Search Documents

By G. T. Jackson

The Alaska Gastineau Mining Co.'s mine is located at Perseverance, about 4 mi. east of Juheau, Alaska. Its property consists of a group of claims, the lode system traversing these claims for a distance of 11,000 ft. (3352 m.). It is shown in Fig. 1. The ore deposits occur in what is known as the Juneau gold belt. This gold belt can be traced for about 50 mi. northwest of Juneau and 40 mi. southeast. It consists of a single band, several hundred feet wide, in which stringers and veins of quartz, carrying gold, occur in a slate formation near its contact with some altered volcanic rock known as greenstone. The Perseverance orebody consists of stringer lodes, having a strike northwest and southeast, dipping about 60° to the northeast. These

Jan 1, 1920

By W. R. Ingalls

WHEN I was a boy, political economy was taught in the old fashioned New England high school that I attended. I still possess my text-book, an abridgment of one of the old classics, and, I referred to it a few days ago. It began with the definition that "political economy is the science which investigates the' nature of wealth, and the laws which govern its production, exchange and distribution." That definition of 50 years ago strikes me still as being a good one. In college I sat under Francis A. Walker, the greatest of American economists. I still have his old text-book, which begins with substantially the same definition as Fawcett, but adds that "political economy has to do with no other subject, whatever, than wealth." As so developed economics was a dry study which captivated but few. It was characterized as the dismal science. It seemed to lead nowhither. . This was perhaps due to the inadequacy of the data available to economists. Consequently, their discussions and deduc-tions were founded largely on conjecture and assump-tions. Naturally this resulted in differences in the formulation of doctrines. There were controversies respecting the nature and influences of money, over the derivation of wages, over the principles of laissez faire (letting things take their own course) over the Malthusian doctrine, and so forth. Amid all this there was one great fundamental law universally recognized, namely the law of supply and demand, which ranks with the law of gravitation and the law of the conservation of energy among the great fundamen-tal laws of nature. The law of supply and demand is the one thing in economics upon which we may fix our eyes as upon the lode star. In the course of time we have fallen out of agreement with Walker's doctrine that political economy has to do with no other subject than wealth. Although it is indeed the science of the production and distribution of wealth we can see that many things pertain to that subject and that economics links hands closely with engineering, biology, and psychology. It is probably the recognition of this that caused the study and exposi-tion of economics to acquire such a strong sociological

Jan 6, 1923

By A. H. Dierker

NEXT to the metal itself, molding sand is the most important raw material used in the manufacture of steel castings. There are no accurate, figures available but probably it would be safe to say that the average steel foundry uses approximately 1000 lb. of new molding sand per ton of castings produced. With untreated sands costing from two to four dollars (in some extreme cases it may run as high as eight or ten dollars) per ton delivered at the foundry siding, molding sand is an important item in the cost of making castings, and any information that may help to reduce this sand consumption should be of interest to the industry.

