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By H. Jehn

Like some other Pt-group metals palladium shows a low but considerable solid solubility of oxygen, which was found already from oxidation studies. The oxygen solid solubility of palladium in equilibrium with gaseous oxygen has been investigated at 900 - 1300 °C in oxygen (665 mbar) and air by gassing and analyzing polycrystalline samples. The 0-concentrations range from 40 to 90 ppm and decrease with rising temperature. The isobaric solubility can be represented by the least-squares fit log c0 = 0.5 log p02- 0.32 + 920/T (c0 in wt. ppm, p02 in mbar, T in K). The thermodynamic data of the exothermic solution reaction are calculated to ?H°= -17.6 kJ?mol-1 and ?S° -76.5 J?mol ? K-1. The behaviour of palladium in an oxygen atmosphere is characterized by the simultaneous reactions of the solution of oxygen in the metal and the formation and evaporation of volatile oxides besides the pure metal evaporation.

Jan 1, 1984

By C. D. Haynes, S. C. Gambrell

The practice of roof bolting in WORLD-WIDE mining activities is very well-known, having been used extensively for over 50 years. The theory of roof bolting, however, is extremely complicated, and only recently have investigators attempted to explain the theory. Various means of stress analysis have been utilized in rock mechanics, most of which reduce rock to an isotropic, homogeneous medium that can be easily analyzed. One of the indirect research methods is the photo-elastic technique, the theory of which is widely known and needs no elaboration. This technique has been used extensively to examine the state of stress around underground openings of various shapes in certain types of strata, and under various loading configurations.'-" In-Situ Mine Roof Trusses The photoelastic technique was employed here to evaluate the state of stress above a mine opening where support is provided by the in-situ mine roof truss. This support configuration, shown in Fig. 1, has gained popularity in recent years, particularly in mines with bad roof conditions." To the authors' knowledge, no scientific determination has been made of the advantages roof trusses may offer over conventional bolting configurations comparable to roof trusses. Ordinary mine roofs usually sag or bulge downward soon after mining. Normally, after some movement the roof begins to stabilize, but the face of this bulging mine rock is usually in tension and will almost always fail unless supported. Because rock fails easily in tension, it is desirable to "preload" the roof, that is, to impress a compressive force on the mine roof to prevent bulging and subsequent tensile failure. Ordinary rock bolting installations, particularly if the bolting is perpendicular to the mine roof plane, do not produce a preloading effect. Although bolting installations squeeze the strata together and produce a beam effect desirable for support, they do not have the advantage of actual uplift. They pull down at the anchorage point with a force equal to the bolt tension which sometimes causes a separation in the plane of the anchorage detrimental to roof strength. In-situ mine roof trusses require the installation of steel tension rods in the roof of the mine much the same as conventional roof bolts, except that the rods are arranged to produce a stress pattern above the upper surface of the opening similar to that of a prestressed beam. The roof rock acts to transmit the compression force. The simplest form of truss consists of two steel rods anchored to the back of holes drilled at an angle of approximately 45 over the mine pillars. These rods are collared near the middle of the room, and the lower ends of the rods are connected by tie rods and turn-buckles. Used in this manner, a small-diameter steel rod can provide essentially the same support as a wide-flange steel beam. By tightening the turnbuckles, an uplift on the roof can be produced. Objective of the Investigation The objective of this investigation was to determine qualitatively the state of stress that exists above a mine roof after the installation of the in-situ mine roof truss vs. that of two angle roof bolts, hereafter referred to as "roof bolts," drilled and placed in the same configuration, that is, 45" above each pillar and connected together in the middle of the room by a bearing member such as a steel beam. Each state of stress was to be identified, insofar as possible, as compression or tension above the mine opening. Model Construction A photoelastic model of a mine opening was coil-structed from -in. thick PLM-4B birefringent plastic and was machined to specification shown in Fig. 2. The dimensions of the opening were chosen to simulate a width-to-depth ratio of 3 to 1. Two % -in. holes were drilled at 45" angles, as shown, to provide for the loading devices. After construction, the model was annealed at 240°F to remove stresses produced during machining.

