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By G. W. White

Over the past several years, the steady progress of gas lift from a mysterious art into a developing science has been traceable through the many fine papers that have appeared in Journal of Petroleum Technology. Consequently, this magazine has rightly become a standard for the serious students of gas lift all over the world. The following discussion is offered in a sincere attempt to accurately present certain topics covered in the subject paper in the light of acknowledged state of the art procedures. INSTALLATION DESIGN The first point to be questioned is the author's installation design, beginning with Eq. 6. The use of 1,200 psi in the spacing equation instead of the 1,275 psi noted as available seems, at first glance, to be a simple arithmetic error. Upon further examination, it appears evident that both this 75 psi plus the 100-psi safety factor must be subtracted from available kickoff pressure because of conditions imposed by the characteristics of the ASC valve (see Fig. B-1). Pressure-charged valve design is incorrectly penalized by spacing the first valve using only 1,100 psi. The use of such a high back-pressure makes it appear that a typical ASC installation would require no more valves than a comparable conventional valve installation. Using a value of 100-psi tree pressure, the well could be valved to 11,000 ft very conservatively with seven pressure-operated valves, but would still require 11 ASC valves. The use of 400-B/D spacing gradient for a 140-B/D rate is not an accepted practice using precharged valves. The author would have done well to note the advantages to be gained by reducing the 500-psi tree pressure, which is clearly explained by Beadle, Harlan and Brown.' In Step 1 of Part III of the continuous flow discussion, the author incorrectly applies the Poettmann and Carpenter curves.2 Item 2 is an incorrect statement. An excellent reference on this point is the paper by Baxen-dell and Thomas.' VALVE MECHANICS The next topic relates to the mechanics of precharged valves. Eq. 2 for the ASC valve can be used to describe the condition of equilibrium, wherein the valve is closed with opening pending. When this equation is used to determine relative values of casing, dome and tubing pressure with conditions approaching the transition value, some strange results are obtained. The following uses the author's symbols and values given on page 689. Fig. B-1 shows the condition that exists at the moment an ASC valve has been uncovered during the unloading process (Condition I). The obvious result is a locked condition. The basis for the curve is shown on the figure which includes 1,000 psig casing pressure to uncover the valve. If injection gas is not bled off the casing until the pressure is decreased by an amount exceeding the stabilizer discharging valve pressure, upward adjustment of the casing pressure is mandatory for the valve to open and unloading operations to continue. In Condition I the dome pressure exceeds the casing pressure by 20 psi, and the tubing pressure required to open the valve is 1,212 psig. This tubing pressure would not exist under the assumed conditions. In Condition I1 the casing pressure is increased to the dome pressure, and the tubing pressure required to open the valve is 1,102 psig. It is apparent that the casing pressure must be increased to a value exceeding the dome pressure before unloading operations could continue. In Condition I11 a maximum casing pressure of 100 psi (stabilizer charging valve set pressure) above the dome pressure is reached, and the tubing pressure required to open the valve is 549 psig. The author's statement after Eq. 5 that "the minimum tubing pressure required to open an ASC valve is equal to the casing pressure at depth less the transition pressure of the valve" is incorrect except for Condition I11 only. Otherwise, the equation is invalid.

