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By Parke A. Dickey

Potential differences between strata of shale and sandstone have been recognized for about years, and they form the basis of the electrical logging of oil wells. Hitherto these potentials have been ascribed solely to electrochemical reactions caused by the disturbing effects of the water in the drill hole through which they are generally measured. Observations by the author in wells empty of water and in a mine shaft suggest that potential differences between sandstones and shales are natural and specific properties of the rocks, although they are modified in measurement by the disturbing effects of the water in the drill hole. The cause of these potentials probably is to be sought in the relative polar adsorptive capacities of quartz and clay particles. Introduction The existence of potential differences in the surface of the earth has been known for some time, and their measurement has facilitated the discovery of geological discontinuities such as ore bodies. The technique of measurement has been well established.'-a In measurements in oil wells, it has been found that the potential of shales with respect to some arbitrary reference is very nearly constant in any one well, at least below the zone to which meteoric water has gained access. Sandstones and some other types of sedimentary rocks have a difference of potential with respect to shale that is negative and may attain a value of 200 millivolts or more. The difference of potential, as usually measured commercially with water in the hole, is distributed over about one foot vertically at the top and bottom contacts of the sandstones. The sharpness of the curve at the formation contacts can be improved by using a short electrode that is close to the wall of the hole. These potentials generally have been ascribed to the disturbing effects of the water in the drill hole. Potentials have been found, however, in wells in which no water was present. In the course of experiments in electrical logging in Pennsylvania, carried out by the Pennsylvania Geological Survey, observations were made of several phenomena that hitherto have not been described, to the author's knowledge, in the published literature. The potential differences across the contacts of sandstone and shale are called in this paper "natural potentials," as distinguished from the potentials caused by electroendosmosis (electrofiltration) and concentration differences, which will be discussed subsequently. Potentials in Cored Well In the spring of 1942, the author measured the potentials in an exploratory well (Day 13, near Grand Valley, Pa.) which had been cored with diamond tools. The potentials were first measured with fresh water in the hole. A null balance potentiometer was used in this and all the other measurements described in this paper. One nonpolarizing porous pot electrode, containing copper sulphate solution and crystals surrounding a pure copper elec-

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By C. Williams, D. V. Carter

During 1943 five oil fields and two gas-condensate fields were discovered in the East and East Central Texas district. The New Hope field, discovered by Tide Water-Seaboard in Franklin County, is the most important oil discovery since the Hawkins field in 1940. At the close of the year two oil sands were producing and two additional oil sands were being tested. The gas-condensate fields of Appleby in Nacog-doches County and the Stewards Mill field in Freestone County had only one producing well each. The Carthage field was extended 3 miles north and 4 miles west. Another well that was testing at the year end indicated a probable eastward extension of several miles. The Quitman field, in Wood County, was the most active from the standpoint of drilling operations. Approximately 48 wells were complcted during the year. The second and third most active fields were Hawkins field, Wood County, and Kildare field, Cass County, respectively. Wartime restrictions of material, together with manpower shortage and Federal spacing regulations, reduced the number of oil and gas-well completions from 265 in I942 to 171 in 1943. This represents a drop of 35 percent, or approximately 1/3, enough to replace the 531 producing wells abandoned in the district during the year. No changes were made in the price of crude oil in the district in 1943. The district produced 177,652,940 bbl. of condensate and oil during 1943. This represents an increase of approximately 11 per cent compared with the previous year. The East Texas field, which is the largest and most important field in the district, had an annual production of 128,568,647 bbl. of oil, which is approximately 6.5 per cent more than the previous year, and represents 72 per cent of the district's production of condensate and oil for the year. The district had an estimated basic daily allowable of approximately 509,000 bbl. of oil on Dec. 31, 1943. The entire district produced approximately 30 pcr cent of the state's production for the year 1943. The Hawkins field, Wood County, was operated 271 days during the year and with an average daily production of approximately 52,488 bbl. for the year. This field, which is the second largest in the district, produced 14,224,164 bbl, of oil during the year. Changes in annual production in certain fields in the district can be attributed to their ability to produce at higher rates, the demand, and transportation facilities in the war effort. The East Texas field showed an over-all decrease in reservoir pressure of 8.30 lb. during the year. Indications were that through the first quarter of 1944 the return of salt water to the reservoir was having a beneficial effect. It is hoped that, as more and more water is returned to the reser-

