Search Documents

By O. C. Wheeler

During 1938, Colombia witnessed greater activity in oil prospecting and development than in any previous year in its history; more wells were drilled, more potential production established, more geological and geophysical work was accomplished, and more leases and concessions were acquired. Many companies, including the Texas, Socony Vacuum, Richmond (subsidiary of the Standard Oil of California), the Shell, and Tropical, contributed to this activity. Probably the most noteworthy development was in connection with the Barco Concession, which forms part of the Maracaibo Basin in eastern Colombia, adjacent to the Venezuelan frontier. There a great deal of preparatory work was accomplished in addition to camp and other construction, 20 producing wells were drilled and work was begun on the construction of a 12-in. pipe line to transport the oil to the port of Covenas, a distance of 260 miles. It is reported {hat 58,000 bbl. daily initial production was established during the year and is awaiting an outlet through this pipe line. Leasing and exploratory operations in Colombia continued active throughout the year; applications were made for concessions covering more than 1,100,000 acres of national lands and, in addition, leases were taken up on large areas of privately owned lands. Under Colombian law

Jan 1, 1939

By Roy E. Dickerson, W. M. O Connor

The production of crude petroleum of the Bacuranao field, Cuba, fell off rapidly because no new wells Mere drilled. In December 1938, the total was 15 bbl. per day. The estimated average from this serpentine field for the year is 20 bbl. per day. The Motembo area produced an estimated average of 160 bbl. per day. Production in July was 215,946 gal of gasoline, or 165 bbl. per day. In August production was higher because a new well in the concession, the Luisa Marcela, produced 189 drums the first day and required pit storage. The Atlantic Refining Company of Cuba started a deep test upon a long, narrow, surface-defined anticline 3 km. south of Remedios, a town on the north coastal plain of Santa Clara province, in December 1938. The Atlantic Refining Co. is doing extensive seismograph arid gravity-meter work in Matanzas arid Santa Clara provinces. The Shell company was rigging for a deep test in western Havana province at a location about 2 km. west of the town San Antonio dc los Banos New Petroleum Law More serious attention was given by some of the major oil companies to the development of petroleum in Cuba as a, result of the passage of a Petroleum Law ill that country on May 9, 1938. Under the old mining lam of Cuba, which gave no special treatment to petroleum, the usual provisions giving reasonably satisfartory guarantees to encourage investmerit of foreign capital were either entirely lacking or were 30 ambiguously expressed as to require legislative action. Under the new law, Government royalty is fixed at 10 per cent with the provision that it will be reduced to 9 per cent on crude petroleum that is refined in Cuba. Royalty to the surface owner is 1 per cent. A surface tax on a sliding scale from 10¢ to 406 per hectare per year is applicable to all exploitation concessions granted under the law or adapted to its provisions. So export tax is payable upon petroleum. Stability of taxation

Jan 1, 1939

By E. Escobar

Jan 1, 1939

At the end of June, 1938, a new oil field was opened in Egypt, the Ras Gharib. Five wells were completed during the year and gave a total production of 512,988 barrels.' In the Hurghada field production was as follows: Hurghada Field Age of field to end of 1938, years..................... 25 Producing area for gas and oil, acres................ 1,050 Barrels1 Total oil production to end of 1938............... 31,207,754 Total oil production during 1937................ 1,141,356 Total oil production during 1938.................. 1,019,520 Average oil production per acre to end of 1938... 29,719 Average oil production per acre-foot to end of 1938. . . 243.6 Daily average: production in December 1938.......... 2,603.54 Daily average production per well in December 1938. . 34.90 Millions Cu. Ft. Total gas production (Aug. 1925 to end of 1938)... 4,356.7 Total gas production during 1937.................. 222.5 Total gas production during 1938....... . 167.6 Maximum gas daily average of 1938 (ill May 1..... 0.6 Wells Number of producing wells completed to end of 1938 . . 100 Number of producing wells completed during 1938..... 3 Number of wells abandoned during 1938.............. 2 Producing wells at end of 1938 (all pumping)......... 78 Abandoned wells at end of 1938...................... 22 Dry wells at end of 1938......................... 21 Feet Average depth of bottom of producing horizon........ 1,720 Average depth of top of producing horizonlt 1,598 Character of oil, approximate average ill 1938: specific gravity at 60" F'., 0.900; base, mixed. Character of gas, approximate average for 1938: gallons gasoline per 1000 cu. ft. of gas, 6.4. Main producing formation: Nubian sandstone, Cretaceous (PI; sand rock and sandstone.