Jan 1, 1965

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Jan 1, 1938

By J. Chipman, N. J. Grant, R. Rocca

D. E. Babcock (Republic Steel Corp., Youngstown, Ohio)—With reference to eqs 7 and 8, at what temperature do they apply John Chipman (authors' reply)—That was 1600°C. Dr. Babcock—You have l x 10-4 as the component for the lime and 1 or 4x10-. Now, is it by dividing one into the other you get the 400? That is assuming equivalent activity on the part of oxygen, sulphur, and magnesia. Dr. Chipman—Yes, they are calculated for 1600. Now, the first one for CaO was calculated before we had a glimpse of Dr. Rosenqvist's paper." If you take his calculation you get 14,000 cal which is very good agreement, but our calculation would be superseded by Dr. Rosenqvist's new data. Dr. Babcock—The state you assume those to be in is the liquid state, as near as you can measure? Dr. Chipman—Naturally it is based on the solid CaS, but if you add the effect of fusion on both sides it just about balances out, so the ratio would be about the same. B. M. Larsen (U. S. Steel Co., Kearny, N. J.)—If we knew the activity of sulphur in the slag instead of merely the percentage, we might be able to find some conflicting factors that balance one another out, and find that the FeO or oxygen pressure effect is really present over the whole range. Dr. Chipman—I am fairly sure we would. The activity of sulphur in the slag and the activity of CaO in the slag, if we just knew those quantities, would enable us to save a lot of this computation and assumption and all the approximations we are doing now. Mr. Larsen—Two other points perhaps should be included: 1—an independent effect of manganese in helping the desulphurization; and 2—the number of mols of constituents or number of mols of ions or whatever there is in the slag could vary with these compositions in such a way that you get dilution effects. Dr. Chipman—You can figure all that in if you want to and it might improve the degree of approximation a little bit. Maybe enough to justify the labor of calculation, inaybe not, but we did not do it. L. S. Darken (U. S. Steel Co., Kearny, N. J.)—The authors have tackled a very complicated problem in trying to tie together in one picture the desulphurizing problem over the wide range of basicity and oxidation level from that of the open hearth to that of the blast furnace. At the present state of our knowledge of slags such an ambitious undertaking necessarily involves the adoption of numerous hypotheses. Their formulation (eq 11) for the higher FeO range

Jan 1, 1952

By N. A. Parlee, A. E. Lord

Measurements of the solubility of lead in liquid iron were made at 1550°, 1600°, 1650°, and 1700°C using two different methods, i.e., 1) liquid iron-liquid lead equilibration and 2) liquid iron-lead vapor equilibration. LEAD was long considered insoluble in liquid iron1. Today steels containing 0.15 to 0.35 pct Pb are used. One laboratory has found a solubility of about 0.5 pet in the 1600°C range. Recently Miller and Elliott2 gave 0.60 pct as the result of one determillation at 1540°C. Because these findings resulted from the

Jan 1, 1961

By James W. Neill

Bituminous coal has for many years been used for the smelting of iron-ores in the blast-furnace. In some districts in Scotland it is used alone, in others it is used mixed with coke. The similar use of certain bituminous coals in the United States has been repeatedly mentioned in the Transactions. (See, for instance, as to the Hocking Valley coal, the papers of Dr. T. Sterry Hunt, Trans., ii., 275, and vii., 313; and as to Indiana "block-coal," the paper of Mr. J. S. Alexander, Trans., i., 225.) Phillips (Elements of Metallurgy, p. 250) says: " Raw coal for blast-furnace use must be of a non-cokiog kind, and, when of suitable quality, is perhaps the most advantageous fuel." In the first

Jan 1, 1892

By J. C. Febles

The use of iron for the precipitation of copper was known at least as early as the fifteenth century. Both Paracelsus and Basil Valentine refer to it in their writings, as early as 1500 A. D. It was used in Peru for this purpose prior to 1637, and at Rio Tinto, Spain, as early as the sixteenth century. The statement has been made repeatedly that in the early history of the mining industry at Butte, the practicability of this method of recovering copper from solution was overlooked, and that enormous quantities of copper-bearing water were allowed to go to waste, the copper in which might easily have been recovered at small cost; and that this oversight on the part of the mine operators was due to ignorance of this method of recovering copper. As a matter of fact, very little copper-bearing mineral was encountered in the mines of Butte until a depth of 400 or 500 ft. had been reached, and in many cases much greater depths were necessary to reach the copper-bearing zone. The water encountered in the upper levels (although in most cases quite highly mineralized) contained little or no copper, and it was only after considerable areas of copper-bearing ore had been uncovered and developed that copper sulphate began to appear in the mine water in any considerable quantity. In fact, the first water that was observed to contain copper carried it in such small amounts as to be of little or no importance. It was only after years of underground work had opened extensive areas of stopes, drifts, and other underground workings, these being subsequently filled with waste, nearly all of which contained small copper values, which became oxidized by exposure to the air and were acted upon by the slowly percolating mineral water, that the recovery of copper from mine water became commercially important.

