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By Barnabas Bryan

During the boom period of 1928 and 1929, several oil companies took advantage of high security prices to sell stocks, thereby securing money for the company very cheaply. Few if any of those companies realized that the money received was not at all cheap in view of the fact that it was for investment in fixed assets at inflated prices. Suppose a company borrowed twenty millions of dollars to expand its marketing facilities during the boom. It diluted its capital and acquired fixed property which could not earn its interest requirements during the following deflation and therefore consumed income from other company activities. The company also had to stand the deflation in the capital value of all the property it bought. Since the mistaken expansion during the boom accelerated the decline in net income during deflation, the financial position of the company was harmed in proportion to the amount of that expansion. Thus the company was unable to get money to buy fixed assets in the depression when all property is cheap. The same condition holds for the company that sold common stock for the purpose of developing potential production in a newly discovered oil field. Regardless of what the ultimate value of the new field may be, potential production does not increase the net income of the company. The difficulty of meeting the enlarged dividend requirements due to the increased number of shares outstanding impairs the financial position of the company during deflation in some relation to the probability of decreased dividends. This company also is not in a position to expand during the depression when properties and companies can be bought for a fraction of their real value. Expansion of fixed assets during boom times has been the ruin of many otherwise good companies. Some of those which most extensively bought property during the post-war boom have not yet recovered. A number of cases could be cited in sugar, leather, fertilizer and wool. This does not seem to be governed by the quality of the property bought, for examination shows the assets to have been of individual high quality in many cases. When recovery is long deferred it is likely to be true, as in sugar or textiles, that the industry has a large "potential" capacity for overproduction.

Jan 1, 1931

By C. H. Herty

Intensive work on the deoxidation of steel with manganese-silicon alloys by the U. S. Bureau of Mines has shown that the use of those alloys, which may be produced from our domestic manganese ores, would decrease the ferromanganese requirements of a very large tone of our steel by from 60 to 30 per cent and in some cases by 100 per cent. The open-hearth heats made with these alloys have been of excellent quality. The tonnage of our ferro-grade ores which has been made available by the bureau's ore-dressing studies, combined with the ,products resulting from such processes as those developed by the bureau and by Bradley for Cuyuna ores, should easily fill our reduced ferromanganese requirements Then manganese-silicon alloys and ordinary spiegel are used in the way described in this report. There are no technical difficulties in the application of this practice, and any difficulties involved in its wide and immediate application would only be those arising from habituated ideas of the necessity of ferromangenese. General acceptance of this practice and development of the available sources of domestic ferro-grade material by already proven processes should make this country independent of foreign ores.

Jan 1, 1931

By Ludwig Schmidt

Large quantities of gasoline are lost each year by evaporation from bulk-storage station tanks. The rate of evaporation from bulk-station tanks is influenced by two principal factors: First, the vapor pressure of the gasoline in the tank; and second, the amount of "breathing" of the tank. The vapor pressures of the gasoline govern the amount of the gasoline vapor in the air-vapor mixture above the gasoline in a tank at a given temperature. This is one of the principal factors in determining the total pressure of the air-vapor mixture within the tank. The "breathing" of the tank is caused by the inflow of air from the atmosphere during certain periods of the day and the expulsion of the air-vapor mixtures at other times, caused by atmospheric variations. The pressure built up within a tank and the amount of gasoline in the air-vapor mixture are both a direct function of the temperature existing within the tank. Therefore, two of the most common methods for reducing evaporation losses from bulk-station tanks are: (1) The use of vapor-tight tanks equipped with relief valves and operated at 1 or 2 ounces of pressure and about 1/2-ounce vacuum; (2) reducing the temperature of tanks and their contents by painting them a light color, by insulation, and in some instances by using water sprays. Water sprays, although effective, usually are too expensive to operate economically. In order to determine and compare the effects of various colors, insulation, and pressure in reducing the evaporation losses of gasoline held in storage in bulk-storage tanks, the Bureau of Mines made observations from May 29 to October 15. 1930, on five horizontal tanks of 12,000-gallon capacity each, which were erected at the plant of Black. Sivalls and Bryson Manufacturing Co., Kansas City, Mo. This report gives in detail the results of these evaporation tests.

