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By Paul F. Kerr

The insufficiencies of our mineral resources are becoming well known, and the national political conscience seems to be troubled at last by our dependence upon mineral commodities which must come from other lands. This realization places increased responsibility upon the industrial, educational, and governmental groups whose task it will be to solve the problems of mineral supply. As we all know, from the time that man first sought mineral deposits until recent years, prospectors have been largely responsible for mineral discoveries. Today the era of the prospector is almost over. The human ants that have literally examined all accessible outcrops and have tested the gravels of nearly all stream beds in the United States have left undiscovered few worthwhile mineral deposits within the scope of their recognition. The pages in the history of mineral exploration are now being turned from the era of the surface prospect to the era of the hidden de- posit.

Jan 1, 1949

By A. L. Holley

IN order to put sufficient work on steel ingots for rails, they must be reduced from about 12 inches square. As this cannot be done at one heat, they are first drawn down to about 7 inches square, and then reheated and rolled into rails. This first reduction or " blooming," is usually done in this country in a 30-inch 3-high rolling-mill, with movable rolls, so as to get several reductions in each set of grooves. The first of these mills has been running at the Troy Steel-works above a year, with great success. Another at the Cambria Iron-

Jan 1, 1873

By Norman D. Fitzgerald

IN 1943 the petroleum industry completed a series of practical adjustments to the acute problems which dominated the scene a year earlier. The crisis in petroleum transportation from the Gulf Coast to the East Coast was met by the completion of overland pipe lines supplementing emergency haulage by tank car so pressure on consumers along the Atlantic Seaboard was appreciably relieved. Later in the year when the western Atlantic was largely cleared of submarines, the sharp reduction in the hazards of marine transportation permitted the resumption of coastwise traffic and imports from South America. Nationwide restrictions in the use of gasoline and fuel oils became necessary as military demands for all petroleum products mounted to high levels.

Jan 1, 1944

By R. B. Fuller

DURING the summer of 1949, the United Nations Scientific Conference on the Conservation and Utilization of Resources met at Lake Success. As summed up by one writer, the purpose was: "That everyone will try to learn how to feed more people from an acre of land." That objective is a stimulus to the phosphate rock industry as well as other industries.

Jan 8, 1951

By R. Simon, D. J. Graue

This paper presents correlations for predicting the solu-lility, swelling and viscosity behavior of CO2-crude oil sys8i.m~. The correlations were developed from experimental data obtained by the authors. These data are also presented. The data were determined by measuring the properties of mixtures of CO, and nine different oils. Experiinental conditions covered a range of 100 to 250°F and pressures up to 2,300 psia. Properties predicted by the correlations have average deviations, expressed as per cent of experimental value, of 2 per cent for solubility, 0.5 per cent for swelling and 12 per cent for viscosity. INTRODUCTION Interest in CO2 injection as an oil recovery process has led to the development of performance prediction methods which can be applied to specific reservoirs.1 iS To use these performance prediction methods, it is necessary to know the solubility, swelling and viscosity properties of CO2-crude oil mixtures at reservoir conditions. Some information on these properties has appeared in the literature; however, this information did not cover the range of different oils and conditions needed to prepare generalized correlations for reservoir engineering purposes. Consequently, an experimental program was undertaken to collect the data needed. The data obtained and the correlations developed from the data are described in the following sections of this paper. SOLUBILITY OF CO2 IN CRUDE OILS CO2 solubility data in the literature come from six principal sources. The solubility prediction method of Welker and Dunlop3 is limited to 80F. The information in Ref. 4 is of two types: the first includes binary and ternary mixtures of CO, and light hydrocarbons (C1 to C6), and the second gives data for CO1 and heavy hydrocarbons for a temperature range of 40 to 90F. Ref. 5 contains a KCO2 chart for systems whose convergence pressure is 4,000 psia. The KCO2's are based mainly on CO2-natural gas mixtures. Poettmann's work covered CO2 solubility in one condensate and one crude oil6,7 Ja-coby and Rzasa measured CO? solubilities as a function of pressure and temperature for two natural gas-absorber oil mixtures and two natural gas-crude oil mixtures.'8 CO, concentration in these four systems was fixed at 5 mol per cent. The work reported in this paper extends CO, solubility data to a variety of different crude oil types in a temperature range from 110 to 250F and pressures up to 2,300 psia. The experimental procedure used by the authors to obtain the solubility data consisted of combining known amounts of pure CO, and crude oil in a visual cell at a fixed temperature and measuring the bubble point of the mixture. Measurements were made for a total of 40 different CO2-oil mixtures and the results are shown in Table 2. The mixtures included nine different oils (seven crude oils and two refined oils) whose properties are listed in Table 1. All nine oils had vapor pressures less than 1 atm at the experimental temperatures. Consequently, analysis of the bubble-point vapor showed a CO, concentration over 99 mol per cent. At no time during these experiments was a second, more dense, liquid phase observed. The solubility correlation which was developed from the data in Table 2 is presented in Figs. 1, 2 and 3. In these figures, solubility is expressed as xco2 the mol fraction of CO, in the CO2-oil mixture. Fig. 1 shows solubility as a function of CO2 fugacity6 and temperature. Fig. 2 shows the same solubility data expressed as a function of saturation pressure and temperature. The solubility shown in Figs. 1 and 2 is for an oil whose UOP characterization factor is 11.7. UOP characterization factors of crude oils can be determined from Ref. 10 if the viscosity and APT gravity of the oil are known. Fig. 3 gives the solubility correction factor for oils whose UOP characterization factors differ from 11.7. The solubility correlation in Figs. 1, 2 and 3 predicted