Jan 1, 1914

By Ganesh P. Mohanty, James J. Wert

THE brittleness of the intermetallics usually render their deformation studies at ordinary temperatures using conventional techniques inadequate. On the other hand, although X-ray line broadening measurements is not a complementary technique, it provides a means for gaining limited but useful information on the cold worked state of these materials. In the present instance, a study of the effects of cold work in the lead telluride intermetallic compound was carried out by analyzing the diffraction profiles of the deformed and the corresponding annealed samples. An ingot of PbTe was prepared by induction melting high-purity lead and tellurium in a quartz crucible under an atmosphere of argon. After homo-genization, the ingot was ground to -325 mesh at room temperature, and using a polished die the cold- worked powder was pressed into the form of flat faced briquets for diffraction measurements. A spectrometer with 0.125 deg per min scanning velocity, CuKa radiation, pulse height analyzer, and a proportional counter were employed in the X-ray measurements, and the powder peaks were collected from the sample in fully cold-worked state and after it had been annealed to relieve the effects of cold work completely. For reliable estimates of the peak extremities, small angular ranges where the tails merged into the background were point counted. Fourier inversions of the experimental peaks were carried out in an IBM 705 computer using the procedures introduced by stokes.' Both the cosine and sine components of the Fourier series were used to take into account any peak assymetry arising

Jan 1, 1963

By R. B. Gilmore

It has been the custom of the Railroad Commission of Texas to hold hearings each month with respect to existence and imminence of waste of oil and gas in Texas and its prevention, and to issue orders restricting the production of oil to the reasonable market demands and allocating production to the various fields in Texas. The practice of designating the actual days during the month on which wells are to be shut down was discontinued in the order for November 1942, and orders issued thereafter contain only the number of shut-in and producing days for the month. Orders issued by the Railroad Commission are divided into two main subdivisions, the first a general shutdown order of all oil wells in the various fields in Texas, and second, the exception of certain fields to this general order. Table I shows the producing days for all of the fields in Texas for 1944 under the first of these classifications : The fields that have producing schedules varying from the general order may be divided roughly into three subdivisions, as follows: Table 2 shows the producing days for certain fields that were prorated as a group throughout 1944. Other fields which were occasionally included with this group were also prorated under the general order and by special orders. The producing days for these irregular fields are shown in Table 4. In Table 3 are listed fields that were exempted from any shutdown days during December 1944, the majority retaining this exception throughout 1944. Certain fields included in the general order were added to this group on the first day of the month shown.

Jan 1, 1945

By T. R. Ingraham

The thermal decomposition of Nickel (II) sulfate was examined by determining the total pressure of SO3, SO2, and O2 developed over a sample when it was heated in an evacuated system fitted with a Pyrex-bellows mercury manometer. The equilibrium pressures were combined with previously published data on the oxide and sulfide systems to establish a predominance volume diagranz for the Ni-S-O system over the normal range of roasting temperature and gas composition used in the treatment of nickel minerals. The protective coating of NiSO4 which forms on the oxide during roasting, and which causes the sulfation reaction to almost cease, may be disengaged readily by temperature cycling. When nickel sulfide is roasted in air, either nickel sulfate or nickel oxide may be formed by altering the experimental conditions. Because of the differing stabilities of various metal sulfates and oxides, possibilities exist for separating some of the constituents of mineral mixtures by the technique of selective sulfation and oxidation roasting. The experimental information required to make reasonable predictions of the possibilities of this technique is incomplete and, in some cases, in conflict. As part of a general program of providing some of the required information, a study EXPERIMENTAL Materials, Apparatus, and Procedure. Fisher certified reagent-grade nickel sulfate hexahydrate was used in the source material for both nickel sulfate and nickel oxide. The manufacturer's analysis indicated: 0.001 pct Fe, 0.005 pct Cu, 0.003 pct Co, 0.001 pct C1, other 0.15 pct. The material was dehydrated, before use, by heating at 420°C for 5 hr. The oxide was prepared by roasting the sulfate in an open tray in a muffle furnace for 10 hr at950°C. Preliminary experiments which were made by thermogravimetric analysis and X-ray diffraction analysis established that only one crystal form of nickel oxide and one of nickel sulfate were involved in the equilibrium shown in Eq. [I]. The apparatus used in the experiments was described previously.1,3 The main feature is a corrosion-resistant, flexible Pyrex bellows which is used to protect the mercury in a u-tube manometer. Before a run was begun, the apparatus was washed thoroughly with hot hydrochloric acid and water and dried by heating under vacuum. The mixed sulfate -oxide sample was contained in a platinum bat rest-