Jan 1, 1931

By John P. Harmon

This paper was written with two objects in view: (1) To describe in detail what has been done toward the ventilation of the main unit of the Portovelo mines and the results; (2) to give information that may be useful to anyone who may have to make a preliminary mine ventilation survey, with recommendations for the improvement of the existing system and finally the maintenance of the improved system. General Description The mining operations of the South American Development Co. at Portovelo, Province of El oro, Ecuador, are described here only briefly, as a full discussion does not fall within the scope of this paper. The orebodies are of the steeply dipping, gold quartz vein type, averaging about 2.0 meters wide. As shown in Fig. 1, the ore chutes are relatively far apart, making considerable development work necessary before connecting raises can be driven between the levels. Faulting' on a large scale and a parallel vein system have made long dead-end drifts and many crosscuts necessary in the exploration of veins. The ventilation of these dead ends is described under Auxiliary Ventilation. The method of mining2 is the filled rill stope method, similar to the method that is largely employed at the Butte mines. The main shaft of the mine is in the Amarillo Valley, on either side of which mountains rise abruptly to a height of several hundred feet above the collar of the shaft. Entrance is made to the mine: (1) Through the American shaft, which extends vertically from the surface to a depth of 1100 ft., of which only the first 700 ft. are in active use at the present time; (2) levels are driven from the American shaft at intervals of 30 m. (100 ft.), of which only the third, fifth and seventh levels need be considered in the ventilation problem; (3) adits at intervals of 30 m. (100 ft.), with a few exceptions, above the collar of the American shaft.

Jan 1, 1931

By H. F. Yancey

A relatively large proportion of the coal produced in the state or Washington, especially in the coking coal areas is of fine size; hence washing by means of coal-washing tables to reduce the ash content is commonly practiced. For this reason the program of research in coal washing conducted jointly by the U. S. Bureau of mines and the College of Mines, University of Washington, has given special attention to the mechanism of the separation of coal from its impurities as affected by the coal-washing table with the object of

Jan 1, 1931

By Linn M. Farish

The reported production of petroleum in the Dominion of Canada for 1930 was 1,555,199 bbl., an increase of 455,373 bbl. over 1929. Alberta accounted for nearly all the production with Ontario and New Brunswick, the other two productive provinces, contributing less than 1 per cent, of the total. The completion of about 25 producing wells in Alberta was more than sufficient to offset the decline of the older wells in that province and the small decline in Ontario. The production of about 5000 bbl. in New Brunswick represents a restricted output to meet the market demand. Table 1 shows the production by provinces for the past 10 years. The consumption of natural gas for all purposes in Canada reached a new record of practically 40,000,000,000 cu. ft. in 1930, which was a considerable increase over 1929. The estimated value of the gas output was $10,500,000, against a little over $5,000,000 for the total petroleum production. Gas wells in Alberta accounted for over 75 per cent. of the total, with Ontario second and New Brunswick a poor third. The outlook for 1931 is for very little change in production of either gas or oil in Ontario and New Brunswick but for a substantial increase in both in Alberta.

