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By N. D. Gerald

The mathematical analysis, which is an essential part of this paper, has revealed the interesting fact that contrary to the opinions of many, determinate and measurable economic factors are largely responsible for the price of crude oil. It should, however, be well understood that the results of this analysis are applicable, without qualification, only to the particular period and market studied. There are certain peculiarities of the petroleum industry which make the consideration of its economics very difficult, and at times practically impossible. Noneconomic factors often become highly important and have serious economic effects, which make unqualified predictions based on economic data extremely hazardous and ill advised. However, in spite of the attendant difficulties there are many problems, especially in price analysis, to which approximate solutions must be made for the proper guidance of public and private policy, but their limitations should be kept clearly in mind. An understanding of the nature of prices is of fundamental importance for a number of purposes. Measurement of the motivating factors giving rise to trends and other price movements is essential to forecasting for the intelligent engineering and financial administration of the industry. The fixing of prices, maintenance of an intelligent industrial dictatorship, or the making of other industrial adjustments, demand, for success, an accurate understanding of their probable consequences. The establishment of a system of equitable relations within an industry, or between industries, by methods other than the natural competitive ones, requires a thorough knowledge of the price structures and the nature and trends of the normal and basic prices of their products. This research has shown that in this case, even though the statistical records are only fair, quantitative economics offers a direct and satisfactory approach to the problems of economic consequences dependent on the reactions of mass intelligence. A consideration of commodity prices naturally leads to costs. The true cost of petroleum is so complex and elusive that its accurate deter-

Jan 1, 1934

By Weldon B. Smith

When faced with excavating vast amounts of overburden at its surface coal mining operation in Centralia, Wash., the Washington Irrigation and Development Co. (Widco) chose to utilize a bucket wheel excavator and shiftable conveyor system. In the early 1970s, Widco-a subsidiary of the Washington Water Power Co.-held reserves of sub-bituminous C coal estimated at some 180 million tons (200 million st). Subsequent investigation of the overlying land formations revealed the need to excavate millions of bank cubic yards of material as part of the mining plans.

Jan 7, 1979

By Kenneth Cottingham

The number of wells drilled in Ohio in 1943 was slightly in excess of the number drilled in 1942. Compared with the average annual completions for the five years preceding, the year 1943 was short 11 per cent, hut the average initial volume of gas wells was considerably improved. In 1942 the average initial open flow per gas well was 668 M cu. ft., whereas in 1943 the average was 913 M cu. ft. Although no large gas-producing areas were discovered during the year under review, some 30 small pools were found in 17 of the counties of eastern Ohio. These new pools averaged about 300 acres each, and most of them were not extensions but were separate pools adjacent to older production. The Clinton sand furnished most of these discoveries, although six were from the Berea, one was Newburg, and three were shallow sands. No discoveries were made outside former producing counties, and there was no new development the Trenton area of western Ohio. The number of oil wells decreased from 181 drilled in 1942, to 170 in the year 1943. The production of Pennsylvania-grade oil increased 7644 bbl. The total Corning production, however, decreased 91,325 bbl. The present price of Corning-grade oil, $1.31 per bbl., is too low, in the opinion of the operator, to justify exploration. Until something is done in correcting the price level of Corning grade, the production probably will continue to decline. The oil industry in Ohio is making a concentrated effort toward increased production and improved methods of recovering Pennsylvania-grade oil, and a.s this report is written a research and engineering program is being formulated for the benefit and information of the various producers of that grade in Ohio.

Jan 1, 1944

By Kenneth Cottingham

The number of wells drilled in Ohio in 1943 was slightly in excess of the number drilled in 1942. Compared with the average annual completions for the five years preceding, the year 1943 was short 11 per cent, hut the average initial volume of gas wells was considerably improved. In 1942 the average initial open flow per gas well was 668 M cu. ft., whereas in 1943 the average was 913 M cu. ft. Although no large gas-producing areas were discovered during the year under review, some 30 small pools were found in 17 of the counties of eastern Ohio. These new pools averaged about 300 acres each, and most of them were not extensions but were separate pools adjacent to older production. The Clinton sand furnished most of these discoveries, although six were from the Berea, one was Newburg, and three were shallow sands. No discoveries were made outside former producing counties, and there was no new development the Trenton area of western Ohio. The number of oil wells decreased from 181 drilled in 1942, to 170 in the year 1943. The production of Pennsylvania-grade oil increased 7644 bbl. The total Corning production, however, decreased 91,325 bbl. The present price of Corning-grade oil, $1.31 per bbl., is too low, in the opinion of the operator, to justify exploration. Until something is done in correcting the price level of Corning grade, the production probably will continue to decline. The oil industry in Ohio is making a concentrated effort toward increased production and improved methods of recovering Pennsylvania-grade oil, and a.s this report is written a research and engineering program is being formulated for the benefit and information of the various producers of that grade in Ohio.

