which he said: "Though many others had probably conceived this relation between the steels and cast irons, it was here enunciated for the first time, so far as I know. It was received with great incredulity." The concept was explained in some detail in a paper on "The Constitution of Cast Iron" presented before the A.S.T.M. in 1902 when Professor Howe was retiring president of that young society. In the discussion Dr. Sauveur stated that he was "very well acquainted with Professor Howe's theory of the constitution of cast iron," and went on to say that while he "shared it to the fullest extent, some foundrymen . . . claim cast iron is a metal entirely different from steel . . . that steel and cast iron have very little in common, and that therefore the knowledge gained in the study of steel is of little or no value in the study of cast iron." Dr. Moldenke, in discussing the same paper, said he had been working on the same theory for 12 years but he laid no claim to publication. Discussing the difference in the micro-structure of the metallic matrix, Professor Howe pointed out that "such minor structural differences are indeed to be expected, because of the difference in the conditions under which these constituents are generated. "One difference in these conditions is that the steel of most micrographs has been either forged or at least treated thermally in such a way as to give a new structure radically different from that which formed during the initial solidification, whereas the cast irons have not. Hence what we see in the steels is a transformation structure, but in the cast irons a solidification structure. By giving the cast

Jan 1, 1944

By H. M. Morse

This report on oil and gas development in Mississippi covers the period from Jan. I, 1944, to Dec. 31, 1944: Salt Domes During the year six salt domes were drilled for sulphur, but no commercial sulphur deposits were found. One salt dome, the Bruinsburg, in Claiborne County, has produced gas- at 935 to 940 ft' in Moody's Branch marl. The Stringer salt dome in Smith County and the Ruth salt dome in Lincoln County both had a slight showing of heavy oil. Other salt domes have been dry. In addition to the Bruinsburg dome, the Allen salt dome, in Copiah County, and the Richton salt dome, in Perry County, were discovered in 1944; also the Sumrall dome, in Covington County. New Oil Fields Baxtemille Oil Field.—The Baxterville oil field was discoveredby the Gulf Refining Co, in sec. 7, T. I N., R. 16 W., Lamar County. At the end of the year this field had one oil well, with two active operations. Production for 1944 was 1047 bbl. of oil. GwinvilLe Field.—Gwinville field was discovered by S. W. Richardson, in sec. 24, T. 9 N., R. 19 W., Jefferson Davis County. This discovery well was a gas-distillate well, the oil being crystal clear. At the end of 1944 there were two gas wells and one oil well in the field. The oil well is approximately 2 1/2-miles from the gas- distillate wells. Gas production was 55,801 M cu. ft. and the distillate production was 2644 barrels. Heidelberg Oil Field.— The Gulf Refining Co. discovered the Heidelberg field in sec. 30, T. I N., R. 13 E., Jasper County, in January 1944. This field has by far exceeded the other 1943 and 1944 discoveries, having approximately 56 oil wells, 7 dry holes, and 10 active wells at the end of the year. Production to Jan. I, 1945 was 1,441,192 bbl. of oil. Mallalieu Oil Field.—The california Company discovered the Mallalieu oil field in set. 10, T. 7 N., R. 8 E,, Licoln. County. At the end of the year there was one well in the field with three active operations. Production was 32,303 bbl. of oil. Old Oil Fields Brookhaven Oil Field, in Lincoln County, has one oil well, which produced 2590 bbl. of oil during 1944. CarY Oil Field, Sharkey County1 has only one producing well, which produced 11,818 bbl- of oil during the Year- In Cranfield Oil Field, dams County, II oil wells and two gas-distillate wells were drilled in 1944 and there were five active wells on Dee. 31, 1944- The total production for the Year was 5251422 bbl-of oil. The gravity of the oil is 40" to 54.9'- In Eucutta Oil Field1 Wayne County1 34 oil wells were completed during 1944. There were five dry holes and six active wells at the end of the year.. The field produced 454,332 bbl. of all d the average gravity is 25" Flora Oil Field, Madison County, pro-

