Search Documents

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By S. Fróes Abreu

The importation of liquid fuels in Brazil amounts to about 1,300,000 tons; 30 per cent of this total being gasoline for automobiles and airplanes. Statistics show an increasing consumption of gasoline notwithstanding the use, daily greater, of fuel alcohol, a domestic fuel of low cost in the producing areas. The Brazilian market for petroleum products has shown a tendency to grow as the country has steadily developed— expansion of the industries in the areas already developed, and also the recent occupation and population of new zones. The war has brought many difficulties to Brazil. It has limited the importation of petroleum products, which came mostly from the United States, Venezuela and Mexico. During the first days of the present crisis automobile and truck traffic was vastly curtailed; but the national activity in the production of more fuel alcohol, and principally in the development of producer gas, has done much to provide a solution for the transportation crisis threatened at the beginning of the gasoline shortage. Many thousands of cars and trucks in Brazil are now burning producer gas made from charcoal. Producer gas for automobiles has been improved by Brazilian engineers and many new types have appeared. - Production There is only one producing oil field in Brazil—the one in the State of Baia, near the Baia de Todos os Santos. The first producing oil well was drilled in Lobato in 1939 by the Federal Government following studies carried on in that area by Oscar Cordeiro, S. Froes Abreu, G. Paiva and J. Amarai. The field and laboratory work done by these men was published in 1936 in a paper entitled " ContribuicBes para a Geologiado Petroleo no Reconcavo (Baia)," which indicated the potentialities of the area as an oil producer. After the discovery of the first producing well, the Brazilian Government issued a decree establishing an area, 60 km. in radius, as a National Reservation. This first well was drilled in Lobato. In no other locality in Brazil is any petroleum produced. Although many wells have been drilled in the southern part of Brazil, on the northeastern coast and in the Amazon Basin, they yield nothing. Actual production is below 1000 bbl. daily. The producing area covers Itaparica Island, Candeias and Arath, Joanes Island and Lobato. Since very little geological information was available, especially about subsurface structure, it was necessary to drill several wildcats in order to collect the data essential in the choosing of good locations. The United Geophysical Co. was contracted to perform a geophysical survey to clear up the major problems concerning the oil deposits in the Reconcavo beds. The best wells in Reconcavo are on Itaparica Island, where the daily flow amounts to about zoo bbl.; in other sectors production is considerably lower and most of the wells are pumping. In the Aratfi sector, near an area of very light oil, there is an important gas field, with wells producing about I0,000,000 cu. ft. daily.

Jan 1, 1944

By S. Fróes Abreu

The importation of liquid fuels in Brazil amounts to about 1,300,000 tons; 30 per cent of this total being gasoline for automobiles and airplanes. Statistics show an increasing consumption of gasoline notwithstanding the use, daily greater, of fuel alcohol, a domestic fuel of low cost in the producing areas. The Brazilian market for petroleum products has shown a tendency to grow as the country has steadily developed— expansion of the industries in the areas already developed, and also the recent occupation and population of new zones. The war has brought many difficulties to Brazil. It has limited the importation of petroleum products, which came mostly from the United States, Venezuela and Mexico. During the first days of the present crisis automobile and truck traffic was vastly curtailed; but the national activity in the production of more fuel alcohol, and principally in the development of producer gas, has done much to provide a solution for the transportation crisis threatened at the beginning of the gasoline shortage. Many thousands of cars and trucks in Brazil are now burning producer gas made from charcoal. Producer gas for automobiles has been improved by Brazilian engineers and many new types have appeared. - Production There is only one producing oil field in Brazil—the one in the State of Baia, near the Baia de Todos os Santos. The first producing oil well was drilled in Lobato in 1939 by the Federal Government following studies carried on in that area by Oscar Cordeiro, S. Froes Abreu, G. Paiva and J. Amarai. The field and laboratory work done by these men was published in 1936 in a paper entitled " ContribuicBes para a Geologiado Petroleo no Reconcavo (Baia)," which indicated the potentialities of the area as an oil producer. After the discovery of the first producing well, the Brazilian Government issued a decree establishing an area, 60 km. in radius, as a National Reservation. This first well was drilled in Lobato. In no other locality in Brazil is any petroleum produced. Although many wells have been drilled in the southern part of Brazil, on the northeastern coast and in the Amazon Basin, they yield nothing. Actual production is below 1000 bbl. daily. The producing area covers Itaparica Island, Candeias and Arath, Joanes Island and Lobato. Since very little geological information was available, especially about subsurface structure, it was necessary to drill several wildcats in order to collect the data essential in the choosing of good locations. The United Geophysical Co. was contracted to perform a geophysical survey to clear up the major problems concerning the oil deposits in the Reconcavo beds. The best wells in Reconcavo are on Itaparica Island, where the daily flow amounts to about zoo bbl.; in other sectors production is considerably lower and most of the wells are pumping. In the Aratfi sector, near an area of very light oil, there is an important gas field, with wells producing about I0,000,000 cu. ft. daily.

