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By Mark David Rankin

This paper represents a general assessment of the primary factors driving the market for mobile offshore drilling rigs and the utility of those factors as choice variables for the offshore drilling program planner.

Jan 1, 1982

By D. J. Carney, E. C. Rudolphy

Large macroscopic nonmetallic inclusions were related to altered fireclay refractories by chemical and microscopic means. Pouring refractories are discussed as a source of these large inclusions. Nozzles and wells are major contributors. Use of alkali and titania contents as tracers is described. Recommendations are offered to minimize the sources of inclusions from pouring refractories. IN any attempt to improve the cleanliness of plain carbon and alloy steels, consideration must be given not only to the proper deoxidation practice to minimize inclusions, but also to sources of inclusions from pouring refractories. In some cases, the inclusions resulting from deoxidation may be minor in amount, yet a relatively dirty steel may be produced as a result of improper care in the pouring practices for the steel. The number of studies of inclusions resulting from pouring refractories has increased recently and some excellent reports on this subject have already been published.'4 Some of these reports were reviewed briefly in a companion paper by M. P. Fedock.5 Mr. Fedock's contribution is a fine addition to the studies necessary to improve steel cleanliness for the ultimate benefit of all steel producers and consumers. In the interest of constantly improving cleanliness, the authors have been actively engaged for the past two years in experimentation to determine more closely the sources of inclusions in steel. One phase of this work was associated with efforts to define more closely the sources of macroscopic inclusions which have been experienced on occasional heats. The term "macroscopic inclusions" is defined in general as those inclusions which are visible to the naked eye or at low magnifications of the order of less than X25. These inclusions sometimes can be seen in the macro-etch tests of billets and slabs. This report summarizes a few of the field experiments and laboratory studies conducted at the South Works of the United States Steel Corp., which were made regarding nozzles, wells, and ingot scums, as well as inclusions occurring in steel products. The data in the present study, together with the data of Mr. Fedock concerning ladle erosion, should be of value in regard to future studies of inclusions arising from pouring refractories. The knowledge gained as a result of data collected thus far at South Works has been helpful in improving the cleanliness of the products and in pointing the way toward further improvements. Similarity of Large Inclusions to Refractories and Altered Refractories In the routine inspection of billet etch tests, occasional inclusions visible to the naked eye have been observed. These large inclusions most frequently occur near the top of the ingot and near the billet surface. When such material was encountered, careful examinations were made in an attempt to determine the origin of these inclusions. In a relatively few cases, examination revealed that the material was unaltered fireclay refractory of a type similar to that used for hot-top material, with only the surface of the inclusions having an altered appearance under the microscope. However, the great majority of these inclusions were completely altered-refractory material. The term "altered refractory" is defined

Jan 1, 1955

By Oscar Weiss

An aerial magnetometer survey was carried out by the author's geophysical organization over the Vrede-fort dome, where Witwatersrand beds are wrapped around a granite plug 25 to 30 miles in diameter. The well-known magnetic shales of the Lower Witwatersrand system (to be referred to as LWW) give strong negative anomalies over the out-cropping portion of the dome. This is unusual as these same shales cause positive anomalies over large areas near Johannesburg and along a strike of 130 miles between the East Rand and Klerksdorp. It is suggested that the negative polarization is caused by heat and stresses connected with the doming. This negative polarization of sedimentary beds, which usually cause positive anomalies, is a good example of how "magnetic lows" can be caused by "structural highs." Significant magnetic anomalies should be tested by gravity and seismic methods irrespective of the sign of the anomalies. South of the line X — Y (see Fig 2 and 5) the gravity anomalies are smaller over the LWW beds and magnetic anomalies suddenly become weaker and even change signs by becoming positive. This peculiar phe- nomenon is explained by faulting which truncated the nearly vertical LWW shales at depth. In this manner the mass of the LWW beds has been reduced together with the weakening of the negative magnetic anomalies by positive poles which occupy the truncated end. Furthermore, by uplifting the beds between f1 and f2 (Fig 2) positive polarization becomes predominant, thus causing positive magnetic anomalies. General The Vredefort dome is one of the internationally known geological structures, which, among others, has attracted the attention of numerous American geologists. It was for this latter reason that our aerial magnetic results over this structure were selected by us for publication in the United States of America. A full description of the exposed geology has been published by Nell and readers are referred to this paper, which is subject to only slight modifications inasmuch as the subdivision of the Witwatersrand system (to be referred to as WW system) is concerned. The Vredefort dome is about 60 miles southwest of Johannesburg. The WW system, after being exposed in the vicinity of Johannesburg, plunges with southerly dips beneath the Vent-ersdorp and Transvaal systems. Along a section southwest from Johannesburg, as shown diagrammatically in Fig 4, we see no outcrops of the WW system until the Vredefort dome, where the Upper and Lower WW system are wrapped around an almost circular arc of a granite mass. Here the whole WW system is overturned around the perimeter of a huge granite plug 25 to 30 miles in diameter. Less than half of the circumference of this dome is exposed; the rest is covered by Karroo dolerites and sediments. The determination of the exact shape of the concealed part of the dome has been a matter of considerable interest and obviously geophysical methods were eminently suited for obtaining this information. A good start was made with a gravimeter survey carried out by the Geological Survey of the Union of South Africa.2 Our own