Jan 1, 1944

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

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

Jan 1, 1944

By R. B. Gilmore

The North Texas district, as herein defined, includes the counties of Archer, Baylor, Clay, Cooke, Foard, Hardeman, Jack, Kiiox, Montague, Wichita, Wil-barger, and Young. Jack and Young Counties are included for the first time so that this district will correspond with District No. 9 of the Texas Railroad Commission. This area covers generally the crest and south flank of a system of buried mountains known as the Red River uplift. The oil and gas accumulations along this feature are in traps, which, although localized by structures incident to the regional uplift, usually are modified by stratigraphic changes in the sediments. The structural deformation caused by the Red River uplift is modified by the Rend arch, which is a broad anticline plunging northward from the Llano uplift in central Texas through Young and into Archer Counties. The fields in southern Archer, southeastern Baylor, southwestern Clay, and western Jack Counties arc on the extreme north end and along the flanks of the Bend arch and have generally the same type of oil and gas accumulation as the other fields in this district. Recent exploration has been along the flanks of the Fort Worth syncline, which is east of the Bend arch and south of the Red River uplift and extends into southeastern Clay and southwestern Montague Counties and along the eastern part of Jack County. The larger part of past oil and gas produc- tion has come from Pennsylvanian strata, with less important amounts lrom the Permian, and minor quantities from the Mississippian and Ordovician. Developments during 1943 About 1100 wells were drilled in the district during 1943 and more than 500 oil wells were completed, an increase from 1942. of approximately 12 per cent in the number of successful drilling operations of the total wells drilled. The addition of Jack and Young Counties to this district accounts for part of this increase, almost 150 wells being completed in the two counties. Production increased slightly over the previous year as a result of an increase in the number of producing wells and a greater demand for this high-gravity, sweet crude oil. The average depth of discovery wells was about 400 ft. deeper than in 1942. Although more discoveries produced from horizons below the base of the Strawn series than from those above the Straw, the deeper horizons, including the Bend series of the Pennsylvanian, the Mississippian limestone and Ellenburger of the Ordo-vician, largely were dissappointing from the viewpoint of major additions to oil reserves. The largest single addition to the reserves was in the basal Strawn sand in the Walnut Bend field, Cooke County. During the year, 31 wells were completed, both in the field and as cxtensions. The most active arca Was Jack County, in which five fields or potential fields were discovered, although only 44 oil wells were completed.

Jan 1, 1944

By V. C. Perini

The North Central Texas district as herein defined includes the counties of Brown, Callahan, Coleman, Comanche, Coryell, Eastland, Erath, Fisher, Hamilton, Haskell, Hood, Jones, Lampasas, Mills, Nolan, Palo Pinto, Parker, San Saba, Shackelford, Stephens, Stonewall, Summer-ville, Taylor, Throckmorton and Wise. These counties as listed are the counties of District 7B, State Railroad Commission. In the new designation of districts for the Transactions, the North Central Texas district includes most, but not all, of the counties of the previously classified West Central Texas district. This district covers the south central crest and the west flank of the Bend flexure north of the Llano uplift. The west flank of the Bend flexure is on the east boundary of the Permian Basin of West Texas. The greater part of the oil and gas produced in this district has been from Pennsylvanian strata. Some oil and gas has been produced from the lower Permian (by the latest, selection of the Pennsyl-vanian-Permian boundary) and minor amounts from the Mississippian and Ordovician sediments. Increasingly important quantities of oil and gas are to be expected from the older sediments by deeper development in proven fields and by new discoveries. Most of the oil and gas in the district has accumulated in localized, well-defined structural traps in limestone and sandstone reservoirs and in traps due to stratigraphic changes in sedimentation, mainly porosity traps in limestone and sandstone lenses, both usually associated with some structural feature. These features are found by surface and subsurface geological structural mapping, by core drilling and by geophysical surveying. Geochemical methods are also the basis for some wildcatting. The demand for sweet crude oil from this district is firm for local and national consumption, but the market price for the oil remains practically the same as in 1941. The price is not adequate to meet the requirements of the average independent operator with the continued advance in production, tievelopment and wildcatting costs. Stripper wells are being plugged daily and should be jealously saved for the future local and national reserves, especially in view of the fact that new discoveries of commercially important oil and gas reserves are not keeping pace with consumption. An expected economic disruption attendant upon the national war effort has arisen and continues in the future outlook for this district. The lack and delay of securing replacement parts for almost all oil-field equipment has handicapped and delayed operations and has decreased efficiency in wildcatting, development and production. Sufficient experienced drilling, scientific and office personnel is lacking because of inductions in the armed forces and migration to war industries during the period before manpower conservation became effective. The office personnel of the average oil and gas producer continues to be swamped by the increasing demands for reports by state and federal bureaus. An average of IQ days