Jan 1, 1944

By Arthur Wade

During the year 1938, there was some drilling in Queensland, New South Wales and Victoria, as follows: Queens1and.—At Hutton Creek, lat. (approx.) 25° 45' S.; long (approx.) 149°, drilling was done by Drillers limited (subsidiary Oil Search) to a depth of 4688 ft., to the Lower Permian(?). There were small gas showings. The hole mas abandoned. At Mt. Bassett, lat (approx.) 26" 20' S.; long. (approx.) 149", Roma Blocks Oil Co. No Liability drilled to a depth of 4033 ft. The hole bottomed in granite. There were small showings of' oil and gas above bedrock in what may be Permian but is not yet determined. The company intends to run a formation tester. New South Wales.—At Kulnura, lat. (approx.) 33" S., long (approx.) 151°, the Kamilaroi Oil Company Ltd. (subsidiary of Oil Search Ltd.) drilled to a depth of 6293 ft. The Permian, probably Upper Marine Series, was reached. Drilling is to continue. Victoria.—At Romawi, lat. (approx) 37" 50' S., long. (approx.) 147" 45', a dry hole 3246 ft. deep bottomed in the Jurassic and was abandoned. It was drilled by the Governments of the Commonwealth and the State of Victoria. At Lakes Entrance, 1st. (approx.) 37" 50' S.; long. (approx) 748", a small showing of' oil (a few pints a day) was obtained from a well drilled 1275 It., to the Upper Oligocene-Glaucnnitc series, by the Austral Oil Drilling Syndicate, No Liability. Future Drilling Preparations is are being made by companies fur further test drilling in 1939, and the Governments of the Common wealth and the State of Victoria are continuing test holes for information only in the Gippsland district of Victoria. In Papua and New Guinea, no test drilling was done in 1938, but several companies are carrying on geological investigation and it is expected that, some test holes will be drilled during 1939.

Jan 1, 1939

By Arthur Wade

During the year 1938, there was some drilling in Queensland, New South Wales and Victoria, as follows: Queens1and.—At Hutton Creek, lat. (approx.) 25° 45' S.; long (approx.) 149°, drilling was done by Drillers limited (subsidiary Oil Search) to a depth of 4688 ft., to the Lower Permian(?). There were small gas showings. The hole mas abandoned. At Mt. Bassett, lat (approx.) 26" 20' S.; long. (approx.) 149", Roma Blocks Oil Co. No Liability drilled to a depth of 4033 ft. The hole bottomed in granite. There were small showings of' oil and gas above bedrock in what may be Permian but is not yet determined. The company intends to run a formation tester. New South Wales.—At Kulnura, lat. (approx.) 33" S., long (approx.) 151°, the Kamilaroi Oil Company Ltd. (subsidiary of Oil Search Ltd.) drilled to a depth of 6293 ft. The Permian, probably Upper Marine Series, was reached. Drilling is to continue. Victoria.—At Romawi, lat. (approx) 37" 50' S., long. (approx.) 147" 45', a dry hole 3246 ft. deep bottomed in the Jurassic and was abandoned. It was drilled by the Governments of the Commonwealth and the State of Victoria. At Lakes Entrance, 1st. (approx.) 37" 50' S.; long. (approx) 748", a small showing of' oil (a few pints a day) was obtained from a well drilled 1275 It., to the Upper Oligocene-Glaucnnitc series, by the Austral Oil Drilling Syndicate, No Liability. Future Drilling Preparations is are being made by companies fur further test drilling in 1939, and the Governments of the Common wealth and the State of Victoria are continuing test holes for information only in the Gippsland district of Victoria. In Papua and New Guinea, no test drilling was done in 1938, but several companies are carrying on geological investigation and it is expected that, some test holes will be drilled during 1939.

