Search Documents

By T. R. Armstrong

During the year 1939, Mexican production totaled 42,479,000 bbl.; a daily average of 116,381 bbl. or a little over 2 per cent of the estimated world production. The Mexican Government operates 100 per cent of the refining branch of the industry, 100 per cent of the domestic distribution, 96 per cent of the crude production and 92 per cent of the total exports. No discussion of the Mexican petroleum industry in 1939 is adequate without reference to the "expropriation" of the foreign-owned oil properties in Mexico by executive fiat on March 18, 1938. The forcible seizing of the properties culminated a long series of efforts on the part of the Mexican Government to obtain control of the oil properties developed through foreign initiative and with foreign capital in Mexico. The heart of the issue is whether the Mexican nation or any nation may with impunity confiscate the legally acquired properties of American citizens. The Department of State of our Government has in its communications to Mexico emphasized the fact that its "expropriation" of American properties was confiscatory because Mexico had failed to make "adequate, effective and prompt compensation"; that the taking was no less confiscatory "because there may be an expressed intent to pay at some time in the future," and that, consequently, "Mexico has assumed and continues to assume to exercise a right without compliance with the condition necessary to give such exercise a recognizable status of legality." Mexico has professed its willingness to pay for the oil properties but at the same time through its Supreme Court it has declared that the owners or lessees do not have the exclusive right to extract and dispose of the oil in the subsoil. This is a reversal of the Mexican position with respect to oil as set forth in the Mexican mining laws, affirmed by Mexican Supreme Court decisions, and as clarified in the Warren-Paync and the Morrow-Calles agreements, as well as in diplomatic correspondence. Efforts to Settle the Controversy Responding to suggestions from the State Department, representatives of the principal oil companies undertook in 1939 to effect a direct

Jan 1, 1940

By T. R. Armstrong

During the year 1939, Mexican production totaled 42,479,000 bbl.; a daily average of 116,381 bbl. or a little over 2 per cent of the estimated world production. The Mexican Government operates 100 per cent of the refining branch of the industry, 100 per cent of the domestic distribution, 96 per cent of the crude production and 92 per cent of the total exports. No discussion of the Mexican petroleum industry in 1939 is adequate without reference to the "expropriation" of the foreign-owned oil properties in Mexico by executive fiat on March 18, 1938. The forcible seizing of the properties culminated a long series of efforts on the part of the Mexican Government to obtain control of the oil properties developed through foreign initiative and with foreign capital in Mexico. The heart of the issue is whether the Mexican nation or any nation may with impunity confiscate the legally acquired properties of American citizens. The Department of State of our Government has in its communications to Mexico emphasized the fact that its "expropriation" of American properties was confiscatory because Mexico had failed to make "adequate, effective and prompt compensation"; that the taking was no less confiscatory "because there may be an expressed intent to pay at some time in the future," and that, consequently, "Mexico has assumed and continues to assume to exercise a right without compliance with the condition necessary to give such exercise a recognizable status of legality." Mexico has professed its willingness to pay for the oil properties but at the same time through its Supreme Court it has declared that the owners or lessees do not have the exclusive right to extract and dispose of the oil in the subsoil. This is a reversal of the Mexican position with respect to oil as set forth in the Mexican mining laws, affirmed by Mexican Supreme Court decisions, and as clarified in the Warren-Paync and the Morrow-Calles agreements, as well as in diplomatic correspondence. Efforts to Settle the Controversy Responding to suggestions from the State Department, representatives of the principal oil companies undertook in 1939 to effect a direct