Jan 1, 1944

By William Kent

More than twelve years were spent by Wöhler at the instance of the Prussian Government in experimenting upon the resistance of iron and steel to repeated stresses. The results of his experiments are expressed in what is known as Wöhler's law, which is given in the following words in Du Bois's translation of Weyrauch:* " Rupture may be caused not only by a steady load which exceeds the carrying strength, but also by repeated applications of stresses, none of which are equal to the carrying strength. The differences of these stresses are measures of the disturbance of continuity, in so far as by their increase the minimum stress which is still necessary for rupture diminishes." A practical illustration of the meaning of the first portion of this law may be given thus: If 50,000 pounds once applied will just break a bar of iron or steel, a stress very much less than 50,000 pounds will break it if sufficiently often repeated. This is fully confirmed by the experiments of Fairbairn and Spangenberg, as well as by those of Wöhler; and, as is remarked by Weyrauch, it may be considered as a long-known result of common experience. It partially accounts for what Mr. Holley has called the " intrinsically ridiculous factor of safety of six." Another "long-known result of experience"—although this has not, as the writer believes, been investigated by scientific experimenters—is the fact that rupture may be caused by a succession of shocks or impacts, none of which alone would be sufficient to cause it. Wrought iron will crystallize by repeated blows in service and become weaker than cast iron. Iron axles, the piston-rods of steamhammers, and other pieces of metal subject to continuously repeated shocks invariably break after a certain length of service. They have a "life" which is limited. Iron rods in bridges sometimes crystallize and break, although the rods in most of our iron bridges

Jan 1, 1880

Jan 1, 1936

By William Bent

MORE than twelve years were spent by Wöhler at the instance of the Prussian Government in experimenting upon the resistance of iron and steel to repeated stresses. The results of his experiments are expressed in what is known as Wöhler's law, which is given in the following words in Du Bois's translation of Weyrauch :* "Rupture may be caused not only by a steady load which exceeds the carrying strength, but also by repeated applications of stresses, none of which are equal to the carrying strength. The differences of these stresses are measures of the disturbance of continuity, in so far as by their increase the minimum stress which is still necessary for rupture diminishes." A practical illustration of the meaning of the first portion of this law may be given thus : If 50,000 pounds once applied will just break a bar of iron or steel, a stress very much less than 50,000 pounds will break it if sufficiently often repeated. This is fully confirmed by the experiments of Fairbairn and Spangenberg, us well as by those of Wöhler; and, as is remarked by Weyrauch, it may be considered as a long-known result of common experience. It partially accounts for what Mr. Holley has called the "intrinsically ridiculous factor of safety of six." Another "long-known result of experience "-although this has not, as the writer believes, been investigated by scientific experimenters-is the fact that rupture may be caused by a succession of shocks or impacts, none of which alone would be sufficient to cause it. Wrought iron will crystallize by repeated blows in service and become weaker than cast iron. Iron axles, the piston-rods of steam-hammers, and other pieces of metal subject to continuously repeated shocks invariably break after a certain length of service. They have a " life" which is limited. Iron rods in bridges sometimes crystallize and break, although the rods in most of our iron bridges * Strength and Determination of Dimensions of Structures. By Dr. J. J. Weyrauch. Translated by Du Bois, New York, 1877.

Jan 1, 1880

By F. E. Crane, J. Downie

The general application of Darcy's law to natural rocks has already been challenged in the literature.1 The evidence shows that the permeability as calculated from the Darcy equation can be a function of the pressure drop and the salt concentration of the water phase. Most explanations for aberrant behavior involve clays and their properties and have been qualitatively satisfactory.Recently, however, Odeh2 revived the theoretical views of Yuster.3 Since Yuster's concept implies a fundamental error in using Darcy's relationship for two-phase flow, and not merely that conditions may limit its use, Odeh's experimental support arouses considerable interest. However, Odeh's work as presented is thought to to be inadequate. He has omitted important information about his materials and procedures; therefore, acceptance of his conclusions should be withheld. Since a clay effect is possible, Odeh should have been allowed space to present a more detailed account of the rocks which he used and the precautions which he took to avoid confounding the effects of clay and fluid circulation. In addition, it follows from Odeh's discussion that the oil relative permeability should increase as the viscosity ratio increases. Odeh presents data corroborating this deduction. It also follows that the oil relative permeability should decrease as the viscosity ratio of oil to water decreases. However, our results show that a high relative permeability, when once attained by using a viscous oil, may be maintained when that oil is replaced by an oil of much lower viscosity. EXPERIMENTAL PROCEDURE The results are shown in Fig. 1 and were obtained as follows. Sandstone cores. 3-in. long X l-in, in diameter and which contained clays, were saturated with