Jan 1, 1939

By Linn M. Farish

The estimated production of petroleum in the Dominion of Canada for 1931 was 1,582,000 bbl., an increase of 60,000 bbl. over 1930. Nearly all of the production came from Alberta, with a small quantity from Ontario, and a very minor amount reported from New Brunswick. At the beginning of 1931 it was hoped, and predicted, that a substantial increase in production would be shown for that year, but such was not the case, since Alberta did not show the anticipated gain. The production from Ontario and New Brunswick has not varied more than a few thousand barrels during the past 10 years and aggregated 124,000 bbl. in 1930, with 126,600 bbl. estimated for 1931. Unless new fields are discovered, production in 1932 will decline, with Ontario and New Brunswick showing little change and Alberta declining appreciably. Canadian production by provinces during the past 10 years is given in Table 1. Furnished by the Dominion Bureau of Statistics. a Barrels of 35 Imperial gallons or 42 U. S. gallons. c Figures for Ontario and New Brunswick are estimated. The production of natural gas in Canada reached the record figure of 29,377,000,000 cu. ft. in 1930 and it is estimated at 26,874,600,000

Jan 1, 1932

By B. F. Zwick

The entire production of oil in Ecuador so far has come from the Santa Elens Peninsula, Province of Guayas. Both the shallow fields of the northern and the deeper fields of the southern part of the peninsula have been in constant exploitation, though the former are of doubtful economic value. In Table I herewith, which commences with the total amounts produced by the various companies up to 1940, annual company totals are given for the succeeding years. The figures for 1944 have been partly estimated. Table 2 gives figures on casinghead gasoline. Shell Company of Ecuador (formerly known as Anglo-Saxon) has continued active exploration in the Oriente region east of the Andes, and during 1944 the Company's first wildcat well was spudded in. International Ecuadorean Petroleum Co. (formerly International Petroleum Co., Limited) has pursued an active exploration campaign since the latter part of 1939, and a drilling string was placed in operation about a year later. A second string of tools was added during 1943 and a third a few months ago. Ten wildcats, all dry, have been completed in this period, two wells are drilling at the present time and other locations are on the program. Seven of the wells thus far drilled are in the area between Guayaquil and the Santa Elena Peninsula, one up the Daule River beyond Balzar, one on Puna Island in the Guayas Estuary and one in the northern province of Esmeraldas. Both the present drilling wells are in the Guayaquil-Santa Elena zone. The situation in regard to concessions has changed during the past four years because I.E.P.C. has made its selections from the extensive Daule-Guayas Study Concession, as a result of which large tracts were returned to the Government; because of the expropriation of the holdings of the "Ecuapetrol," a German concern whose acreage has passed into other hands; the Peruvian-Ecuadorean boundary settlement, which has reduced Shell's holdings somewhat; and the transfer of most of the holdings of the Cia. Minero-Petrolera del Pacifico to I.E.P,C. The greater part

Jan 1, 1945

By D. C. Porterfield

ProUuction of crude oil in Venezuela increased from 186,134,000 bbl. in 1940 to 2~8,131,ooo bbl. in 1941, or 22.6 per cent, to establish a new all-time high for the country. While the average production for the year was 625,000 bbl. per day, production during the month of December 1941 averaged 751,000 bbl. per day, and during the last week of the year, 766,000 bbl. per day. Production from the Lake Maracaibo basin averaged 454,000 bbl. per day during the year, or 72 per cent of the total for the country, compared with 73 per cent of the total produced in 1940. Drilling during the year was approximately on the same scale as in 1940, with 438 wells completed in 1941 as compared with 429 the year before. Exploratory completions decreased from 18 in 1940 to 6 in 1941. Of the drilling operations in 1941, 56 per cent was concentrated in the Lake Maracaibo basin and 44 per cent in eastern Venezuela, success being 98 per cent in the Lake basin and 83 per cent in the east. Successful completions for the country as a whole amounted to 92 per cent of the total wells drilled. Exploratory drilling in 1941 resulted in the discovery of three new fields, all in eastern Venezuela; viz., Guara, about II km. to the northeast of the Oficina field but on a separate structure; Santa Rosa, which is east of El Roble field on a structure forming a part of the major Santa -Ana- San Joaquin-El Roble uplift; and Santa Barbara, which is southwest of the Jusepin field on an extension of the main Jusepin anticline. At the close of the year three wildcats were drilling, all of which showed prospects of obtaining production; that is, Mercedes No, 2 in central Guarico, Las Ollas No. I on the Anzoategui-Guarico border near the town of Zaraza, and Quiamare No. I in Anzoategui northeast of the town of San Mateo. In spite of heavy withdrawals and the resultant natural decline in the potentials of older producing areas, new drilling during the year increased the potential production of the country from an estimated 780,000 bbl. per day at the end of 1940 to an estimated 810,000 bbl. per day at the end of 1941, or approximately 4 per cent. Since domestic consumption of petroleum products is insignificant compared with total production, exports of crude and products during the year increased in line with production. Crude exports totaled 196,800,000 bbl., compared with 158,400,-000 bbl. in 1940, and exports of products were 26,100,000 bbl., compared with 21,900,000 bbl. the year before. Exports of crude from Venezuela to the United States amounted to 36,500,000 bbl. In addition, about 2,200,000 bbl. was imported in bond into the United States for transfer to Canada. Total refining capacity of the country in 1941 was approximately 125,000 bbl. per day, including a crude-conversion plant with a capacity of 32,000 bbl. per day, capable of making fuel oil only. Three plants with a capacity of 121,000 bbl. Per