Jan 1, 1931

By L. P. Teas

Although 1930 has been a year of stagnation, proration and curtailment, the Gulf Coast has measured up to its tradition in the matter of interesting and significant discoveries. Only 2 domes and 7 new structural areas were brought into the producing column in 1930, whereas, in 1929, 13 domes and one structure were added to this list, yet a total of 14 new producing horizons were proved on various domes and structures. On 5 domes new flanks were successfully tested for commercial production. The year 1930 has shown at Barber's Hill that oil in commercial quantities may exist below salt or cap. Numerous wells have been drilled through cap, or even salt itself, into good producing sands. The past year has been particularly notable in the interest and in the number of deep holes drilled. Two wells have gone below 8000 ft. in each of the states of Texas and Louisiana, and in the two states together 14 wells have gone below 7000 ft At the beginning of the year only one well was producing below 6000 ft. in coastal Texas, while at its end, 19 wells were producing or had produced. Geophysical discoveries and activity on the Coast have waned and this type of work has moved further inland. The peaks of production at Pettus, Barber's Hill, Raccoon Bend, Refugio, Orchard and at Humble, in Texas; and at Lake Barre, Port Barre, Black Bayou, White Castle and Vinton in Louisiana, were seen this year. These were new peaks for Humble and Vinton, of course, these fields having previously gone through periods of peak flank production. In Table 1 the completions listed are for the entire month of December in both years. It is remarkable that in 1930, a year of overproduction and proration, there were actually more wildcat operations at its end than at the end of 1929; but it is gratifying that the operations in the proven fields were exactly one-half what they had been at the end of 1929. The price of A grade coastal crude, or oil below 25" Bé., has been cut from $1.30 at the beginning of the year to $1.00 at its close; and B grade, or oil above 25o Bé., has been reduced from a price range of $1.15 to $1.63 down to a range of from $0.75 to $1.22. In spite of these reductions there has been no proration program on the Coast. Systematic

Jan 1, 1931

By Walter W. Bradley

Barite, or barytes as it is sometimes called, belongs to one of the lesser groups of nonmetallic minerals, of which 15 to 20 varieties are mined in California in amounts varying in value from a few hundred to almost half a million dollars annually. Commercial production of barite in California, according to the records of the State Mining Bureau (now Division of Mines), began in the year 1910 with shipments totaling 860 tons, valued at $5640 f.0.b. rail shipping point. With the exception of the years 1924 and 1925, when no shipments were made, the output has varied, reaching a maximum of 17,993 tons, worth $90,617, in 1927. The 1928 output was 13,406 tons, worth $55,888 f.0.b. rail shipping point, bringing the state total to the end of 1928 to 59,972 tons, valued at $313,930. Consumption of BaRitE in United States Crude barite sold or used by producers in the United States for the year 1927 amounted to 248,219 tons, valued at $1,594,423, according to the U. S. Bureau of Mines.l In addition, there was imported, principally from Germany, a total of 70,274 tons, valued at $253,284. Manufactured products from these tonnages combined were distributed in 1927 (the latest year for which figures are at present available) as follows: ground barite, 57,658 tons; lithopone, 174,083 tons; barium chemicals (including carbonate, 4,960 tons; chloride, 3,541 tons; binoxide and sulfate or blanc Jixe combined, 13,354 tons). Missouri accounts for nearly 50 per cent of the domestic crude barite, followed by Georgia and Tennessee, with lesser amounts from Arizona, California, Nevada, South Carolina, and Virginia. Occurrence and Uses of Babite2 Barite, also called "heavy spar" and "tiff," is theoretically composed of 65.7 per cent of barium oxide (BaO) and 34.3 per cent of sulfur

Jan 1, 1931

Jan 1, 1931

By D. R. Mitchell

This paper discusses some of the fundamental physical and chemical characteristics of coal in Illinois that affect its preparation for the market. At the present time preparation consists almost entirely of sizing and hand-picking. The washing of coal has almost entirely disappeared from the state. This is a rather startling fact when one considers that in the year 1908 Illinois outranked all other states in the quantity of coal washed and a few years later, in 1912, 85 washing plants were reported. Two reasons are apparent for this change. One, which is probably the most important, is that immense areas of comparatively clean coal were opened; the other is that many of the early washing plants were inefficient, so that washed coal was looked upon with disfavor in many trade centers. Objectives of Operators Some of the outstanding preparation aims being given due consideration by operating men are: 1. The greatest possible production of lump and domestic sizes which bring in the market at least $1 per ton more than the fine sizes or screenings. 2. Efficient screen sizing with as little breakage as is consistent with economical operation. 3. The removal of extraneous ash and sulfur. 4. Utilization of low-priced screenings. 5. Suppression of dust in domestic coal shipments. Preparation Underground To get the greatest possible production of the larger sizes, preparation must start at the face. Improvements in blasting and loading have increased the sizes larger than 2 in. by as much as 20 per cent. at some mines. Tiffany and McKitterickl report the results of an investigation they made at a mine in southern Illinois in which, by a carefully controlled

