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By V. H. Wilhelm

Developments in California during 1942 were marked by many difficulties in operation, of which the lack of labor and material were the main factors in slowing down work. During the many years of curtailment, which has been effective since 1928, a number of estimates of the state's capacity to produce have been built up, but during the year 44 fields were 'eliminated from curtailment and valuable data were obtained as to the normal capacity of these fields to produce. Because of new discoveries and the normal decline of old fields, which is more than 15 per cent per year, it is estimated that the sustained capacity of the state for a 5-year period is not more than 500,000 bbl. per day. Decline in the rate of production was greatest in the fields in the Los Angeles Basin district. These fields have been produced nearly at capacity for many years and had no reserve of shut-in production. The San Joaquin Valley and Coastal districts have responded well to the increased allotments assigned to them by the Petroleum Administrator for War. All heavy oil fields in the state are on full production, except in the Coastal district, where transportation is the limiting factor. Although approximately 2500 more wells are on production in the state than there were in 1941, the supply of heavy crude has not yet reached the demand. A summary of statistics for 1941 and 1942 is given in the following table. Production in California for 1942 was 680,000 bbl. a day as against 631,000 bbl. a day for 1941, an increase of 7.8 per cent. The present maximum efficient rate has been estimated at 808,000 bbl. per day. This indicates that in the 15 restricted fields of the state there is only an additional 83,000 bbl. per day of light oil available. Drilling Activity Drilling activity during the year was equivalent to but 70 per cent of normal. Although shortages of equipment and labor were in part responsible for the reduced drilling activity, the main reasons were the lack of proved locations due to a cycle of very few new discoveries and the restrictions of Conservation Order M-68. For the first six months of the year, 300 new oil wells were completed, which were equally divided as to the number of light and heavy oil producers. But, for the last six months of the year, it is

Jan 1, 1943

By V. H. Wilhelm

Developments in California during 1942 were marked by many difficulties in operation, of which the lack of labor and material were the main factors in slowing down work. During the many years of curtailment, which has been effective since 1928, a number of estimates of the state's capacity to produce have been built up, but during the year 44 fields were 'eliminated from curtailment and valuable data were obtained as to the normal capacity of these fields to produce. Because of new discoveries and the normal decline of old fields, which is more than 15 per cent per year, it is estimated that the sustained capacity of the state for a 5-year period is not more than 500,000 bbl. per day. Decline in the rate of production was greatest in the fields in the Los Angeles Basin district. These fields have been produced nearly at capacity for many years and had no reserve of shut-in production. The San Joaquin Valley and Coastal districts have responded well to the increased allotments assigned to them by the Petroleum Administrator for War. All heavy oil fields in the state are on full production, except in the Coastal district, where transportation is the limiting factor. Although approximately 2500 more wells are on production in the state than there were in 1941, the supply of heavy crude has not yet reached the demand. A summary of statistics for 1941 and 1942 is given in the following table. Production in California for 1942 was 680,000 bbl. a day as against 631,000 bbl. a day for 1941, an increase of 7.8 per cent. The present maximum efficient rate has been estimated at 808,000 bbl. per day. This indicates that in the 15 restricted fields of the state there is only an additional 83,000 bbl. per day of light oil available. Drilling Activity Drilling activity during the year was equivalent to but 70 per cent of normal. Although shortages of equipment and labor were in part responsible for the reduced drilling activity, the main reasons were the lack of proved locations due to a cycle of very few new discoveries and the restrictions of Conservation Order M-68. For the first six months of the year, 300 new oil wells were completed, which were equally divided as to the number of light and heavy oil producers. But, for the last six months of the year, it is

Jan 1, 1943

The nickel suppliers are hard at work across the entire spectrum of the industry-from exploration and mining on the one hand to the development of new applications of this unique metal on the other. The reason-a surging demand for nickel by the free world. Evidence of interest and activity in nickel abounds. Companies such as Anaconda, American Metal Climax, Kaiser Aluminum & Chemical, Patino, Newmont-firms that have not been in the nickel industry before-are now involved in various exploration and development ventures around the world. International Nickel, Falconbridge, Le Nickel and Sherritt Gordon-the big names in the industry -have committed vast sums of money and talent in a variety of new developments designed to ensure their status as leading producers of this commodity. As a result, the world is now seeing a rapid build- up in nickel capacity, and in this issue of [ ], the editors have prepared a summary of these fast- moving major developments.