Jan 1, 1940

By O. B. Hopkins

DuRing 1931 Peru lost its place as ninth among the oil-producing countries of the world, to Argentina, and even in tenth place its production only slightly exceeded that of Trinidad. The preliminary figures for 1932 indicate that Peru will lose tenth place for that year to Trinidad. The production in barrels of the three coastal fields of Peru during the past three years was as follows: In addition to this crude production, the International and Lobitos companies produced approximately 770,000 bbl. of casinghead gasoline during 1932. There was no outstanding development in the oil industry in Peru during 1932; activity in the fields was very much restricted due to curtailment of production and the low price of oil. The potential production of the property of the International Petroleum Co. Ltd. greatly exceeded the actual production. By the beginning of 1932, a total of 2348 productive wells had been drilled on the property of the International, of which 547 had been abandoned, leaving 1801 productive wells at that' date. These wells cover a total productive area of approximately 13,500 acres. The crude produced has an average gravity of 37° to 38° Be. The Lobitos crude is of approximately the same gravity. The earliest oil pool developed in the Peruvian Coastal area is now more than 40 years old and is still producing. The major development in the area took place between 1920 and 1930. Production at the present rate can be maintained for 10 years or more.

Jan 1, 1933

By Oliver B. Hopkins

During the year 1936, a new high record was established for Peruvian production, the total amounting to 17,594,689 bbl., which brought the cumulative production of the country up to 205 million barrels. The 1936 figure represents an increase of 530,288 bbl. over that of 1935. The property of the International Petroleum Co. contributed 369,577 bbl. of this increase and the Lobitos property 158,233. Exploration work in the country was continued. The Selden Breck Co. examined a strip of the National Reserve in eastern Peru from Tambo del Sur to the Rio Pachitea. This company was granted a concession for a term of four years embracing approximately 50,000 acres near the confluence of the Rio Pachitea and the Rio Ucayali. During the year, the Peruvian Government commenced drilling a well on one of the reserved zones at Zorritos. At the end of the year, this well had reached a depth of 1300 feet. La Rrea-Parinas Estate.—Production on the La Brea-Parinas Estate of the International Petroleum Company, Ltd., reached an all-time high in 1936 of 15,126,491 bbl., an increase of 369,577 bbl. over the 1935 record. The total production from 1890 to 1936 was 163,668,014 barrels.

Jan 1, 1937

By Ionel I. Gardescu

During the summer of 1930 the average daily oil production of Rumania registered a new peak at 128,000 bbl. per day. The estimated potential production as of September, 1930, was as high as 235,000 bbl. per day. During the latter part of the year, by mutual agreement, the operators decided to curtail their output to about 100,000 bbl., which brought the average for the year to 116,600 bbl. The total production for 1930 was 41,572,000 bbl. (last month estimated) as compared with 35,757,000 bbl. for 1929, or an increase of 16.3 per cent. over last year's production. The production for the last 10 years is given in Table 1. The curtailment of production was prorated per company, based on its total estimated potential production as of September, 1930, and not per field. As a consequence, at present there is little development of protected or slightly productive areas; viz., Arbanasi, with an average production of 1750 bbl. per day, dropped to less than one-third after curtailment came into effect. Moreni, with an average production of 92,000 bbl. per day, while producing 58 per cent. of the country's total output in 1929, went to 67 per cent. at the beginning of 1930 and to 75.2 per cent, towards the end of the year. The modified Mining Law of 1929 is still in effect. This law withdraws the restrictions set on foreign capital by the law of 1924. As a consequence a large percentage of proven state land was alloted through competitive bidding to foreign companies. The Romano-Americana (Standard of New Jersey) acquired several leases in the Boldesti and

Jan 1, 1931

By I. Ionel Gardescu

During the latter part of 1930 an agreement was reached among operators in Rumania to curtail the production of oil to about 100,000 bbl. per day. This agreement lasted only a few months and 1931 shows a new peak in production with an average yield of 136,900 bbl. per day as against an average of 116,600 bbl. per day for 1930. The total production for 1931 was 49,210,000 bbl.; an increase of 18.4 per cent over the previous year's production. It is interesting to compare the percentage production of the major companies to the potential production figures determined by the Government in September, 1930 (Table l), on the basis of which the proposed curtailment was to have been made. The three companies listed first in this table show an increase in average production for 1931 over their estimated potential production rating. This increase might be attributed at least in part to the recent development of the Boldesti field, which is controlled by these companies and of which the production at present is nearly 10 per cent of the total oil output for Rumania. Among the other fields, Moreni still holds first place with an output of 33.6 per cent, followed by Gura-Ocnitzei with 29.3 per cent. In both these fields the main source of oil is from the deeper Meotic sands. Other

