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By H. W. McCue, Henry Rogatz

Oil.—In the Texas Panhandle, 502 oil wells were drilled during the year 1940, with a total daily initial production of 139,187 bb1.—that is, 137 more oil wells drilled than in the previous year, with an increase in total daily initial production of 8219 bbl. The total daily potential of the field on Dec. 31, 1940, as determined by the Texas Railroad Commission, was 1,375,502 bbl., an increase of 30,825 bbl. over the previous year. On Dec. 31,1940, a daily allowable of 85,050 bbl., which was a decrease of 35 per cent over 1939, was assigned to the field to be produced from 4788 wells. The total amount of oil produced for the year was 26,788,590 bbl., making a cumulative total of 378,960,728 bbl. during the past 19 years. No new oil-producing acreage was discovered. Gas.—During the year, 92 gas wells were drilled, having a combined open flow of 2,402,900.000 CU. ft.; that is, 6 more than the number of wells drilled in 1939, with an increase in the open flow of 204,900,000 cu. ft. per day. The gas production for the year was 670,435,112,000 CU. ft., and the total gas removed from thc ground during

Jan 1, 1941

By William H. Spice

The fault zone of south central Texas showed renewed activity during I940 along a trend roughly paralleling the old established Balcones fault-line group of producing fields. This was a result of the new discoveries in the Wilcox (Eocene) formation in southeastern Texas and Louisiana. As of the end of the year, one new field producing from the Wilcox formation had been discovered on the Washburn ranch in La Salle County, along the southwestern limits of the district, and several projected tests into that formation were under way. In the western part of the district, par-titularly in the part of the Rio Grande embayment that is in Dimmit, Webb and Zavala Counties, there has been renewed leasing activity with the shallower sands in the Navarro-Taylor formations (Upper Cretaceous) as the objective in several projected tests for the early part of 1941. Three new fields have been discovered along the old fault-line trend, but these have been comparatively small, producing either from Dale lime, Austin chalk or Buda lime. No new fields were discovered during the Year in the Edwards (Lower Cretaceous) lime horizon. Approximately 260 wells were drilled in the district during 1940, which resulted in four new oil fields. Twenty-seven new wells were completed in the Proven Edwards lime fields of Darst Creek, Luling and Salt Flat and seven were added to production in the Pearsall field. Approximately 160 wells in 18 counties were completed as failures during the year. The district produced 7,659,634 bbl. during 1940, which was a 9 per cent decrease under production for 1939. In all, 3559 wells were producing at the end of I940, compared with 3562 wells producing at the end of the previous year; 104 new producing wells were completed and 163 wells were abandoned in the producing fields of the district. During 1940 considerable exploratory work was carried on along the Wilcox trend within the district, particularly by major companies employing various types of geophysical methods, and leasing activity increased considerably. At the end of the year, the total number of acres of nonproducing leases held by major companies in the district increased about 10 per cent. It is anticipated that this activity will continue into the first part of 1941 and will be supplemented by several exploratory test wells. New Fields B,, Creek, Caldwett County.— . R. Ogden NO. 2 Talley, discovery well of the Bee Creek field, in the northeastern part of Caldwell County, was completed on March 16, I940, in Dale lime from 2091 to 2238 ft., pumping 85 bbl. per day, 39° A.P.1. gravity. The discovery of this field can be credited to a combination of subsurface geology and magnetometer work, which indicated the presence of a serpentine intrusion. At the end of the year, ,3 producing oil wells had been completed and the field has produced a total of 47,050 barrels.