Jan 1, 1944

By L. B. Herring, Harold Decker

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

Jan 1, 1944

By William H. Spice

For the year 1943, exploratory drilling in South Central Texas continued on the sharp decline that started during 1942. Of the 3 counties comprising this district, as now revised to include the same area as is covered by District No. I, Oil and Gas Division, Railroad Commission of Texas, I5 counties are producing oil or gas. Only 29 exploratory wells were drilled during 1943, as compared with 51 exploratory wells in 1942, or a decrease of over 40 per cent. One new oil field and one new gas field were discovered during the year and a new horizon was discovered in an existing oil field. This cornpares with two new oil fields and an extension to an existing gas field in 1942. The one new oil field, South Washburn, in southeastern La Salle County, was discovered by Quintana Petroleum Corporation's No. I-D South Texas indicate in April 1943, flowing 4 bbl. per day, 48" A.P.I. gravity oil with an estimated 4 million cubic feet of gas from Wilcox sand at 6030 ft. This well i's the result of an extensive seismograph survey of the area. It is about 434 miles southwest of the same company's Green Branch field and by the end of the year one dry hole had been drilled to the southwest of this discovery. The one new gas field, which was not named, was located in eastern McMullen County by Edwin M. Jones' No. 102 Ezzell, in November 1943, for an estimated 8 million cubic feet of gas from shallow Jackson sand at 1222 ft. NO addi- tional wells have been drilled in this area, which may also be considered as an extension to the South Calliham field. The one new producing horizon was discovered in the South Campana field in southeastern McMullen County, by Argo Oil Corporation's No. 2-G Edrington, in January 1943, flowing 55 bbl. per day, 21' A.P.I. gravity oil with 40 per cent water from Government wells sand at 2609 feet. None of these discoveries were of major importance and subsequent development in these new areas has proved to be disappointing. Produc'tion for the district during 1943 totaled approximately 6,985,000 bbl. from about 3430 producing wells. This is an increase in production of about 5 per cent over 1942, but a decrease in producing wells of about 10 per cent under the number of wells producing in 1942 for the same district. Average production per well was 5.4 bbl. during 1943 as against 4.8 bbl. during 1942. Approximately 5,320,000 hhl. of this total production, or 76 per cent, was produced by the four Edwards lime fields, Luling, Branyon, Salt Flat, and Darst Creek, which are from 22 to 14 years old. The remaining production came from the 43 other active oil fields in the district. Drilling in the proven fields maintained approximately the same level as for 1942, with a total of 36 wells drilled. Of these operations, 21 were oil wells, one was a gas well and 14 were dry holes. This is a slightly better proportion of producers than for 1942. Washburn field had the greatest number of new producing wells drilled during the year, with a total of 10.