Jan 1, 1932

By I. J. Gardescu

The production of petroleum in Rumania in 1932 totaled 52,560,000 bbl., an increase of 6.8 per cent over 1931. The average daily production rose from 123,000 bbl. at the beginning of the year to 173,000 bbl. at the end of the year, the production in the Gura-Ocnitzei field rising from 38,800 to 80,700 bbl. per day. This increase was due to competitive development during which time the percentage of total production of the various operating companies remained practically unchanged. Chief producers were: Concordia, 30.3 per cent; Unirea, 21.6; Romano-Americana, 13.5; Steaua Romana, 8.3. Boldesti, where production of the previous year was practically doubled, would have produced far greater quantities were it not for the fact that both Astra Romana and Romano-Americana curtailed drilling operations. Of the total daily production of 21,800 bbl. a day, the Astra Romana, Steaua Romana and Romana Americana, produced respectively 67, 25 and 8 per cent. The Moreni field showed a sudden drop in production from the preceding year, due primarily to reduced drilling activities. Its production of only 21,000 bbl. a day removes it from first position for the first time in many years. All the other fields showed a decrease in production, except Ochiuri, 3 miles west of Gura-Ocnitzei, and Ceptura, 12 miles east of Boldesti. Drilling1 During the first nine months of 1932, 116 wells were completed, 8 of which were dry holes. The Meotian (lower Pliocene) is the producing horizon in 73, the Dacian (upper Pliocene) in 31, and the Oligocene in 4 of the completed wells. Three of the Oligocene wells were drilled in the Bacau district and one at Grausor, near Campina. In addition, 47 wells were drilling on Oct. 1,1932. Of the total completions and drilling wells, 92 per cent employed rotary for a footage of 98.5 per cent of the total drilled. Power for rotary drilling was furnished to 105 wells by steam, to 38 by electricity, and to one by gasoline.

Jan 1, 1933

By J. O. Nomland

DuRing the year 1939 the program of the California Arabian Standard Oil Co. in eastern Saudi Arabia consisted of drilling wells to increase the production of Dammam Dome. (This structure is also sometimes referred to as Dhahran Dome.) In addition, in other areas of the concession, wildcat wells are being drilled on geologically favorable structures. In the early wells drilled at Dhahran, production was at a depth of 2000 to 2200 ft. Since discovery of the "Arab zone" below 4300 ft., all of the later wells have been drilled to the deeper productive members. At present there are at Dhahran fivc wells in various stages of drilling or completion. In addition, 15 wells previously were drilled to the upper or lower zones. Although some of the early locations are exceptions, in general the spacing of the wells is at 3000 feet. Prospect testing consisted in drilling one well at Abu Hadriya and one at Ma'agala, about 100 miles northwest and 120 miles west of Dhahran. The first had attained a depth of 8655 ft. without encountering the main Darnmam productive zone, while the second was at a depth of 1372 ft. Both of these wildcat wells are on large dome structures. Production.—During the year 3,933,903 bbl. of approximately 35" gravity oil was produced, all from flowing wells. A part of this production was shipped in barges to the refinery at Bahrein. In early May a 40-mile 10-in. pipe line was completed to the deep-water terminal at Ras Tanura. The ceremony of first opening the valve for flow of oil into an ocean tanker was performed by King Abdulaziz Ibn Saud. Since that time tanker shipments have continued, both to Bahrein and to world markets. Only sufficient gas for camp purposes has been produced. Equipment.—A stabilization plant has been completed at Dhahran and plans have been made for a refinery at Ras Tanura. A modern camp is being built including power plant, central air-conditioning plant, radio station, employees' club and housing facilities for both married and single employees. Both the offices and dwellings are being air-conditioned. There is a hospital, with medical staff and nurses, providing facilities for both Saudi Arabs and Americans.