Jan 1, 1945

By Anthony G. Reid

INTRODUCTION At the time of the death of Mao Tse-tung in 1976, China was a major oil producing country with a daily oil flow in the order of 1.735 million barrels. This position had been achieved with minimal assistance from the outside world. Further, only some fifteen years had elapsed since the country's daily oil production capacity had hovered at the barely significant level of one hundred thousand barrels. Why then did the new leaders of China, after this very creditable record of success, suddenly change the direction of the country's drive for future hydrocarbon production? First, by switching much of the emphasis of exploration from onshore to the offshore continental shelf basins, and further by apparently abandoning the philosophy of self reliance calling upon the world's oil industry to share in the task of locating and developing these potential offshore energy reserves. The answer is probably only partly understood by those of us outside China, However, a number of factors exerting an important influence on this decision can be identified. THE MOVE OFFSHORE The new leadership was anxious to rapidly move China into her rightful place amongst the powerful and technologically advanced nations of the world. Modernization became the slogan, specifically modernization on four fronts, agriculture, industry, technology and military with the goal to "catch the west by the year 2000". But how to generate the capital to finance this massive modernization program? The rapid escalation of the price of crude oil following the 1973 Oil Embargo and the continuing apparently insatiable world demand for this now extremely precious primary resource was very clear to all. China, as a major producer, could export crude to help finance the ambitious development programs of the government. To do this, however, would require a very significant in¬crease in present production capacity, as the domestic demand even for China with her relatively low per capita energy consumption, is essentially equal to the current production. Trying to rapidly move the new regime's programs into actions, one can only assume that the planners looked at the success of the petroleum industry over the preceding fifteen years and quickly concluded that this well established curve could be maintained and indeed steepened with an increase in effort. The rapid discovery of a few more Daqing's (China's premier oil field, producing one million barrels a day) would have the country's ambitious modernization goals within reach. Petroleum would At the time of the death of Mao Tse-tung in 1976, China was a major oil producing country with a daily oil flow in the order of 1.735 million barrels. This position had been achieved with minimal assistance from the outside world. Further, only some fifteen years had elapsed since the country's daily oil production capacity had hovered at the barely significant level of one hundred thousand barrels. Why then did the new leaders of China, after this very creditable record of success, suddenly change the direction of the country's drive for future hydrocarbon production? First, by switching much of the emphasis of exploration from onshore to the offshore continental shelf basins, and further by apparently abandoning the philosophy of self reliance calling upon the world's oil industry to share in the task of locating and developing these potential offshore energy reserves. The answer is probably only partly understood by those of us outside China, However, a number of factors exerting an important influence on this decision can be identified. THE MOVE OFFSHORE The new leadership was anxious to rapidly move China into her rightful place amongst the powerful and technologically advanced nations of the world. Modernization became the slogan, specifically modernization on four fronts, agriculture, industry, technology and military with the goal to "catch the west by the year 2000", But how to generate the capital to finance this massive modernization program? The rapid escalation of the price of crude oil following the 1973 Oil Embargo and the continuing apparently insatiable world demand for this now extremely precious primary resource was very clear to all. China, as a major producer, could export crude to help finance the ambitious development programs of the government. To do this, however, would require a very significant increase in present production capacity, as the domestic demand even for China with her relatively low per capita energy consumption, is essentially equal to the current production. Trying to rapidly move the new regime's programs into actions, one can only assume that the planners looked at the success of the petroleum industry over the preceding fifteen years and quickly concluded that this well established curve could be maintained and indeed steepened with an increase in effort. The rapid discovery of a few more Daqing's (China's premier oil field, producing one million barrels a day) would have the country's ambitious modernization goals within reach. Petroleum would be the principal bridge to the bright future. The next decision involved the question of where to look for these vast new reserves. Chinese exploration teams had already looked at most of the onshore sedimentary basins and, while they were the first to admit that there was much yet to do, it was fairly clear to them that the potential for large new accumulations was confined to two areas: the little explored, remote, inhospitable regions of western China, principally Xinkiang Province and the equally unexplored offshore basins of the continental shelf and slope. In both cases China faced a very serious problem. The inhospitable environments were severely straining her petroleum industry's current technological ability to cope, particularly as the government needed rapid results. Thus the pragmatic and, to the foreign oil industry, unexpected decision to invite cooperation with the outside world. The reasons for the initial emphasis on the exploration of the offshore basins with the cooperation of foreign oil companies are again supposition on my part, but probably involved considerations of technical merit, ease of development and delivery to markets together with more sensitive issues such as controling the influence of foreign philosophies and values on the Chinese population by containing most foreign activity to the offshore. So within three years of the death of the great helmsman, China had developed a plan to involve foreign oil companies, both state and private, in a grand plan to rapidly increase the nations oil production. In fact, by this time, the first round of talks had been concluded and the first phase begun, and what a beginning. Some forty eight companies from thirteen countries had signed documents to participate formally in this world scale event. It was far easier to list those companies which did not participate than to list those which did. FOREIGN COMPANY INTEREST Why the rush by the world's oil industry to be involved in China? What was China offering which made everyone so anxious to join in? Again the answer is complex in detail, but principally involved a combination of factors which together caused this virtual stampede. Timing was a major element. Oil Companies, despite an ever increasing take by governments, were beginning to benefit. from the' rapid escalation of crude prices induced by OPEC and were looking for suitable areas to reinvest these funds. Producers

Jan 1, 1982