Jan 1, 1971

By C. E. Van Orstrand

An intrusive body is a mass of igneous rock that has migrated upward, presumably from great depths. Great variations in form, composition and depth of burial occur. It is not proposed in this paper to go into all of the details of the problem. Instead, it mill be assumed here that the intrusive has the form and characteristics represented in Fig. I. According to W. 11. Emmons minerals are not deposited in appreciable quantities below the "dead line." Important amounts of ores of virtually all metals may be found around summit cupolas, but only gold, copper and zinc (in limited quantities) are usually associated with trough cupolas. Most students of ore deposits agree that temperature changes are largely instrumental in precipitating many ores in the "hood" and that the difference in temperature between the intrusive and that of the country rock may be the chief factor in determining the mineralogy of a deposit. A problem then of some interest is to correlate the principal physical features of the intrusive with the phenomena of heat conduction as evidenced by the cooling curves and the isothermal surfaces. Mathematical Theory In order to show the possible application of heat conduction to the interpretation of the processes of metalliferous deposition associated with intrusives, it will be as- sumed that the intrusive is a large par-allelopiped of dimensions, 2l, 2m, 2n. The equation that represents the flow of heat from the parallelopiped into country rock (v = o, 1 = o), which has the same thermal properties as the intrusive, is2,3 l-x v I FT 2 [2 2 — l-x m — y — m — y n — z In this equation, the origin, x = o, y = o, z = o, is at the center of the parallelopiped. v = temperature at point x, y, z, time 1. v, = initial temperature throughout the intrusive, 1 = o. k = coefficient of thermal diffusivity. a, ß, y are variables of integration. Put n = m in Eq. I, and we have v I [2/5 [2I-x 2 — l-x m — y 2 2 2 kt 2 20xt e-a2da ebrdß

Jan 1, 1946

By C. E. Van Orstrand

An intrusive body is a mass of igneous rock that has migrated upward, presumably from great depths. Great variations in form, composition and depth of burial occur. It is not proposed in this paper to go into all of the details of the problem. Instead, it mill be assumed here that the intrusive has the form and characteristics represented in Fig. I. According to W. 11. Emmons minerals are not deposited in appreciable quantities below the "dead line." Important amounts of ores of virtually all metals may be found around summit cupolas, but only gold, copper and zinc (in limited quantities) are usually associated with trough cupolas. Most students of ore deposits agree that temperature changes are largely instrumental in precipitating many ores in the "hood" and that the difference in temperature between the intrusive and that of the country rock may be the chief factor in determining the mineralogy of a deposit. A problem then of some interest is to correlate the principal physical features of the intrusive with the phenomena of heat conduction as evidenced by the cooling curves and the isothermal surfaces. Mathematical Theory In order to show the possible application of heat conduction to the interpretation of the processes of metalliferous deposition associated with intrusives, it will be as- sumed that the intrusive is a large par-allelopiped of dimensions, 2l, 2m, 2n. The equation that represents the flow of heat from the parallelopiped into country rock (v = o, 1 = o), which has the same thermal properties as the intrusive, is2,3 l-x v I FT 2 [2 2 — l-x m — y — m — y n — z In this equation, the origin, x = o, y = o, z = o, is at the center of the parallelopiped. v = temperature at point x, y, z, time 1. v, = initial temperature throughout the intrusive, 1 = o. k = coefficient of thermal diffusivity. a, ß, y are variables of integration. Put n = m in Eq. I, and we have v I [2/5 [2I-x 2 — l-x m — y 2 2 2 kt 2 20xt e-a2da ebrdß