Jan 1, 1939

By H. De Cizancourt

Jan 1, 1939

By Walter Kauenhowen

The crude-oil production of Germany without Austria during 1938 amounted to 3,864,518 bbl., representing an increase of 21.7 per cent over the 3,173,373 bbl. produced in 1937. Adding the Austrian production, the crude-oil production of the new German Reich totaled 4,259,717 bbl. during 1938, representing an increase of 25.3 per cent compared with the respective figures of the previous year. According to published official data, and using a conversion factor of 1 metric ton equaling 7 bbl., the oil production of Germany in 1938 was as shown in Table 1. A semiofficial publication1 states that the program of the crude-oil industry for the second year (1938) of the four-year plan was successfully accomplished. According to the same source, new drilling developments at the following localities were promising: Reitbrook near Hamburg, Heide in Holstein, Eicklingen-Sandlingen near Celle, Steimbke near Nienburg, Worms in the Rhine Valley, Gifhorn near Braunschweig, Mölme near Oberg, and at other places. The drilling activity for oil is illustrated by the figures in Table 2.

Jan 1, 1939

By A. H. Taitt

During 1938, the exploratory drilling by the D'Arcy Exploration Co. Ltd., subsidiary of the Anglo-Iranian Oil Co. Ltd., was continued. The original basis of the search for oil and results to the end of 1937 have already been described.' During 1938 two further wells were drilled in the south, making a total of five wells completed in that part of England. Test wells were also commenced in the Midlands, East Yorkshire and Scotland, where one well, which proved natural gas, was completed during the year. Southern England.—The test well at Kingsclere, in Hampshire, which at the end of 1937 had reached a depth of 5032 ft. in the Lower Lias, entered the Trias at 5060 ft. and was abandoned in that formation at a depth of 5125 ft. A shallow test well was also drilled near Pevensey, in Sussex, to test the lower horizons of the Wealden series and the Purbeck and Portland beds. Traces of oil were encountered in the Wealden series but no production was obtained and the well was abandoned at a depth of 842 ft. in the Kimeridge clay, which underlies the Portland beds. A geological borehole was begun north of Lulworth in Dorset, where the outcropping Wealden series, Lower Cretaceous, is strongly impregnated with oil, to determine whether a more pronounced pre-Albian anticline underlies the very gentle arch of the unconformable Upper Cretaceous. Drilling is not yet completed. Nottinghamshire, Lincolnshire ad Yorkshire.—Geophysical investigations were continued in the eastern part of England where the structural conditions of the Carboniferous rocks are concealed by an unconformable blanket of Permian and younger sediments. Seismic methods failed to confirm the structural picture obtained by the previous gravity traverses, but confirmation of a structure near Ollerton, Nottinghamshire, which was suspected on evidence from colliery workings, was obtained. A location was made for a test well on this structure. Eskdale No. 1, begun on the Eskdale pericline near Whitby, in Yorkshire, to test the magnesian limestone of Permian age, was abandoned at a depth of 2486 ft. in the Trias after protracted fishing operations. A

Jan 1, 1939

By Brandon H. Grove

The rapid development of the Budafa-Puszta field during 1938 advanced Hungary a considerable distance along the road to self-sufficiency in domestic crude-oil supplies. Seven wells were completed in the field during the year, at depths averaging 4100 ft., and there have been no dry holes. Initial productions have ranged from 150 to about 400 bbl. per day. At the end of the year daily average production amounted to about 1400 bbl., which is equivalent to 33 per cent of Hungary's daily internal consumption. Production increased somewhat in the Government-controlled oil field at Bükkszek, also discovered in 1937, but nothing occurred to alter previous indications that this field would be capable of only relatively insignificant development. A further test of the Miocene-Oligorcene basin containing the Bükkszek field is being made by a well now drilling