Jan 1, 1941

By Michel T. Halbouty

The area for which oil and gas developments in South Texas are reported for 1940 in this paper covers the same counties that were included in the reports for 1938 and 1939, with the addition of LaSalle County. LaSalle County is includcd in the Laredo district of South Texas, which totals seven counties for that district. The Corpus Christi district remains the same, with nine counties. The two districts together comprise what is known as the South Texas area for this report. Continued exploration along established trends and beyond proven field limits during 1940 provided South Texas with new fields and new producing levels at a rate of discovery fairly comparable with the high records set during recent years. The wells drilled in the counties within this district (including LaSalle) numbered 1656, approximately 8 per cent below the 1801 figure of last year. However, rank wildcats totaIed 336, an increase of 17.5 per cent compared to the 286 drilled in 1939. Therefore, since new field discoveries numbered 25 in 1940 against 29 in 1939, the rate of new field discoveries in 1940, based upon rank wildcats drilled, was I/I3.4 while that of 1939 was I/9.86, which shows a decrease of about 25 per cent in the rate of new fields. The rank wildcat tests in 1940 gave the following results: 18 produced oil, 4 produced distillate with gas, 3 produced. only gas, and 3r1 were dry holes (Table 5). Of the 1320 tests drilled in already proven fields or as extensions to pro+en areas (representing a decline of 12.8 per cent from last year's total of 1515 tests), 1048 produced oil or distillate, 60 produced gas and 212 were dry holes (Table 4). Of the producers, 50 found new sands or crude-in-distillate-sands in existing fields. Among the several fields subjected to extensive development were: Colorado, Jim Hogg County; East White Point, San Patricio and Nueces County; Rincon and Sun, Starr County; Glen, Webb and Zapata Counties; Wade City and Orange Grove, Jim Wells County; Stratton and South Clara Driscoll, Nueces County, and Aransas Pass, San Patricio and Aransas Counties. The development of important crude reserves on structures formerly considered primarily distillate fields has probably been the most important phase of the year's operations in South Texas. The Rincon, Stratton, Agua Dulce, Wade City, Odem and Robston fields provided the new crude sand discoveries. At some places crude production was opened by exploratory wells that found new sand horizons; in others by flank wells that found already discovered distillate sands sufficiently low to provide crude production. Rincon, Starr County, with its multiple sands, is now believed to be one of South Texas' largest crude-oil reserves. Offshore drilling showed important results during the year, including the discovery of two new submerged fields and the extension of the East White Point field into offshore Nueces County. The new marine fields are: East Flour Bluff) 76

Jan 1, 1941

By P. P. Gregory

The rate of drilling operations in the West Texas district during 1940 was approximately equal to that of 1939. The total number of wells dillled in the area during the year was 1834, of which 1716 were completed as oil producers, 12 were gas wells and 106 were dry holes. The number of wildcat wells drilled during the year was comparatively small. The drilling of inside locations in proven areas and the drilling of wells for the purpose of extending the productive limits in producing fields constituted the bulk of development during 1940. Gaines County led all other counties in the district in the total number of oil-well completions. The oil production totaled 83,345,381 bbl., the highest figure for any year since proration was begun. The 1940 oil production exceeded the 1939 production by approximately four million barrels. Discoveries While comparatively few new oil-producing areas were discovered during 1940, it appears that the oil production found in simpson lime in the Abell field, pecos County, was an outstanding discovery for the year. This was the second Ordovician discovery in Pecos County. Taubert, McKee & Siemoneit located its discovery well, V. W. Crockett No. 1, set. 4 1/2 H. & T. C. R.R, co, survey in the Imperial area of northwestern Pecos County. The top of pay was encountered at 5270 ft., and the well was bottomed at 5357 ft. in simpson lime, on act. 17, I940. The initial production was 928 bbl. of 43" gravity sweet oil in 11 hr. 23 min., flowing naturally through 2-in. tubing with gas-oil ratio of 783 cu. ft. per barrel. Following the completion of the discovery well, large blocks of land were leased in the area, and several locations were made toward the close of the year. There is every indication that the Abell field will become a major producing field in the West Texas district. There was no pipe-line outlet for the field at the end of the year. Shipley-Silurian field, discovered by the Gulf Oil Corporation, appears to be another major addition to the oil reserves in 1940. The discovery well, Wristen Brothers No. 5, is in sec. 18, block 5, H. & T. C. R.R. Co. survey in Ward County. The well was drilled to a total depth of 9187 ft. and was plugged back to 7075 ft. The Silurian lime section was acidized with 3000 gal., from 6993 to 7075 ft., and on Dec. 5, 1940, the well was completed for initial production of 3040 bbl- of 32.2" gravity oil in 24 hr., flowing through tubing. Todd Deep field, Crockett County, was discovered by the Continental Oil Co. et al. The discovery well, J. S. Todd No. 2, set. 29, block WX1 G.C. & S.F. R.R. Co. survey, was completed on April 3, 1940. The top of pay was encountered at 5623 ft., and the well was bottomed at 5691 ft. for initial production of 1613 bbl. of 40.6' gravity oil flowing naturally through 2-in. tubing. The pay section was found in Strawn lime of Pennsylvanian age. There were six producing wells in the field at the end of the year. This appears to be another major discovery in 1940. There was no pipe-line outlet in the field at the end of the