Jan 1, 1931

By Ludwig Schmidt

Large quantities of gasoline are lost each year by evaporation from bulk-storage station tanks. The rate of evaporation from bulk-station tanks is influenced by two principal factors: First, the vapor pressure of the gasoline in the tank; and second, the amount of "breathing" of the tank. The vapor pressures of the gasoline govern the amount of the gasoline vapor in the air-vapor mixture above the gasoline in a tank at a given temperature. This is one of the principal factors in determining the total pressure of the air-vapor mixture within the tank. The "breathing" of the tank is caused by the inflow of air from the atmosphere during certain periods of the day and the expulsion of the air-vapor mixtures at other times, caused by atmospheric variations. The pressure built up within a tank and the amount of gasoline in the air-vapor mixture are both a direct function of the temperature existing within the tank. Therefore, two of the most common methods for reducing evaporation losses from bulk-station tanks are: (1) The use of vapor-tight tanks equipped with relief valves and operated at 1 or 2 ounces of pressure and about .5-ounce vacuum; (2) reducing the temperature of tanks and their contents by painting them a light color, by insulation, and in some instances by using water sprays. Water sprays, although effective, usually are too expensive to operate economically. In order to determine and compare the effects of various colors, insulation, and pressure in reducing the evaporation losses of gasoline held in storage in bulk-storage tanks, the Bureau of Mines made observations from May 29 to October 15, 1930, on five horizontal tanks of 12,000-gallon capacity each, which were erected at the plant of Black, Sivalls and Bryson Manufacturing Co., Kansas City, Mo. This report gives in detail the results of these evaporation tests.

Jan 1, 1931

By T. V. Moore

IN many of the important problems of the petroleum engineer, it is necessary to know accurately the laws governing the flow of gas and liquid mixtures in vertical' pipes. Although much work has been done along these lines, no satisfactory solution to the problem has been found. A good theoretical discussion of the energy balance in a gas¬lift has been published-by Versluys.1 One of the most important factors affecting the efficiency of the flow of oil and gas mixtures is slippage, and in most of the experimental work that has been done no provision has been made for the measurement of this quantity. As Versluys pointed out, since there is no method now known to estimate it from the data usually taken; slippage must be determined empirically. This paper presents the results of some work carried on to, measure slippage in short experimental gas-lifts. As shown herein, slippage can be easily calculated in a vertical pipe carrying a mixture of oil and gas if the fractions of the pipe occupied by liquid and gas respectively are known. In this work, the fraction of the pipe occupied by the liquid was measured under a wide variety of conditions and the relationship between this fraction and other quantities, which are easily measured in ordinary work, was determined. It was hoped that the quantitative relationship obtained from this work could be used-for making accurate calculations in flowing or gas-lift wells, but unfortunately it did not check satisfactorily when applied to actual wells. Apparently flow in long flow pipes is mote efficient than in the short ones used for the experimental work. Nevertheless, it is felt that the data themselves are of interest; that the method of attack may be of value in future work and that the relationship derived between slip and the relative velocities is a contribution toward the solution of the gas-lift problem.