Jan 1, 1946

By R. W. Raymond

(Chattanooga Meeting, October, 1908.) THE immense commercial value of the Gayley dry-blast process has been established beyond controversy. The testimony of practical blast-furnace managers, on both sides of the Atlantic, agrees that it reduces the cost of pig-iron about $1 per ton; but from the same testimony it appears that this direct economy does not by any means cover its commercial advantages-in fact, that under conditions frequently encountered in practice, it presents other benefits of even greater immediate financial importance. To this point I shall recur in a later part of the present paper. The history of the reception given to this invention, especially on the other side of the Atlantic, has repeated an experience familiar to American engineers. First, the reports of our practice were rejected as theoretically impossible, according to generally accepted notions and formulas; then the figures were reluctantly accepted ; and finally the attempt has been made to explain how they could have been obtained. As to the Gayley dry blast, we Americans have been for several years in the last stage of the discussion, and the rest of the professional world is rapidly coming to it. Meanwhile, the remark has been repeatedly made that, whatever Mr. Gayley's process may turn out to be worth, it was not an invention on his part, but simply the energetic and persevering execution of a procedure already proposed by others. This question I wish to discuss first in the present paper. I. WHAT DID MR. GAYLEY INVENT Realizing that this is not the place for detailed argument on an issue of patent law, I shall not undertake to quote and criticise the publications prior to Mr. Gayley's first patents. It may be admitted, without such critical analysis, that the possi-

Jan 1, 1909

By W. E. Stiles

A method is presented for predicting the performance of water flooding operations in depleted, or nearly depleted, petroleum reservoirs. The method makes use of permeability variations and the vertical distribution of productive capacity. From these two parameters can be calculated the produced water cut versus the oil recovery. Derivations of the mathematical analogy is shown and sample calculations and curves of prediction are presented. Comparison is made of the predicted and actual performance of a typical 5-spot in an Illinois water flood. INTRODUCTION The use of water as a flooding medium in both depleted and "flush" oil reservoirs is gaining greater recognition and acceptance. Many of the shallower fields, depleted by primary production, have been and are being subjected to water injection in order to obtain some part of the large volume of oil remaining after primary production. Some of the earlier water flood installation proved highly discouraging and the value of water flooding was often questioned. Many of these earlier floods were haphazardly selected and developed as little was known of the physical characteristics and contents of the producing formations. The prior evaluation of the flood performance was impossible. During the past decade the development of the required reservoir engineering tools-—core analysis, reservoir fluid analysis, electric logs, fluid flow formulae, etc.—has allowed the engineer to construct and apply the methods which are presently being used to evaluate the economic and mechanical susceptibility of a reservoir to flooding. This discussion will present a method for taking into account the effect of permeability variations in predicting the performance of water floods in depleted reservoirs. PERMEABILITY AND CAPACITY DISTRIBUTION It is generally agreed by most investigators that in a single phase system fluid will flow in a porous and permeable medium in proportion to the permeability of the medium. Producing formations are usually highly irregular in permeability, both vertically and horizontally. However, zones of higher or lower permeability are often found to exhibit lateral continuity. Thus, while structurally comparable stringers in adjacent wells may differ several fold in permeability values, they usually bear resemblance as being part of a general continuous higher or lower permeability section. It is generally agreed that where such stratification of permeability exists, injected water sweeps first the zones of higher permeability, and it is in these zones that "break-through" first occurs in the producing well. It is a basic assurnption of the presently described method that penetration of a water front follows the individual permeability variations as if such variations were continuous from input to producing well. This is admittedly not rigorously true, but can be justified as making possible a simplifying mathematical approach to an otherwise extremely complicated three dimensional flow problem. As a basis for study of the lateral flow of fluids in formations of irregular permeability, the irregularities may be conveniently represented by a permeability distribution curve and a capacity distribution curve. In obtaining these curves, the permeability values, regardless of their structural position in the formation, are rearranged in order of decreasing permeability. If these permeability values so arranged are plotted against the cumulative thickness, a permeability distribu- tion curve is obtained. This curve may then be likened to a "smoothed" permeability profile of the formation. In making comparison between different distribution curves it is convenient to state the permeabilities in terms of the ratio of the actual permeability values to the average permeability of the formation. These ratios termed "dimensionless permeabilities", are used in this paper rather than the permeabilities in terms of millidarcys. The capacity distribution curve is a lot of the cumulative capacity (starting with the highest permeabilities) versus the cumulative thickness. The capacity and thickness are given as fractions of the total capacity and thickness. Mathematically, the capacity distribution is the intergration of the permeability distribution curve. In practice it is convenient to first obtain the capacity distribution curve and derive from it a smoothed dimen-sionaless permeability curve. The method of obtaining the capacity distribution curve is illustrated in the successive column of Table 1, in which capacity and thickness are derived as fractions of their respective totals. If only a small number of permeability values are available, it is generally desirable to smooth the resultant curve. This has been done to give the capacity distribution curve shown in Figure 1. The differentiation of the capacity distribution curve to obtain the permeability distribution curve is shown in Table 2. Here, the capacity values are read from the smoothed curve at intervals of cumulative thickness, and the increments of capacity are divided by the increments of thickness to obtain the dimensionless permeability, K. Due to this stepwise procedure of calculation these premeability values must be plotted at the midpoints of the successive increments of thickness. The curve so obtained from these data is shown in Figure 1. The total area under the K' curve is equal to unity.