Jan 10, 1968

By T. A. Read, S. W. Kitchen, H. I. Fusfeld

At the present time most artillery cartridge cases are used only a single time. Since the process of reshaping a fired cartridge case so that it may be used again is much simpler and cheaper than the original manufacture of the case, it is clear that important savings could be effected if such re-formed cases were used in place of new cases. Extensive use of reconditioned cases has been hindered in the past, however, by the deterioration of the brass which may occur in the period of time between the first firing and the reconditioning of the cartridge cases. This deterioration sometimes results in a dangerously high incidence of firing splits in groups of reconditioned cartridge cases. It appears that the mechanism of the deterioration is the season cracking of the brass, for season cracks, of varying degrees of severity, may frequently be found in the cartridge cases after their return from the field. There are, of course, severe practical limitations to the extent to which fired cartridge cases can be protected from corrosion under battle conditions, particularly since the powder residue in the case is itself corrosive. The present paper describes a rapid method of testing the sidewalls of artillery cartridge cases for the presence of season cracks. This method has been developed specifically for use in connection with the reconditioning of fired cases, and makes it possible to carry out 100 per cent inspection. This new method of inspecting cartridge

Jan 1, 1945

By E. L. Corp, J. C. Johnson, W. G. Pariseau, M. Poad, M. E. Fowler

This paper describes a comprehensive geomechanics case study of a full¬scale test stope at the Carr Fork Mine. The mine is owned by Anaconda Miner¬als Company and is located near Tooele, Utah. Large diameter blast holes were used in a new method known as blast hole post-fill (BHPF). The new design proved highly successful in contrast with earlier experience with vertical crater retreat (VCR) stopes. The main geomechanics objective was the estab¬lishment of a design procedure for optimizing stope and pillar dimensions with respect to productivity and recovery. An integrated three-part approach consisting of mine measurements, laboratory testing and finite element calcu¬lations was taken. Independent correlations of 0.88 and 0.89 between calculated and measured displacements and between estimated and observed yield :ones substantiate the finite element design approach using UTAH-II. Subse¬quent stope and pillar design analyses indicate that doubling of the original stope width at 50% extraction is quite possible without sacrifice of safety or stability.

Jan 1, 1984

By Bunting S. Crocker

In the summer of 1961, the Anaconda Research staff and Kilborn Engineering Ltd. began a study to investigate the possibilities of using some form of autogenous grinding in the new concentrator which Anaconda was planning to erect at Butte, adjacent to their Berkeley pit. The following criteria applied to the project: 1) The Butte mill was to be able to handle 36,000 to 42,000 tpd of copper ore, taken from the Berkeley pit and adjacent underground mines. 2) The plant was to be built in six units. 3) It would be started up two units at a time. 4) Equipment from the Anaconda mill was available for use in the new location. 5) Tonnage would be maintained at Butte and Anaconda, with equipment being moved down as required. 6) The ore from the Berkeley pit was known to vary widely from place to place in the pit and to be generally soft and friable.