Jan 1, 1929

By Charles H. Jones

Jan 1, 1905

By T. Seldenrath

In the development of a fluid -operated hammer drill' for accelerated penetration of hard rock formations in oil wells, a research investigation was conducted to evaluate the percussion effects obtained with different design characteristics and to determine the possibilities of percussion in the low frequency range. Tests were conducted on granite blocks and comparable impact forces were measured with a load cell under selected test conditions. These full-scale laboratory tests provided an evaluation of the effectiveness of percussion which was further supported by actual downhole field performance. While much pertinent data have been presented by other investigators the method of evaluation described in this article resulted in good correlation between laboratory and field performance and may be applicable in other low frequency percussion developments. EXPERIMENTAL METHOD For these tests the bit was held stationary and the test block was rotated and forced upward against the bit by a hydraulically-lifted rotary table. "Weight on bit" was calculated from pressure readings on the fluid system of the lifting cylinders—corrected for tare and friction. Percussion was obtained with several tubular hammers of different weights up to 320 lb. These were lifted mechanically and allowed to drop by gravity from various heights onto a slidably-mounted bit sub or "floating anvil" for calibration of the load cell response with known kinetic energy of the hammers. During evaluation of percussion effects, the hammers were hydraulically operated to provide a range of percussion frequencies up to 1,020 blows per minute delivered to the anvil. To obtain comparable test readings, the load cell of the strain gauge type, was attached to the bottom of the anvil or bit sub in place of the bit. The load cell rested on a typical granite test block mounted on the drilling table. The latter was hydraulically supported as in the actual drilling operation. The effect of support resistance was the same for all tools when calibrating. Impact forces so determined werethusdirectly comparable with one another for the purposes of this investigation. When a roller bit was substituted for the load cell for actual drilling, the impact force would probably be reduced due to the resiliency of the bit body, legs. cones and teeth and the penetration of the teeth into the rock. However, since the bits and rock specimens were uniform in these tests, an evaluation of actual tool performance, in terms of parameters previously determined with the load cell at the selected standard conditions of calibration, proved satisfactory. Throughout these tests, 8¾-in. standard tricone, hard rock toothed roller bits and carbide-insert roller bits were used. Rotary speeds were 50 and 100 rpm; static weight on bit was applied up to 40,000 Ib, and percussion frequencies up to 1,020 blows per minute were available. During this investigation it was found that toothed bits on which the teeth had developed flat ends about 3/16 in. wide did not change appreciably for the duration of a test. Hence, all toothed bits used in this study were in this condition. Conventional reference curves obtained in these tests show that increasing weight on hit by 2:1 yielded an increased penetration rate of approximately 2.7:1, while an increase in rotary speed of 2:1 netted an increased penetration rate of roughly 1.7:l. Results are thus of the same order as those reported for hard rock drilling by other investigators." CALIBRATION Under the selected standard test conditions previously described, with the lifting table hydraulically supported, and the anvil interposed between hammer and load cell, the hammers were dropped from known heights. Thus, with the kinetic energy of the hammer known, the corresponding maximum impact force shown by the cell was determined. (It may be of passing interest to note here that special drop tests with the hammers showed that no appreciable reduction in impact force resulted from introduction of the anvil or hit sub.) From these calibrations, it was possible to determine the theoretical kinetic energy available in the hammer from the maximum impact force shown by the load cell while operat-

By F. C. Kelley, L. L. Wyman

In order to clarify and amplify the existing data concerning the action of the cementing material in cemented tungsten carbide alloys, the authors have initiated this investigation of the entire range of cobalt-tungsten carbide alloys. Inasmuch as the ultimate objective is relative to what actually goes on during the sintering of cemented tungsten carbide materials, this work was necessarily restricted to heat treatments similar to those used in actual production of these materials. In the course of numerous experiments, the authors have noted several conditions that indicated that there was a solubility to be considered. Among these factors are the following: 1. Many of the alloys showed a much larger amount of binding constituent to be present than could possibly be accounted for by the cobalt content. 2. In many areas, grains of the carbide constituent are much larger than the particles of carbide originally added. In addition, these grains are of very regular contour. 2a. In samples of cemented tungsten carbide which had been fused in the atomic hydrogen torch in the presence of excess binder constituent, immense grains are formed, and their shapes are very regular. This is also true when the cemented tungsten carbide of 13 per cent. Co content is fused alone in the atomic hydrogen torch. Contrary to general expectation, chemical analysis of this material, after fusion in the atomic hydrogen torch, checks the analysis of unfused material. 3. In making the cemented tungsten carbide materials by the process of exerting the pressure at the time of heating a certain portion of the ' contents squeezed out of the mold. Chemical analysis has shown that this material contains approximately 12 to 20 per cent. of tungsten. The microstructure shows a cored dendritic structure interlaced with eutectic network, and some graphite, as shown in Fig. 1. 4. Thermal analysis of these materials has consistently indicated an arrest point close to 1350" C.