Jan 1, 1940

By J. O. Nomland

DuRing the year 1939 the program of the California Arabian Standard Oil Co. in eastern Saudi Arabia consisted of drilling wells to increase the production of Dammam Dome. (This structure is also sometimes referred to as Dhahran Dome.) In addition, in other areas of the concession, wildcat wells are being drilled on geologically favorable structures. In the early wells drilled at Dhahran, production was at a depth of 2000 to 2200 ft. Since discovery of the "Arab zone" below 4300 ft., all of the later wells have been drilled to the deeper productive members. At present there are at Dhahran fivc wells in various stages of drilling or completion. In addition, 15 wells previously were drilled to the upper or lower zones. Although some of the early locations are exceptions, in general the spacing of the wells is at 3000 feet. Prospect testing consisted in drilling one well at Abu Hadriya and one at Ma'agala, about 100 miles northwest and 120 miles west of Dhahran. The first had attained a depth of 8655 ft. without encountering the main Darnmam productive zone, while the second was at a depth of 1372 ft. Both of these wildcat wells are on large dome structures. Production.—During the year 3,933,903 bbl. of approximately 35" gravity oil was produced, all from flowing wells. A part of this production was shipped in barges to the refinery at Bahrein. In early May a 40-mile 10-in. pipe line was completed to the deep-water terminal at Ras Tanura. The ceremony of first opening the valve for flow of oil into an ocean tanker was performed by King Abdulaziz Ibn Saud. Since that time tanker shipments have continued, both to Bahrein and to world markets. Only sufficient gas for camp purposes has been produced. Equipment.—A stabilization plant has been completed at Dhahran and plans have been made for a refinery at Ras Tanura. A modern camp is being built including power plant, central air-conditioning plant, radio station, employees' club and housing facilities for both married and single employees. Both the offices and dwellings are being air-conditioned. There is a hospital, with medical staff and nurses, providing facilities for both Saudi Arabs and Americans.

Jan 1, 1940

By C. W. Hamilton

In the production of crude petroleum for the year 1930 Venezuela again maintained its world rank of second only to the United States. During the latter months of the year Russia forged ahead of Venezuela in daily rate of production, and from the present outlook will probably rank second among the oil-producing countries of the world in 1931. It is now believed Venezuelan production has passed its peak. The producing fields of the Bolivar coastal district, along the east side of Lake Maracaibo, continue to be the principal source of supply. Such fields as Lagunillas, Mene Grande and La Pas were not produced to capacity throughout 1930. During the year, three new fields entered into commercial development: The Rio Tarra field in the District of Colon, State of Zulia; the El Mene de Salto field in the District of Acosta, State of Falcon and the Quiriquire field, District of Piar, State of Monagas. For 1930 the total crude production of Venezuela was approximately 137,424,000 bbl. as compared to 137,739,000 bbl. during 1929, or a decrease of 315,000 bbl. During the past year exports of crude from Venezuela amounted to 137,8.50,000 bbl. as against 130,044,000 bbl. exported during 1929. Crude oil in field storage decreased from 14,138,-000 bbl. at the beginning of 1930 to 9,600,000 bbl. as of Jan. 1, 1931— present crude stocks fill about one half the field tankage available. Drilling operations in the producing fields declined sharply but throughout the year there was maintained a satisfactory potential reserve in the shape of proven territory and closed-in producers. Of the 2555 wells which have been completed in Venezuela, 1571 wells were in production on Jan. 1, 1931. The status of these present producing wells may be classified as follows: flowing 652, pumping 170, gas-air lift 193 and closed-in 556. The ratio of closed-in wells to producing wells declined in 1930, while the number of wells produced by artificial means increased materially. In the Bolivar coastal fields there is now observed a marked decline in gas volume and well-head pressure. Lago Petroleum Corpn. and Venezuela Gulf Oil Co. each have under construction electric plants designed to generate power for pumping wells by electricity. The first units of these plants will be placed in conlmission in the early spring of 1931. Venezuela Oil Concessions, Ltd. has installed a number of stenrn-