Jan 1, 1950

By J. M. GARZA

The production of oil in Mexico during 1945 was 43,402,852 bbl., or a daily average of 118,912 bbl. In March 1938 most of the oil properties were taken over by the Mexican Government and since then have been operated by Petroleos Mexicanos, an agency of the Government. The variations in the production during the last 8 years have been due to- fluctuations in the export market demand for Mexican oil rather than to the productive capacity of the fields. Since 1937, yearly production, to the nearest hundred thousand barrels, has been as follows :

Jan 1, 1946

By Thirumalai, K.

Although the term "spalling" has long been known, Norton l first referred to its usage for the fracture or disintegration of materials subjected to rapid temperature changes. Spalling of ceramic materials at high temperatures has received attention in the past. Removal of the char formed during ablation in re-entry of space vehicles has been referred to as mechanical spalling. The first experiments to evaluate the process of rock fragmentation by thermal spalling were conducted by Stoces using a series of gasoline burners on the quartz veins of the Zinnwald deep mines in Germany. After the development of rocket-jet burners, the principles of 'thermal spalling combined with high fluid momentum found wide practical application in rocks. The well-known jet piercing process for drilling blastholes in taconite and for jet channeling in the quarrying of granite are among the more notable of these application^.

Jan 1, 1970

By L. A. Rapport, J. R. McCord, W. P. Drews, K. H. Coats

Water movement about an oil or gas reservoir can be predicted provided an aquifer influence function is known. This function is generally determined from an electric analyzer study or by fitting an idealized mathematical model to field data. A prohlem arises in determining that influence function which best reproduces field data and satisfies certain smoothness requirements, without making any idealizations concerning aquifer geometry and heterogeneity. This study shows the problem to be solvable through the linear programming technique and presents applications to one oil reservoir and two gas storage reservoirs. In addition, a theorem is stated and proven which confirms influence junction smoothness requirements heretofore accepted on physical intuition and establishes additiotzal smoothness constraints formerly not recognized. INTRODUCTION The pressure decline accompanying production results in water encroachment into oil and gas reservoirs situated adjacent to aquifers. The importance of this water movement derives from the significant dependence of production rate upon reservoir pressure and of pressure, in turn, upon water encroachment. Pressure and rate of water movement are uniquely related through an "influence" function which may be in the form of reservoir pressure response to a unit water encroachment rate or of water movement caused by a unit reservoir pressure drop. This influence function reflects the heterogeneity and geometry of the aquifer and is therefore particular to each reservoir. If the influence function is known, then reservoir pressure may be predicted from a production rate schedule, or vice-versa, with the aid of the material balance equation which relates water influx to reservoir production and pressure. The problem of determining this influence function for a given reservoir has been approached in three different ways. Van Everdingen and Hurst calculated and tabulated certain influence functions pertinent to idealized mathematical models which satisfy simplifying assumptions such as aquifer homogeneity and elementary reservoir-aquifer geometries.' Other studies developed additional tables for a variety of elementary reservoir-aquifer geometrical con- figurations and demonstrated their validity and utility.:' Hicks, et al. described the use of an electrical network to determine an influence function giving "best" match of field history and allowing prediction of future performance.' Finally, Hutchinson and Sikora5 and Katz, Tek and Jones attempted to develop a calculation method for deriving the influence function directly from field data with no idealizing assumptions concerning aquifer geometry and homogeneity. They encountered difficulties with inaccuracies in field data and with satisfaction of well-known smoothness requirements of the influence function. This study is concerned with the determination of influence functions from field data and, more specifically, treats the following problem: given field pressure-production data of arbitrary accuracy, how does one determine the influence function which, subject to satisfaction of known smoothness requirements, gives best agreement with field history? A rigorous solution to this problem is ohtained through linear programming as described below. Example applications to one oil and two gas storage reservoirs are presented. In addition, a theorem is proved which confirms influence function smoothness requirements heretofore accepted on physical intuition and establishes additional smoothness requirements formerly not recognized.