Jan 1, 1949

By W. E. Stiles

A method is presented for predicting the performance of water flooding operations in depleted, or nearly depleted, petroleum reservoirs. The method makes use of permeability variations and the vertical distribution of productive capacity. From these two parameters can be calculated the produced water cut versus the oil recovery. Derivations of the mathematical analogy is shown and sample calculations and curves of prediction are presented. Comparison is made of the predicted and actual performance of a typical 5-spot in an Illinois water flood. INTRODUCTION The use of water as a flooding medium in both depleted and "flush" oil reservoirs is gaining greater recognition and acceptance. Many of the shallower fields, depleted by primary production, have been and are being subjected to water injection in order to obtain some part of the large volume of oil remaining after primary production. Some of the earlier water flood installation proved highly discouraging and the value of water flooding was often questioned. Many of these earlier floods were haphazardly selected and developed as little was known of the physical characteristics and contents of the producing formations. The prior evaluation of the flood performance was impossible. During the past decade the development of the required reservoir engineering tools-—core analysis, reservoir fluid analysis, electric logs, fluid flow formulae, etc.—has allowed the engineer to construct and apply the methods which are presently being used to evaluate the economic and mechanical susceptibility of a reservoir to flooding. This discussion will present a method for taking into account the effect of permeability variations in predicting the performance of water floods in depleted reservoirs. PERMEABILITY AND CAPACITY DISTRIBUTION It is generally agreed by most investigators that in a single phase system fluid will flow in a porous and permeable medium in proportion to the permeability of the medium. Producing formations are usually highly irregular in permeability, both vertically and horizontally. However, zones of higher or lower permeability are often found to exhibit lateral continuity. Thus, while structurally comparable stringers in adjacent wells may differ several fold in permeability values, they usually bear resemblance as being part of a general continuous higher or lower permeability section. It is generally agreed that where such stratification of permeability exists, injected water sweeps first the zones of higher permeability, and it is in these zones that "break-through" first occurs in the producing well. It is a basic assurnption of the presently described method that penetration of a water front follows the individual permeability variations as if such variations were continuous from input to producing well. This is admittedly not rigorously true, but can be justified as making possible a simplifying mathematical approach to an otherwise extremely complicated three dimensional flow problem. As a basis for study of the lateral flow of fluids in formations of irregular permeability, the irregularities may be conveniently represented by a permeability distribution curve and a capacity distribution curve. In obtaining these curves, the permeability values, regardless of their structural position in the formation, are rearranged in order of decreasing permeability. If these permeability values so arranged are plotted against the cumulative thickness, a permeability distribu- tion curve is obtained. This curve may then be likened to a "smoothed" permeability profile of the formation. In making comparison between different distribution curves it is convenient to state the permeabilities in terms of the ratio of the actual permeability values to the average permeability of the formation. These ratios termed "dimensionless permeabilities", are used in this paper rather than the permeabilities in terms of millidarcys. The capacity distribution curve is a lot of the cumulative capacity (starting with the highest permeabilities) versus the cumulative thickness. The capacity and thickness are given as fractions of the total capacity and thickness. Mathematically, the capacity distribution is the intergration of the permeability distribution curve. In practice it is convenient to first obtain the capacity distribution curve and derive from it a smoothed dimen-sionaless permeability curve. The method of obtaining the capacity distribution curve is illustrated in the successive column of Table 1, in which capacity and thickness are derived as fractions of their respective totals. If only a small number of permeability values are available, it is generally desirable to smooth the resultant curve. This has been done to give the capacity distribution curve shown in Figure 1. The differentiation of the capacity distribution curve to obtain the permeability distribution curve is shown in Table 2. Here, the capacity values are read from the smoothed curve at intervals of cumulative thickness, and the increments of capacity are divided by the increments of thickness to obtain the dimensionless permeability, K. Due to this stepwise procedure of calculation these premeability values must be plotted at the midpoints of the successive increments of thickness. The curve so obtained from these data is shown in Figure 1. The total area under the K' curve is equal to unity.