Jan 1, 1967

By M. Friedman

Applications of rock mechanics to the design of engineering structures in rock involve the assumption that the stresses are due entirely to the present applied loads. For instance, it is assumed that the vertical normal stress in undisturbed rock free of topographic effects is equal to the weight per unit area of the overburden. In fact, vertical dilatational strains associated with stresses of more than 100 times the present overburden pressure have been measured by strain-relief methods on outcrops. 1,2 The notion of residual strain (stress) or latent stress3 seems unassailable; and indeed this has long been recognized by metallurgists. It is difficult, however, to assess the residual component of the in-situ state of elastic strain with conventional strain relief methods employed in mines or down boreholes. That is, in principle, the in-situ state results from the superposition of present applied loads (natural or man- induced) and potentially recoverable elastic strains (stresses) that exist in a given volume of material even though there are no external forces across the boundaries of the body (Voight,4 and Fig, 1). Accordingly, only in unloaded blocks can the true residual strains be measured by strain relief methods. Using X-rays, the elastic strains locked within the quartz grains or crystals of a rock can be measured. These strains are known to persist even when the rock is reduced to small chips but to vanish when the rock is disaggregated and the grains are powdered. Although we have just begun to investigate the mechanisms by which the strains are stored (see Preliminary Results), we believe that "pressure solution'' at grain boundaries, secondary cementation under load, permanent ("plastic") deformation, and temperature changes are possible processes. In any event, in our study of naturally deformed rocks, it is significant that we are work-

Jan 1, 1972

By Robert Linton

This paper deals with work that has been carried on for over three years by the management and staff of the North Butte Mining Co. in an effort to standardize mining methods, to eliminate lost motion in the operating organization, and to improve the efficiency of the individual workman. Naturally, much of this work is an adaptation of ideas suggested by other mining operations or by practice in manufacturing and other productive industries. The studies, however, have developed some features that it is believed are new. Both new and adapted features are given in detail. The normal capacity of the North Butte mines is about 2000 tons per day. Hoisting is done principally through the Granite Mountain shaft, which is 3740 ft. (1140 m.) deep and equipped with an electric hoist capable of hoisting 200 tons per hour from a depth of 4000 ft. (1219 m.). The lowest stoping level is the 3400-ft. The Granite Mountain shaft is connected with the Speculator shaft, about 850 ft. (259 m.) south, and with the Gem, about 1150 ft. (350 m.) east, which are 3000 (914.4 m.) and 2000 ft. (609.6 m.) deep, respectively. These two shafts are equipped with reversible fans for ventilation. The Speculator has a steam hoist with a capacity of 150 tons per hour from the 3000-ft. level. The Granite Mountain shaft is concrete lined from the 1600-ft. to below the 3000-ft. level and gunited with cement from the 1600-ft. level to the surface. Sections of the Speculator shaft with a total combined length of 500 ft. (152.4 m.) are also concreted. There are approximately 36 miles (58 km.) of drifts and crosscuts in the mine, in which there are 15.2 miles (24.5 km.) of track. At normal capacity, about 75 stoping faces, 20 raises, and 30 sill development faces are working. Stoping is usually by the standard square-set method. Where the size of the oreshoot and character of the walls permit, the rill (or cut-and-fill) system is employed. Scope and Limitations of Standardization Standardizing mining operations presents problems quite different from the problems of the manufacturer. Methods of a successful