Jan 1, 1943

New York Meets first Wednesday after first Tuesday of each month. DAVID H. BROWNE, Chairman, JOHN H. JANEWAY, Vice-Chairman. F. E. PIERCE, Secretary, 35 Nassau St., New York, N. Y. P. A, MOSMAN, Treasurer. Boston Meets first Monday of each winter month. HENRY L. SMYTH, Chairman. ALFRED C. LANE, Vice-Chairman. HENRY A. WENTWORTH, Secretary-Treasurer, 60 India St., Boston, Mass. ROBERT H. RICHARDS,- ALBERT SAUVEUR. Columbia Holds four sessions during year. Annual meeting in September or October. FRANK A. ROSS, Chairman. RUSH J. WHITE, Vice-Chairman. LYNDON K. ARMSTRONG, Secretary-Treasurer, P. O. Drawer 2154, Spokane, Wash. FREDERIC KEFFER, FRANCIS A. THOMSON.

Jan 7, 1915

By H. H. Stoek

Among the mining and metallurgical achievements of the latter part of the nineteenth century, not the least is the incep tion and successful prosecution by mining men of a technical educational movement which in magnitude surpasses any similar movement ever before set on foot. The following account of this undertaking has been prepared at the request of the Secretary of the Institute :*

Jan 1, 1899

By John Fulton

Johnstown is the site of the extensive iron, steel, and wire-works of the Cambria Iron Company. It is situated at the western base of the Alleghany Mountain, 275 miles from Philadelphia, and 78 miles from Pittsburgh. The valley in which the town and its ironworks are located, has an average elevation of 1160 feet above tide water. Johnstown, in its main features, is a modified duplicate of Pittsburgh. It is located at the confluence of the Little Conemaugh and Stony Creek rivers, which, by their union, form the Conemaugh River, just as Pittsburgh is situated at the junction of the Allegheny and Monongahela rivers, which together make the Ohio River. The site of Johnstown is in a cutting through the lower productive coal measures, 500 c feet deep, with steep slopes along the valleylimits, exposing, in sharp-cut terraces, the outcrops of the coal and iron-ore beds; the whole surmounted by the shales and sandstones of the barren measures.

Jan 1, 1885

By C. M. Loeb, A. M. Gaudin, J. H. Brown

THE object of most size reduction operations in the mineral industry is to liberate the grains of valuable minerals in the ore from those of the gangue. This is usually accomplished by crushing and grinding the entire mass of ore until there is only a small probability that any single particle contains more than one mineral. During this size reduction only limited control exists over size or composition of the particles exposed to the breaking action, and there is no control over the paths followed by cracks generated during the operation. This lack of control usually results in overgrinding and in production of large quantities of very fine material. The first detriment, overgrinding, is costly in itself, but when combined with the second factor it is doubly so. Not only is the fracture of a free particle unnecessary-the fracture of these particles may also make subsequent separation operations difficult, inefficient, and wasteful. It has been pointed out' that if the object of size reduction is to liberate the valuable mineral component of the ore then, ideally, fracture should follow intergranular paths to the exclusion of trans- granular ones. This would result in liberation of the valuable minerals with as little size reduction as possible. This ideal comminution operation is referred to as intergranular comminution, and it was the object of the investigation to determine the extent to which it could be developed by heat treatments.