Jan 1, 1931

H. M. HOWE, Bedford Hills, N. Y.-We may clear the matter very easily, at least to a very great extent, if we look at these islands of ferrite that occur in steel castings as simply corresponding to the ferrite ghosts in steel forgings, representing the differentiation that takes place in the solidification off the molten mass. In that solidification you have dendritic crystals forming and in between those dendrites you have con-

Jan 12, 1919

By Fordyce Coburn

RICHARD ore mine of the Colorado Fuel & Iron Corp. is an underground magnetite operation located in northern New Jersey approximately four miles northeast of the town of Dover, and 40 miles west of New York City. The mine is situated on the southeastern flank of one of the many gneissic ridges having a northeast-southwest trend

Jan 11, 1953

By Carl A. Zapffe, George A. Moore

IN a previous publication from this laboratory1 the conclusion was drawn that the embrittling effect of occluded hydrogen on iron and steel must result from the precipitation of the gas within small openings through the crystal structure. A review of the literature then published indicated the real existence of crystal sub- structures of the mosaic type and gave presumptive evidence that the "rift openings" associated with hydrogen occlusion are the same as the "disjunctions" of the mosaic theory. Inasmuch as no clear conception of the actual nature of the crystal fragments and openings inherent in these theories has been established, it was considered desirable to obtain direct micrographic evidence of their true configuration. In this direction the standard methods of metallographic attack have proved useless. Recourse was had, therefore, to the direct examination of the surfaces upon which failure by cleavage had resulted from the presence of hydrogen. It was expected that such a surface, un- affected by chemical attack and undistorted by polishing, would reveal the fine openings penetrated by the gas and thus indicate the real nature of the substructures. MATERIALS STUDIED In commercial steels, defects caused by hydrogen take various external forms ac- cording to such factors as structure and purity, and to the extent to which hydrogen either occludes or produces chemical changes. The present work relates only to the well-known transcrystalline hydrogen embrittlement-"pickling brittleness"-in which elemental hydrogen occluded within the grain develops cleavage characteristics. For example, hydrogen embrittlement resulting from hydrogen reaction products is excluded from detailed study. It was also desirable, as far as possible, to have the study uncomplicated by other elements which themselves cause brittleness. Three types of iron were used. These included ingot iron, decarburized free- machining steel, and a specially prepared, aluminum-killed, electrolytic iron. This , choice allowed a comprehensive selection of unavoidable minor impurities and inclusions, which could subsequently be shown to have no specific effects on the structures within the grains. Carbon, and any other impurities free to react with hydrogen, were first removed by a preliminary annealing treatment in hydrogen. Subsequent treatment in vacuo extracted much of this hydrogen and its gaseous reaction products. The resultant ductile iron was then embrittled either by a second anneal in hydrogen, followed by rapid cooling, or by cathodic electrolysis. Group I: Prepared from Armco Ingot Iron As shown in Table I, the principal impurity in this iron was oxygen, which survived the purifying treatment to a large extent. Two series were prepared. The first (Nos. SIO-24) was purified only one day in hydrogen and dehydrogenized one day in nitrogen. Containing both hydrogen and its