Jan 1, 1941

By David B. Reger

The substantial expansion of previously discovered gas pools was the principal feature of petroleum activity in West Virginia during 1940. At least one new gas pool was discovered and various other successful wildcat completions may prove to be gas-pool openers. Some slight extensions of oil pools were also made. The new productive territory, principally gas, added by these extensions was approximately 33,800 acres. ' In general, oil activity was slight because of unfavorable crude prices. Gas activity, on the contrary, increased considerably, although the price of gas did not materially change. The account of operations, as gathered from trade journals and other reporting services, shows that 709 new wells were drilled, resulting in 102 new oil wells with I055 bbl. of daily new produc-tion; 468 new gas wells with 633>g47,000 cu. it. of daily open flow; and 139 dry holes. Also, 91 old wells were drilled to deeper sands, with 143 bbl. and 44,833,000 cu. ft. of added production. On the new wells the oil average was 10.34 bbl, per well per day; and the gas average was 1,354,000 cu. ft. per well per day. On new wells the ratio of dry holes to completions was 19.61 per cent. On deeper drilling to other sands the ratio of failures was 12.I per cent. From an exploratory standpoint, one strictly new gas pool (Lorentz) was opened in Upshur County. Little forecast of its extent or reserve can now be made. The new extensions of various other previously discovered pools, however, give assurance of a new gas reserve that will equal approximately a year of gas demand. In addition to these definite supplies two widely separated Oriskany sand (L. Dev.) wildcats in Jackson County, one of which was completed late in 1940 and the other early in 194.1, may indicate two separate pools or may greatly extend known pools. In south-ern Kanawha County, also, an old Oris-kany-sand well deepened to the White Clinton sand (Sil.) showed a volume of 733,000 cu. ft. and rock pressure of 1800 Ib., giving rather clear assurance that this deep sand, in which only slight quantities of gas had previously been found, should eventually supply much new gas. On the other hand, various deep tests to the Oriskany sand in Harrison, Putnam, Randolph and Wood Counties were totally dry or gave only small volumes of gas, The principal oil wells completed, by counties, were: Calhoun, 15; Clay, Ir; Pleasants, 14; Ritchie, 15; and Roane, 7. Production for the year was estimated by the U. S. Bureau of Mines as 3,444,000 bbl., as compared to 3,684,000 bbl. in 1939. The leading counties in gas-well completions were: Boone, 36; Braxton, 17; Cabell, 25; Calhoun, 16; Clay, 22; Gilm.er, 47; Jackson, 38; Kanatvha, 77; Lincoln, 18; Putnam, 32; IGtchie, 40; and Wayne, 31, Production for the year is estimated by me as I70,000,000,000 cu. ft. as compared to I59,226,000,000 cu. ft.* in 1939. No long pipe lines were built but various gas-line extensions and cross connections,

Jan 1, 1941

By Mario L. Villa

Argentina's oil production continues in its upward trend. The year 1940 closed with an important increase over 1939; that is, 1,996,371 bbl., or 10.72 per cent. The Government oil fields (Y.P.F.) are responsible for these results, as their total output was 12,474,655 bbl., which compared with the 10,222, 533 bbl. produced in 1939 represent an increase of 2,252,122 bbl., or 22.03 per cent. Fields operated by private companies yielded 8,134,882 bbl., against 8,390,633 bbl. in 1939, a decrease of 255,751 bbl. (3.04 per cent). To the total of 20,609,538 bbl. produced in 1940 in Argentina, the Comodoro Rivadavia field contributed 14,976,222 bbl.; Plaza Huincul, 1,275,814 bbl.; the Province of Salta, 1,845,1977 bbl. and the Province of Mendoza, 2,51I,475 bbl. Table 3 compares the output of companies working in Comodoro Rivadavia. The total increase of 186,819 bbl. (1.26 per cent) registered in the Comodoro Kivadavia area is due only to an intensification of development programs in the known

Jan 1, 1941

By Arthur Wade

The most important development in connection with the search for oil in Australia during 1940 was on the legislative side. Prior to 1939 legislative enactments in the various states with regard to prospecting for petroleum were such as to prohibit large-scale effort and to bar the major oil companies from operating. The preparation of the Wade Model Bill for the Commonwealth Government in 1939 and the acceptance of the Bill in principle by all States, has gone far to remove these obstacles. Amending Acts, largely based on the Alodel Bill, have now been passed by all States with the exception of New South Wales and Tasmania. In New South Wales an Amending Bill is being drafted, while the Govern-ment of Tasmania is preparing to introduce an Amending Bill provided there is any demand for it. Noteworthy developments followed immediately on the passing of these Amending Acts. The Shell Company (1)1 and the Superior Oil Company of California (2) too$ up large areas in Queensland and com-menced work during 1940. Caltex acquired a big tract of country in the Kimberley district of Western Australia (3) and has made application for an area in the Territory of Papua. An Australian company, The Phoenix Oil Extraction Co., has obtained a permit to prospect over an extensive area bordering the south coast of Western Australia (4). Other developments are foreshadowed. The Shell Company is making an intensive examination of its area in Queensland (I). Geological, geophysical and aerial surveys are in progress. Caltex has three geological parties in the held in Western Australia while Superior Oil Company of California has done some geological work in the interior of Queensland (2). None of these concerns envisages a drilling campaign in the near future. Much exploratory work is necessary. Further work has been done by the companies that were already operating in 1939, though an important Australian company - Oil Search—has abandoned the work of prospecting in Australia. This company has subleased its holdings, at North West Cape in Western Australia (;), to Caltex on a royalty basis. The company also maintains its holdings in, and connection with, the Australasian Petroleum Company Proprietary Limited, which is a combination of Standard Oil (New Jersey), Anglo-Iranian and Oil Search. This company is operating in the territories of Papua and New Guinea. Drilling Victoria.—Although a good deal of drilling was done in the LaBes Entrance Tertiary Basin of Victoria (7), no appreciable production of oil was obtained. In order to test the extent and possibilities of the oil-bearing sand in this region, the Commonwealth and State Governments jointly put down six scout boreholes to depths of between 1200 and I500 it. The results were nega tive. A deeper exploratory horehole put down by the Governments at Seacornbe, or 26