Jan 1, 1966

By G. P. Marino

The "conductivity ", Kr, of a spherical void in a linear temperature gradient due to radiation is calculated by integration of the general expression for diffuse radiation between two gray surfaces of arbitrary orientation. The spherical geometry allows an exact evaluation of the phenomenon without resorting to up-proximate expressions for the radiant heat flux. The resulting expression for Kr is three quarters of the approximate value obtained by Loeb. IN the determination of the thermal conductivity of porous materials such as sintered UO2 and ThO2 fuel pellets, the magnitude of the thermal conductivity in the pores due to radiative heat transfer across the pore, Kr, may be important in assessing the total conductivity of the pellets. Loeb' has calculated Kr for various pore geometries by approximating the net flux of heat between two surfaces of temperature difference AT as 4eT~AT and obtained: K,=4yoet3odp [1] where a is the Stefan-Boltzmann constant, E is the emissivity of the radiating surface, To is the average absolute temperature of the region across which radiation occurs, dp is the largest dimension of the gap in the direction of heat flow, and y is a geometric factor. That is: y = 1 for laminar pores and cylindrical pores with axes parallel to the heat flow direction, y = 2/3 for spherical pores, y = /4 for cylindrical pores with axes perpendicular to heat flow direction. It was the purpose of this work to obtain an exact expression for K, in spherical pores by integration of the general expression for the net heat transfer between two incremental areas on the surface of a spherical pore. This procedure yields a value of Kr 3/4 of that obtained by Loeb. I) CALCULATION OF Kr Fig. 1 illustrates the general geometry which defines the problem. The total emissive power for a gray body is given by: E = EoT4 [2] where E is the radiated energy per unit area of the radiation surface per unit time, T is the absolute temperature, o is the Stefan-Boltzmann constant (o = 5.67 X lo- '' watt per sq cm-"K1), and E is the emissivity of the surface. Although Eq. [2] gives the exact expression for the total emissive power of any gray body, all practical problems involve the net exchange of thermal radiation between a body and surrounding bodies. The two major considerations in the solution of such problems are a) shape and relative position of the surfaces and b) the emissivities of the surfaces. In this work it shall be assumed that all incremental areas on a pore have the same emissivity and, further, that little or no reflection occurs (i.e., the radiation hitting a surface is either absorbed or transmitted). Thus, the solution of the stated problem requires only that consideration a be satisfied. Consider two incremental surface areas dA 1 and dA2 of the same material in a general orientation to one another. Let dAl be at temperature TI and dAz be at T2. Fig. 2 illustrates the geometrical parameters involved. That is, 71, is the normal of dA, n2 the normal of dA2, r the line connecting the centers of each area, 81 the angle between nl and r, and Q2 the angle between 7,2 and r. Using Eq. [2] and the Lambert cosine law of diffuse radiation it is easily shown that:293 WdAf- dA, = ecr T*------^fpi------" dAidA2 [ 3a 1 and