Jan 1, 1922

By Earl R. Johnson

Ore broken at the mine or quarry face generally is loaded by power shovels into large trucks or rail cars and hauled to a primary crushing plant where it is reduced to a more workable size for ease in handling. The primary crushing plant is customarily located as close as possible to the center of gravity of the ore body and the projected limits of the mine pit to minimize the cost of hauling and to increase safety from flying rock as a result of blasting operations. A belt conveyor is used to transport the crushed product to a nearby ore treatment plant or, should this plant be located some distance away, the ore is loaded directly into cars and hauled by rail. Between trips the crusher product is accumulated in bins or stock piles. In all open pit mining and quarrying operations, the power shovel, the transportation equipment, and the primary crushing plant should work as a team, complementing each other. When establishing the design and selecting the equipment for these closely integrated operations, capital and operating costs for each unit operation must be weighed to achieve an optimum balance. Rising labor costs have given impetus to the universal trend toward greater efficiency, higher speed and larger equipment, and higher degrees of automatic control. The result is that power shovels have increased in size, haulage trucks are larger and faster, and only coarse crushers with feed openings adequate to receive run-of-mine lumps of ore with a minimum of secondary blasting are selected for new installations. These coarse crushers also have large through-put capacities, even when adjusted to produce a 6- to 10-in. size of product, thus making it possible to use a single stage of coarse crushing at the average mine. The use of a single crusher results in a compact crushing plant layout consisting of a dumping pocket for receiving loads of run-of-mine ore, a coarse crusher followed by a surge chamber for the crushed product, and a feeder to withdraw the ore at a uniform rate to deposit it on a belt conveyor. A

Jan 1, 1968

By Joseph Cervik

INTRODUCTION Common methods of controlling gob gas in U.S. mines are by means of ventilation of gob areas and gas drainage through surface boreholes. Costs of drilling surface gob holes increase as deeper coal- beds are mined. Where gob holes cannot be drilled because of topography, ventilation is the only means of control. Even then, sufficient air may not be available to dilute methane in the bleeder entries to acceptable levels. Thus, new methods of gob gas control need to be developed that are independent of surface topography, and of the mine ventilation system, and less costly than present systems. Except for slight variations in procedures and equipment, Great Britain, West Germany, France, Belguim, Poland, and Czechoslovakia use a common methane control method that is different from the system generally used in the United States. This Bureau of Mines paper reviews European mining methods, mining conditions, and methane control technology and discusses their applicability to U.S. mines.

Jan 1, 1981

By Keith E. Robinson, Brian Stimpson

INTRODUCTION In inclined sedimentary strata slope failure may occur by sliding along bedding and along a discontinuity or weak zone, as illustrated in Fig. 1. This mode of failure may be called 'bi-linear', as the failure surface is comprised of two linear or approximately linear segments. This type of failure has been suggested for the famous Frank Slide, Alberta, Canada (Cruder and Krahn, 1973) in which an estimated 90 M 5 tons (8.97 x 10 MN) of rock separated from Turtle Mountain and buried the town of Frank. Also, with the increasing depth of open pits and the construction of highways through inclined sedimentary strata this mode of failure is of major concern to the rock slope stability engineer. A computer program for calculating factors of safety for this slope failure mode is provided and includes the ability to vary shear strengths of potential slide surfaces, ground water elevations and wedge geometry. LIMITING EQUILIBRIUM MODEL The simple limiting equilibrium model used in the analysis is shown in Fig. 2. It is assumed that jointing is orthogonal to bed- ding and that the interface between the upper and lower wedges there- fore corresponds to a joint plane or planes. No shear strength is attributed to the interface so that the resultant force, P, from the upper wedge acts normally across the interface. The normal loads

Jan 1, 1983

By Douglas M. Dwosh

Inland Steel Coal Co.'s system of applying a gypsum/fiberglass rib and roof sealant with standard rock dusting equipment will be outlined. The criteria for use included acceptability of results, flexibility of equipment, ease of application, and economics. Material is conveyed dry until the gypsum, fiberglass, and water are combined at the discharge end of the rock dust hose.