Jan 1, 1941

By G. S. Hume

Production of petroleum and natural .gas increased in Canada in 1940 over the previous year. Alberta produced more than 97 per cent of the total Canadian production of 8,718,053 bbl. of oil, an increase for this province of nearly 12 per cent, whereas in Ontario and New Brunswick, where the production is relatively small, there was a slight decline. In Alberta the main producing field is Turner Valley, on the eastern edge of the foothills southwest of Calgary, and development continued in this field in 1940 with the completion of 36 wells, all of which obtained production. In the Red Coulce field, close to the International Boundary, near Coutts, no new wells were drilled and the seven producing wells showed a decline of 900 bbl. below the previous year. Also, in the Wainwright field of east central Alberta, four wells, yielding heavy crude oil, produced 4000 bbl. less oil than in 1939, owing possibly rather to discontinuous operation than to actual decline in potential yield. This decline was more than offset by production from a new field 40 miles northeast of Wainwright, at Borradaile, producing oil of 14" to I 5° A.P.1. There was a small increase in production during 1940 from the Del Bonita field, in southern Alberta, where the production is from two wells. The outstanding development of the year was the completion of Standard Oil Princess No. 2 well in the Steveville area, on the Plains 100 miles east of Calgary. This well was completed late in December with an initial flow1 of 520 bbl. of 26.3" A.P,I. oil, and 12,750 M cu. ft. of gas from the upper part of the Mississippian limestone. It has opened up a new field and given a further proof of the potentialities of the Southern Plains. The production of petroleum in Canada is shown in Table I. Since most of the yield comes from Alberta, the production is shown from the various fields in Table 2. The sale value of the petroleum produced in Canada in 1940 exceeded 11.1 million dollars, which is still somewhat less than the value of the natural gas production, shown in Table 3. Table i.—Production of Petroleum in Canada" Barrels Province 1939 1940 New Brunswick........ 20,101 21,161 Ontario............... 206,196 186,471 Alberta............... 7,595,000 8,493,237 Northwest Territories. . 17,013 8,493,23717.184 Total............... 7,838,310 8,718,053 Value............... $10,353,351 $11.113,000 0 Bureau of Statistics, Ottawa. Turner Valley, Alberta Turner Valley continues to be by far the largest producing field in Canada (details are given in Table 4), The limits of the Pr in- field are now Known. On the east the oil area is bounded by the gas cap, which in turn is cut off on its east side by a major overthrust fault; on the west, ii is defined by edge water at a level of 4roc

Jan 1, 1941

By O. C. Wheeler

Production in Colombia attained a new high during 1940 when it reached a total of 25,607,976 bbl. Of this amount, the Tropical Oil Co. produced 21;426,492 bbl., including 268,586 bbl. of petroleum condensate, and the Cololmbian Petroleum Co. produced 4,181,484 bbl. from its Barco property. The wildcatting program of different companies in the Magdalena Valley that was initiated during the previous year was continued but with results that were decidedly disappointing. Ten wells were drilled in the Magdalena Valley between the approximate latitudes of Puerto Wilches and Puerto Berrio and nine of these were dry; the tenth was a small producer of no commercial importance. The prospects of finding new fields in the Magdalena Valley thus received a serious setback, since some of the tests drilled were on well developed surface structures. The prospects of the Valley, however, have by no means been exhausted and drilling operations are being continued on other prospects. One additional wildcat was drilled outside the Magdalena Valley on the Colombian Petroleum Company's Barco Concession, which brought to 11 the total number of wildcats drilled in Colom-bia during the year. This well, known as