Jan 1, 1939

The production of petroleum in India (including Burma) increased from 334,811,624 gal.' ill 1936 to 350,322,222 gal. in 1937, the highest figure in the history of the industry. The increase in 1937 was clue to an increase of some 20 million gallons from Singu, 51/2 million gallons from Attack, 11/4 million gallons from Thayetmyo, and 1 mi1lien gallons from Digboi, accompanied by decrcases of 91/2 million gallons from Yenan-gyaung and 2 million gallons from Yenangyat,. The amount of gasoline produced from natural gas during the year was 10,616,313 gal. in Burma and 456,780 gal. in the Punjab. Yenangyaung Field.—The Yenangyaung field maintained its reputation of being one of the most wonderful oil fields in the world. The total production during 1937 was less than in the previous year but the resources of the field as a whole are sufficient to ensure an adequate supply of oil for many years. At the end of 1037 there were 2910 wells producing in the field. Besides a large number of ells drilled to shallow sands, this total includes 180 hand-dug wells, whose continued existenice is one of the interesting features of the field. During the year the deep drilling activities of 1936 in the southern part of the field died down, owing to the disappointing results obtained. On the eastern flank the limit of present economic extension of the oil sands was approximately demareated. Satisfactory results continue to be obtained from gas drives in the leased blocks; gas is also injected for repressuring and storage. Casing policies continue to be carefully designed to protect the oil sands against the danger of flooding by water and, in general, production methods throughout the field are characterized by a realization of the importance of the conservation of oil and gas and the prevention of waste, whether simple or underground. Singu Field.—-In 1937 the increase in the output from the Singu field was continued. This increased production was due not only to the rapid development of the valuable area in the southern part of the field but also to the successful results obtained from the first wells to produce from behind the practically completed river training wall of the Burmah Oil

Jan 1, 1939

Masjid-i-Su1aiman.—There have been no new developments in the Masjid-i-Sulaiman oil fields during the year 1938. In spite of the age of this field, the fall in dome pressure shows no appreciable variation from the low rate of about 0.3 lb. per sq. in. per million tons net production. Drilling has been limited to deepening old wells and to new wells required for maintenance of production and general reservoir control. The rate of offtake has been reduced over the past few years, partly because of depletion of the oil column, and it is expected that future offtake from the Masjid-i-Sulaiman field will be stabilized for some years at around the present figure of 3,000,000 tons per annum. Haft Ke1.—An exploratory well to test deeper formations in the Haft Kel field has proved the existence of productive conditions in the Eocene, which underlies the Asmari limestone (the main producing horizon). Drilling to the northwest in the white-oil springs area has revealed the presence of a separate structure with productive potentialities. One well with a satisfactory production rate has been completed. Offtake from the Haft Kel field has steadily increased since it first came on to production in 1929. Naft-i-Shah.—Production from this field has continued to supply market requirements in northwest Iran. The policy of returning surplus products to the reservoir, which was adopted at the beginning of 1936, has been continued.

Jan 1, 1939

By Ben B. Cox

Oil produced in Iraq for export during 1938 was 31,354,090 bbl., or a daily average of 85,901 bbl; This is an increase of 182,614 bbl., or 0.5 per cent over 1937. All oil exported was produced from the Kirkuk field. The Khanaqin Oil Company, Ltd., a subsidiary of the Anglo-Iranian Oil Company, Ltd., continued to supply local market requirements from its Naft Khaneh field in the Transferred Territories. Slightly more than 32,000,000 bbl. was produced in Iraq, a small part of which was used in field operations. During the year 12 wells were completed and 9 wells were drilling at the end of the year. Of the completions, 5 were producers and 1 was an oil-water level observation well in proved fields, and 6 were listed as failures. Basrah Concession The outstanding event of the year was the granting, by the Kingdom of Iraq, of a 75-year concession embracing approximately 89,000 sq. miles to the Basrah Petroleum Company, Ltd., a British company with French and American participation. The concession covers all parts of the Kingdom, its territorial waters, islands, submerged lands, and its interest in the Neutral Zone separating Iraq and Saudi Arabia that