Jan 1, 1949

By John C. Calhoun, Frank T. Bethel

The application of a method for analyzing pressure build-up curves to determine the effective permeability in the Spraberry is presented. Sixteen upper Spraberry wells of the Driver area arc analyzed and show variations in the in-place effective permeability of 2 to 183 md. Since these value- are much larger than the .5 md. or less reported for the matrix rock. a large part of the vertical fractures noted in Spraberry cores- must be considered native to the formation. The effectiveness of the well fracture treatment in connecting the well bore to the native fracture system is analyzed by comparison of the effective permeability as determined from the PI test to that obtained from a pressure build-up curve. These results show that the fracture treatment is sufficiently effective in connecting tile well bore to the native fractrure system to yield a flow capacity within about 50 per cent of that dictated by the native fracture system About two-thirds of the wells show some degree of local blockage. INTRODUCTION Fractured reservoirs have been known in the past.' However, during the past two years the Spraberry formation has directed the attention of the petroleum industry to a study of the performance of a fractured reservoir. The large variation in the number of fractures noted in Spraberry cores rile large variation in the producing ability of offset well.. the dramatic effect of well treatment on well ,productivity. the unknown quantity of oil stored in the fractures and matrix rock. and the unknown oil to be recovered were part of the initial Spraberry puzzle. In this type reservoir where the well treatment is an important factor in determining the productivity. it i- particularly desirable to determine the in-place flow capacity of the drainage area at distance* far removed from the well bore. This value. when compared to the flow capacity obtained from a PI measurement, will show the effectiveness of the well treatment (completion. fracture treatment, acidization. etc. in establishing a flow capacity in the vicinity of the well bore equal to that in the more remote region. The object of this paper i.; to show the application of a method of pressure build-up analysis for this purpose in studying the Upper Spraberry formation in the Driver area. STATEMENT OF THEORY The theoretical basis for the application of a pressure buildup curve to show the effective permeability of the rock at distances far removed from the well bore has been presented in detail in earlier publications.', in the previous development it was shown that pressure build-up behavior of all wells could be reduced to the same dimensionless build-up curve of Fig. 1. This mean.; that the bottom hole pressure of a well after hut-in will rise in such a manner that a plot of pressure against the logaritllm of time yields a straight line. The slope of this linp can be rlzed to calculate the effective permeability as expressed by the following equation: where: effective oil permeability md oil production rate prior to shnt in. STB/I) In practice the flow which occurs into the well bore after shut in and the variation in flow capacity in the immediate vicinity of the well bore usually cause the early part of the build-up curve to be unsatisfactory in the determination of permeability. In general the effect of these factors on the straight line section will become negligible after a time when the of the following equation is equal to 0.1. and the preferred section Of the curve for use in defining the slope lie-

