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By Guillermo Hileman

In March the President approved the new oil bill, .which became effective as Law No. 12161, providing among other things a contribution or tax on all producers varying from 8 to 12 per cent payable monthly. The new regulations, for chapter VI bearing on the tax feature, of this

Jan 1, 1936

By Walter M. Small

Austria produced approximately 800 cisterns of 10,000 kg. each (56,000 bbls.) of crude oil of a 0.9428 sp. gr. during 1935. Of this Gosting II well near Zistersdorf, owned by the Erdolproduktions-Gesellschaft m.b.H., produced 86 per cent of the total, averaging a little over 1.8 cisterns, or about 125 bbl., per day. Gosting IVa of the same company was put in production early in December and produced a total of about 70 cisterns (4900 bbl.). Gosting IV was a failure, but a directional hole drilled from the same derrick produced Gosting IVa. Gosting I, a well owned jointly by the company above mentioned and the Raky-Danubia, was deepened late in the year and made about 2800 bbl. of oil at the rate of 70 bbl. per day. Completions during the year were as follows: In the Gosting pool, Gosting IV and IVa, drilled with rotary tools, the latter producing from Sarmat at a depth of 934 meters (3065 ft.); Kronberg I, of European Gas & Electric Co. with cable tools in Flysch at a depth of 566 m. as a dry hole; in the Oberlaa gas pool, one cable-tool well of the same company at a depth of 266 m. as a dry hole and one Fauck-Haiek system well of the Vacuum Oil Co. at a depth of 483 m. as a dry hole; one rotary hole of the European Gas & Electric Co. at Enzersdorf a/d. Fischa plugged and abandoned in Sarmat after a blow out and gas eruption at a depth of 699.5 meters. The status of drilling wells at close of the year is as follows: In the Gosting pool, Erdol Bohr- und Verwertungs G.m.b.H., north of the producing area, was drilling with rotary at 990 m., Raky-Danubia is rigged up to deepen the old Windisch-Baumgarten hole, Rohoel-Gewin-nungs A.G. (Vacuum-Shell combination) rigging up rotary south of the production, and Steinberg-Naphta G.m.b.H. (Musil) was deepened with light rotary to 830 m.; at Enzersdorf a/d. Fischa, the European Gas & Electric Co. E-2 rotary-drilled hole stood at 1533 m. in Miocene waiting

Jan 1, 1936

By W.G. Woolnough

There has been no noteworthy increase in production during 1935; but, on the other hand, there have been ample manifestations of a considerable increase in interest and activity in connection with petroleum prospecting. The Lakes Entrance field, in the State of Victoria, on the coast some 120 miles east of Melbourne, remains the only actual producer; and this production, consisting of lubricating stock devoid of light fractions, is very small in amount. Arrangements have been completed under which a series of "scout bores" for structure testing in the region of Lakes Entrance will be sunk by the Government of the State of Victoria, assisted by a subsidy from the Federal Government. Prospecting In the State of New South Wales, brilliant geological research in very difficult country, carried out by geologists of Oil Search Ltd., has revealed several previously unsuspected domal structures in the Sydney-Newcastle coal basin. These have been mapped in detail, and a test well is being sunk at Kulnura, 10 miles west of Wyong and 40 miles north of Sydney. At the date of writing this well has reached a depth of 1250 ft., 10-in. casing having been set at 1248 feet. Superficial formations consist of the Hawkesbury sandstone and Narrabeen beds of the Hawkes-bury system (fresh-water Triassic). It is anticipated that the upper coal measures of the Kamilaroi (Permo-Carboniferous) will be entered almost immediately. The objectives of the drilling are the upper and lower marine beds of the Kamilaroi system, which are regarded as promising as potential source—and reservoir—beds for oil. At Mulgoa, 30 miles west of Sydney, a bore is being sunk by the same company, Oil Search Ltd., to test for natural gas on a well defined structure located by the company's geologists. Noteworthy flows of gas have been encountered, but nothing approaching a commercial supply has been struck. It is considered probable that the gas has been derived