Jan 1, 1970

By L. W. Pommier, L. R. Plitt, F. B. Brien

L. R. Plitt (Assistant Professor of Mining and Metallurgy, University of Alberta, Canada.) — It is indeed encouraging to see rheological studies being carried out in a mineral engineering school. The bulk of the work being done today in applied rheology seems to be concerned with the behavior of polymeric solutions and thus has limited application to the solid-liquid systems encountered in mineral beneficiation. The authors have approached the problem by carrying out a dimensional analysis which showed that for power law fluids the drag coefficient, Ds, must be some function of a generalized Reynolds number which has the form: If the power law adequately describes the behavior of a fluid, the dimensional analyses predicts that the Ds - RN function should hold for all values of n' or any other dependent variable. The experimental evi-

Jan 1, 1968

By J. F. Nicholas

THE angles between the crystallographic planes in cubic metals were originally given by Bozorth and have been republished many times. Recently, Salkovitz2 tabulated the angles for the hexagonal metals (magnesium, zinc, and cadmium). he most commonly used metal which does not fail into either of these groups is tin, which has a tetragonal structure with an axial ratio of c/a = 0.54558 (99.99 pct purity, 25°C).² ccordingly, Table I has been prepared giving the possible values for the angle, 4, between planes of the types {HKL) and {hkl). The formula used was: Hh + Kk + LI — cos? = —--------------—-----------— A [(H2 + K2 + L2-a2c2(h2 + k2 + r;)] All angles are given correct to the nearest minute as this is sufficient for all practical purposes. Every angle depends in a different way on variations in the value of c/a, but even in the worst cases a variation of about 0.0003 in this ratio is needed to vary an angle by l', which corresponds to a temperature change of 20 °C or can be caused by impurities.

Jan 1, 1952

“The mining industry can do more to alleviate world poverty, hunger and human misery, more to close the widening gap between advanced and developing nations and more to achieve international peace and understanding than any other single force in the world," Charles W. Court, Minister for Industrial Development, Western Australia, told the American Mining Congress audience at the opening session of the 1969 Mining Convention, October 19-22, San Francisco. Australia, he pointed out, is a shining example. In 1971, 60% of U.S. mining investment overseas will go to Australia and other parts of Oceania, an increase of 42% over a year ago. Australia has capitalized on world needs, its own rich resources and good investment climate. Developing nations can and should do the same, but they mix emotion with nationalism, often frightening away foreign investment which could breathe life into dormant and backward areas, said Court.

Jan 12, 1969

By H. K. Work, H. B. Emerick

IN the past year the steel industry underwent an abrupt conversion from a war tempo to a highly competitive peacetime schedule. It is still too early to gain a comprehensive picture as to which of the measures in production metallurgy, that made the war effort so successful, will remain in the postwar production of steel, but many of them undoubtedly will fill an important place after the war. Considerable speculation has developed regarding the disposition of the war-born production facilities of the steel industry. These include new open-hearth and electric furnaces, as well as vast numbers of auxiliary, supplementary, and balancing units that increased and speeded up production beyond the normal capacities of existing melting furnaces and finishing mills. Although these facilities were installed primarily to help meet war requirements, consideration was also given, in planning, to their possible peacetime use. The new equipment is generally modern and efficient, and it seems reasonable to suppose that strategically located units will gradually be absorbed by various steel companies to supplement their own facilities, or to replace in kind, obsolete and inefficient equipment now ready to be scrapped. Some, however,

Jan 1, 1946

By KENNETH W. GREENAWALT, William Greenawalt

THE patent system, through which an inventor is given exclusive right to his invention for a limited period as a reward for his industry and in reimbursement of his expenditures, originated in England in the famous "Statute of Monopolies," enacted in 1623. The first patent granted in America was to Samuel Winslow, in Massachusetts, in 1641. The basis of the patent system of the United States is a provision in the Constitution giving Congress the power to secure to inventors for a limited time the exclusive use of their discoveries. The first legislative enactment was the law of 1790, which was placed on the statute book after Washington had addressed Congress in its favor. Under this law, the Secretary of State, the Secretary of War, and the Attorney General constituted the board for the examination of patent applications and the granting of patents. The first Secretary of State, Thomas Jefferson, became the first administrator of the patent sys- tem in this country. He personally examined every application filed during his term of office.