Jan 1, 1941

By Cecil Hagen

All of the production for Ecuador during 1940 came from the Santa Elena Peninsula, Province of Guayas; the major portion coming from the Ancon field, which is controlled mostly by Anglo-Ecuadorian Oilfields, Ltd. A small amount was produced from the shallow pumpers and pozos, or oil pits, at Cautivo-Achallan, Carolina, Santa Paula, Concepcion, El Tambo and Mina Tigre. Considerable exploration was carried on in the country during 1940 and numerous concessions were in force, as shown by the accompanyiag map. Anglo-Saxon continued its exploratory work in the Oriente by surface geological methods and some geophysical surveys. It is understood that this concern did considerable airplane mapping. International Petroleum, on its large concessions between the Andes and Pacific Coast, did considerable surface work as well as some geophysical. No exploratory test wells were drilled by either of these

Jan 1, 1941

By J. W. Ristori

During the year 1940, production of crude oil in RiIexico totaled 43,914,000 bbl., or 2,776,000 less than in 1937, the year before expropriation. The 1940 output was I,2000,000 higher than in the previous year. In 1937, Poza Rica production accounted Declines in exports of Panuco crude, fuel oil and gasoline were recorded but these were more than offset by increased exports of 4,000,000 bbl. of Poza Rica crude, which was the approximate amount shipped to Sinclair during 1940 under the terms of the settlement. Over-all exports increased by 1,500,000 bbl. over the preceding year. The outstanding development regarding the destination of Mexican exports in 1940 was the increase of I0,000,000 bbl. in the exports to the United States. Exports to Germany ceased toward the end of '939 and to Italy in the second half of 1940. During the year 1940 the Sinclair interests and the Mexican Government settled their expropriation question. By the terms of the settlement Sinclair is to be compensated by cash payments and oil-purchase contracts. On Dec. I, 1940, Ada Camacho was inaugurated President of Mexico for a term of six years. Among his first acts following his election were: I. A proposal to change the Constitution to restore Supreme Court Judges' terms to life tenure. This has been ratified by both chambers of the Mexican congress and is now before the legislatures of the States of Mexico for ratification. The, taking away of the administration of the railroads from labor and restoration to the State.

Jan 1, 1941

By O. B. Hopkins

The total production of oil in Peru in 1940 was 12,127,135 bbl., or about 10 per cent less than in 1939. Most of the reduction can be attributed to the fact that the export market under war conditions is much restricted and naturally is more than ordinarily competitive. Development and Exploration in Older Areas As evidenced by Table I, almost all production continued to come from the three established fields in coastal northwestern Peru. Zorritos Field.—Exploration in this small field, which was purchased by the Peruvian Government in 1939, continued with that in near-by areas in the adjoining National Reserve. Several wells were drilled, regarding which details are not as yet available. It is estimated that the production rate for a total of some 45 old and 15 new wells approximated zoo bbl. per day, or about 3 bbl. per well per day. Lobitos Fields.—The Lobitos area produced 2,435,504 bbl.; about 10 per cent less than the amount for 1939. La Brea-Pari9zas.—This property of International Petroleum Co. continued to account for nearly 80 per cent of Peru's production. During the year, drilling was stepped up to 139 wells, as compared with 73 wells completed in the previous year; 123 were producers and aggregated a total of 287,867 ft. Of this total, more than 85 per cent was drilled by rotary tools, which are steadily displacing other equipment. Although most of these wells were drilled in the proved or semiproved areas, eight