Jan 1, 1936

By O. Nomland

The work of The Bahrein Petroleum Company, Ltd., on Bahrein Island consisted mainly in continuing development work and prospecting previously reported. The exploratory work, however, has been greatly minimized and new wells are being drilled, chiefly for the development of larger production; 20 wells had been completed by the end of 1935 and 8 were being drilled. In addition to what has been referred to as the ''main pay," two deeper productive horizons have been discovered, which apparently will greatly increase the potential of the field although the areal extent of this lower production has not yet been determined. The proven acreage of the "main pay" is more than 12,500 acres. Current production (principally from the upper horizons) is about 13,400 bbl. a day. The construction of a 10,000-bb1.-a-day refinery has begun and is to be in operation by July, 1936. It is expected that the capacity will be considerably increased at a later date. The construction of office buildings and a permanent camp has been almost completed. In Saudi Arabia the California Arabian Standard Oil Co., a wholly owned subsidiary of the Standard Oil Company of California, spudded in a well in April, 1935, near the village of Dammam, on the Persian Gulf coast of A1 Hasa. Although several important showings of high-gravity oil and considerable gas have been found, the well is not yet considcred a commercial producer. Dammam well No. 2 has been started farther south on the same structure. A great deal of reconnaissance and some detailed geological work has been completed during the last three field seasons. In order to overcome difficulties of transportation over the desert sand, unusual methods have been used. The parlies penctrating the interior by the use of automobiles and trucks have been supplied with gasoline and provisions by caravans of camels. Mail and supp1ies of lighter weight urgently needed have been carried to the field men by an airplane operated by the geological division of the company. Each party has been supplied with a radio receiving and transmitting set to keep in contact with the airplane as well as with geological headquarters at Jubail on the coast of A1 Hasa.

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The officers and staff of the Petroleum Division are the servants of the members, and to the extent that the wishes of the members are made known and are practicable they will be carried out. The tentative plans outlined here are in general accord with previous custom, but modified by suggestions received recently from various members. The advice of all members is solicited, and it is hoped that the general expression on matters of policy can soon be facilitated by circulation of a questionnaire. Plans for two mid-year meetings of the Petroleum Division and for participation in the annual meeting at New York were inaugurated at the last annual meeting and are being carried forward as rapidly as possible in the belief that an early start will increase the possibility of finding the best available program material and permit the careful preparation, review, editing, and advance discussion of papers. While a number of papers have already been solicited, both members and nonmembers are hereby invited to submit additional papers, with the assurance that such papers will be given just as favorable consideration as the papers that have been requested. Mid-year meetings will be held at about the same time both in the Mid-Continent and California. The time will be selected if possible to coincide with the visits of President Lovejoy, who expects to be in California the last of September and in Texas early in October. Fort Worth, Dallas and Austin have been suggested for the Mid-Continent meeting. The Pacific Coast meeting will be held at Los Angeles. It is to be noted particularly that a Pacific Coast meeting was waived last year in favor of the annual meeting of the American Petroleum Institute, which was held at Los Angeles for the first time in nine years. It is hoped, and it was the understanding at the time among a number of individuals interested in both organizations, that in view of this action of the Petroleum Division the industry will give more than the usual support to the A.I.M.E. meeting this year. Ultimate Recovery is being considered as the keynote topic for the mid-year meetings. In view of trying financial conditions combined with an exceptionally high current potential rate of production, it is natural that the attention of the industry should be focused upon means of controlling production and reducing cost of operation. It seems that the Petroleum Division of the A.I.M.E., as a professional group, might

Jan 1, 1936

Jan 1, 1936

By M. Albertson

The purposes of this statement are to define a problem that exists in regard to the estimation of developed petroleum reserves, to analyze the problem in an abstract manner, and to discuss it as an introduction to certain papers that follow. The problem is to devise and develop a suitable procedure to permit more accurate estimates of developed petroleum reserves. Part of the problem is to make such estimates available earlier in the life of any particular pool. The problem of securing more accurate estimates of developed petroleum reserves existed prior to curtailment of production. With curtailment, however, the problem became acute, some of the more prominent reasons being as follows: 1. The standard method of estimation depended on production-decline curves. This method is inapplicable while curtailment prevails and available methods arc insufficient. 2. The retarding influence imposed by wide open flow conditions upon overdevelopment is absent. Great losses of capital by overdevelopment can now occur before realization of the true situation occurs, or before effective steps can be taken to stop such wastage. This increases the need for early, accurate estimates. 3. Above-ground stocks have diminished and the equivalent of such supply tends more and more to be retained underground in the natural reservoirs. It becomes increasingly necessary to know accurately the amount of these stocks. To direct attention to an additional point of different nature: improved accuracy of reserve estimation can be obtained only by closer scrutiny of the factors that determine recovery. This examination and the resulting efforts to measure the effect of these factors in terms of ultimate recovery must tend to improve ultimate recovery. The statements regarding the acute nature of the problem also indicate to some extent the importance of the problem and the necessity of finding a solution. Developed reserves of the industry, and of individual opera-tors, are one of the great factors that properly should determine explora-