Jan 1, 1930

By Michel Elle, John Chipman

The equilibrium of gaseous H20-H2 mixtures with liquid iron-columbium alloys in the range 0.2 to 2.4 pct Cb shows that the activity coefficient of oxygen is strongly diminished by Cb. The oxide in equilibvium with the melt is identified as CbO2. The equi-librium constant at 1600 deg C is [%Cb][fo. % 0]2 = 2.9 x 10-4 where log fo= —0.14 [%Cb]. The deoxidizing power is comparable to that of vanadium, COLUMBIUM (niobium) is finding increasing use as an alloying element in steel. It forms several stable oxides and is removed from the steel bath by oxidizing slags. The specific oxide formed in steel-making is not known although Sazanov snd Shvarts-man,' in their study of its partition between slag and metal, have assumed this to be Cb2O5 It is the purpose of this study to determine its deoxidation equilibrium at 1600°c, the nature of the oxide formed and the interaction between columbium and oxygen in the melt. The investigation was based on the reaction H2 + O=H2O; Kl=ph2o/(pH2[%O]) [1] in which 0 signifies oxygen dissolved in the liquid Fe-Cb alloy. The method and equipment of recent studies2,3 were utilized. In brief, the molten alloy, contained in a small crucible, is held in a controlled mixture of steam, hydrogen, and argon until equilibrium is reached. It is then cooled quickly in a stream of helium and analyzed for columbium and oxygen, the latter by vacuum fusion.4 The solubility of the oxide in liquid iron is determined by visual observation of scum formation on the surface of the melt. Crucibles of MgO proved unsatisfactory because of partial reduction at the metal interface. Pure A12O3 crucibles were heavily blackened by the melt and could not be used at high concentrations of columbium. Silica crucibles were more satisfactory but these introduced some silicon into the melt thus necessitating an uncertain but small correction for its effect on the activities of the other solutes. In silica it was possible to observe the scum formation when the melt became saturated and there was no apparent reaction between scum and crucible. The procedure for saturated melts was as follows. The alloy charge composed of electrolytic iron and columbium grain was melted and held at constant temperature. The gas ratio H2O:H2 was progressively increased by raising the saturator temperature until a point was reached at which a bright film appeared on the surface and covered it completely. This film could be dissolved by raising the temperature of the melt and it reappeared when the temperature was lowered. Under a partial film covering, utilizing bare areas for temperature measurement, the melt was brought to equilibrium with the atmosphere by holding at temperature for about 1 hr as suggested by Dastur.5 INTERACTION IN THE MELT Several experiments were made without columbium to establish a base in silica crucibles. The results are shown in Table I. Except for one run, they agreed well with Floridis1 comparable results in other crucibles. The value of log K1 is taken from Table I as 0.58. This is slightly larger than Floridis' result, probably because of less elaborate safeguards against thermal diffusion. Results obtained in the Fe-Cb-0 series in which no scum formed are shown in Table 11. The equilibrium ratio Kl is defined as ph2o/(ph2[%O]). It is related to the equilibrium constant K1 as follows:

Jan 1, 1962

By L. M. Pidgeon, W. Curlock

FREE energies of formation of zinc sulfide and magnesium sulfide had previously been estimated to an accuracy of ± 5.0 kcal per g mol. In the present work, these values were determined experimentally. As the determinations of the free energies of formation of zinc sulfide and magnesium sulfide presented different problems, separate experimental procedures were employed for each. ZINC SULFIDE It is difficult to measure the free energy of formation of either zinc sulfide or magnesium sulfide by measuring their decomposition pressures directly, as they are very stable compounds. An attempt was made by Jellinek and zakowski3 to study the equilibrium. zns(s) + H2(g) = Zn(g) + H2S(g) [I] They passed hydrogen over zinc sulfide and analyzed the gases leaving the reaction zone for H2S. They were unable to determine the true partial pressures of the H2S by this method, as some of the H2S on being cooled from the reaction temperature, reacted with the zinc in the gas to produce ZnS. Consequently, they were unable to establish any true equilibrium data for reaction [I]. More recently,' the equilibria ZnS(sphaledte) + Fe (s) — FeS(s) + Zn(g) [2] and ZnS(sphalerite) + 2Cu(s) — Cu2S(S) + Zn (g) [3] were studied. As the standard free energy of formation of Cu2S is known to * 3.0 kcal, and of FeS to ± 1.0 kcal, it should be possible upon performing equilibrium studies on reactions [2] and [3] to deduce the standard free energy of formation of ZnS (sphalerite). However, as both of these equilibria involve 2 solid sulfides, and as it is possible for these sulfides to dissolve in one another, it is necessary first to ascertain the activities of the various sulfides in these solid phases.