Jan 1, 1941

THE activity of the principal oil fields of Rumania followed the same course as in 1939. It was marked by (1) collaboration between the various companies, particularly in exploiting oil at great depths with a view to rationalizing the exploitation and decreasing the difficulties inherent in very deep drilling; and (2) economy in the exploitation of the older pools in reducing to a minimum the cost of the extraction and working over of wells by the concentration of productive wells in groups. The pooling arrangement continued at Tintea as a measure of conservation, and exploitation of the unitized region went forward on the basis of the norms established in 1939. The same methods were applied in the fields of Liesti, Ceptura and Boldesti. The petroleum industry had some difficulty in providing the necessary material and the hands for work. Importation of material and machines from the United States was virtually stopped. Substitutes were provided from Germany but particularly useful were certain dispositions made by the local metallurgical industry. Despite the higher cost of the production of local material and machines, they were superior to the German product, the difference in quality justifying the higher price charged as the materials were found to be particularly adapted for the purposes of the petroleum industry. The cost of production was still further raised by the work that was imposed for national defense. The rise in costs per meter drilled was 50 per cent over those of 1939. According to bimonthly tables furnished by the Moniteur du Petrole Roumain, the deepest well completed in 1940 was an exploratory well, No. 201 of the Concordia company, drilled at Tintea and suspended at 3338 meters. This depth was reached toward the close of 1939 and the well was not deepened in 1940 became of large deviation from the vertical. The record for productive wells had been held by No. 429 at Tintea, drilled by Unirea to a depth of 3200 m., and in 1938 well No. 317 Cocorasti-Mislea, of the Colombia company, but these records were passed in 1940 by well No. 613 Liliesti of the Con-cordia company, which reached a depth of 3294 m. and had an initial production of 10 tons per day. In 1940, the same number of wells, II, had been drilled to a depth of over 3000 m. as in 1939. Five of these wells are at Tintea and six at Liliesti. Table I lists these very deep holes in the order of their depth. Table i.—Deep Wells Drilled in Rumania in 1940 Initial No. Produc- of Company Field Meters tion, Well Meters Tons per Day 405 Colombia......... Liliesti 3,001 10 629 Unireu............ Tintea 3,005 73 426 Unirea............ Tintea 3,050 48 410 Colombia. ........ Liljesti 3,055 30 627 Concordja (Unirea). Liliesti 3,072 75 430 627ConcordjaConcordia (Unirea). (Unjrea 3,II9 30 618 Colombia......... Liliesti 3,168 70 24 Steaua Romana. . . Tintea 3,184 18 412 24Unirea............ Tintea 3,211 23 613 Concordia......... Liliesti 3,294 10 Production in Rumania in 1940 reached 5,813,000 tons, in contrast to 6,~40,0oo tons in 1939, a decline of 427,000 tons, or 6.8 per cent. Drilling reached 241,500 m., in

Jan 1, 1941

By Basil B. Zavoico

Production of crude oil in the U.S.S.R. during 1940 is estimated at 222,600,000 bbl., as compared with the revised figure for the preceding year of 220,866,000 bbl., an increase of 0.79 per cent, and at least 20 per cent under the planned output. Baku district (Transcaucasus) remained the outstanding producing area, accounting for 72.33 per cent of the country's production, and this relative importance of the Apsheron Peninsula oil fields will probably continue lor many years to come. In the North Caucasus the Grozny-Dagestan area further extended its decline and the current production in this district amounts to only 6.06 Per cent Of the total U.S.S.R. output, as compared with 35.76 Per cent in 1931 The production of the Kuban-Maikop district remained virtually ullchanged from the preceding year, amounting to 7.64 per cent of the country's total. The Caucasian Province, therefore, in I940 produced 86.03 Per cent of the total production of the U.S.S.R. The promising new Permian Basin district, called Ural-Volga, and referred to sometimes as the "Second Baku," increased its production appreciably during 1940 and the output of that area amounted to 8.31 per cent of the country's total, as compared with 6.35 per cent during 1939. Production in the secondary districts of Russia continued unchanged though some new discoveries in the Emba salt-dome basin suggest that the output of that district may show some increase during the coming years. The drilling operations in Russia during 1940 reached a stage of virtual breakdown and the original footage plans were fulfilled only to the extent of around 50 per cent, while exploration drilling schedules were fulfilled only to the extent of about 25 to 35 per cent. This condition was due to the obvious lack of modern drilling rigs, of good drill pipe and of strong casing. Extended breakdowns occurred with deeper drilling, particularly because with few good drilling rigs available speed was being attempted with rotation rates that the inferior drill pipe and bits could not stand. Twistoffs and endless fishing jobs resulted. The difficulties became so serious a handicap to the Soviet oil industry that it was found imperative to order American drilling equipment and pipe in quantity, a policy that was never favored in the U.S.S.R because it requires expenditure of gold or exchange in major volume, and such exchange usually is reserved only to less bulky key items or to orders directly connected with armaments; also, oil-field machinery is very bulky and the prevailing lack of bottoms makes the transport of the indicated equipment a major problem. But little progress was similarly made in other branches of the Soviet oil industry. NO new major pipe-line construction work was undertaken, consequently the railroads continued to be overburdened with traffic that could be much more effectively handled by pipe lines. No new refinery construction of any magnitude was initiated, though several plants that had been in course of construction for several years were completed during 1940 and operation 554