Jan 1, 1965

By Jay N. Fairbanks, Richard G. Robinson

This paper discusses a computer program and related formulas for fire fighting responses by coal mine personnel. The computer will interpret the mine air analysis, print reports, and provide relevant graphs allowing quick and accurate responses to coal mine fires.

Jan 1, 1983

By J. E. Nelson, R. J. Bonnis

Recent completion of Cyprus Bagdad's $240-million modernization and expansion program has registered a 700% increase in ore production with only a 50% increase in labor. Elements of this remarkable achievement include the application of large-scale mining equipment as well as the selection of the latest in processing hardware. Most important, however, was the early recognition that Bagdad's labor personnel is its most important asset.

Jan 4, 1978

By E. H. Jr. Dix

DURING an investigation of high-strength manganese bronze by the Engineering Division of the Air Service, at McCook Field, Dayton, Ohio, particles of a "blue constituent" were noted in the microstructure of most of the bronzes examined. The constitution of the simple copper-zinc base alloy is still a matter of dispute in spite of the fact that the copper-zinc series is one of the oldest industrially important groups of alloys, and has received the early consideration of scientific research. The diagram, according to the most recent work,1 is shown in Fig. 1. The disputed questions involve the termination of the beta field and the line at 470° C. The earliest experimenter, Roberts-Austin, detected an arrest in some of his cooling curves at approximately this temperature and ascribed them to the formation of a eutectic; it has since been proved that there are no eutectics in this series. Shepherd2 was unable to detect any thermal arrests at this temperature; his diagram was essentially as shown in Fig. 1, except that the line at 470° C. was omitted and the beta phase carried down to normal temperatures. Later, Carpenter and Edwards,3 by a very painstaking research, definitely established the authenticity of the line but attributed it to the breakdown of the beta constituent into a eutectoid of alpha and gamma. Microscopic evidence of the formation of the eutectoid is doubtful and it seems more likely to be due to an allotropic change in the beta constituent as shown by Fig. 1. At least for practical purposes, it is more convenient to think of the structure of a 60-40 brass as a mixture of alpha and beta prime crystals rather than alpha plus an unresolvable eutectoid of "apparent beta" as it has often been called.

Jan 5, 1922

By Robert Mehl

A STUDY of the structures arising from the decomposition of the a solid solutions in the Cu-Zn and the Cu-Al systems is of peculiar interest in the study of the mechanism of precipitation from solid solutions. It is possible in these alloys, by varying the composition within the ß field, to precipitate from the same basic lattice phases having different lattice structures. It has been rather generally assumed heretofore that the type of structure originating from the decomposition of a solid solution-the Widmanstätten structure-is determined by the lattice structure of the parent solid solution alone. In the first paper of this series1 evidence was advanced which threw doubt upon this hypothesis; but definite proof of the correctness or incorrectness of the hypothesis should be forthcoming from a study of these alloys, for if the structures originating, for example, from the precipitation of the a phase from ß and of the -y phase from the ß in the Cu-Zn system should be shown to be crystallographically different, the hypothesis would necessarily be held as definitely disproved. Furthermore, the newer proposal enunciated in the first paper of this series-that the origin of the Widmanstätten structure lies in a cooperation between the lattice of the parent solid solution and that of the precipitate-which at present seems the only alternative hypothesis, would in such an event be given added weight. The work here reported shows that the Widmanstätten structures originating in the precipitation of the a phase from the a and in the precipitation of the -y phase from the ß in the Cu-Zn system are indeed crystallographically different; and incidentally presents some new descriptive information on the Widmanstätten structure from a more general point of view.