Jan 1, 1945

By B. B. Zavoico

During 1936 the Russian oil industry made very satisfactory progress and, while not all difficulties of organization have been ironed out, the country is now assured of a supply of petroleum products in sufficient quantities and of quality demanded by modern motor equipment. The year 1937 promises to better by a wide margin the good showing of 1936. The statistics given in this paper for the first time take into consideration the varying gravities of crude oils of the several Russian oil fields instead of using a flat conversion factor of 7 bbl. per metric ton. It was found from the detailed study that the generally used average conversion factor should be increased from 7 to 7.25 bbl. per metric ton, the figure varying, of course, with the gravity of oil in the individual fields. Crude-oil production during 1936 is estimated at 201,500,000 bbl. as compared with 182,970,000 bbl. produced in 1935, an increase of 9.4 per cent. The greatest increase was again recorded in the Baku district, which increased its production by 10.9 per cent, from 141,257,000 bbl. in 1935 to 158,300,000 in 1936. Grozny district maintained its production at a level of about 23,000,000 bbl., but its old fields continued to decline and production was sustained by the development of newer fields. A great advance was made in drilling speeds and the total footage in 1936 reached 6,694,200 ft. as compared with 4,926,600 ft. drilled in 1935, an increase of 26.4 per cent. In older deep fields, producers were being completed at over 8000 ft.—a great depth for Russian drillers but two years ago. Several major discoveries were made in 1936. Northeast Caucasus.—Izberbash, east from Grozny and on the Caspian Sea, was the outstanding discovery, the initial production of the discovery well being around 3000 bbl. per day from about 5000 ft. The importance of the field is due to the large area of the structure, half of which, however, is under the sea, and also to its strategic location on the shores of the Caspian and near a trunk pipe line to the Grozny refining center. An active development program is being pursued in Izberbash and its 1937 production quota is set at 7,500,000 bbl. Achi-Su field, near Izberbash, also discovered during 1936, while not as prolific as Izberbash, is thought to cover a very large area and the small

Jan 1, 1937

By Basil B. Zavoico

During 1938 the Russian oil industry, while able to increase its production 4.69 per cent above the preceding year, was not successful in correcting some of its basic difficulties, and the industry's position as it entered 1939 was unsatisfactory. The internal political difficulties of 1937 and 1938 took a toll in the oil industry as they did elsewhere in the U. S. S. R., further complicating the solution of the problems facing it, most important of which still remain: lack of experienced and responsible leadership, able to make quick decisions; undisciplined and migratory labor; and insufficient and often unsatisfactory quality of the various equipment needed by the industry and its ineffective distribution. Recent developments in the U. S. S. R. suggest that during 1939 the management will be granted more latitude and hence somewhat better results may be anticipated from the executive branch, provided, however, the "purges" do not recur. The labor should be better disciplined and should not shift as easily, owing to the introduction, at the close of 1938, of individual labor passports to all workers in the country, the principal purpose of which is to correct those two deficiencies. It is not anticipated, however, that the service of supply will show any appreciable improvement in 1939, partly because of inherent difficulties and partly because the manufacturers of heavy machinery are working primarily and necessarily for munitions. Production Production of crude oil during 1938 is estimated at 224,714,000 bbl., as compared with 212,742,000 bbl. in 1937, an increase of 4.69 per cent but 12.76 per cent below the planned output. While there were no major readjustments in the source of supply of crude oil, both the older districts, Baku and Grozny, were barely able to maintain their 1937 levels of production, the increased output being supplied primarily by the fields of Maikop and Ural Permian Basin districts. While exploration work was outstandingly successful in 1937, in 1938 no discoveries of any