Jan 1, 1941

By D. C. Porterfield

-4s a result of world economic conditions brought about by the European war and the consequent loss of European markets for Venezuelan crude, production in Venezuela decreased from 205,433,000 bbl. in 1939 to 186,134,000 bbl. in 1940, or 9.4 per cent. This decline interrupted a steady annual increase in production from the country, which had been continuous since 1932. The Maracaibo Lake Basin in western Venezuela accounted for 135,738,000 bbl. during 1940, or 73 per cent of the total, as against eastern Venezuela's production of 50,396,000 bbl., or 27 per cent of the total for the country. Corresponding figures for 1939 were 167,688,000 bbl., or 82 per cent of the total from the Lake Basin, and 37,744,000 bbl., or 18 per cent from the east. These comparisons indicate the increasing importance of the newer developments in eastern Venezuela, but it is unlikely that production from the east will ever exceed that from the west. In all, 429 new wells were completed in Venezuela during 1940 as compared to 438 in 1939. Of the 1940 completions, 411 were in proved areas and 18 were wildcats; 389 (95 per cent) of the exploitation wells drilled were producers, I was a gas well and 21 were dry holes, while 6 (33 per cent) of the wildcats drilled were producers and 12 (67 per cent) were dry; 263 of the exploitation wells and 4 of the wildcats were in the Maracaibo Lake Basin and 148 exploitation wells and 14 wildcats were in the east, mostly in the State of Anzoategui. Exploration of the light-oil areas in the Tia Juana and Lagunillas fields was con- tinued during the year with favorable results. Along the lake shore, drilling was confined principally to fill-in wells in the La Kosa, Tia Juana, Laguni!las and Bachaquero fields, although some important semi-exploratory drilling was done in the Pueblo Viejo area between Lagunillas and Bachaquero fields. The only other developments of particular interest in the west were the successful completion of a step-out well lying to the south of the former southern limit of Mene Grande field, which adds considerable proved acreage to that field; and the failure of two wildcats that were drilled near the Colombian border to determine whether the productive sands of the Petrolea field in the Barco Concession, Colombia, extend into Venezuelan territory. In the east no new fields were discovered during the year, although five wildcats were completed as producers. Three of these, Guario No. I, Jusepin-56 and LM-I (Leona), discovered important extensions to previously proved areas and the remaining two, Cantos-I and SPN-I (Socororo), were subsequently proved to have tapped productive sands of small extent and operations in these areas have been suspended. The greatest activity in the east was concentrated in the Oficina field, where 105 new wells were completed during the year and production was increased from 22,540 bbl. per day during January 1940 to 57,627 bbl. per day during December 1940. Important development work was also done in the Jusepin. San Joaquin and El Koble fields.

Jan 1, 1941

In the special number of the magazine Ocl und Kohle (Oct. 22, 1940) dedicated to the petroleum industry of southeastern Europe, there appeared several articles relating to Yugos1avia.t In the first article the author calls attention to the fact that there are two fields in Yugoslavia that have been explored and exploited by more than 100 wells at variable depths during the last 50 years. These are on the Island of Mura, at the confluence of the Mura and the Drave. Additional exploration drilling in various other parts of the country has been without result, but certain ones of these explorations have revealed the existence of gas horizons that have some value, which are being used for industrial purposes. Table I shows the production of oil and gas between the years 1900 and 1939. TaBle —Production of Oil ad Gas in Yugoslavia . n,i Natural Natural Years oil Years Gas, Cu. Years Gas, Cu. Meters Meters T900-1929 10,000 1923 507,000 1934 1,388,000 1930 277 1924 567,000 1935 1,401,000 1931 202 I92S 691,000 I936 1,483,000 t932 289 19261 1.472,000 1937 1,841,000 1933 629 1927! 1,732,000 193s 2,431,000 1934 324 1928 2,515,000 1939 2,628,000 1935 260 1929 4,700,000 1936 137 I93O 5.345,200 1937 463 1931 6,376,153 1938 1,091 1932 1,661,737 1939 1,114 1933 959,574 The number of wells drilled from 1884 to the present time was in the neighborhood of zoo and the total footage drilled was 65,000 m. up to July I940 They may be divided roughly as follows: 12 wells in the region produce natural gas; 134 wells in the two old fields of the Island of Mura and about zo wells for the exploration of the zone of the Flysch, in Bosnia. The depths of 50 of these wells was roo to 200 m.; the depths of 50 wells oil the Island of Mura ran from zoo to 500 m.; of 2 ; wells, 500 to I000 m.; of ro wells from rooo to 2000 meters. The deepest well drilling in Yugoslavia has reached 2000 in. In the Valley of Morave, in the region of Selnica, I00 km. south of Nish, there have been discovered asphalt-bearing limestones, which contain about 15 per cent asphalt and are associated with bituminous clays. Later, at Paclenica, important deposits of natural gas were found. A zone rich in gas and oil seepages runs through Pracec, Miklenska, Bujavica, etc. The author studied these regions from the point of view of stratigraphy and tectonics. The anticlines and gas-bearing domes are concentrated in two zones: the region of the Drave (Island of Mura) and the region of the Save, southeast of zagreb, which contains the gas field in exploitation in the region of Bujavica. A full description of the productive region of the Island of Mura has been given by Egon Bohm, a geologist, in the second article mentioned. This includes a history of the exploration and exploitation that took place under Hungarian rule in this region. The most important exploration was effected between 1884 and 1885 by Stavenov and Stinger, of Vienna. In 1927 work was done in the same region by Anton Raky, a well-known explorer who makes work of this kind his specialty.