Jan 1, 1931

By George S. Rice

Instantaneous outbursts of gas in underground workings are similar in effect to great blasts of explosives, but without heat effects. Fortunately they occur only in a few localities in exceptional coal fields of the world and under exceptional geologic conditions. Such violent outbursts should not be compared with the ordinary outflows of gas into coal mines or with explosions of gas and dust. The phenomenon is essentially one of gas held in circumscribed areas under very high pressure and as a mining face or heading approaches such a place and the mining excavation sufficiently weakens the natural surrounding dam or shell, this is burst by the pressure just as by the discharge of a mass of explosives. The outbursts, so far as known to the writer, have been confined to coal beds and have not occurred in other mineral deposits. Hence, as discussed later, he believes that it is the relation of the gases to the coal material that is a factor in conjunction with others in producing conditions which permit the phenomena to occur when mining is done. The gases in most instantaneous outbursts have been hydrocarbon gases but in two coal fields they have been definitely found to be chiefly or wholly carbon dioxide. One of these localities in which CO2 outbursts have been frequent and have caused loss of life is in the southern part of the Gard basin, near Alais, in southern France. In 1919, the writer visited the Fontaine mine in this field the day following the occurrence of an outburst by which two men were smothered by carbon dioxide and fine dust. After 24 hr. the CO2 had not been entirely removed by the ventilating current. Occasional outbursts of CO2 have also occurred in other small basins in France, causing accidents, as in Puy-de-Dome. However, mines in the Gard basin, north of those in which CO2 outbursts have occurred, have experienced hydrocarbon gas outbursts. In the Lower Silesian coal field, Germany, there is a group of mines which have been subject to many instantaneous CO2 outbursts, some causing serious accidents, but the greatest disaster occurred recently

Jan 1, 1931

By S. H. Ash

The coal-mining districts of Washington are mainly situated west of the Cascade Mountains. The eastern boundaries of Whatcom, Skagit, Snohomish, King, Pierce, and Lewis Counties, shown in Figure 1, form the backbone of the mountain range. The mines are on the foothills of the slope and extend to the shores of Puget Sound in the central and northern portions. The subbituminous fields of Lewis, Thurston, and Cowlitz Counties extend into the valleys west of the mountains. The Roslyn field, a small but important area, Lies on the eastern slope of the Cascade Range. If western Washington is divided into three areas from north to south the bituminous coal fields and most of the active mining operations will be found largely in the central area. In the southern portion there are large areas of subbituminous coals of varying quality extending from Centralia to the Columbia River. In the northern portion, mining is at present practically restricted to one mine which is working a subbituminous bed near the city of Bellingham.

Jan 1, 1931

By R. I. C. Manning

The Old Dominion Co, at Globe, Ariz., like the: Phelps Dodge Corporation with which it is closely allied, considers safety a major operating problem. Safety is fostered by this company in consideration of both the humanitarian and economic aspects; the officials, take pride in promoting the welfare of employees, and the management has found that the safest way is the most eco¬nomical and that unless an organization is operated economically it can not continue to exist successfully. In planning and operating any safety, organization, terry things must be taken into consideration because an Enterprise can not be operated solely for safety any more than it can for any other single part of the operations. All work must be planned and executed for the common interest.

Jan 1, 1931

By W. K. Whiteford

Until the beginning of the year 1930, conditions in the oil industry were such that the production engineer was chiefly concerned with improving the efficiency of development and production technique. Good engineering practice had been adopted to devise and improve methods and materials better suited to drilling for and producing oil and gas. These efforts reduced the hazard and expense of deeper drilling, increased the ultimate recovery from reservoirs and lowered production costs. Equipment was of better design and materials were better suited for the work and were more permanent. These improvements naturally have contributed their share toward increasing the volume of crude oil produced each year. The industry is now faced with a need for preventing a waste of this natural resource; waste which came as a result of continued reckless drilling of new reservoirs. To make a careful study of this economic problem and to devise methods for correcting these conditions was a logical problem for the production engineer. Much time and study have been devoted to the question, and remedial plans have been suggested during the last year and a half. The principles of unit operation have attracted the engineer's attention, as they present ideal conditions for the most scientific and economical development of an oil field. Unitization During 1930 unitization of producing and potentially producing areas has made real progress, and as each new unitized development is agreed upon the objections that loomed so large at the inception of the idea fade into comparative insignificance. Undoubtedly the outstanding example of the efficacy of unitization is the Kettleman Hills project in California. Unitizing this structure, with its almost incredible reserve, is an important step forward in the industry's concerted effort toward conservation. With this partial acceptance of the principles of unit