Jan 1, 1939

By Basil B. Zavoico

During 1938 the Russian oil industry, while able to increase its production 4.69 per cent above the preceding year, was not successful in correcting some of its basic difficulties, and the industry's position as it entered 1939 was unsatisfactory. The internal political difficulties of 1937 and 1938 took a toll in the oil industry as they did elsewhere in the U. S. S. R., further complicating the solution of the problems facing it, most important of which still remain: lack of experienced and responsible leadership, able to make quick decisions; undisciplined and migratory labor; and insufficient and often unsatisfactory quality of the various equipment needed by the industry and its ineffective distribution. Recent developments in the U. S. S. R. suggest that during 1939 the management will be granted more latitude and hence somewhat better results may be anticipated from the executive branch, provided, however, the "purges" do not recur. The labor should be better disciplined and should not shift as easily, owing to the introduction, at the close of 1938, of individual labor passports to all workers in the country, the principal purpose of which is to correct those two deficiencies. It is not anticipated, however, that the service of supply will show any appreciable improvement in 1939, partly because of inherent difficulties and partly because the manufacturers of heavy machinery are working primarily and necessarily for munitions. Production Production of crude oil during 1938 is estimated at 224,714,000 bbl., as compared with 212,742,000 bbl. in 1937, an increase of 4.69 per cent but 12.76 per cent below the planned output. While there were no major readjustments in the source of supply of crude oil, both the older districts, Baku and Grozny, were barely able to maintain their 1937 levels of production, the increased output being supplied primarily by the fields of Maikop and Ural Permian Basin districts. While exploration work was outstandingly successful in 1937, in 1938 no discoveries of any

Jan 1, 1939

By Basil B. Zavoico

The symposium on production for the year 1942 contains no papers on the foreign situation except those on Argentina and Mexico. It has always been the policy of officers in charge of the symposium to refrain from publishing information that might possibly injure national or private interests. At the close of the war we hope again to publish full and accurate records of production abroad. Excerpts From Circular to Authors In order to facilitate interpretation of the data in this chapter, we print the following excerpts from the Circular to Authors. The field is the unit in this tabulation. In cases of fields extending across State boundaries, such as Rodessa, it is suggested that each State author treat the section of the field in his State as a unit, and by a footnote indicate that the field extends into an adjacent State. Each space in Table I may represent one of four possibilities; either it is not applicable to the particular field, or the proper entry is not determinable, or the proper entry may be determinable but is not determinable from data available to the author, or the proper entry is determinable. When spaces are not applicable, leave blank; in spaces where the proper entries are determinable but not determinable from data available to the author, please insert y; in spaces where the proper entries are determinable by the author, make such entries. y implies a Rope that in some future year a definite figure will be available. The entry of a zero is a positive declaration, and it is an important declaration where it is in order. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In such cases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces the correct entries represent the opinion of the author (for example, "Area Proved") and in such cases the entry need not be hedged to such extent as when the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use x. It is thought that the nearest whole numbers are sufficiently accurate for our purposes except as to percentage of sulphur in oil. If an author desires to report any other figures to tenths, he may do so. The quantity of gas produced should include, where possible, gas sold or otherwise marketed, and gas blown into the air, burned as flares or otherwise wasted. Segregation of these figures would be interesting if the authors can make such segregation. In any event, the figures should represent as nearly as possible the total quantity of gas removed from the reservoir. Under the columns on "Depth," the average depth to the top of the productive zones and to the bottom of the productive wells, when subtracted, should give the approximate thickness of the productive zone. For fields where this is not true because of unusually high dip or for some other reasons, it is suggested that the authors indicate in their text the approximate average thickness of the productive zone.