Jan 1, 1936

By D. L. Katz

In the management of oil properties, it is always desirable to know the future behavior of oil wells and oil reservoirs. Some estimation of the quantity of oil and gas that will be produced must be made as a basis for decisions on possible returns on investments in lifting equipment, drilling of additional wells, and other operating expenditures. In new or wildcat areas, operating expenditures are considered highly speculative, but in the completion of partly drilled and the operation of producing fields it is good business to remove as much speculation as possible. An accurate knowledge of oil and gas reserves in such cases would solve many management problems. The term "oil reserves" usually signifies the future ultimate recovery without specifying the method of production. Thus with changing methods and innovations in the production industry, reserves of any definite reservoir may be increased by increasing the portion of oil recovered. The usual reserve estimates are made by comparisons of well and formation characteristics, by using a percentage recovery on the oil content of the formation volume using porosity data, by extending production curves on non-prorated wells, or by extending bottom-hole pressure-production curves. The most reliable method would appear to be one that would estimate the initial quantity of oil and gas present and then obtain percentage recovery values for various productive methods and formations from experience. It is the purpose of this paper to describe a method of estimating the initial quantity of oil and gas present in a reservoir. The method is based on field operating data and the properties of crude oil-gas mixtures. The principles involved, the data required, the assumptions necessary, and an example of the method will be given. The method is entirely independent of sand volumes and formation porosities. Principles of Method The method of estimating the initial quantity of oil and gas present is based upon the premise that the volume occupied by oil and gas in the reservoir is constant and that a mixture of crude oil and gas will behave in

Jan 1, 1936

By R. J. Schilthuis

In 1929, Coleman, Wilde, and Moore1 undertook an investigation of the theoretical decline in reservoir pressure as related to the production of oil and gas. The most important part of this work was presented in an equation defining the relationship between the reservoir pressure, the quantities of oil and gas produced, the oil and gas content of the reservoir, and the properties of the reservoir fluids. With this equation, it appeared that, with sufficient data, it would be possible to calculate the oil content of the reservoir and predict quantitatively the effect of gas-oil ratio on the decline of reservoir pressure. Needless to say, such an expression would be highly important in evaluating fields and in arriving at a choice of production methods to be used. Unfortunately, at the time these investigators published their work, there were not sufficient data available to permit application of the equation. The technique of measuring reservoir pressures had not been developed, gas measurements were uncommon, oil and water production records were in most cases inadequate, and little was known of the properties of the complex hydrocarbon mixtures making up the oil and gas in the reservoirs. For these reasons, little additional work of a similar nature could be done. However, during the past four years many data have been systematically accumulated on reservoir pressures and the properties of oil and gas, and it is now possible to use these data in furthering the studies on the behavior of oil and gas reservoirs. It is the purpose here: first, to present the derivation of a modified form of the equation given by Coleman, Wilde and Moore, which will permit the calculation of what later will be defined as the "active oil" content of a reservoir; second, to derive formulas for calculating the reservoir-energy changes that occur during the course of production, and finally, to discuss the limitations and application of the equations developed.