Jan 1, 1941

By Harry H. Power

While the attention of all engineering branches is focused today on changes and improvements in the several curricula, we are concerned here with the many questions arising in industry and college concerning the preparation for the petroleum engineering profession. The succession of problems confronting the petroleum engineer demands a degree of versatility not ordinarily encountered in other professions. As a consequence, the student cannot acquire mastery of all the several engineering branches represented in field practice, and as an alternative, he has learned to appreciate the value of thorough training in the basic or fundamental sciences as a Preliminary foundation for professional work. While our attention is directed primarily to the training of engineers in educational institutions, it is necessary that the ultimate education of the professional engineer be kept in mind. It is apparent that his success as an engineer is limited not only by his educational and job experience, but by his native endowments: mentality, Personality and health. The engineer's lack of job experiences often proves as much a handicap as the lack of adequate college training. If the final product proves to be satisfactory, both industry and technical institutions are to be congratulated. However, if the Product is found wanting, the one most responsible should For the most part, students of engineering colleges have had their interests in applied science awakened at a relatively early age. Manyof them entered college as a convenient means of acquiring a technical education, but undoubtedly would have had better prospects in a shorter program offered by institutions of non-college grade. The activating motive of practical interest is also strong in students suitable for college training, but in many cases an intellectual interest must be awakened in order that it may survive graduation. Numerous engineers believe that this progressive process of selection and determination of career aims is one of the essential services rendered by the engineering colleges. Industrialists, who are more inter. ested in quality than quantity of petroleum engineering graduates, have pointed out the good that should result if more emphasis were given to the work of eliminating the misfits. They also point out the protective measures that have been taken by other professions for the betterment of professional standards. Mention has been ,de of the beneficial results to be obtdned by collective determination of the market for the products of engineering schools, particularly in that the students unsuited to the profession would have an opportunity to prepare themselves for employment more suited to their personalities and other qualifications. In the event that such a system of coordinated personnel direction is developed by the

Jan 1, 1941

By Walter Miller

Petroleum refining, like other industries in the United States in 1940, focused much attention on its duties and opportunities in the field of national defense. In crdiiter-distinction to the situation during the World War, the industry is well constituted as to existing equipment, processes, and capacity, together with planned additions, to handle any demands that may be made upon it by the defense program needs. Evident throughout was the growing sense of ability to manipulate oil molecules for the production of materials not hitherto considered as being available commercially from petroleum. The development and application of catalytically induced reactions on a broad front is one of the distinguishing characteristics of refining progress during the year. In the hands of the refiner, catalysis has developed into a most important means to secure higher antiknock motor fuels and 100-octane fighting grade aviation gasoline in greatly increased quantity. One illustration of the importance being assigned to catalytic refining is the construction by the Houdry group of an experimental laboratory at a cost of $7'307'30'3, to be staffed with over 100 research men7 solely for the purpose of studying catalytic reactions. In the aviation gasoline picture a modification of specifications by the Government widened the field from which acceptable fuel can be secured, and the continued expansion of the alkylation process in itself promises to go far in filling the demands expected from 50,000 fighting planes. It is conservatively estimated that eyen now the industry can turn out 1,300,000 gal. of 100-octane aviation gasoline daily. The upper limits of octane numbers for regular grades of motor gasoline reached in 1939 were not exceeded, but the average octane number approached the upper level more closely. A survey made of the 1940-model cars showed no rise in average octane requirement of the engines. The trend throughout the year was for greater reliance on the A.S.T.M. method for octane determination. The "1939 Research Method" is less widely used, although still considerably in evidence; the older L-3 method seems to have lost considerable ground and to be on the way out. Re-forming Capacities Increased Interest continued to grow apace in re-forming low-octane naphthas into high-octane gasolines. Some additions, although not great, were announced in thermal re-forming capacity. Interest in catalytic re-forming was greatly stimulated by the technical success of the operation of the converted hydrogenation unit at the Bay-way, N. J., rehery of the Standard Oil Company of New Jersey, mentioned in last year's review, and also by the knowledge that recoverable proportions of toluene are present in the hydroformed (catalytically

Jan 1, 1941

Jan 1, 1941

During 1940, the Bahrein Island field produced a total of 7,073,919 bbl. of crude oil- an average of 19,328 bbl. per day. This is a decline of 514,635 bbl. from the I939 production of 7,588,554 bbl. At the end of 1940, there were 70 producing wells.

Jan 1, 1941