Jan 1, 1943

By D. C. Buffum, L. D. Jaffee

QUANTITATIVE measurements of the temper brittleness of steel are made by comparing the difference between embrittled and unembrittled specimens in the temperature of transition from ductile to brittle fracture. Since hardness affects the transition temperature, a study of the combined effects of hardness and temper brittleness appeared desirable. In this investigation a commercial SAE 3140 steel, which has been reported on previously in temper brittleness studies,* was used. Blanks from this steel were austenitized for 1 hr at 900°C and water quenched. The blanks were then divided into six groups and further heat treated as follows: Group 1—tempered at 675°C for 4 hr and water quenched; Groups 2, 3, 4, and 5—tempered at 675", 650°, 625', and 600 °C respectively for 1 hr and water quenched; and Group 6—tempered at 500°C for y2 hr and water quenched. Each of these groups was divided into two parts; one part was tested without further heat treatment, and the other was embrittled for 48 hr at 500°C and water quenched. Tempering treatments between 500" and 600°C were avoided because of the rapid embrittlement occurring in that range for this steel. The heat-treated blanks were machined into standard V-notched Charpy bars. Each group was tested over a range of temperatures on a 217 ft-lb Charpy machine. The energies necessary to fracture the bars and the percentage fibrous fracture of each bar were recorded. The transition temperatures were obtained from a plot of the percentage fibrous fracture as a function of testing temperature. They were taken as the lowest point on these curves at which the fracture was 100 pct fibrous. The transition temperatures for both embrittled and unembrittled specimens are presented in Fig. 1 as function of the hardness. It will be noticed in this figure that the point for the unembrittled condition at 21 Rockwell C is out of line. These specimens were tempered for 4 hr at 675 °C and this point indicated that under isothermal conditions at this temperature, as is well known, embrittlement may develop fast enough to more than offset the effects of softening. From this data, it was concluded that the difference between transition temperatures for the embrittled and unembrittled conditions at any given hardness, within the range of Rockwell C 24 % to 32lh, is constant. It is also concluded that, within the hardness range studied, the transition temperatures for embrittled and unembrittled specimens rise in a parallel fashion with an increase in hardness. The authors wish to acknowledge the assistance of Frank Carr in this work.

Jan 1, 1952

By H. M. Day

THE constitution of the system silver-mercury has attracted the attention of many investigators during the last two decades, but since their results are for the most part in poor agreement, there is little need for a review of their individual contributions. It remained for the very careful thermal and microscopic investigation of Murphy1 in 1931 to give the constitutional diagram in its present and unquestioned form, which is shown in Fig. 1. He devised methods for taking cooling curves on alloys under high pressures and for the microscopic observation of alloys which contained liquid mercury as a structural constituent at ordinary temperatures. The compositions of the intermediate phases were con-firmed and supplemented through X-ray analyses by Preston and Stenbeck.3 According to Murphy, at 276° C. silver is able to dissolve 44 to 45 weight per cent of mercury, which may increase at lower tempera-tures to about 50 per cent. Preston concluded that the saturation boundary occurred at 46 ± 2 per cent at 100° C. From the values reported in the literature, these are the only ones that may be accepted as lying even in the right region.

Jan 1, 1938

By R. J. Keene

The South Works high-tonnage billet caster was started in late March 1971, with the first heat being successfully cast to completion. Currently, over 31,500 tons per month are being produced. U. S. Steel designed and built this caster with the objective of producing quality-steel billets for critical bar, rod, and wire applications. The essential design parameters were based on studies conducted on the Research Laboratory's pilot caster, also located at South works. 1,2,3)* The caster is a four-strand, straight-mold machine that produces 7.5-inch- square billets at rates exceeding 300 tons per hour. An in-line-reduction mill reduces each strand to either 6-inch-, 5-inch-, or 4-inch-square billets.