Jan 4, 1958

Jan 1, 1898

By Elizabeth L. Robinson

INTRODUCTION The financial structure of the mining industry has changed strikingly over the last thirty years. The changes that have taken place in the last ten years include both the acceleration of adverse trends in familiar balance sheet numbers and ratios, and the subtle but extensive increase in the complexity and diversity of funding sources, both on and off the balance sheet. The objectives of this paper are: 1. to briefly trace the evolution of trends in the mining industry's financial structure; 2. to focus in more detail on changes in the last decade; and 3. to analyze those trends both within the framework of capital structure theory, and in the context of changes in business and economic conditions. This survey focuses primarily on the mining companies listed on the major U.S. stock exchanges, since financial data for these firms are readily available. The producers of minerals are a diverse lot, however, and the quantitative data on "the mineral industry" as characterized in this survey fails to encompass the financial arrangements for the bulk of production worldwide, whether owned by governments or private-sector enterprises. Even large portions of the U.S. minerals industry - subsidiaries of still larger firms, medium-sized privately-held companies, and the small miners - were not included in the quantitative part of the analysis. THE EVOLUTION OF THE INDUSTRY'S FINANCIAL STRUCTURE In the aftermath of the business failures of the Great Depression, most borrowers and lenders considered minimal debt on the balance sheet the soundest policy. By the 1950's, however, a body of literature was developing which demonstrated that the use of leverage could improve the value of the firm, given a corporate tax structure which allows interest, but not dividends, to be deducted from income. Optimal Capital Structure The objective of undertaking a new project is to improve the wealth of the current owners of the firm. If internally-generated funds are insufficient to allow growth at the desired rate, the company can raise funds either by issuing new equity, or by incurring debt. The most attractive source is the one which will provide the funds for the lowest cost. Both stockholders and lenders expect to receive compensation for use of their funds at a rate which reflects two things: (1) the return they could earn in alternative investments, and (2) the riskiness of the projected return. Factors which increase business risk include the variability of demand, sales prices and input prices, and "operating leverage", or the proportion of fixed to variable costs. In addition, from the investors' point of view, the use of financial leverage concentrates risk onto the shareholders, because lenders enjoy a prior claim in the event of bankruptcy. So although financial leverage can increase a project's expected rate of return, and therefore, presumably, earnings per share, too much debt will be perceived as uncomfortably risky by equity investors, and have a negative effect on stock prices. In theory, then, there should be an optimal level of debt which the firm's managers should seek to obtain in its financial structure. The desirable proportion of debt should in general be lower for a firm with a higher inherent business risk. In addition to their own judgement, financial managers are sensitive to the attitudes of lenders, rating agencies, and investment bankers in setting financial targets (Scott and Johnson). In practice, financial structure will also depend upon the company's growth rate and level of profitability, and conditions in the capital markets at a given time.

Jan 1, 1985

By C. E. Birchenall, H. M. Schadel

Vapor pressure of silver over silver-gold alloys has been measured over a range of temperatures for four compositions. Orifice effusion has been compared with electromotive force measurement as a means for determining thermodynamic activities in these solid metallic alloys. Correlated activity coefficients are given for silver-gold alloys for the temperature range 200' to 1000°C. SOUND development of a technique for the measurement of some property of matter requires a comparison with other recognized procedures which have been used to measure the same property. Such a check is especially useful if the assumptions on which the applications stand are basically different for the two methods. Agreement in the results tends to confirm both sets of assumptions. The electromotive force method for determining thermodynamic activities depends upon the reversibility of the electrode processes and a knowledge of the valence states involved. The orifice effusion technique of determining vapor pressures requires that certain mean free path conditions be met, that the state of association of the vapor be known, and that efficient collection of vapors be maintained. Thus the requirements are quite different in nature. Although procedures often exist by which the fulfillment of these conditions may be tested internally, agreement of thermodynamic activities for a single system obtained by both methods constitutes a more severe test of the assumptions. The binary alloy system silver-gold is excellent for this purpose for several series of emf measure-

Jan 1, 1954

Jan 1, 1916

By L. H. de Wald, J. Walter Scott

It is usual practice in the copper industry to use open horizontal molds for casting tough-pitch copper wire bars.' A wire bar cast in this manner is partly characterized by heavy wrinkles and a comparatively deep skin of oxide on the top of the bar, corresponding to the open side of the mold. On the theory that the rough, high-oxide surface might have an adverse effect on the rolling and drawing properties of a wire bar and might account for some of the irregularities of mill behavior, several bars which had been planed to remove the wrinkled surface were processed into wire. These bars responded to mill treatment more satisfactorily than did the regular wire bars. Realizing that machining the surface of one face of each bar would not be commercially feasible, it was decided that casting the metal into a vertical mold and cropping off the pouring end would accomplish approximately the same result. Several wire bars of commercial size (250 Ib.) were so cast and processed into wire for comparative test with bars cast in the usual horizontal molds. It is the purpose of this paper to present the results obtained from this investigation, in which commercial bar sizes and processing technique were used throughout. The results show that in general copper wire bars cast vertically are superior to those cast horizontally. Experimental Procedure A horizontally cast bar and a vertically cast bar were obtained from each of several regular reverberatory furnace heats of copper which had been refined and poled to tough-pitch metal in accordance with usual methods.' Both bars were cast from the same part of the melt and within five minutes of each other, in order to produce as nearly as possible, in each case, wire bars of identical composition.

Jan 1, 1930

Jan 1, 1887

On July 25, the first copper ore From American Smelting & Refining Co.'s Mission open pit nine was sent into the new 15,000-tpd concentrator : three clays later, the first rail cars containing the Mission concentrate were sent north to the smelter at Hayden, Ariz. Thus two y,ears after stripping was started, Asarco's new mine, located south of Tucson. went on stream several months ahead of schedule. The plant, designed and constructed by Western Knapp Engineering Co., is expected to be operating at full capacity about September 1. with present plans calling for the copper concentrate from Mission to be shipped to Asarco's smelters at Hayden and El Paso.

Jan 9, 1961