Jan 5, 1964

A novel method of reconditioning vertical rock openings which are on the verge of collapse has been developed, ant1 a world patent applied for, by LKAB, the Swedish iron ore mining company. Without anyone descending into the dangerous opening, workers can place concrete reinforcement in the unstable section using sand-filled canvas tubes which LKAR development engineers are calling "stockings." First application of the new technique was in several inclined ore pockets which form part of the underground crushing and loading station at LKAB's Kiirunavaara mine in Swedish Lapland. LKAB experience demonstrated that with other methods it took about three months to repair a pocket, and neighboring pockets had to be closed while repairs were underway. With the new stocking method, the work was completed in three weeks with no disruption of nearby activities. Production losses amounted to 10% over the three-week period, as opposed to 30% with other methods. The simplified technique could save millions of dollars in underground maintenance, according to LKAB.

Jan 11, 1978

By W. J. Travers

SEVERAL new procedures for completing oil wells have been developed in recent years. Each method when used where properly applicable promises to be a definite aid to operators in lowering development or operating costs, or in developing the full potentialities of the oil well. Multiple-zone completions are now frequently used, in contrast to the older practice of setting a solid water string over each zone to be produced. Gravel packing in unconsolidated formations often prevents sand troubles formerly experienced where a conventional perforated liner was used. Light-weight bentonitic clay muds and oil-base drilling fluids are definite steps toward eliminating mudding damage, which occurs when heavy rotary mud is used. Since in each case the new procedure developed is an alternate of older conventional methods, a problem of selection is presented. The purpose of this paper is to suggest methods of arriving at these choices and to present practical observations that may be of aid in their application.

Jan 1, 1942

The 116th (New York) Meeting of the Institute will be held in the third week of February, 1918. The Committee on Papers and Publications has set Dec. 1, 1917, as the closing date for the receipt of .manuscripts intended for this meeting. Manuscripts must be received by the Secretary on or before this date. If they are sent through members of the technical committees they must be sent to those committees enough in advance of the time to be forwarded and in the. hands of the Secretary by the time specified.

Jan 11, 1917

By Henry A. Mather

While this device is not new in its inception, its peculiar advantages failed to be of practical utility until furnace-builders instituted the mechanical reform of supporting the upper and lower water-jackets by hanging them from an I-beam frame, independently upheld by iron columns, instead of resting the entire weight of structure on the bottom, as practice formerly prescribed. The Colorado Iron Works were among the first to build copper-furnaces of this description, and the device, illustrated herewith, has been installed by them in three recent plants,—two furnaces for the Westinghouse interests near Ely, Vermont, and one for the Grand Prize Copper Company, of Gila county, Arizona. The jack-screw supports (Figs. 1 and 2) and the familiar iron bottom of former practice are retained as integral parts of this new furnace-bottom. And, instead of resting inert on the tapfloor of the furnace-room, the jack-screws are supported on and bolted to two I-beams the length of the furnace, placed immediately beneath, and parallel to, its sides. These I-beams are bolted to, and supported by, three steel axles equipped with small flanged wheels, the whole constituting a carriage, which runs freely on a track. The entire apparatus is movable or rigid at will, for the wheels are easily braced, if the tension of the tightened jack-screws does not serve to hold the whole in position. The advantages of this design will be at once apparent to those who have had practical experience in barring furnaces provided with stationary iron bottoms. It is a well-known fact that the larger part of the time occupied in cleaning and preparing a frozen furnace for active service is necessitated by working in a confined place where the temperature is uncomfortable, and that in such case the débris must be removed from

Jan 1, 1903

By Boris J. Kochanowsky

In a mobile crushing unit system trucks are replaced by a conveyor, which results in a continuous, almost fully automated operation with all its attendant advantages. Because of new designs for large mobile crushing units that have been placed on the market, the use of these plants has increased significantly during the last three years. Gains in productivity and reductions in costs are vital to every mine operator, and the shovel-crusher-conveyor system is a powerful tool with which to achieve this goal. New Designs Increase Throughput While Reducing Size The basic concept of the shovel-crusher-conveyor scheme of operations is simple and sound, with the result that domestic operators are showing a growing interest in its application. A number of operators have been using small mobile crushing plants for several years, but large operators, in spite of considerable interest, have not been able to use this system because no mobile crusher capable of crushing 1000-2000 tph of rock loaded by a large shovel (6-12 cu yd) has been available. A suitable crusher must accept rock of the size handled by these large shovels, be simple in design, easily maneuverable, remotely controllable, and have price and maintenance costs not much higher than those for stationary crusher installations.