Jan 1, 1972

By William Greenawalt

The Greenawalt electrolytic copper extraction process is applicable to suitable oxide ores, sulfide ores and concentrates, and low-grade matte. The process is self-sustaining in acid on sulfide ores or concentrates, on mixed ores, on high-grade oxidized ores; and on low-grade oxidized ores the amount of acid to be purchased or manufactured is greatly reduced. The ferric iron is under easy control, and copper may be effectively deposited from solutions of any acid or iron content likely to be used in copper leaching. From 60 to 75 per cent. of the copper may be removed from the solution in passing through the electrolytic department, before returning the solution to the ore. The amount of copper requiring chemical precipitation, from the waste and foul solutions, is only about 5.0 per cent, of the total copper produced, and this 5.0 per cent. is converted into the electrolytic metal in the regular operation of the process. The entire process can be made practically automatic, and can be carried out mechanically. There is no uncertain departure of any kind in the application of the process; no unusual or unproved apparatus is used. EVER since electrolytic copper refining gave promise of success, about a half century ago, efforts have been made to apply the idea to the extraction of copper from its ores. The methods of attack have, usually, been to leach with a dilute acid and then to deposit electrolytically the copper from the resulting solution with the simultaneous regeneration of the solvent used in the process. Many efforts have been made, and many patents have been taken out, both in the United States and abroad, to give this idea practical application, but only within the past few years have the difficulties been surmounted. Leaching and electrolysis, as applied to copper ores, are among the most promising fields in modern metallurgy. New conditions are arising, which will bring the wet methods into prominence; while high freight rates and increasing cost of fuel will tend to limit smelting to highly favored localities. The possibilities offered by the installation of hydro-electric plants and the greatly enlarged range of power transmission will greatly widen the field of electrolytic methods.

Jan 1, 1924

By F. E. Brackett

THE simplicity of the propeller or disk fan, its small size and low cost, has, in recent years, led to an extended use of ventilators of this type at mines where only slight pressure is required. On this account the author of this paper has prepared for the new edition of Peele's Mining Engineers' Handbook a more accurate method of computing the required size, power, and so forth, than was possible for the first edition. The main object of this paper is to set forth the data collected in the course of that work, and to discuss the subject with more latitude than would have been advisable in a handbook, even if space had been available. Theory of Fans A great deal has been written about the theory of fans from Rankine's time down to the present. Nevertheless a rigid mathematical analysis of the propeller fan seems to be wanting. A general idea of the mechanics and difficulties in the way of analysis may be gathered from the following: The useful pressure and velocity effects of the oblique impact of the vanes on the axial current would evidently be nil if the blades were perpendicular to the plane of rotation, or if they were of such helicoidal form that the screw pitch multiplied by the speed represented an axial velocity agreeing with the actual velocity. Somewhere between these zero angles there is a pitch which, under given conditions of flow, would produce the maximum useful effect. A true helicoidal blade can be so arranged that it would offer no retarding effect on the air current at any part of the wheel, provided the axial velocity be assumed the same in all parts of the cross-section of the air course, but if plane surfaces are used, it is possible, under some conditions, that the air would be retarded at the middle parts of the wheel while it was accelerated at the circumference. Whatever be the form of vane, it seems evident that the tips are far more effective than the center of the wheel, because of their higher velocity. For this reason some investigators believe that a backward current forms through the middle of the wheel and that part of the air is circulated in a radial axial loop. Ignoring the possible existence of this eddy and the friction of the walls of the air course; and assuming the axial velocity of the air through all parts of the wheel, some rational analysis of the impact might be made according to the theory of deflecting surfaces, were it not

Jan 1, 1928

In a straight caving system, the ore is first undercut and then broken down by its own weight or .by the weight of the overlying rock, or by a combination of both. Operations that involve the caving of the material overlying an orebody as an essential part of the work are also classed as caving, though practically all the ore is broken by drilling and blasting. Actually there are two distinct methods—sublevel caving and block caving, and modifications thereof. The mines described are Miami and Alaska Juneau.