Jan 1, 1959

By J. Chipman, T. P. Floridis

The equilibrium of gaseous H2O-H2, mixtures with liquid iron is used to establish the activity coefficient of dissolved oxygen as log f o = — 0.20 [%O]. Discrepancies in earlier work are explained or eliminated. Additions of cobalt, molybdenum, tungsten, and platinum increase the activity coefficient of oxygen whereas copper and gold decrease it. THE importance of dissolved oxygen as a refining agent in liquid steel has led to a number of studies of its thermodynamic properties. It is the purpose of this paper to examine the effects of a number of alloying elements on the activity of oxygen in the steel bath. As a preliminary to the study of the effects of alloying elements, it seemed desirable to examine certain minor discrepancies in the published data on the properties of oxygen in simple iron-oxygen solutions. The activity and free energy of oxygen in liquid iron were studied by chipman1 in 1933 by means of the reaction h2(g)+-o = H2O (g);K; = PH2O/PH2[% O] [1] The data were in fairly good agreement with calculations from results on the similar reaction CO (g) + O- = CO2 (g); K2 =P CO2/P CO [% O] [2] which had been obtained by Vacher and Hamilton2 as an incidental part of their study of the reaction of carbon with oxygen dissolved in the melt. It was found that the equilibrium ratio k1 was not a true constant but varied with the oxygen concentration in the manner shown in Fig. 1, which is copied from the original paper. This early observation has been refuted in subsequent work but is confirmed in the present paper, and an explanation of the discrepancy can now be presented. In Fig. 1, the two points on the extreme right were disregarded in drawing the

Jan 1, 1959

By R. E. Mazurak, E. L. Ealy

At the Beckley mine in southern West Virginia, forecasting unstable roof conditions in advance of mining is accomplished by wing a rating system that combines historical information on mine roof failures with known mine geology. Failure frequency rates are derived for each category of roof rock composition, unit thickness, structure, and extraction ratio. In this manner, known geological environments are rated according to instability based on actual experience. Drill hole control and geological interpretation provide the basis for forecasting unstable conditions beyond working faces. The forecasting technique has assisted mine management in reducing fall frequencies by 80% over the past two years compared to the first five years of operation. This reduction in fall frequency was accomplished by modifying the plan of advancing sections to minimize mining exposure to unstable roof conditions.

Jan 1, 1983

By D. R. Parrish, V. J. Berry

Reverse combustion is one thermal method of recovering hydrocarbons from porous undergrortnd formations containing oil or tar. In applying this method, air is introduced via an injection well and the mixture of air and hydrocarbons is ignited in the production well. A combustion zone then recedes toward the injection well, counter-current to the air flow. If the combustion-zorie temperature is sufficiently high, the oil or tar irz place is distilled arid cracked. The hydrocnrhon flows as a vapor to the production well and subsequently is condensed at the surface. Maximum temperature and velocity of morcment arc the two dependent variubles defining the progress of the combustion zone. A theoretical analysis has been made of heat flow in the reverse-comhustion process as.srtrning linear flow in a homogeneous system. The differentirll equatious, which include the oxygen-hydrocar-hon rctrction rate, have been solved numerically. Rescllts indicate that the maximum temperature reached and he cornbustion-zone relocity both increase with an incrense in air-injection rote. Heat loss to surroundings has little effect on the maximum comhustion-zone ten?perature achieved, but it is reflected in a reduced com-bustion-zorzc, velocity. It is also predicted that an increase in the oxygen-hydrocarbon reaction rate results in a reduction in the maximum temperature reached. The calculated results are in agreement with results from reverse-combustion experinments using samples of a tar sand. INTRODUCTION Reverse combustion is one thermal method of recovering hydrocarbons from porous underground forma-tions containing oil or tar.' In applying this method, air is introduced into the underground formation via an in-jection well. In one or more adjacent production wells, the mixture of air and hydrocarbons is ignited at the sand face. The combustion zone thus formed recedes toward the injection well, counter-current to the air flow (Fig. 1). Under certain conditions, the rate of recession of the combustion zone is sufficiently rapid that only a small fraction of the hydrocarbon at any point in the formation is consumed by combustion. If the combustion-zone temperature is sufficiently high, the uncon-sumed oil or tar in place may be partially distilled or cracked. This material then can flow as a vapor with the gaseous combustion products to the production well and subsequently be condensed at the surface. Under other conditions, the combustion-zone temperature may be so low that little, if any, of the hydrocarbon is vaporized. Nevertheless, the viscosity of the hydrocarbon may be reduced enough so that other recovery methods subsequently can be applied to produce oil at attractive rates. The maximum temperature achieved in the combustion zone and the velocity of movement are the two dependent variables defining the progress of the combustion zone. Presumably. knowledge of these factors will permit estimates to be made of oil recovery efficiency, oil and gas producticn rates and average amount of injection air required per barrel of oil recovered. The maximum temperature and combustion-zone vclocity are, in turn, expected to be dependent upon air flow rate, heat losses to surrounding formations, physical properties of the rock and the hydrocarbon. the extent to which the porous formation is saturated with the hydrocarbon, the rate of oxidation of the hydrocarbon and the amount of heat released. It is desirable that the relative importance of each of these factors be understood so that the results of laboratory tests of oil recovery by reverse combustion can be properly interpreted in terms of expected field performance. It is particularly desirable to assess the importance of heat lcsses because these are difficult to control or eliminate