Jan 1, 1939

By V. R. Garfias

After a series of fruitless negotiations, the Mexican Government, on March 18, 1938, decreed the expropriation of several oil companies, and took possession of the properties, offices and records not only of the expropriated companies but of others not legally expropriated. This condition prevails to date.

Jan 1, 1939

By Pétroleur Maatschappiju, N. V. de Bataafsche

Jan 1, 1939

By Oliver B. Hopkins

Peru produced approximately 15,838,610 bbl. of oil during 1938, which was 1,618,406 bbl. below its production during 1937. As in recent years, the entire output of the country came from the La Brea-Parinas, Lobitos-Restin, and Zorritos fields, which are all situated along the northwestern coast. Outside of the proven areas, the drilling of test wells was continued by the Peruvian Government on the reserved zone near Zorritos. Six wells have been completed or are drilling. Of these one is a gas well at 2619 ft. and one is dry at 1415 ft. It is reported that three standard and two rotary rigs are being used. In southern Peru, in the Pirin region north of Lake Titicaca, the Government made a geological study of the National Reserve. In eastern Peru, the Cia. Petrolera El Ganso Azul continued its activities in the montana region, where its first well was reported to have had a show of oil at 1000 feet. There was also renewal of leasing activity in eastern Peru, where approximately 380,000 acres of new leases were filed on near Contamana. La Brea-Parinas Estate.—Production of crude oil on this property of International Petroleum Co. Ltd. amounted to 13,137,988 bbl. which was

Jan 1, 1939

By Joseph Zwierzycki

By an extension of drilling activities in 1938, the Polish oil industry succeeded not only in maintaining production but even in increasing it slightly. This increase, however, was from present oil reserves and not due to the discovery of any new fields. Most of the new wells were drilled in the Jaslo district, particularly in the Lipinki-Libuszal oil field, because of the shallow depth of the producing sands. At the Boryslaw field the 12,332 meters drilled could not compensate for the steady drop in production. A drilling campaign similar to that of the previous year in the Stanislawow district resulted in a slight decline of production. A number of the new wells have been subsidized by the Fund for the Advancement of Drilling2 in Poland. As the present sums at the disposal of this fund are insufficient for a great exploration program, they are chiefly used for the maintenance of the actual production. New wells on known folds, but more than 1000 m. outside the present productive areas, are entitled to a subsidy. Applications for wildcats outside the known productive areas have not been received in 1938. Even when the Polish oil industry was prosperous, wildcatting was not frequent and in their present impoverished condition the oil companies are no longer able to bear such financial burdens. The only way to start a large-scale drilling campaign on the still existing promising areas seems to depend on the granting of new substantial subsidies from the Treasury. Such measures are being considered by the Polish Government. It has been suggested that a fund for wildcatting might be raised by a small increase in the price of benzine. An advance of one grosz per liter of benzine would raise, on present home consumption of 108,000 kilogram-tons, about 1.3 million zloty, an advance of 5 grosze more than 6 million zloty.3 This small increase in price would hardly be felt by the motor-car owners, as it would mean an extra expense of 80 to 400 zloty in a year.