Jan 1, 1931

By John T. Galey

The outstanding developments of the year in southwestern Pennsylvania were the establishment of the Summit Fayette County gas pool and the gas pool in Nicholson township, Fayette County, and Monongahela township, Greene County, as major producing areas, and the indication of four new shallow gas pools. Curtailment of drilling for shallow gas is expected to follow order M68 of the Office of Production Management. Gas completions were approximately 70 per cent higher, oil completions nearly 25 per cent lower, dry holes were unchanged and drilling wells as of Dec. 31, 1941, nearly loo per cent higher than last year. Shallow Development Oil.—Outside Butler County, only 11 producers were drilled, with a total initial of 221 bbl. The best of these was in a portion of Gilmore township, Greene County, which ordinarily produces gas. This well flowed 77 bbl. in 11 hr., along with about one million cubic feet of gas from the Fourth (U.Dev.) sand. Washington County had a 10.20 and a 25-bbl. well in Morris township and a 20-bbl. well in South Franklin township. These were all in the Fifth Sand. The price of oil to Jan. 27 was $1.80 per barrel, when a 15¢ increase was made. This was followed by a raise of 20¢ on Apr. 23, 15¢ on May 21, 20¢ on June 18 and 25¢ on Aug. 14. The last increase was canceled on Aug. 23 by the Office of Price Administration, which pegged southwestern Pennsylvania crude at $2.40 per barrel. Gas.—An almost doubled initial production of natural gas is the result of the large increase in number of wells drilled. The outstanding discovery of the year was in the vicinity of Armbrust, Hempfield township, Westmoreland County, where a well drilled to what at first was considered the Bayard sand, but what is now known to be the Fifth (U.Dev.) sand, at 2100 ft. found nearly 5 million cu. ft. of gas. Since this completion 14 wells have been finished, only one of which was dry, giving a combined total open flow of approximately 15 million cu. ft. The sand is 35 to 40 ft. thick and the saturation extends through most of that thickness. Rock pressure, which is 1040 lb. per sq. in., is abnormally high. An area of only about one square mile has been proven but some of the 24 new wells drilling as of Dec. 31 will no doubt extend it considerably. This development has taken place in an area heretofore considered to have had little prospect. There were three good wells in other parts of Westmoreland County. One well in Franklin township, which had 12 million cu. ft, of gas in the Fifth sand, was entirely surrounded by dry holes but is still pro- . ducing at a high rate. In Bell township a 1.6 million cu. ft. well was found in the Speechley (U.Dev.) sand and in Washington township the same sand produced 2.7 million cu. ft. with shut-in pressure of 970 Ib. at 2820 ft. This well is offset by two dry holes and one well with a capacity of only 10 M cubic feet.