Jan 1, 1953

By Rex E. Cheek, Donald E. Menzie

The fluid mapper, a model relatively new to the petroleum industry, was used to study the effect of various mobility ratios on the areal sweepout efficiency for two typical spacing patterns. The experiments indicated the areal sweepout for the five-spot pattern varied from 51.8 per cent at a mobility ratio of 0.093 to 89.1 per cent for a ratio of 24.4. In the direct line-drive pattern, the areal sweepout varied from 58.7 per cent at a mobility ratio of 0.089 to 92.0 per cent at a ratio of 24.8. The fluid mapper may prove useful to determine quickly the effective areal sweepout for any well spacing. INTRODUCTION The effect of the mobility ratio on the areal sweepout efficiency during primary depletion of a water drive reservoir and during secondary recovery operations has recently become more widely recognized The mobility ratio, M, is defined as: _ kjp (displaced fluid) k/u (displacing fluid) where k = effective permeability u = viscosity When the displacing fluid is miscible with the displaced fluid, the permeabilities are equal and the mobility ratio may be expressed as a ratio of viscosities: u (displacing fluid) u (displaced fluid) The mathematical analysis for calculating the areal sweepout efficiency with mobility ratio other than unity is quite tedious.5,11 An experimental method by using a potentiometric model2 in a step-wise manner and in using an X-ray shadowgraph model3,12 with continuous fluid flow has been published. Several types of models have been used to study oil and gas reservoir performance. These models may be classified as physical, electrolytic, potentiometric, X-ray shadowgraph, and fluid mapper. The X-ray shadowgraph and fluid mapper are models relatively new to petroleum engineering and have not been used extensively for specific applications. The theory of the fluid mapper indicates it may be adapted to a study of areal sweepout efficiencies for various mobility ratios as well as other complex problems in petroleum engineering. The use of the model and results obtained when using displacing and displaced fluids of equal densities but different viscosities are discussed. FLUID MAPPER DEVELOPMENT H. S. Hele-ShawV eveloped a fluid mapper model based on the hydrodynamic theory. This theory is that in the steady flow of a viscous fluid between horizontal parallel plates spaced a very small distance apart, the effect of viscous shear is of such magnitude in the vertical plane that the motion in the horizontal plane is practically undisbrted streamline flow. Techniques developed by Hele-Shaw were not expanded and no additional developments in fluid mapper models were forthcoming until A. D. Moore, University of Michigan, published a series of papers starting in 1949, which describe the construction of a flexible and inexpensive model'h nd the fluid mapper technique for the solution of certain problems.' The essential components of the fluid mapper as developed by Moore are::.ln 1. A base slab. made of dental stone (calcium sulphate and water). which is shaped to represent the prototype. 2. Plate glass slightly larger than the slab and spaced

Jan 1, 1956

By AIME AIME

ALL sessions of the Mining Geology Committee at the Annual Meeting this year were held jointly with other groups, a plan that seemed to work out to the satisfaction of every one. Certain of these sessions are reported in this issue by others; the ones held on Wednesday are covered here. Ten papers, as published in the February M&M, were on the program for the Wednesday morning session, held jointly with the Society of Economic Geologists. Mr. Eckel made a brief presentation of his paper, on which there was no discussion, and Mr. Peoples presented that of which he was a joint author. D. M. Fraser then discussed a gravimeter survey for chromite in Cuba, which blocked out some 50,000 tons of ore, and F. G. Wells told of work on chromiferous sands in Oregon.

Jan 1, 1943

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 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 Kenneth F. Whinery, John M. Campbell