Jan 9, 1968

By O. A. Cheadle, F. E. Lane

ThE computer program for arbitrary crystal systems reported by Camp and Clum' has been modified to make it more convenient for hexagonal crystals. The program' uses the Miller indexes (hkl) which can be confusing for hexagonal crystals while the modified program uses the Miller-Bravais indexes with four axes; e.g., the angles between the (110) planes, Fig. 1, are 0 and 90 deg but in the (hkil) system the angles between the (1150) planes are 0 and 60 deg. If a Laue photograph is taken of a crystal oriented with the prismatic planes nearly parallel to the film then the spots on the stereo graphic projection will be from high-index planes. The probable positions of the low-index planes, e.g., (0001) plane, can only be obtained from the intersection of zones and this is not accurate to 1 or 2 deg. The number of planes considered by the program (card 1)' has to be limited to the ones of low index or the program time is excessive but a solution will not be obtained if one of the spots has an index that is not being considered. To overcome this problem the program1 was modified so that if no fit was obtained at *1 deg (card 3) of the tabulated angles then ±2 or ±3 deg was tried. If still no solution was obtained either due to one of the angles not being measured correctly to ±3 deg or because one of the spots was from a high-index plane, then the last spot was discounted and a fit tried for the remaining spots at i1 deg, and so forth. The minimum number of spots that the program will try to fit is five. If the limit on any individual index is 4 (card 1) and (h + k + l + 1) is six then twenty-three planes are considered and there are over 1000 interplanar angles. Many pairs of planes have very similar interplanar angles and with the errors previously mentioned the program will often produce several alternative solutions to a group of spots particularly at ±2 or ±3 deg. However without the program the alternative solutions would probably not have been found. If a large number of spots are used the number of possible fits is reduced. In the example shown in Fig. 2, if only spots which are on the film are used (case 1) the program gives six possible solutions, Table I. However if points 7 and 8 are also used (case 2) the program gives only one fit which also agrees with a standard projection of the crystal. In addition to time-saving the program ensures that a correct solution is obtained since it is unlikely that all the alternatives would have been gound manually; the first would probably be assumed to be the correct solution. The program has been used for zirconium crystals but is equally suitable for other hexagonal materials.

Jan 1, 1969

By Philip McKenna

WHEN a new material becomes available to industry, it is useful to describe its properties as a guide to its most effective application; and when the new material may be produced in compositions having a series of graded properties, tests to select the combination of properties best adapted for various uses are helpful. The class of materials to be con-sidered in this paper are hard tool materials produced by processes of powder metallurgy from hard carbide constituents and various matrices of iron, nickel or cobalt, or alloys of them with tungsten, or tungsten and carbon. The customary use of carbide hard alloys is for metal-cutting tools; although wire-drawing dies, lathe centers, follow rests, grinding rests, burnishers, rolls, extrusion dies, measuring gauges and micrometers, and a number of other tools are also made with these hard alloys as the essen-tial wear-resisting parts. The properties and tests to be considered are those affecting these uses. In the development of tool, materials since the industrial revolution we have had carbon tool steels, Mushet steel, high-speed steels, stellites, and now cemented carbide compositions. For an understanding of the latter category of materials their properties and uses relative to the older and more familiar tool materials will be considered.