Jan 1, 1931

By C. C. McDermond

In reviewing petroleum development in Venezuela during the year 1936, it is well to bear in mind certain factors that affected progress, although not directly connected with the oil industry itself. At the start of the year, when the present Federal Administration took over the reins of government, reaction against the former regime resulted in some popular uprisings. Although these were entirely political in character, they were not without their effect on the oil industry itself. Such popular agitation really ended with a short general strike in Caracas, Maracaibo and other cities during June, these strikes being based on demands for certain changes in government policies. The strikes were duly investigated and their motives taken into consideration by the executive power or by Congress, and during the year many of the civil, political and administrative laws have been revised. In June and December, however, it was necessary to suspend activities in drilling and production work, particularly in the Lake Maracaibo Basin area. In June a strike caused a five-day shutdown in the main producing fields and on Dec. 14 labor difficulties resulted in a shutdown that continued to the end of the year, which necessitated suspension of all drilling and production in the Lake Basin area and curtailment of shipments to deep-water terminals. Actually, the strike lasted for a period of 42 days, until Federal intervention brought the dispute to a close with minor wage increases to workers hut with no loss of initiative or independence on the part of the oil companies. Operations in eastern Venezuela were not affected by the labor disturbances, production and exports having been reduced in December only in the Lake Basin fields. Well Completions On Jan. 1, 1937, a total of 3384 wells had been completed throughout Venezuelan fields, as compared with 3094 on Jan. 1,1936. Of these wells, 2005 were producers. The 290 completions effected during 1936 were by the following operating companies: Lago Petroleum Corporation, 123 completions; Dutch Shell group, 104; Standard Oil Company of Venezuela, 46; Mene Grande Oil Co., 15; British Controlled Oilfields, Ltd., 2.

Jan 1, 1937

By Joseph A. Holmes

Although Venezuelan production attained a new peak in 1938, passing the 190 million barrel mark for the first time, there was a distinct flattening of the steep upward trend that marked 1937 and preceding years. The annual total of 190,231,780 bbl. was only 31/3 million barrels above the 1937 figure, an increase of slightly less than 2 per cent, which contrasts sharply with the 20 per cent increase of 1937 over 1936. As in the previous year, the Lake Maracaibo fields supplied approximately 73 per cent of the oil produced, Lagunillas remaining the largest single contributor in spite of a 17 million barrel decrease in its annual output. Tia Juana increased its percentage of the Venezuelan total from 14.1 per cent in 1937 to 23.4 per cent in 1938; La Rosa showed little change with 13.7 per cent; Quiriquire in eastern Venezuela was also little changed with 13.2 per cent; Mene Grande, the only other field of real importance, declined from 7.7 per cent of the total in 1937 to 6.6 per cent for 1938. Two new fields, Temblador and Bachaquero, began actively to ship oil during the year, and by November were averaging 7600 and 10,000 bbl. per day, respectively. The former is in eastern Venezuela, and the latter is the most southern of the proven Lake Maracaibo fields. (A map of Venezuela was published in Volume 127 of the Transactions.) Table 1 gives a complete résumé of Venezuelan production by fields for 1937 and 1938, and shows that 1,685,575,663 bbl. had been produced to Dec. 31, 1938. The percentage contributed by each of the principal fields to this total is shown in Table 3, as well as their trends over the past several years. From these data it is apparent that the Maracaibo Basin is the principal source of Venezuelan production, and will probably continue to hold this position for some years. At the year's end 2657 oil wells were producing, of which 2425 were in western and 232 in eastern Venezuela; 36 per cent were on natural flow, 57 ppr cent were pumping, and 7 per cent were on air or gas lift. Out of 523 wells drilled, 507 producers were completed in 1938, five less than in the previous year and nearly 100 less than in 1929. These