Basically, the Buckley-Leverett theory involves two systems which are similar in nature but are differentiated by time. These systems may be described by the fractional flow and frontal advance equations which essentially characterize the mechanics of oil movement while being expelled from the reservoir. The fractional flow equation originally developed by Leverettl may be expressed in the more usable form The development of this equation is based on Darcy's law describing fluid flow through porous media and applies to the flow at only one point (it is a point function). For simplification, the fractional flow equation is written in the above form because the capillary forces always increase the fractional flow of the displacing phase regardless of the direction of flow or the displacing phase. If, for simplicity, the effects due to gravity and capillary pressure differences are neglected, the fraction of the displacing fluid, f, at any point in the flowing stream is related to the properties of the system by 1 Thus, it is seen that in the absence of capillary and gravitational effects, fd for a given sand and fluids varies only with saturation and pressure. The magnitude of the viscosity ratio, —a has an effective range (range of about 30) in the system where gas is displacing oil and a much smaller range for water displacing oil. In order to make the fractional flow equation more versatile, it is necessary to connect the fractional flow at a given point and saturation with time. This problem was approached by Buckley and Leverett" who developed the frontal advance equation, Eq. 3 states that the rate of advance of a plane that has a fixed saturation, Sd, is proportional to the change in composition of the flow stream caused by a small change in the saturation of the displacing fluid. It is, essentially, a transformation of a material balance equation representing the net rate of accumulation of the displacing phase within a homogeneous sand block. This accumulation is proportional to the difference between the rate at which the displacing fluid enters the sand and that at which it leaves. Eq. 3 describes the velocity with which a plane of constant displacing phase saturation advances through a porous system. Buckley and Leverett," Babson,' Kern," Welge, and others have adequately discussed the basic mechanism and application of the fractional flow and frontal advance equations. APPLICATIONS OF THE FRONTAL ADVANCE THEORY TO PETROLEUM RECOVERY Two general applications of the Buckley-Leverett frontal advance theory involve the system in which the oil is being displaced by an expanding gas cap overlying the oil zone and that in which the oil is being displaced by water. Displacement by Gas in the Presence of an Immobile Water Saturation A system in which gas is the displacing phase may be thought of as having two forces effecting the displacement process. These forces are the gravitational force and that force exerted by the displacing gas. The gravitational effects control the displacing efficiency of the gas. The gravitational effect will be less at higher rates of flow, thereby reducing the effectiveness of the displacement of the oil by the gas. The more efficient displacements occur at flow rates which are less than the gravity free fall rate. Capillary forces can be neglected without materially changing the magnitude of the gas saturation. The Mile Six pool is used herein to illustrate the calculating procedures in evaluating gas drive-gravity drainage field perfomlance. These calculations represent the determination of the gas-oil contact when the distribution of the hydrocarbon pore volume is considered. Two methods

By Francis Crockard

DURING the past five years we have probably witnessed greater technological advances than in any similar period. Industry and science have steadily marched ahead. The makers of iron and steel products have watched with great interest the development of stream-lined trains, faster and safer airplanes, the entirely new science of air-conditioning and the widespread use of stainless steels. Since 1930, we have witnessed the erection of the world's largest suspension bridge, the largest and fastest ocean liner and the spectacular Boulder Dam, while even greater things are planned in these particular fields. Other indus-tries, too, have been moving ahead rapidly. This advance in a few years has been caused primarily by the fierce competition of the depression. Now, more than ever, is the emphasis placed upon quality and service. Makers of southern merchant pig iron have been no exception and have been confronted with increasingly strict chemical specifications and with much greater stress on physical characteristics than ever before. For example, sulfur in the iron must be held very low, competition demanding that it be in the 0.020's and low 0.030's; silicon content must be held within a very narrow range, and definite requirements of phos-phorus and manganese are an essential part of the specifications. Physical characteristics are becoming of increasingly greater impor-tance. The introduction of triple-skimmed, slow-cooled iron several years ago was the first step in this direction. Now there are a few customers who buy iron by chemical analysis and physical appear-ance, having found that the analysis alone is an insufficient guide to their requirements.