Jan 1, 1936

By Alexander Deussen

The figures listed in a table for Gulf Coast fields given by L. P. Teas1 in 1934 are so greatly at variance with results that I have obtained from a serious study of this subject over a number of years, that I am disposed to challenge the correctness of Mr. Teas' figures as an accurate representation of acre-foot yields of Gulf Coast fields, and as regards at least two of the fields listed by Mr. Teas I desire to "put into the record" some figures that, according to my study, are more nearly in accord with what I conceive to be the actual facts. Upon investigation I find that Mr. Teas' figures, inadvertently no doubt, arc not what they purport to be. Apparently the figures were arrived at by considering as thickness of the producing formation the net thickness of producing rock corresponding "to the total of the net portions of the producing zones which actually yield oil into the drill hole"—and in following this method I am under the impression that Mr. Teas was acting under instructions of the Institute in the preparation of this paper, in order to get comparable figures from the several fields of the United States. Apparently the author interpreted these instructions to mean that in the absence of cored thicknesses of producing horizons the actual number of feet of screen set in the various producing zones was to be taken as the basis for arriving at the thickness of these zones and the "acre-foot" yields. It is obvious that in many instances only 20 ft. of screen, or even 10 ft. of screen, might be set in a well, when there might be actually 100 ft. of oil sand present. In the early operations in the Gulf Coast it was usual to set much less screen than the amount of sand. It follows that the "acre-foot yields" so arrived at would be much greater than those found by using the full amount of sand. In Mr. Teas' table, it was indicated that up to the end of 1933 "acre-foot" yields had been obtained in the several fields as listed in Table 1. A casual inspection of these yields will show that certainly they do not properly reflect the amount of oil produced from an acre-foot of the

Jan 1, 1936

By J. E. Gosline

In any theory of a hydrodynamic nature dealing with the vertical flow of gas-liquid mixtures in pipes, the two factors that present the greatest difficulty are the relative motion between the phases and the energy loss resulting from turbulence work. The former has generally been referred to in the literature as "slippage" and the latter as "friction." A third factor of importance is the nature of admixture between liquid and gas for both the relative motion between the phases as well as the turbulence work are functions of the type of mixture. Although much work of a general nature has been performed on the vertical flow problem, there have been very few attempts made to study experimentally the factors involved in the phenomenon individually. Of these, perhaps the most notable is the work of Moore and Wilde1 on slippage. Some writers on the subject have assumed that over a wide range of operating conditions the controlling type of mixture is one in which gas bubbles of uniform size are distributed throughout the liquid, and that the data obtained from experiments on the motion of single bubbles through various liquids may be used in evaluating the slippage. Ver-sluys2 has further assumed another controlling type of mixture in which the liquid occurs as a dispersed phase within the gas and applies data on the fall of drops of water in air to calculating the relative velocity. It was for the purpose of studying the applicability of data on single bubble motion to the slippage factor and to further observe the nature of mixtures that a research program was conducted at the University of California during 1932 and 1933. These experiments formed a basis for

Jan 1, 1936

By W. K. Lewis, Lombard Squires, W. I. Thompson

The authors presented an article2† last year on colloidal properties of clay suspensions in which they attempted to sustain the position that the behavior of clay suspensions is due primarily to the mechanical interference of the platy particles, the nature and extent of the interference being profoundly influenced by the character of the surfaces of the particles, which in turn is determined primarily by the nature and amount of adsorbed foreign materials held on the surface of the particles by forces which are predominantly chemical in type. The following discussion is a continuation of that article to extend these same interpretative points of view to the behavior of clay gels. Insight into the mechanism of gelation is certainly of outstanding importance in the handling of drilling muds. In the former article it was suggested that the thin, flat plates that constitute the ultimate clay particles may build up aggregates by the overlapping of the ultimate plates face to face much longer and perhaps also much wider than the ultimate plates themselves, but not appreciably thicker. Exhaustive microscopic examinations of characteristic clays show no tendency for the larger particles, clearly visible under the microscope, to orient themselves in this way. It is true that the gelation of the clays is due primarily to the smallest particles, unresolvable other than by the ultramicroscope, so that the possibility of the deve1opment by them of an overlapping structure is not excluded. Furthermore, as one approaches the limit of resolving power of the microscope, the difficulty of observing accurately the shapes and relative positions of particles incresses excessively. However, in the absence of any observable tendency toward overlapping orientation of the large, visible particles, one hesitates to ascribe such a tendency to the smaller particles beyond the range of visibility. Should it develop that one must exclude the assumption of overlapping orientation, the explanations offered in the previous article are changed in only one respect; namely, one would now have to assume that the ultimate particles themselves have length, and probably also width, very large in comparison with their thickness.