Jan 1, 1943

By Robert S. Dewey

AS a result of drilling operations during 1943, West Texas again added sufficient new oil reserves to replace the oil produced during the year, but failed to maintain its position in currently available reserves because the deeper discoveries will require years for development. Drilling failed to provide the additional oil necessary to meet the increase in current and anticipated market demand. Although 13.3 per cent of the total footage drilled was in wildcat exploration, the ratio of oil discoveries to total wildcats was less in 1943 than in 1942, but comparable to that in 1941. Of the 732 field wells completed, 270 were at Slaughter, 55 at Wasson, 45 at Mascho and 31 at North Cowden. As of Dec. 31, 1943, there were 361 drilling wells including 71 wildcat and 290 field wells; 19.7 per cent were wildcats. It is anticipated that the percentage of wildcats of the total wells will be higher during 1944 than in either 1942 or 1943. Tables 3 and 4 present a three-year comparison of drilling activity and illustrate the downward trend of development that has been in effect during that time. Because of development lag in the deeper Ordovician fields, several years elapse before 2 sufficient number of wells is completed to give a substantial producing rate. As these new oil reserves cost more to find, and will cost more to produce on a barrel basis than the oil marketed during the year, their reserve replacement value to the industry is less in money. Costs While complete costs for deeper drilling are not yet available for analysis, it is evi- dent from the data on drilling rates to comparable depths, contract prices, and general increases in costs, that the cost of drilling has risen approximately 20 per cent during the year. One representative drilling contractor estimates that the average drilling time on a 5000-ft. field well has increased nearly one third and that out-of-pocket costs have increased a dollar per foot. Three major factors contribute to this increased cost: (I) less experienced labor, (2) deterioration in mechanical equipment and expendable material, and (3) increased contract prices. In the past, when there were more drilling rigs than wells to be drilled, some contractors would cut their drilling profit to keep their personnel and rigs working. As this practice is no longer necessary, the contract prices are adjusted upward to assure a profit. On deep and difficult drilling, contracts are let on a cost plus basis. A number of mechanical difficulties have become evident. Inferior quality of steel used in drill pipe and rock bits has added appreciably to drilling time and cost. Contractors are experiencing delay in obtaining repair work and repair parts for prime movers. As the length of drilling time required an shallow-field wells has not increased in proportion to that on deeper wells, it seems that the medium-sized drilling rig is better adapted mechanically than the heavy one to the work imposed. One of the main deficiencies in the heavy rig equipment is inadequate pump capacity. Drilling Mud The increasing amount of deep drilling has emphasized the importance and relationship of good mud to efficient and suc-

Jan 1, 1944

By Robert S. Dewey

AS a result of drilling operations during 1943, West Texas again added sufficient new oil reserves to replace the oil produced during the year, but failed to maintain its position in currently available reserves because the deeper discoveries will require years for development. Drilling failed to provide the additional oil necessary to meet the increase in current and anticipated market demand. Although 13.3 per cent of the total footage drilled was in wildcat exploration, the ratio of oil discoveries to total wildcats was less in 1943 than in 1942, but comparable to that in 1941. Of the 732 field wells completed, 270 were at Slaughter, 55 at Wasson, 45 at Mascho and 31 at North Cowden. As of Dec. 31, 1943, there were 361 drilling wells including 71 wildcat and 290 field wells; 19.7 per cent were wildcats. It is anticipated that the percentage of wildcats of the total wells will be higher during 1944 than in either 1942 or 1943. Tables 3 and 4 present a three-year comparison of drilling activity and illustrate the downward trend of development that has been in effect during that time. Because of development lag in the deeper Ordovician fields, several years elapse before 2 sufficient number of wells is completed to give a substantial producing rate. As these new oil reserves cost more to find, and will cost more to produce on a barrel basis than the oil marketed during the year, their reserve replacement value to the industry is less in money. Costs While complete costs for deeper drilling are not yet available for analysis, it is evi- dent from the data on drilling rates to comparable depths, contract prices, and general increases in costs, that the cost of drilling has risen approximately 20 per cent during the year. One representative drilling contractor estimates that the average drilling time on a 5000-ft. field well has increased nearly one third and that out-of-pocket costs have increased a dollar per foot. Three major factors contribute to this increased cost: (I) less experienced labor, (2) deterioration in mechanical equipment and expendable material, and (3) increased contract prices. In the past, when there were more drilling rigs than wells to be drilled, some contractors would cut their drilling profit to keep their personnel and rigs working. As this practice is no longer necessary, the contract prices are adjusted upward to assure a profit. On deep and difficult drilling, contracts are let on a cost plus basis. A number of mechanical difficulties have become evident. Inferior quality of steel used in drill pipe and rock bits has added appreciably to drilling time and cost. Contractors are experiencing delay in obtaining repair work and repair parts for prime movers. As the length of drilling time required an shallow-field wells has not increased in proportion to that on deeper wells, it seems that the medium-sized drilling rig is better adapted mechanically than the heavy one to the work imposed. One of the main deficiencies in the heavy rig equipment is inadequate pump capacity. Drilling Mud The increasing amount of deep drilling has emphasized the importance and relationship of good mud to efficient and suc-