Jan 1, 1938

By T. L. Joseph

IN connection with its investigations of the blast'-furnace process, the Bureau of Mines, in coöperation with the Minnesota School of Mines Experiment Station, developed a 6-ton experimental furnace. Such a furnace was needed to determine the feasibility of producing ferromanganese from Minnesota manganiferous iron ores, a problem of national importance because of the present need for manganese in the steel industry and our small reserves of ferro-grade ores. Furnace operators are reluctant to use new or untried raw materials or to make decided innovations in practice on account of the financial hazard of experimenting with full-scale equipment. A small furnace which can be operated at a relatively low cost is particularly adapted for testing new, raw materials and for determining the feasibility of decided innovations in practice. Laboratory experiments, plus whatever information may be available, are valuable but often do not indicate the net result of changes in an operation involving a large number of interrelated variables. From time to time the coöperation of the Bureau of Mines is solicited in connection with problems involving departures from normal procedure. Under these circumstances some sort of a practical demonstration is a desirable forerunner to full-scale operations which appear feasible after small-scale tests.

Jan 1, 1928

By Claude P. Heiner

W-hile the litle of this paper embraces the entire West Coast, the author, in the interest of simplification, has confined the discussion to California—particularly the central section. California's population has risen 45 pct since 1940. Its electric requirements have also increased, not only because of the growth in industry and population but also because of the widespread tendency of all types of electric consumers to use more electricity than ever before. The growth of California's electric utilities is shown by published data covering operations of three of its large systems and is given in Table 1. New Capacity Steam Driven In meeting these additional electric loads there has been a substantial increase in generation from fuel burning plants as shown by the published energy statistics given in Table 2. Increased Fuel Oil Consumption A study of construction plans of the three electric utility systems named in Table 2 clearly shows that expected new electric loads are to be met, to a large extent, by new steam generating capacity as shown by Table 3. D. D. Smalley, Vice President of the Pacific Gas and Electric Co., in an address before the Pacific Coast Electrical Association in June 1948, stated that California utilities plan to meet new electric loads through greater use of steal11 plank and that in 1951 approximately 45 pct of the area's electric production would be by steam as compared to 33.6 pct in 1946. He stated that if load growth develops as expected and if the year 1952 is dry, thereby requiring high load factor steam operation, the Pacific Gas and Electric Co. would need the equivalent of nearly 25 million barrels of fuel oil. Federal Power Commission reports show that the energy input to the Pacific Gas and Electric Co. system was approximately one billion kilowatt-hours greater in 1947 than in 1946. They also show that the steam plant operating capacity factor in 1946 was approximately 35 pct; in 1947 it, was 72 pct due, probably, to the extreme drought. able 3 shows that Pacific Gas and Electric Co. now has under construction 327,000 kw of hydro capacity which, by 1950, will bring its total hydro generating capacity to 1,313,899 kw. In addition to hydro capacity under construction that company also has 975,000 kw of steam generating capacity under construction, which by 1951 will bring its total steam capacity to 1,560,834 kw. If it is assumed that this total steam electric capacity is operated at a capacity factor of 45 pct, in 1951, over 6 billion kilowatt-hours would be generated. If the load growth on the Pacific Gas and Electric system continues at the current rate of approximately one billion kilowatt-hours per year and if it is assumed that 70 pct of this increase would be generated by steam (30 pct assumed to be generated by hydro facilities with average water conditions), the steam electric production in 1960 would amount to 12 billion kilowatt-hours, which would require fuel the equivalent of 24 million barrels of oil or 6 million tons of coal. Government Projects Inadequate Much has been written with respecl to the plans of the Department of Interior in regard to the installation of hydroelectric plants as a part of multipurpose dams relating to reclamation. flood control, and power generation. An examination of the effect of such plans on the power supply for central and northern California is of interest. The Depart,ment of Interior now has five 73,000 kw units at its Shasta hydro plant on the Sacramento River. It now appears that its three 25,000 kw unit Keswick hydro plant on the same river will be available during the winter of 1949 to 1950. Its estimates show that in a dry year there is sufficient water for operation of Shasta units at an average load factor of 36 pct and Keswick units at a load factor of 41 pct. It is also giving consideration to the development of the Pine Flat and Haas hydroelectric plants on Kings River for generating capacities of 45,000 kw each. The total installation of Government, units in Central Valley and Kings River in California is relat.ively small when compared with t.he