Jan 1, 1944

By Robert S. Dewey

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

Jan 1, 1944

By David B. Reger

Sharp declines of initial production of both oil and gas occurred in West Virginia during 1943. There was only a small decrease in the number of ncw wells, but these wells did not show the quantities of oil and gas that might have been expected. The same situation prevailed both as to routine drilling in old pools and as to exploratory wildcat wells. Out of 42 wildcats drilled, 19 resulted in small commercial gas wells, and 2 in small commercial oil. No new oil pools were discovered, but the proved limits of several old pools were considerably extended, giving 4200 acres of newly proved oil territory. Three new gas pools, resulting from discoveries made in 1942 and former years, came into definite activity. The newly proved gas territory in these and in various extensions of old pools is 39,000 acres or more. It is doubtful whether the newly proved reserves of either oil or gas will balance current withdrawals. The account of operations, as gathered from trade journals and other reporting services, shows that 696 new wells were drilled, resulting in 82 oil wells with 919 bbl. of daily new production; 475 gas wells with 454,735,000 cu. ft. of daily open flow, and 137 dry holes. Also, 57 old wells were drilled to deeper sands, with 3 bbl. and 11,484,000 cu. it. of added production. On the new wells, the oil average was 11.2 bbl. per well per day, and the gas average was 957,337 cu. ft. per well per day. On new wells the ratio of dry holes to completions was 19.68 per cent. On deeper drilling the ratio of failures was 14.03 per cent. The greatly decreased average initial gas-well production in 1943, as compared with 2,270,406 CU. ft. per well in 1942, is directly attributable to the abrupt decline of completions in the Charleston gas field, which reached its peak in 1942. Production of oil for the year was estimated by the U. S. Rureau of Mines as 3,349,000 bbl., as compared with 3,574,000 bbl. in 1942. Production of natural gas for the year is estimated by the author as 210,000, 000,000 cu. ft., compared with the U. S. Bureau of Mines final figures of 215,193,-000,000 cu. ft.* in 1942.

Jan 1, 1944

By S. Fróes Abreu

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

Jan 1, 1944

By Walter Miller

During the second year of America's active ia in the war the inain objectives of the petroleum-refining industry were again to provide the four most important product needs for war: 100-octane aviation gasoline, toluene for T.N.T. production, high-quality lubricating oils for the needs of aviation and the armed forces, and petroleum chemicals for synthetic rubber manufacture. All other materials supplied by the petroleum industry took an inferior priority ranking, depending on the degree of essentiality. To accomplish the above objectives the industry initiated and carried on a building program during 1942 and 1943 which will put those two years down in petroleum-refining history as the greatest construction years of all time, a record which will hold for decades to come. Led by an estimated total of $ 900,000,000 going into 100-octane and contributory plant investment, it is easy to picture a total of two billion dollars and more going into additional refining-industry plant investment during 1942 and 1943, most of it privately paid for, but a substantial part covered by R.F.C. Government money financing. Some of the new plants will not be completed until 1944, but a large proportion of the program was finished and put into operation, adding substantially to the output of the four principal products during 1943- lne most important and spectacuiar activity of the refining industry is of course the 100-octane gasoline program necessitated by the fact that nearly 90 per cent of the requirements of the United Nations is being furnished by the United States. Recent P.A.W. figures mention $goo,-ooo,ooo as the cost of the construction looking to increasing the output of this all-important munition. Thirty-four major plants have been completed, 11 of them during the last quarter of the year. Thirty-eight more will be completed and put into operation during the first four or five months of 1944. Twenty-two additional plants authorized during 1943 are already well under way and scheduled for production late in 1944. Early in 1942 the aim was to treble the capacity for making 100-octane gasoline then existing; later, plans were to make it five times as great, to match the increased warplane building program; and toward the end of the year the sights had been set at a still higher but unannounced target, representing six to seven times the early 1942 figure. Comparative figures issued at the end of 1943 enable one to guess a program by the middle of 1944 of eight to nine times the former production, with an ultimate production in 1944 of eleven or more times the early 1942 output. It became obvious in 1943 that building of new units would be materially slowed because of delay in getting construction materials and that they would reach operation at considerably later dates than

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