Jan 1, 1944

By L. B. Herring, Harold Decker

The South Texas area, discussed herein, represents districts 2 and 4 of the Texas Railroad Cominission and extends from Jackson, Lavaca, and Gonzales Counties on the northeast to the Rio Grande River, comprising a total of 26 counties.$ The present boundaries of this district do not coincide with those of earlier reports published in the annual volumes of Petroleum Development and Technology. The war, in its various ramifications, determined and controlled all the phases of the oil and gas industry. Priorities for material and governmental subsidies determined all new operations. New Pools In our opinion, the combine' quantity of crude and distillate reserves added in '943 approached Or possibly exceeded the amount produced. Thirty-five new pools were added to the area' Of these, five have significant reserves and ten offer possibilities of containing consequential reserves. The largest proven reserve discovered during the year was the Slick pool, on the DeWitt-Goliad County line. This is also the most important Wilcox discovery to date in the area. The most significant extension was at Willimar, Willacy County. Other important extensions were developed at Agua Dulce, Seeligson, and Odem. Except for the Porter field, in Karnes County, the Laredo trend, which produces lrom the Jackson and Yegua, proved very disappointing, and this pool is o:C secondary importance. The Scott and Hopper pool, Brooks County, has only orie well, but offers excellent possibilities of becoming an important discovery. It represents at this time the major Frio discovery of the year. The Hobson pool, Karnes County, is not a major reserve, but can be classed as important in that it produces at a shallow depth from the Wilcox. This proves that the potential area of production for this zone occupies a broad trend. Gas and Condensate During the year construction was begun on only one recycling plant, this being in the Sejita field, Duval County. Several others were colltemplated, but no actual operations were begun. The most important development in recycling was the rebuilding of old plants to allow for the fractiona-tion of isopentane, n-butane, isobutane, and propane. Heretofore all pentanes plus have been marketed as cLdistillate,n only a minor portion of the butanes being isolated and sold for fuel purposes. All these new the except propane, are considered vital to the war effort and propane is being marketed as fuel gas. In other instances propane is being isolated and then pumped back into the gas reservoirs for storage. It is anticipated that the demands for this product will increase in the future. Drilling in the Wilcox trend during the year showed the existence of valuable gas

Jan 1, 1944

By L. B. Herring, Harold Decker

The South Texas area, discussed herein, represents districts 2 and 4 of the Texas Railroad Cominission and extends from Jackson, Lavaca, and Gonzales Counties on the northeast to the Rio Grande River, comprising a total of 26 counties.$ The present boundaries of this district do not coincide with those of earlier reports published in the annual volumes of Petroleum Development and Technology. The war, in its various ramifications, determined and controlled all the phases of the oil and gas industry. Priorities for material and governmental subsidies determined all new operations. New Pools In our opinion, the combine' quantity of crude and distillate reserves added in '943 approached Or possibly exceeded the amount produced. Thirty-five new pools were added to the area' Of these, five have significant reserves and ten offer possibilities of containing consequential reserves. The largest proven reserve discovered during the year was the Slick pool, on the DeWitt-Goliad County line. This is also the most important Wilcox discovery to date in the area. The most significant extension was at Willimar, Willacy County. Other important extensions were developed at Agua Dulce, Seeligson, and Odem. Except for the Porter field, in Karnes County, the Laredo trend, which produces lrom the Jackson and Yegua, proved very disappointing, and this pool is o:C secondary importance. The Scott and Hopper pool, Brooks County, has only orie well, but offers excellent possibilities of becoming an important discovery. It represents at this time the major Frio discovery of the year. The Hobson pool, Karnes County, is not a major reserve, but can be classed as important in that it produces at a shallow depth from the Wilcox. This proves that the potential area of production for this zone occupies a broad trend. Gas and Condensate During the year construction was begun on only one recycling plant, this being in the Sejita field, Duval County. Several others were colltemplated, but no actual operations were begun. The most important development in recycling was the rebuilding of old plants to allow for the fractiona-tion of isopentane, n-butane, isobutane, and propane. Heretofore all pentanes plus have been marketed as cLdistillate,n only a minor portion of the butanes being isolated and sold for fuel purposes. All these new the except propane, are considered vital to the war effort and propane is being marketed as fuel gas. In other instances propane is being isolated and then pumped back into the gas reservoirs for storage. It is anticipated that the demands for this product will increase in the future. Drilling in the Wilcox trend during the year showed the existence of valuable gas