Jan 1, 1942

By John T. Galey

The outstanding developments of the year in southwestern Pennsylvania were the establishment of the Summit Fayette County gas pool and the gas pool in Nicholson township, Fayette County, and Monongahela township, Greene County, as major producing areas, and the indication of four new shallow gas pools. Curtailment of drilling for shallow gas is expected to follow order M68 of the Office of Production Management. Gas completions were approximately 70 per cent higher, oil completions nearly 25 per cent lower, dry holes were unchanged and drilling wells as of Dec. 31, 1941, nearly loo per cent higher than last year. Shallow Development Oil.—Outside Butler County, only 11 producers were drilled, with a total initial of 221 bbl. The best of these was in a portion of Gilmore township, Greene County, which ordinarily produces gas. This well flowed 77 bbl. in 11 hr., along with about one million cubic feet of gas from the Fourth (U.Dev.) sand. Washington County had a 10.20 and a 25-bbl. well in Morris township and a 20-bbl. well in South Franklin township. These were all in the Fifth Sand. The price of oil to Jan. 27 was $1.80 per barrel, when a 15¢ increase was made. This was followed by a raise of 20¢ on Apr. 23, 15¢ on May 21, 20¢ on June 18 and 25¢ on Aug. 14. The last increase was canceled on Aug. 23 by the Office of Price Administration, which pegged southwestern Pennsylvania crude at $2.40 per barrel. Gas.—An almost doubled initial production of natural gas is the result of the large increase in number of wells drilled. The outstanding discovery of the year was in the vicinity of Armbrust, Hempfield township, Westmoreland County, where a well drilled to what at first was considered the Bayard sand, but what is now known to be the Fifth (U.Dev.) sand, at 2100 ft. found nearly 5 million cu. ft. of gas. Since this completion 14 wells have been finished, only one of which was dry, giving a combined total open flow of approximately 15 million cu. ft. The sand is 35 to 40 ft. thick and the saturation extends through most of that thickness. Rock pressure, which is 1040 lb. per sq. in., is abnormally high. An area of only about one square mile has been proven but some of the 24 new wells drilling as of Dec. 31 will no doubt extend it considerably. This development has taken place in an area heretofore considered to have had little prospect. There were three good wells in other parts of Westmoreland County. One well in Franklin township, which had 12 million cu. ft, of gas in the Fifth sand, was entirely surrounded by dry holes but is still pro- . ducing at a high rate. In Bell township a 1.6 million cu. ft. well was found in the Speechley (U.Dev.) sand and in Washington township the same sand produced 2.7 million cu. ft. with shut-in pressure of 970 Ib. at 2820 ft. This well is offset by two dry holes and one well with a capacity of only 10 M cubic feet.

Jan 1, 1942

By S. E. Buckley, M. C. Leverett

THE production of oil is accomplished as a result of its displacement from the reservoir by either gas or water, and the amount of oil recovery is limited by the extent to which the displacing gas or water accumulates. This paper describes the mechanism by which the displacement is effected and the advantages of water over gas as a displacing agent. In the light of the results of experimental observations of the flow of mixtures of oil and/or gas and/or water through sands, certain conclusions are drawn relative to the changing character of the displacement as depletion proceeds, and on the effects of the properties of the fluids and of producing conditions on the ultimate oil recovery. INTRODUCTION Crude oil has no inherent ability to expel itself from the pores of the reservoir rocks in which it is found; rather, it must be forcibly ejected or displaced by the accumulation of other fluids. Accordingly, a knowledge of the mechanism by which one fluid is displaced by another is essential to an understanding of the fundamental process by which oil is recovered. The displacing fluids normally available are gas and water, either or both of which may exist originally associated with the oil in a potentially usable form or may be supplied to the reservoir from external sources. Gas is present in most oil reservoirs. If the quantity is relatively small, it may exist originally completely dissolved in the oil, but if the quantity exceeds that which may be held in solution by the oil at the prevailing pressure, the excess will be found in the free state. Most reservoir sands appear to contain some water,1 and in the majority of fields the oil is trapped in the structure and held over water. In certain conditions the entrapping water may advance into the oil zone and displace the oil therefrom. This paper describes in a qualitative manner some of the characteristics of the displacement of oil by either gas or water, with an attempt to elucidate somewhat the mechanism by which such displacement is effected. ROLE OF DISSOLVED GAS When the pressure on an oil containing dissolved gas is reduced to the saturation or bubble-point pressure, gas escapes from solution and expands, imparting to the oil-gas mixture a high degree of expansibility and causing it to flow in the direction of reduced pressure. This expansibility has frequently been attributed to the oil; closer analysis, however, reveals that as gas escapes from solution the oil phase actually contracts. Hence, it is the accumulation and expansion of the liberated gas that supplies the propelling force for the oil. It has been shown experimentally2-5 that within certain limits a sand containing oil, gas and water will permit the simultaneous flow of all three; the readiness with which they may flow depends upon the characteristics of the sand, of each of the fluids, and upon the relative amounts of the fluids in the sand. Thus, in the initial stages of production by the mechanism of dissolved gas drive, the liberated gas is present in the sand in low concentration and is unable to