Jan 1, 1950

By Rossiter W. Raymond

The term " pipe-vein " has recently been applied in this country to certain deposits of lead ore in magnesian limestone. The use of the term has been twofold. It has been revived as a term found in textbooks on mineral veins, with the implied or declared assertion that the ore-deposits thus named in this country are similar to those which have borne the title abroad. It has also been advanced as an appropriate name for a new class of deposits, even if such a class had not previously been recognized. In either case, the assumption is that pipe-veins form a group or class by themselves, and are not merely interior and subordinate features in larger deposits. The peculiar mining law of the United States, which regards " the vein," whatever that may be, as the basis of title, lends a special interest to these claims. But the object of this paper is rather to discuss the subject from the standpoint of geology and technical literature. I shall briefly answer two questions: (1) What are pipe-veins as described in technical literature? and (2) Is the name appropriate or necessary for a new class of deposits ? The term " pipe-ore," as applied, for instance, to irregular, cylin-

Jan 1, 1879

By Rossiter W. Raymond

(Read at the Amenia Meeting, October, 1877.) THE term "pipe-vein" has recently been applied in this country to certain deposits of lead ore in magnesian limestone. The use of the term has been twofold. It has been revived as a term found in textbooks on mineral veins, with the implied or declared assertion that the ore-deposits thus named in this country are similar to those which have borne the title abroad. It has also been advanced as an appropriate name for a new class of deposits, even if such a class had not previously been recognized. In either case, the assumption is that pipe-veins form a group or class by themselves, and are not merely interior and subordinate features in larger deposits. The peculiar mining law of the United States, which regards " the vein," whatever that may be, as the basis of title, lends a special interest to these claims. But the object of this paper is rather to discuss the subject from the standpoint of geology and technical literature. I shall briefly answer two questions : (1) What are pipe-veins as described in technical literature? and (2) Is the name appropriate or necessary for a new class of deposits ? The term "pipe-ore," as applied, for instance, to irregular, cylin-

Jan 1, 1878

By K. J. Brondyke, P. D. Hess

Two processes have been developed for improving the quality of molten-aluminum alloys before casting. The Filtration Process. which involves passing molten metal through a packed bed of granular filter material, is a rapid means of removing finely divided particles. It has the most potential in those instances where removal of inclusions is of primary importance. The Combination Fillration-Inert Gas Fluxing Process inuolzles introduction of an inert gas so that it will diffuse countercurrent to metal flow through the filter bed of granular material. Dissolved hydrogen is removed from the metal in addition to removal of finely divided particles. The Combination Process is most useful where both inclusion removal and attainment of conistently low-hydrogen-content metal are important. Metal treated by the Combination Process is of higher and more uniform quality than heretofore attainable with prolonged chlorine fluxing. Costs of the Combination Process can, for the most part, be offset by savings derived from high recoveries and increased production of superior-quality products. IMPROVEMENT in the quality of molten-aluminum alloys is secured generally through the use of some fluxing practice in a crucible, holding furnace, or ladle involving either gaseous or solid fluxing media. Typical fluxing agents may include the gases nitrogen, argon, or chlorine used either singly or as mixtures and the solids aluminum chloride or hexachloroethane. Regardless of the fluxing means used, the primary objectives are the adequate removal of both metallic and nonmetallic inclusions and reduction of hydrogen content to an acceptably low level. The ultimate goal is to produce ingots and cast products of high quality free from inclusions and porosity. The development of ultrasonics for measurement of internal quality, tightening of quality controls, and the application of the aluminum alloys to new or different commercial fields have been responsible for an ever increasing demand for improvement of quality of both cast and fabricated products. This demand for high quality has not been restricted to any single type of product. On the contrary, the demand encompasses about the entire variety of products including those for fabrication, those to be machined, buffed, or finished for decorative purposes, and those for critical applications where both surface and internal quality is of utmost importance. In many instances products acceptable in the 40's would now be scrapped as unacceptable by these higher present-day standards. With this ever increasing demand for higher quality, it became apparent at Alcoa that conventional means of melt treatment were inadequate in many instances and new approaches were necessary. Consequently the research program was intensified with attention focused on metal treatment during transfer in order to reduce the furnace processing time to a minimum in an effort to attain the desired results at a minimum of additional expense. As a result of this intensive research program which covered numerous variations and adaptations of conventional methods in addition to new methods of melt treatment, several new processes were developed, two of which will be described here. The first of these, a method of melt filtration, was patented in February, 1959.l The second process involving combination filtration—inert gas fluxing was patented in June, 1962. 2 Other melt-treatment processes developed during this period of investigation were patented as listed.3 FILTRATION PROCESS General Description. The Filtration Process, which involves passing molten metal through a packed bed of granular filter material, is a rapid method of effectively removing finely divided particles. It is an impingement-type filter; hence the size of the particles removed from the metal are considerably smaller than the interstices of the