Jan 1, 1944

By W. H. Hough, P. B. Leavenworth

Development in the Upper Texas Gulf Coast during 1943 resulted in the discovery of 11 new fields as compared with 12 discovered in the same area during I942. Of the 11 new fields, eight are classed as oil and/or condensate and three as gas fields. In addition to the new discoveries, several more or less important new horizons and extensions were encountered in some of the older fields, as noted in the text under the heading "New Pays and Extensions.'' Drilling During the year, 418 wells were drilled, as compared with 356 drilled during 1942. Of these, 323 were field wells, of which 188 produced oil, 21 were gas wells and 114 were dry holes. The remaining 95 viere wildcats, 12 of which produced oil, 4 produced gas and 79 dry holes. Distribution of themwildcats with respect to the various trends may be summarized as follows: over the 91,340,492 bbl. produced in the same area during 1942. The production statistics in the text and the accompanying tables include condensate or distillate as oil production, because many Gulf Coast fields produce oils with a wide variation of specific gravities, all of which are commingled in pipe lines. Table 3 shows by counties all of the drilling and production" data applicable to this particular area. Outstanding Fields of 1943 The Upper Texas Gulf Coast covered in this report has 178 more or less active oil and gas fields, including the 1943 discoveries. Of these Table 4 lists those that were most important from the standpoint of production. Each of these fields pro duced in excess of one million barrels of oil during 1943. Some of the interesting facts to be noted from this list of some 26 oil fields are: (I) four of the fields— namely, Conroe, Hastings, Friendswood and Thompson—each produced more than 10 million barrels during 1943, whcrcas Conroe and Hastings were the only fields that produced 10 million barrels during 1942; (2) some of the older fields (discovered prior to 1920), such as Barbers Hill, West Columbia, and Hull, are still producing in excess of one million barrels annually; (3) some of the fields more than doubled their 1942 production—e.g., Anahuac and Friendswood. The large increase in production in practically all instances is the result of increased allowables from wells drilled prior to 1943 and

Jan 1, 1944

By W. H. Hough, P. B. Leavenworth

Development in the Upper Texas Gulf Coast during 1943 resulted in the discovery of 11 new fields as compared with 12 discovered in the same area during I942. Of the 11 new fields, eight are classed as oil and/or condensate and three as gas fields. In addition to the new discoveries, several more or less important new horizons and extensions were encountered in some of the older fields, as noted in the text under the heading "New Pays and Extensions.'' Drilling During the year, 418 wells were drilled, as compared with 356 drilled during 1942. Of these, 323 were field wells, of which 188 produced oil, 21 were gas wells and 114 were dry holes. The remaining 95 viere wildcats, 12 of which produced oil, 4 produced gas and 79 dry holes. Distribution of themwildcats with respect to the various trends may be summarized as follows: over the 91,340,492 bbl. produced in the same area during 1942. The production statistics in the text and the accompanying tables include condensate or distillate as oil production, because many Gulf Coast fields produce oils with a wide variation of specific gravities, all of which are commingled in pipe lines. Table 3 shows by counties all of the drilling and production" data applicable to this particular area. Outstanding Fields of 1943 The Upper Texas Gulf Coast covered in this report has 178 more or less active oil and gas fields, including the 1943 discoveries. Of these Table 4 lists those that were most important from the standpoint of production. Each of these fields pro duced in excess of one million barrels of oil during 1943. Some of the interesting facts to be noted from this list of some 26 oil fields are: (I) four of the fields— namely, Conroe, Hastings, Friendswood and Thompson—each produced more than 10 million barrels during 1943, whcrcas Conroe and Hastings were the only fields that produced 10 million barrels during 1942; (2) some of the older fields (discovered prior to 1920), such as Barbers Hill, West Columbia, and Hull, are still producing in excess of one million barrels annually; (3) some of the fields more than doubled their 1942 production—e.g., Anahuac and Friendswood. The large increase in production in practically all instances is the result of increased allowables from wells drilled prior to 1943 and

Jan 1, 1944

By W. G. Sinclair

The wartime momentum of exploration continued throughout the year 1945 despite the end of hostilities in mid-August. The table below illustrates drilling activity in the various categories: Completed wells. . . . . . . . . . . . . . . . . . . . . . . . 401 Wildcats.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104 Wildcat discoveries, oil.. . . . . . . . . . . . . . . . . . . 2 Wildcat discoveries, gas-condensate.. . . . . . . 4 Development wells.. . . . . . . . . . . . . . . . . . . . . .297

Jan 1, 1946

By John S. Crandall

Occurrence: small crystals in alluvial sands from the eroding Belt Series mica schists. Flowsheet: dragline, trommel screen, jigs, drier, crusher, screens. Value: ground, $2.50 per cu yd, garnet sand gross $60. per ton. Costs: production and sales $48. per ton. Uses: blasting sand in aircraft plants, monumental works, foundries. Efficiency comparison: superior to silica sand. Future: possibilities only touched upon, research continuing.

Jan 1, 1950