Jan 1, 1939

By W. P. Haynes

The 1938 production for all of Rumania amounted to 48.984.200 bbl., as compared with 53.239.500 bbl. in 1937. which represents a drop of 4.255.300 bbl., or 8 per cent. Of the various fields. there are only two major increases in production—Baicoi-Tintea with 3.092.400 bbl. And

Jan 1, 1939

By Basil B. Zavoico

During 1938 the Russian oil industry, while able to increase its production 4.69 per cent above the preceding year, was not successful in correcting some of its basic difficulties, and the industry's position as it entered 1939 was unsatisfactory. The internal political difficulties of 1937 and 1938 took a toll in the oil industry as they did elsewhere in the U. S. S. R., further complicating the solution of the problems facing it, most important of which still remain: lack of experienced and responsible leadership, able to make quick decisions; undisciplined and migratory labor; and insufficient and often unsatisfactory quality of the various equipment needed by the industry and its ineffective distribution. Recent developments in the U. S. S. R. suggest that during 1939 the management will be granted more latitude and hence somewhat better results may be anticipated from the executive branch, provided, however, the "purges" do not recur. The labor should be better disciplined and should not shift as easily, owing to the introduction, at the close of 1938, of individual labor passports to all workers in the country, the principal purpose of which is to correct those two deficiencies. It is not anticipated, however, that the service of supply will show any appreciable improvement in 1939, partly because of inherent difficulties and partly because the manufacturers of heavy machinery are working primarily and necessarily for munitions. Production Production of crude oil during 1938 is estimated at 224,714,000 bbl., as compared with 212,742,000 bbl. in 1937, an increase of 4.69 per cent but 12.76 per cent below the planned output. While there were no major readjustments in the source of supply of crude oil, both the older districts, Baku and Grozny, were barely able to maintain their 1937 levels of production, the increased output being supplied primarily by the fields of Maikop and Ural Permian Basin districts. While exploration work was outstandingly successful in 1937, in 1938 no discoveries of any

Jan 1, 1939

By Theron Wasson

Michigan reports another record year. Its production of 18,605,000 bbl. exceeds any previous year's total and is 2,000,000 bbl. over 1937, the previous record year. Production in 1938 brings the accumulated total for the state to a little over 100,000,000 bbl. It has taken 14 years to reach this accumulative figure, which would meet the needs of our country for about one month. Twelve new oil and gas fields were opened in 1938 and 978 tests for oil and gas were completed, of which 566 were oil wells, 25 gas wells and 387 dry holes. The new oil discovered is probably about equal to the oil produced during the year. Activities in 1938 The Temple field, Clare County, was the discovery of the year. Since July, 46 wells have been completed, and although not yet outlined it appears that more than 2000 acres have been proved for production from the Monroe of Devonian age, at a depth of 3900 ft. This discovery is the result of a wildcat test along a trend northwestward from the older fields of the central basin. The Edenville pool, Midland County, ranks second among the new fields. Thirty-five producing wells have been drilled to the Dundee at 3800 feet. The surprise development was in southwestern Alichigan, Allegan and Van Buren Counties, where six new Traverse lime pools were opened with a daily production of about 8000 bbl. at the end of the year. This is the first consistent Traverse production in the state and is about 100 miles southwest of the producing areas of the central basin. These fields have had a rapid development because of the shallow depths, which range from 900 to 1500 ft. Bloomingdale, Van Buren County, had a town-lot boom, and 72 wells have been drilled there since August 1938. Small operators from many states have been attracted to this shallow territory, and the coming year will see much drilling in these and surrounding counties. The Buckeye field, Gladwin County, led the state in amount of oil produced. Its total of over 7,000,000 bbl. was far ahead of that of any other pool.

Jan 1, 1939

By H. M. Morse

There was little change in the oil and gas industry in Mississippi during the year 1938. No new fields were discovered and the production from the Amory field was nil. In the Jackson gas field six wells were drilled and production was obtained in each instance, but none of these wells increased the area from which the gas is produced. Outside the Jackson gas field nine wells were drilled, of which details are given in the accompanying table. The seeming lack of activity in Mississippi belied what was actually happening, for a great many geophysical crews of the major companies were active in all parts of the state. There were approximately 65 structures mapped and for the most part these have been leased. It is believed that 1939 will see an increase in wildcatting over a large part of the state.

Jan 1, 1939

Jan 1, 1939