Jan 1, 1978

By John E. Latz

QUICKSAND far below the surface, stopped two attempts by the Potash Co. of America to sink a third shaft to a potash bed that lies 1000 ft below the southern New Mexico desert. Virtually all methods of grouting were employed in the two failures without any indication of consolidation of the flowing sand. Sinking the South Shaft at the Carlsbad potash mine seemed an almost insurmountable task, until freezing was employed as a final resort. This process that proved to be the answer may be defined as "the sinking of a shaft by freezing, consists of the formation, in the water-bearing strata, of a large block of frozen ground in which it is possible to sink a shaft without danger of an influx of water, providing the ice-wall between the water outside and the shaft itself is strong enough to resist the hydrostatic pressure." Freezing Method Used Extensively in Europe Successful frozen ground shaft sinking projects had been completed in Europe, and Russel G. Haworth, resident manager of the Potash Co. of America, went abroad in search of the know-how needed for the New Mexico undertaking. The freezing process, with a history of two failures at the time, was first successfully employed by Poetsch in 1885 at the Houssu Collieries near Haine St. Pierre, Belgium. Poetsch contracted to sink the remaining 64 ft of an uncompleted shaft through water laden strata from a depth of 190 ft to a depth of 254 ft. This work was in progress until 1887. The freezing and sinking consumed more than two years. As a result of early failures, the process was not favorably received until soon after the turn of the century. The accurate prediction of success in a given application was made possible by the concerted effort and study of a group of European engineers. Means of accurate deviation measurement and control were devised, the nature and properties of frozen water laden soil (the ice wall) were investigated, a thorough and rational basis of refrigeration load calculation developed, and concurrently the efficiency and dependability of refrigeration machinery was greatly advanced. Numerous shafts in Germany, Belgium, France, and England today testify to the reliability and economical surety of the freezing method. Applied to the South Shaft, which is circular in cross-section and 15-ft diam, the freezing method consisted of drilling holes 350-ft deep, through the water bearing strata into impervious ground-the freeze hole pattern being concentric with the shaft and 31-ft diam. The holes were cased with pipe closed on the bottom end. Smaller tubes were placed inside these casings and connected to a header supplying chilled brine from a refrigeration plant. The brine descended in the tubing to the bottom of the hole and ascended through the annular space between the two pipes to the top of the casing; flowed into the return header and back to the refrigeration plant. Under these conditions, each of the freeze hole casings became surrounded by a cylinder of ice

Jan 1, 1952

By J. E. Spurr

CONTENTS. [ ] I. INTRODUCTION. The region here discussed is that part of western Nevada in which, during the last few years, discoveries of rich gold- and

Jan 1, 1913

By R. J. Colony

DEPOSITS of iron are widely scattered in the folded Cretaceous rocks and the associated igneous intrusives of Puerto Rico. Most of them are too small for commercial development, but a few have aroused some scientific and economic interest, among them the large body of residua] limonite at the west end of the island near Mayaguez1-6 (Fig. 1) and the mixed hematite and magnetite deposit on the southern slopes of the Sierra de Cayey, about four miles north of Arroyo.7-9 Neither of these orebodies has been developed, nor have investigations of the widely distributed deposits of magnetite, which include all the remaining occurrences of iron deserving of economic consideration, proceeded beyond the exploratory stage. With the possible exception of the mixed deposit near Arroyo, the magnetite is directly associated with andesitic and dioritic intrusives, which invade the Cretaceous rock section, and the bulk of it, occurring in calcareous sediments, is clearly of contact-replacement origin. The small deposit on Rio Portugues, north of Ponce, is found in a limestone band near its contact with an andesite dike.10,11 Two deposits of unde-

Jan 1, 1935

By J. E. Tobey, David R. Mitchell, J. H. Kerrick

DETAILED knowledge of purchase specifications established by coal consumers is essential to the successful design and operation of a coal preparation plant. ANTHRACITE Specifications should be considered by both the consumer and the producer as guide posts outlining a certain path for both to follow. Plants differ, therefore specifications must differ to meet the varied requirements. Specifications are not of themselves a "cureall" or an assurance of complete satisfaction in fuel utilization. Specifications should not be regarded as a license to engage in an orgy of buying any and all coals that may happen to fall within their limits. This would lead to the indiscriminate mixing of coals which may vary in their burning characteristics. Different coals of equal grade tend to be individualistic in their burning characteristics. Rather, specifications should be used to help simplify coal selection, to reduce the actual number of coals used over a given period; in other words, to have a stabilizing influence on coal or customer turnover. In the final analysis, the use of too many coals per year in a plant is costly to both the consumer and the producer. Too many sources usually result in higher operating and maintenance costs for the consumer and higher sales costs for the producer. Finally, the statement included in the report accompanying the comprehensive Coal Selection Charts prepared by the Coal Committee of the National Association of Purchasing Agents, and released in 1938, is significant. This Committee worked diligently for a period of 15 years seeking to find a scientific and reliable method for selecting coals. The two following paragraphs are quoted from its report: More important is the fact that no ready-made classification or set of specifications can possibly replace the judgment and resourcefulness of an experienced combustion engineer or fuel technologist, nor the usual need for full scale plant tests under the exact conditions of use before a final decision is made.

Jan 1, 1950

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