Jan 1, 1964

By Hugh D. Pallister, Richard W. Smith

The Alabama flake-graphite industry has flourished only in times of war when importations of foreign graphite for crucible use have been greatly curtailed or cut off. World War I was a boom period and in 1918 some 30 plants produced 7,795,475 lb. of flake graphite. The industry languished following the war and no graphite was produced from 1929 to 1939. The Federal Bureau of Mines began investigating the Alabama graphite deposits in 1940 and worked out modern recovery methods that were applied to production during part of World War II. A prospecting program disclosed reserves of over 25 million tons of graphitic schists. In 1942 the War Production Board authorized the enlargement of the only plant then producing flake graphite and the construction of two new plants. Production of flake graphite from these three plants in 1943 is estimated at 8,100,000 lb. Increased imports from Madagascar late in 1943 shut down one of the new plants and curtailed production at the other. Alabama flake graphite has not yet been able to compete with Madagascar graphite for use in the manufacture of any but small graphite crucibles. The future of the industry must depend on meeting the higher carbon content demanded for other uses.

Jan 1, 1945

By B. Bryan

The tank car price of gasoline today is controlled by oil in the ground, rather than by stocks of gasoline or methods of refining. Previous to the commercial cracking of fuel oil, there was a normal and continuous relation between gasoline stocks, consumption and prices. From the beginning of the new cracking era in 1923 to the summer of 1926 there was a changing relationship, growing toward a correlation between the potential gasoline in storage and the price of gasoline. Since the development of large reserves of shutin production in Wyoming, California, Seminole, West Texas and Venezuela, the relationship between stocks of gasoline and gasoline prices has disappeared. The extreme depression of the Group 3 price can only be accounted for by oil which is not being produced but which we fear may be produced at any time. In Fig. 1, the curve of gasoline stocks is simply stocks of finished gasoline. The curve of potential gasoline is made by taking 40 per cent. of all stocks except gasoline, kerosene and lubricants, adding to that stocks of finished gasoline and dividing the sum by total gasoline con-sumption to get the months' supply of gasoline at the current rate of consumption. The price curve is the lower figure given by the National Petroleum News for the first quoted date of each month, with the price scale reversed. Stocks of potential gasoline have decrrased from 17 months' supply at the peak of 1924 to a low of 7 months' supply during the past summer, yet the low immediately precedes the lowest price for gasoline since it was a waste product. The tendency of the price curve to parallel the curve of potential supply is quite pronounced until the summer of 1926, since which time they have abruptly separated. The curve of gasolinct stocks is equally remarkable in relation to price when it is considered that total consumption for the year 1927 is almost exactly twice that of 1924. Clearly a new factor has been introduced. There is no possible factor to account for this distortion except known reserves of oil in ground storage, and therefore, until such time as the Bureau of Mines or the

Jan 1, 1928