Jan 1, 1936

By D. T. Jones

In view of the importance of the application of scientific principles to the production of oil from the reservoir, the Production Staff of the Anglo-Iranian Oil Co. (late Anglo-Persian Oil Co.) has been engaged for some years on an intensive program of research on the physical properties of crude oil. Problems involving the retention of crude oil in capillaries and fine fissures demanded for their solution a knowledge of the surface tension and specific gravity of the crude under reservoir conditions, and it is the purpose of this paper to describe briefly the methods adopted for the determination of these properties, and to present the more important results. A detailed article was published in volume 1 of the World Congress Proceedings (1933). Surface-tension observations on crude oil regassed at high pressures with natural gases have been made in the past by Beecher and Park-hurstl and Swartz2, but up to the time of the investigations in Iran no one seems to have carried out experiments with gas-saturated crude direct from the reservoir and kept at its original pressure. Results obtained in this manner are obviously of greater practical value for solving problems connected with the reservoir. Method of Measurement No apparatus for the measurements, under the pressure conditions involved, was available, and a suitable instrument had to be designed and constructed in the Fields workshops. Careful consideration of the matter led to the adoption of a method for measuring the surface tension which did not involve a knowledge of the specific gravity of the oils under the working conditions: the main reason for this being that up to that time no accurate determination of the specific gravity had been made under these conditions. The method adopted involves the measurement of the actual tension in an oil film, and is effected by means of

Jan 1, 1936

By Emory Kemler

The problem of determining the most desirable operating conditions of an oil-well pumping unit, the selection of the proper material and size of sucker rods, and the design of the pumping unit, requires that the sucker-rod loads be known with a reasonable degree of accuracy. In production practice, it is also desirable to know the effects of operating speeds and strokes on a plunger motion, as well as on the rod loads. For a particular well, data on rod loads can be obtained by measuring the load in sucker rods with a dynamometer. This method is not satisfactory because it does not permit the various factors to be investigated independently. It is also impossible to measure the plunger motion simultancously with rod motion under operating conditions. The mathematical solution is impractical because of the simplifications that have to be made to get a solution and the tremendous amount of numerical work that is necessary after such a simplified solution has been attained. This paper shows how analogies and models can be applied to the solution of these problems. The loads set up in a sucker-rod string during the ordinary pumping cycle are made up of the weight of the rods, force required to accelerate the rods, weight of the oil and force required to accelerate the oil on the upstroke, rod friction, stuffing-box friction, plunger friction, friction of the oil in the tubing and rods, arid friction loss through the valves. The problem of determining the sucker-rod load is further complicated by the fact that the long oil column and the sucker-rod column act as springs, which affect the transmission of the polished-rod motion. A further complication is the fact that the motion cannot be transmitted at a speed greater than that of the velocity of sound in the material, and this means that there will be a time lag in the transmission in the motion, as well as a modification of its magnitude and a phase displacement.

Jan 1, 1936

By F. B. Plummer, R. B. Newcome

The practice of introducing acid into oil wells to increase production of oil and gas has been in use since 1894, when it was first used in the Pennsylvania oil fields30.‡ It is only since 1928 that it has been used to any extent in the Mid-Continent18. The process has proved successful in increasing production, at least temporarily, in depleted oil fields where the producing formation is highly calcareous and where water drive is not too pronounced. In the Zwolle field in Louisiana, where the producing horizon is a chalk, increases of 100 per cent have been recorded25. In north-central Texas, where the oil is produced from the Marble Falls limestone, equally pronounced increases have resulted3. The production also in some fields yielding oil from quartz sand cemented with calcitc has been benefited. The evidence of actual increase in total recovery of oil, however, has been questioned by some engineers18. It has been pointed out that the results of the treatment of a well in a now district, where the process has never been tried out, can never be predicted with certainty, since other factors besides percentage of calcareous content of the oil sand play a large part in determining the success of the method. Numerous articles have been published on acid treatment and on the effects of acid on limestone1-35, yet very little has been written concerning experimental work on the actual effect of acid on capillary pores and larger oil-coated voids of oil sands. This is due partly to difficulties in duplicating field conditions in a laboratory and partly to the fact that the process has been carried out largely by contracting companies that have been unwilling to publish details of their results for fear of loss of business to competitors. The authors, using equipment developed to measure the radial permeability of oil-sand cores2', have developed a method of investigating the results of acid treatment which has enabled them to test numerous cores and to study in some detail the action of acid on the different types of rocks, particularly fine-grained rocks.

Jan 1, 1936