Jan 1, 1941

By Charles Clayton

IN connection with certain coöperative work carried on between the Ordnance Department of the U. S. Army, the U. S. Bureau of Mines, and the U. S. Geological Survey during the year 1918, it was the writers' privilege to make metallographic examinations of a great many test bars and other pieces of nickel-steel gun forgings. The material studied came from many different steel plants throughout the country and consisted both of forgings that had been accepted by the Ordnance Department and those that had failed to pass the specified physical tests. In general, these tests require a minimum tensile strength of 95,000 lb. (42,091 kg.), an elastic limit of 65,000 lb. (29,483 kg.), an 18 per cent. elongation, and a 30 per cent. reduction in area. An average chemical composition of the steel studied is 0.38 per cent. carbon and 2.9 per cent. nickel. The steel was of both basic electric and basic open-hearth manufacture. The object of the metallographic work was two-fold: to assist in detecting defects in the steel and, if possible, to suggest remedies for the same; and to obtain as much information as possible in regard to the relation of the microstructure of the metal to its physical properties. The greater part of the investigation was devoted to defective metal that failed to pass the ordnance specifications. Many types and kinds of more or less serious defects thus came under observation, but most of these were due to the attempts by the manufacturer to meet the enormous demand for ordnance steel with more or less inadequate equipment, and were soon remedied. Two defects, the so-called "flakes" or "snowflakes" and a certain "fibrous" or "woody" fracture, were encountered so frequently and were so disastrous to the steel that the greater part of the study was devoted to them. As a result much information as to their nature and their effects

Jan 2, 1919

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves (1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worthless or harmful impurities, and (4) the profitable disposal of the product. The fist step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1964

By E. M. Norris

THE Western phosphate deposits extend over a large area in the Rocky Mountain region, comprising portions of south central Montana, southeastern Idaho, northeastern Utah, and southwestern Wyoming. A limited acreage of these deposits passed into private ownership prior to Dec. 9, 1908, at which time 7000 sq. mi. of land in these phosphate fields was withdrawn from public entry by direction of the Secretary of the Interior. Under the Act of Feb. 25, 1920 (41 Stat. 437) title to all phosphate lands in the public domain was reserved to the United States with provisions for leasing portions to citizens, corporations, states, etc. The above act, in effect, created by law a Western phosphate reserve of approximately 2,269,055 acres.

Jan 1, 1944

By JAMES QATLEY

THE atmosphere, which plays such an important part in the manufacture of iron and steel, is the most variable element involved in its several processes; and particularly is this true of the blast-furnace process, which consumes air in large quantities. At no time since the blast-furnace became an important and widely used apparatus-even when it was operated in the most crude manner-have the variations in composition of the raw materials used been as frequent and as great as the variations in humility of the atmosphere. Important, improvements have been made in the blast furnace and its accessories, such as the hot-blast stoves, the increase in size and change in the shape of the furnace, more efficient blowing engines, the increased protection given to the bosh walls, and the careful preparation of' the raw material, all of which have exerted a pronounced influence on the furnace-operations from a metallurgical standpoint. But during the past eight years little advance has been made in this direction; the fuel-consumption has not diminished, nor has there been any material increase in production. Within that period, however, there has been witnessed the greatest development in appliances for the economical handling of material. So complete has been the work in this direction, that, except in isolated cases, in this country at least., a further extension does not hold out much promise of a satisfactory return on the investment required. It seemed that, with the exception of the gas-engine, we had about reached the limit, for like a strong wall, the atmosphere, with its humility as variable to-clay as when first blown into a primitive blast-furnace, appeared to stand as a Barrier to