J. E. Stead, Middlesborough, England (communication to the author): Prof. Howe's valuable paper on cast-iron brings forward most prominently the correct explanation of the part played by combined carbon in pearlite and cementite, in determining the strength and hardness of cast-iron. On a previous occasioil I have shown that castings made by melting a white Cleveland iron and glazed iron, one containing 1.5 and the other from 4 to 5 per cent. of silicon, and each about 3 per cent. of carbon, were stronger than those made of ordinary foundry-iron; the difference in the final castings being a differ-

Jan 1, 1902

By Howard N. Eavenson

In 1926 the Clover Splint Coal Co. acquired a lease on 1793 acres of coal lands situated in Harlan County, Ky. about two miles above the end of the Clover Fork Branch of the Louisville & Nashville Railroad at Louellen. This property contains several coal seams near the foot of the mountain, which are excellent coal but too thin to be very attractive now, and carries about 968 acres of the High Splint seam 1375 ft. vertically above the stream and slightly more than three-fourth mile from it. This High Splint seam produces a high percent- age of large lump, is very low in ash and sulphur, stands transportation and stocking exceedingly well and has an excellent reputation as a high-grade domestic bituminous coal. To develop this tract it was necessary to build an extension of the railroad slightly over two miles long, and, in addition to the usual mining equipment and machinery, to build enough houses, with the necessary store and other buildings, to accommodate all of the employees. The topography made construction expensive, so that it was important to keep the cost as low as possible, in order that the proposition might be financially attractive.

Jan 1, 1932

By John V. Beall

If you will be patient, we will explain how our plans to research the fishing possibilities of the Buffalo River following the SME Fall Meeting turned out, in general, to be an extension of the main theme of that meeting and, in particular, to confirm an astute observation on research made by Australian T. R. A. Davey in his Award-acceptance address at the Pb-Zn Research Luncheon. Buffalo River State Park is reached via Yellville where we tried without success to find one Odie Tollett who had been recommended as a boat liveryman. However, Mrs. Leon Dodd, in the Park, outfitted us nicely with a 17-foot aluminum canoe. Rain had dominated the recent weather of the Ozarks in northwestern Arkansas. So, under a leaden sky and intermittent showers, we stood on the bank of the turgid Buffalo demonstrating to our spouse, Sylvia, how to cast. Of course, with the water up and the sediment, the outlook for catching fish was bad. Sylvia said, however, "Oh, I get it. Let me try. Umm, like this I got one!" Sylvia reeled in a pretty ten-inch brown trout. "The poor thing, let's throw him back."

Jan 1, 1970

By R. L. Minckler

PETROLEUM industry forecasts are constantly made and revised but are not in the nature of predictions. Particularly in the field of demand, many of the factors are far beyond control by the producing industry. Supply reacts on demand and demand reacts on supply. Competent economists in the oil business forecasted a year ago, on the basis of experience, that demand would now be at a much lower level than it is. This increased demand increased the price of crude oil and products, and in turn those increased prices have brought forth increased supply. A reduction in demand would lead to a reduction in supply. Shortages are now world-wide, and costs of secondary importance, so if there were extra supplies in California they would be moved into what are termed "unnatural markets." For example, Argentina is in the market today for California gasoline; that is an unnatural market because of the greater transportation distances from California to Argentina than from normal sources.

Jan 1, 1947