Jan 1, 1939

By Joseph A. Holmes

Although Venezuelan production attained a new peak in 1938, passing the 190 million barrel mark for the first time, there was a distinct flattening of the steep upward trend that marked 1937 and preceding years. The annual total of 190,231,780 bbl. was only 31/3 million barrels above the 1937 figure, an increase of slightly less than 2 per cent, which contrasts sharply with the 20 per cent increase of 1937 over 1936. As in the previous year, the Lake Maracaibo fields supplied approximately 73 per cent of the oil produced, Lagunillas remaining the largest single contributor in spite of a 17 million barrel decrease in its annual output. Tia Juana increased its percentage of the Venezuelan total from 14.1 per cent in 1937 to 23.4 per cent in 1938; La Rosa showed little change with 13.7 per cent; Quiriquire in eastern Venezuela was also little changed with 13.2 per cent; Mene Grande, the only other field of real importance, declined from 7.7 per cent of the total in 1937 to 6.6 per cent for 1938. Two new fields, Temblador and Bachaquero, began actively to ship oil during the year, and by November were averaging 7600 and 10,000 bbl. per day, respectively. The former is in eastern Venezuela, and the latter is the most southern of the proven Lake Maracaibo fields. (A map of Venezuela was published in Volume 127 of the Transactions.) Table 1 gives a complete résumé of Venezuelan production by fields for 1937 and 1938, and shows that 1,685,575,663 bbl. had been produced to Dec. 31, 1938. The percentage contributed by each of the principal fields to this total is shown in Table 3, as well as their trends over the past several years. From these data it is apparent that the Maracaibo Basin is the principal source of Venezuelan production, and will probably continue to hold this position for some years. At the year's end 2657 oil wells were producing, of which 2425 were in western and 232 in eastern Venezuela; 36 per cent were on natural flow, 57 ppr cent were pumping, and 7 per cent were on air or gas lift. Out of 523 wells drilled, 507 producers were completed in 1938, five less than in the previous year and nearly 100 less than in 1929. These

Jan 1, 1939

By Fred H. Kan

The production of petroleum in Venezuela during 1931 was approximately 118,767,000 bbl., a decrease of 18,904,000 bbl., or 13.7 per cent, compared with the previous year. This is the first break in production, which has risen steadily since 1920, and is attributable to restriction of output and drilling operations, in harmony with lessened demand, rather than to any real decline in potential production. Venezuela ranked third among the world's producers, having lost second place to Russia. The Bolivar coastal fields, which were extended approximately 14 miles southward during the year, continued to supply most of the oil. La Concepcion, Los Manueles and Quiriquire all showed marked increases. A new field of light oil was discovered on the north coast near Puerto Cumarebo, State of Falcon. Exports declined 15.7 per cent, from 137,377,000 bbl. in 1930 to about 115,800,000 bbl. in 1931. Crude oil in storage at the end of the year amounted to 7,450,000 bbl., a decrease of 2,150,000 as compared with 1930. Tankage utilized is about 40 per cent of the available space. A drastic decline in drilling activity reduced the number of wells completed in producing areas from 401 in 1930 to 116 in 1931. Only three wells were drilled in the Lagunillas field proper, but, the amount of closed-in production and proven acreage gave assurance of a satisfactory potential output. Of the 1580 wells drilled to the close of 1931 in the producing areas of the Bolivar Coast, 631 were active and 853 were closed in; 96 had been abandoned. The status of the active wells at the end of 1931 was as follows: flowing, 331; pumping, 99; gas-air lift, 201. Producing wells closed in numbered 452; workovers, 8; totally inactive, 393. Lago Petroleum Corp. and Venezuela Gulf Oil Co. placed in operation the first units of their electric power plants, the former at Punta Gorda and the latter at Las Morochas, and are replacing steam power in their operations as rapidly as possible. Compressor stations were also installed for use in connection with air-gas lift operations. A considerable volume of gas was treated in gasoline extraction plants, the tail gas being recom-pressed and utilized together with natural high-pressure gas, for stimulation of production.