Jan 1, 1905

By Canada Ernst & Whinney

INTRODUCTION The principal objective of this chapter is to provide guidance in understanding and making effective use of published financial statements of mining companies. Although financial statements only represent a gathering together of information relevant to an enterprise's financial position and results of operations, they increasingly reflect the complexities of the modern day business environment. In the mining industry, a wide variety of accounting practices have evolved to deal with the unique aspects of the business in the absence of authoritative accounting pronouncements from standard-setting bodies. Given such complexities and divergent practices, financial statements of mining companies are not easily understood and cannot be used effectively as a tool in decision-making without a basic knowledge of fundamental accounting concepts, generally accepted accounting principles and their application in the mining industry. As such, this chapter is not restricted to a discussion of the accounting for the unique aspects of the mining industry. These aspects are dealt with at length but the text also includes a discussion of general accounting concepts and practices which have wide application in the mining industry. Frequent references are made in the text to international practices and to specific rules and requirements of individual countries. In this respect, the scope is restricted to four major mining environments, Canada, the UK, the US and Australia, all of which have made significant contributions to the development of generally accepted accounting principles. Acknowledgements This chapter was prepared under the direction of Ian Murray of Ernst & Whinney in Toronto, Canada. Contributions were received from Graham Butt, Mark O'Sullivan and Dominic Robinson, all from Ernst & Whinney in Toronto and Bill Duvall and Tom Schoenbaechler from Ernst & Whinney in Louisville, Kentucky, US. The authors would also like to acknowledge the assistance received from David Ferguson, Don MacLean, David Taylor and Susan Zoutman from Ernst & Whinney, Toronto, from the UK and Australian practices of Ernst & Whinney and from Ernst & Whinney International. FINANCIAL STATEMENTS - ELEMENTS AND CONCEPTS Financial statements were originally a stewardship report to owners to satisfy them that management had given a proper account of the resources with which it had been entrusted. Today, the number of users of financial statements has expanded to include the following groups: - shareholders, present and prospective; - lenders, present and prospective; - financial analysts; - regulatory authorities; - taxing authorities; - labour unions and employees; and - creditors and customers. The expectations of these user groups differ. For example, investors and lenders require information that will indicate the adequacy of their security and the profitability of the enterprise; taxing authorities will be concerned with the concept of income; labour unions and employees will focus on the profitability of the enterprise. Ground Rules for Preparing Financial Statements Responsibility for Financial Statements Financial statements are the representations of management. This may strike the reader as a rather obvious statement. It is important to remember, however, the role of judgment in accounting. Notwithstanding the promulgation of accounting standards in the developed countries, considerable flexibility remains in the selection of accounting practices and methods and in their presentation. Arguably, there is more flexibility in the mining industry as few countries have developed standards to deal with its unique aspects. Accordingly, financial statements are as much a product of management's perspective and philosophy as they are a compliance document.

Jan 1, 1985

By Wallace E. Pratt

TO SERVE their primary function of balancing supply with demand. crude-oil prices must not only return full cost plus a reasonable earning to the efficient producer but they must also offer an additional reward to stimulate exploration sufficiently to maintain adequate reserves. High prices increase the volume and efficiency of exploration; low prig e- -Idle exploration. Over the last decade average prices for crude oil have been much lower than for the proceeding ten years, and lower even than the average over the life of industry. Under these circumstances no one should be surprised to learn that over this same recent period of discovery of new oil fields has also lagged and fallen below its average level for the previous decade. Crude oil prices have been too ion to support the required activity in wildcatting.

Jan 1, 1941

THE solid nonmetallic inclusions present to some extent in all commercial steels have been variously designated. In early references they were usually called slag inclusions, and this terminology is still retained to some extent. On the premise that all nonmetallic matter produced in a metallurgical process is slag, this can be justified. We have come to think of slag, however, in a more restricted sense, and calling these particles slag inclusions is further objectionable because it fosters the erroneous concept that they are actually incorporated portions of furnace slag. Rarely is this true. The term sonims (coined from solid nonmetallic impurities) was proposed many years ago but never came into common use. In general, the term non-metallic inclusions seems to be satisfactory and adequate. NATURE AND CONS1lTUTION OF NONMETALLIC INCLUSIONS From the standpoint of origin, inclusions fall naturally into two classes: (1) those occurring as a result of reactions taking place in the body of molten or solidifying metal and (2) those resulting from mechanical incorporation of refractories or other materials with which molten steel comes in contact. The former are by far the more numerous and have been called indigenous, natural, or native inclusions. The latter are by their very nature sporadic in occurrence and have been called exogenous, accidental, adventitious, or foreign inclusions. They are often referred to as the "slag-stringer" type, though here also the material is not likely to be furnace slag. Substances Found in Inclusions. Nonmetallic inclusions are composed principally of oxides and sulfides but carbides and nitrides sometimes play an important role. In the case of indigenous inclusions the reactions by which these particles are precipitated from molten or solidifying steel may be caused by: (1) oxidation such as may occur during refining or during tapping and teeming, (2) deoxidation by added alloys, (3) change

Jan 1, 1964