Jan 1, 1935

The following is an incomplete list of members and guests who called at Institute headquarters during the period Jan. 10, 1918 to Feb. 10, 1919. Walter F. E. Barcus. Lt. C. K. McDonald, U. S. N. R. F. Capt. D. H. Bradley, Jr. Major John DeN. Macomb, Bayhead, N. J. Melvis Buigger. - Samuel Melitzer, New York City. Eugene Coste, Calgary, Can. T. C. Merriman, New Haven, Conn. C. W. Cromwell, Warren, Ariz. Wm. J. Millard, Tulsa, Okla. E. O. Daue. Benj. L. Miller, Bethlehem, Pa. Capt. H. W. Edmondson. S. B. Patterson, Jr., Allentown, Pa. E. W. Engelmann, Hayden, Ariz. Lynn L. Pomeroy, New York City. C. Mason Farnham. W. E. Pomeroy, New York City. Lt. C. W. Frith, Salt Lake City, Utah. G. M. Ponton, Ottawa, Ont. John T. Fuller, Honesdale, Pa. Wallace E. Pratt, Ft. Worth, Tex. Walter A. Funk, Idaho Sp., Colo. Harold L. Rau, Milwaukee, Wis. Major W. R. Grunow, New York, N..Y. Lt. E. J. Ristedt, Camp Merritt. A. W. Hackwood, Butte, Mont. George M. Ryall, Los Angeles, Cal. Lt. Nathaniel Herz, New Haven, Conn. D. B. Scott, Mogollon, N. M. Ralph T. Hirsh, New York City., W. H. Staver. O. P. Hood, Washington, D. C. Douglas B. Sterrett, Washington, D. C. E. B. Hopkins, Houston, Tex. J. A. Stewart, Minneapolis, Minn. Hugh C. Ingle, Pensacola, Fla. R. H. Summer, Wilmington, Del. Capt. Wm. F. Jahn. W. G. Swart, Duluth, Minn. Roswell H. -Johnson, Pittsburgh, Pa. Kirby Thomas, New York City. Jesse L. Jones, Pittsburgh. Pa. Capt. H. D. Trounce, San Diego, Cal. Edgar Kidwell, Berkeley, Cal. L. Unger, New York City. .D. H. Ladd, Detroit, Mich. George F. Vivian, Butte, Mont. Raymond B. Ladoo, Cambridge, Mass. R. A. Walter, Reading, Pa. W. H. Landers. Lt. R. G. Wayland, Chehalis, Wash. David Lasner, Elizabeth, N. J. R. J. White, Wallace, Idaho. J. M. Lilligren. J. S. Wroth, Albuquerque, N. M. Lt. Wm. J. Linn, Chicago, Ill. Herbert Hoover, General Pershing, Ambassador William G. Sharp and Admiral William S. Benson were speakers to-day at the annual luncheon in honor of Washington's Birthday, given by the American Club of Paris at the Palais D'Orsay.

Jan 3, 1919

By Edward H. Robie

THE registration badges gave out, there were not enough programs, the Pioneer Hotel's rooms were insufficient, and some hundred applicants for banquet tickets had to be turned down at the Institute's Regional Meeting in Tucson, Nov. 1-5. Minor inconveniences these, however, occasioned by the fact that, optimistic as they are in Arizona, about half again as many partook of the week's activities as were expected. For this, the local program committee can be blamed-both the technical and social features were too attractive in quantity and quality. Seriously speaking, though, the Institute has probably never had a more successful Regional Meeting than this one. It being the first that has been held in Arizona in 22 years, no effort was spared to make it the distinctive gathering that it was.

Jan 1, 1938

By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

Elected Died 1903 * ADAMS, CHARLES C. 1905 1884 *ADDY, MATTHEW 1896 1894 *ALLFN R B 1896 1874 *AMIOT, H 1892 1886 *AMSLER, CARL 1894 1895 *ÅNGSTROM, CARL 1901 1895 *ARMSTRONG, JOHN F 1898 1882 *ARNOLDS, HUGO 1886 1875 *ASHBURNER, CHARLES A 1889 1872 *ASIIBURNER, WILLIAM 1887 1883 *ATKINS, C M , JR 1885 1897 *AYERS, WILLIAM 1898 1885 *BABCOCK, GEO H 1893 1884 *BAILEY, EDWARD 1889 1880 *BAILEY, JACKSON 1887 1900 *BALLOU, FRANKLIN 1903 1886 *BARNES, F W 1892

Jan 1, 1910

Jan 1, 1971