Jan 1, 1932

By H. Sherman

The general curtailment of activities, so marked in 1931, was continued and intensified in 1932 and although production was maintained at approximately the level of the previous year, 1932 was chiefly characterized by the virtual cessation of drilling in many of the proven fields, a further decline in wildcatting activities, particularly in the Maracaibo Basin, and the relinquishment of large blocks of unfavorably located acreage. A total of only 60 wells was completed during the year of which six were wildcats, while at the same time concessions aggregating approximately. 3,222,000 acres were renounced and reverted to the National Government. The maintenance of production at the previously established level was made possible through the large potential built up by drilling in previous years and by a gradual increase in pumping and gas-lift installations. Towards the end of the year there was a slight but perceptible tendency towards increased drilling in certain of the proven fields. Total production for the year came to 118,076,000 as compared to 118,418,000 bbl. for 1931, while exports amounted to 114,758,000 as against 116,683,000 bbl. in 1931. Table 1 shows production and exports and the average rate per day for the first half of 1932 as compared to the second half. Table 1.—Petroleum Production and Exports in 1932, Venezuela (Barrels of 42 Gallons) Production Rate per Day Export Rate per Day I January-June............ 61,943,000 1 390, 347 July-December.......... 56,133,000 305,071 50,788,000 276,022 Total.........,....... 118,076,000 322,612 114,758,000 313,546 During 1932 the number of active vessels comprising the Lake Maracaibo fleet of shallow-draft tankers was still further reduced, some being temporarily laid up and some transferred to service in other coun-

Jan 1, 1933

By Brandon H. Grove

In Austria's only producing field, at Zistersdorf, Erdoel Produktions-gesellschaft completed a single new producer, its well Gosting 6 coming in early in October for an average production of about 15 tons daily. For further testing within the proved part of the field this company's Gosting 7 was at the close of the year drilling in Pannonian strata at 760 m., and its Gosting 8 was rigging up. Outside of the proved area of the Zistersdorf field two further tests located on the Steinberg dome failed to find production in the known oil-bearing strata of the Sarmatian, and were deepened as wildcats into the Cretaceous Flysch. The first of these, Neusiedel 1, about one kilometer north of the known producing area, found oil in the Flysch beds at a depth of 1290 m. for an initial production of about 10 tons per day. The second test, Windisch Baumgarten la, is an old well previously considered a failure, which when deepened achieved a production of about 5 tons per day in the Flysch Inoceramus beds at 985 m. Neither of the foregoing wells is producing from a stratigraphically definable horizon, oil accumulation in the Flysch of this area being apparently controlled by tectonic breccias or related crevices.

Jan 1, 1937

By J. O. Nomland

Bahrein 'Island.—In 1936 the Bahrein Petroleum Co. continued drilling additional wells to further increase production. In all, 39 flowing wells have now been finished and five others are drilling. A second well has been deepened for prospecting the deeper horizons but has not been successfully completed as a commercial producer. In addition, a well has recently been drilled near the eastern limit of the producing area for edge-water observation. The present system places wells 3000 ft. apart in a rhombic grid, or about one well to 179 acres. The total production for the year was 4,644,635 barrels. It is expected that refinery capacity of 20,000 bbl. per day will have been completed by July, 1937. A new permanent and enlarged camp with office buildings is being built. A new hospital has been constructed and two additional medical men have been added to the staff. Saudi Arabia.—In eastern Saudi Arabia, the California Arabian Standard Oil Co. has continued with the program of prospect drilling started in 1935. After the gas encountered in Dammam well No. 1 had been successfully shut off, it was completed as a small flowing well of 51" gravity oil. Dammam No. 2, which had been started in 1935, tested 3840 bbl. of approximately 50" gravity oil from a depth of 2175 ft. Dammam No. 5, before being deepened for prospecting lower productive horizons, encountered a gas zone producing 30 million feet. Five other wells on the Dammam dome are in various stages of drilling or completion. Most of these have been located principally to outline the productive area and the various producing horizons of the structure. An extensive program of geological work is being continued. In June, 1936, a well was started on the El 'Alat structure about 25 miles northwest of the Dammam development. Although various tar showings have been reported, the well has not yet, at 2518 ft., reached the depth at which it has been thought that productive horizons might be encountered. A prospect well is being drilled by the Kuwait Oil Co. (jointly owned by Gulf and Anglo-Iranian Oil Companies) in the Sheikdom of Kuwait. The well is near Bahra, a few miles north of Kuwait Bay and about 240 miles northwest of El 'Alat. To date no favorable results at depth of about 6000 ft. have been reported.