Jan 1, 1925

By Alan Bauer

DRILLING CONSIDERATIONS In considering blasting it is necessary to consider the drilling and explosives since one is generally concerned with the total cost of muck of a certain size in the pit or through the crusher. To get a current idea of the drilling situation in open pit mines plotted in Fig. 1 are the drilling costs per ton of material vs. hole diameter for rotary drill holes in large limestone, iron ore and taconite operations. The exception is the 2-in. diam hole which was drilled with a percussion drill in limestone. Each curve in Fig. 1 represents a different operation and the data cover many months of production drilling. The costs are total operating and maintenance and do not include machine depreciation. As the hole size is increased so are the machine size and the investment. Providing the tonnage is available to be drilled, then as the machine size goes up so does the productivity-markedly-and this same shape of curve applies. In some instances it is even steeper. The interesting thing to note is that in each case studied there is a substantial drop-off in cost/ton as the hole size is increased. This is true for the softest material considered, limestone, through to the hardest, taconite. How has this come about? In going from 10-in. to 123-in. diam holes, the powder factors have generally stayed about the same and the same type of muck has been produced. To date this has been mainly in the softer materials but it has also been steadily taking hold in the harder ones. On this basis, then, patterns are generally expanded as the ratio of the hole diameters or close to it, if the explosive type is kept the same. In the harder rocks the cost per foot of hole has increased somewhat so that the overall reduction in drilling cost per ton is about 25 pct. In somewhat weaker rocks of about 25,000 psi compressional strength the drilling cost per

Jan 1, 1968

By W. H. Emmons

This paper is the third of a series treating of the relations of ores of the metals to igneous rocks. The first' outlined the general problem; the second2 proposed a classification of lode ores, and showed how the distribution of the deposits is in a certain measure controlled by the contour of the roof of the parent batholith. A number of mining districts were discussed, the examples being selected chiefly from group 2 of the classification. The proposed classification of lode deposits, briefly stated, is as follows: 1. Cryptobatholithic: near hidden batholiths which have not yet been exhumed by erosion. 2. Acrobatholithic: in and near cupolas or domes of batholiths—the high points of larger underlying masses. 3. Epibatholithic: on batholiths, near their rims, but below eroded cupolas, or below the highest points of the roofs. 4. Embatholithic: among closely-spaced outcrops which probably are parts of a single bathohth. The outcrops of invaded rocks predominate. 5. Endobatholithic. in and near roof pendants of large batholiths. The invading rocks predominate. 6. Hypobatholithic: in deeply-eroded batholiths, where even roof pendants have been eroded. Deposits of certain metals on the roofs of the batholiths are much more numerous in some positions than deposits of other metals, and the horizontal zonal arrangements of lodes of different metals are shown characteristically only in certain groups. In a large measure, also, the character of the fracturing and metallization is determined by the position on the roof of the batholith. The disseminated copper ores in porphyry constitute a clearly-defined type. All the deposits of these ores, as far as known, are in group 2. They appear to have been formed only in and around small upward projections of the parent granitic masses, and not low on the walls of the

Jan 1, 1927

TO THE. BOARD OF DIRECTORS AND MEMBERS OF THE AMERICAN INSTITUTE OF MINING AND METALLURGICAL ENGINEERS GENTLEMEN Submitted herewith are the report of the Treasurer for the year 1945 and reports for the same year of the following committees: Membership, Admissions, Papers and Publications, Mining and Metallury (Magazine), and Library. In this review of the year by the Secretary reference frequently will be made to the "Paul" Committee and to the "hotter" Committee. The first is the special committee on Divisional Relationships and the second the special Committee on Ways and Means. These two important committees, appointed by President Harvey S. Mudd under authorization of the Board of Directors on March 21, 1945, were composed as follows:

Jan 1, 1946

By Harry M. Mikami, A. Gene Sidler

Chemistry of the evolution of materials in contact with copper converter tuyeres is delineated by means of analyses of periodic punch rod samples taken during a converter cycle. Lining samples from known peripheral and end locations from three converters were investigated chemically and petrographically. One set of eight specimens representative of all lining parts was removed for study before completion of the campaign. Purely surface removal by slag action is minor. Slag filling of interconnecting cracks extending to the hot face results in a "stoping'' action which shapes the hot face contour and is a significant factor. Major wear mechanism is believed to be copper metal slabbbing caused by metal first penetrating joins and invading fractures or impregnating brick structure laterally from the joints. Importance of lining design and joint fit are emphasized. New laboratory tests are indicated. In the copper converter, molten matte, which is essentially a solution of iron and copper sulfides, is blown with air to produce blister copper. During the first stage of the process the FeS component is oxidized to SOz and FeO, the latter combining with a siliceous flux to form a predominantly ferrous silicate slag. Successive increments of matte and flux are charged, blown, and skimmed of slag until sufficient CuzS ("white metal") has accumulated. This white metal is then blown to copper metal in the final or blister-forming stage by the oxidation of sulfur to SOz and the reduction of combined copper to metal. The reactions of both stages are exothermic so provide the required heat. Temperature is controlled by cold scrap copper, flue dusts, smelter reverts, and so forth. Considerable vari- ation in practices occur depending on the type of converter, grades of the matte and flu, and other factors. Lathe and Hodnett's' survey of world converter practices gives much information on these variations and their effects on the refractories. Principles of converting chemistry are presented by Newton and wilson,' Ruddle,' and schuhmann. Most copper converting occurs within the temperature range 2100" to 2370°F although individual smelters report1 ranges from as low as 1700" to 2240°F to a high of 2200" to 2400°F. Temperature intervals reported from beginning to end of blow varied from 45" to 540°F. Average temperature range was 2030" to 2260°F and the average interval 250°F During the matte-blowing stage varying amounts of magnetite (FeO.Fe,O,) are formed in the slag as suspended crystals and also the liquid portion of the slag will contain, in addition to ferrous silicate, some Fe20s which adds to the potential magnetite formation if the temperature falls. This is a component of the so-called "dissolved magnetite" often referred to in the literature. Although the slag may contain minor amounts of CaO, A1209, MgO, and alkalies, the principal components are Fe0-Fez03-SiO,. The phase equilibria relationships of this system have been elucidated by Muan~ and Schuhmann, et a1.' These data and estimates of converting atmospheres by schuhmann4 are useful tools in studying slag behavior. It would appear that in many cases reported magnetite contents of slags are apparently higher than actually is present at operating temperature. This is probably because much of it is formed during slag solidification. The quaternary systems which have Mg-0,1,0,' and addition to iron oxides and silica are also of interest in considering the reactions of the slags with basic refractories. The formation of magnetite has an important interrelationship throughout the pyrometallurgy of copper (Mossman,' Gronningsater and Drummond," Ruddle,' Elwood and Henderson") but its presence in the converter particularly relates to operating efficiency and lining life in certain instances. Archi-

Jan 1, 1963

By Joseph E. Pouge

For the purposes of this analysis it is assumed that the petroleum industry has undergone a basic economic change whereby the degree of competition present in its operation is reduced by the collective control of production brought about by statme-directed proration. Formerly freely competitive in all its parts, the industry is now fully competitive only in its marketing, its manufacturing and transportation, its search for new oil supplies, its drilling operations (with some qualifications), and its capital movements. The practical problem before the industry in its new status is the maintenance of equilibrium, with planned control of crude-oil production (proration) substituted for competition and price as the regulatory mechanism at one point in the supply-demand system. It is further assumed that proration has become so firmly established in the legal and operating framework of the business that it may be looked upon as an institution. The purpose of this paper is to call attention to the effect of unregulated drilling upon the orderly functioning of proration. Economic Structure of Petroleum Industry The economic structure of the petroleum industry, under the current form of proration, may be visualized, in simplified form, as shown in Fig. 1. This diagram is designed to indicate the existing mechanism whereby supply and demand are equated. Demand is created largely by conditions external to the oil business, whereas supply is conditioned by a series of stages incidental to the discovery, development and production of a resource. The time elements involved in changes in demand and supply are of an entirely different order, the demand factor being much more flexible and "quicker" than the supply factors. It should be observed, also, that the position of price, formerly between "demand" and "supply," has been moved to a sidewise location where it still affects demand but influences current supply only through its bearing upon proration, drilling and search. Proration has been substituted for price as a throttle at the well head, but at this point only. The mechanism now works in this fashion: a declining price stimulates demand and the

Jan 1, 1936