Jan 1, 1937

By Guillermo Mariaca, Jorge Muñoz Reyer

As far as technology is concerned there has been no development in Bolivia during the year 1936, because the country, just emerging from the war with Paraguay, is only beginning to rebuild its economic foundations. Great steps, however, are being taken in order to secure a rapid and sound development of its oil resources, as follows: 1. The new Petroleum Law, which contemplates the problem of proration and conservation of natural resources, prohibiting the wasteful use of gas, and regulating the number of wells, their spacing and the permissible output per well, for each particular pool according to the conditions prevailing therein. 2. The creation of an official entity with the object of developing and exploiting a large petroliferous area. This entity has been called Yacimientos Petroliferos Fiscales Bolivianos (Y.P.F.B.), and the region assigned to it is all the sub-andean zone, which is approximately one hundred miles wide and borders the eastern part of the Oriental Andean range, from Argentine to Peru. It is said that drilling will be started immediately in various localities. At the present time a wide geological survey of part of the area is being made in order to find out which regions offer the best possibilities of commercial development. Y.P.F.B. has been authorized by the Government to draw up contracts with private companies for the exploitation of limited zones. Production The only company that has been producing in the country in 1936 is the Standard Oil Company of Bolivia, and only from two of its fields: Camiri and Sanandita. New wells were not drilled. During the first nine months of the year 12,762,958 liters (80,275 bbl.) was produced, 34,985 bbl. from the Camiri field and 45,290 bbl. from the Sanandita field. Reports for October, November and December are not yet available. The total for the year 1935 was 25,978,737 liters (163,388 bbl.).

Jan 1, 1937

By G. S. Hume

Production of petroleum and natural gas increased in Canada in 1939 principally because of new wells in Ontario and Alberta. Turner Valley The Turner Valley field, Alberta, yielded 7,456,000 bbl. of petroleum in 1939 in comparison with 6,703,548 bbl. in 1938, an increase of 11 per cent. Turner Valley now supplies 96 per cent of all petroleum produced in Canada (Table 1). The Turner Valley field (Table 2) has reached a position where it call supply much larger volumes of petroleum than the Prairie market is capable of consuming. The allowable production is under the jurisdiction of the Petroleum and Natural Gas Conservation Board of Alberta and the daily rate is set from time to time as warranted by the demand. During June the allowable reached a maximum of 27,000 bbl. a day. This, however, was a temporary situation due in part to the completion of a new British American Oil Co. refinery in Calgary capable of processing 5000 bbl. a day and with a storage capacity of about 100,000 bbl. The maximum consumption was reached during the harvest season with

Jan 1, 1940

By G. S. Hume

Production of petroleum and natural gas increased in Canada in 1939 principally because of new wells in Ontario and Alberta. Turner Valley The Turner Valley field, Alberta, yielded 7,456,000 bbl. of petroleum in 1939 in comparison with 6,703,548 bbl. in 1938, an increase of 11 per cent. Turner Valley now supplies 96 per cent of all petroleum produced in Canada (Table 1). The Turner Valley field (Table 2) has reached a position where it call supply much larger volumes of petroleum than the Prairie market is capable of consuming. The allowable production is under the jurisdiction of the Petroleum and Natural Gas Conservation Board of Alberta and the daily rate is set from time to time as warranted by the demand. During June the allowable reached a maximum of 27,000 bbl. a day. This, however, was a temporary situation due in part to the completion of a new British American Oil Co. refinery in Calgary capable of processing 5000 bbl. a day and with a storage capacity of about 100,000 bbl. The maximum consumption was reached during the harvest season with

Jan 1, 1940