Jan 1, 1931

By Fred B. Ely

The first recorded production in the Dutch East Indies was in the year 1893 but seepages of dl were known to exist in North Sumatra, East Java and the east coast of Borneo at least as early as 1880. During the Of the above amount the Royal Dutch produced............................................. 36,006,079 Nederlandsche Koloniale Petroleum Maatschappij (subsidiary of Standard Oil of New Jersey)....................................... 3,867,769 Total Dutch East Indiea....................................... 39,873,848

Jan 1, 1931

By Alan M., Bateman

MR. JORALEMON'S dispassionate discussion of this subject in TECHNICAL PUBLICATION 340 of the Institute shows clearly some of the failures and successes of geology in the discovery of ore deposits. He forces us to recognize, with humility, that chance has played a greater part than geology in the recent discovery of several great copper deposits. I think, however, he wrongly ascribes to unexpected or chance discovery some deposits that were found as a direct result of geological investigation. I refer to the Rhodesian copper deposits,, particularly Roan Antelope and Mufulira, both mentioned by him as having been found by chance. Also,. I think Mr. Joralemon's paper, inadvertently, does not- give the proper credit for the early recognition of the possibilities of these deposits. I feel sure that Mr. Joralemon and the gentlemen given credit by him will welcome any further information on this subject that will throw light on what will some day- be of. historical interest and importance. Consequently, I should like to set forth some additional data that throw light on who should receive the most credit, and' to indicate that, in my opinion, sound. geological reasoning and not chance is to be, credited for the development of the. Roan Antelope and Muf ulira mines.

Jan 1, 1931

By W. H. Newhouse

During the past few years the writer has been impressed by the close relation of many epigenetic orebodies with anticlinal structures. In the literature on ore deposits there is occasional mention that an oreshoot or district is on an anticline, but in most of the descriptions no weight or significance is attached to the relation, and usually the fact is concealed in a mass of structural detail. A few writers have stressed the relationship in a few districts or on a certain type of deposit. Church, Spurr, Butler, Stahl and Schuette have called attention to certain features, but the general extent of such a correlation has not been made known in any publication that the author has seen. A recent article1 on the localization of ore deposits, by well-known geologists, does not consider this common association. The author has seen in the field a number of the structural features described, and in addition has made a fairly complete review of the literature. This paper presents enough of the examples found to show the frequency of the relation to anticlines, and since only a few deposits on synclines are known, all of these of any importance of which the writer knows are mentioned. With certain qualifications which are discussed later, epigenetic ore deposits of replacement or vein type are mostly found where local upwarps of the earth's crust have taken place. Where formations antedating the ore deposits are present in the proper attitude to demonstrate vertical warping (i. e., more or less horizontal beds) the structural feature on which a mineral district, or mineralized area is located is almost always anticlinal, or domelike in nature. Some or even most of the ore deposits in a given district may be on the flanks of the upwarp, but few major districts are located definitely on downwarped areas. Synclinal basins within certain limits of size appear to be unfavorable to the type of fracturing that admits ore-bearing solutions. Replacement orebodies frequently are localized in small anticlines or domes, the size of the anticline or roll often being more or less commensurate with that of the enclosed oreshoot. This feature certainly ranks

Jan 1, 1931

By Ludwig Schmidt

This report, the second of a series, presents the results of laboratory corrosion studies which were made in connection with a one-year test on aluminum lease tanks conducted by the United States Bureau of Mines. Part I of the report contains the results of the field teats.5 The studies were made on an oil lease in a so-called "sour district," near Borger, Tag., where free hydrogen sulphide accompanied the production of oil, gas, and salt water. Steel tanks previously used on the lease had suffered severe corrosion, because steel is inherently susceptible to attack by hydrogen sulphide. Because of the high resistivity of aluminum to the action of hydrogen sulphide, it Was believed that this metal had promising possibilities as a material for the construction of lease tanks in "sour districts." The results of the one-year field teat proved that aluminum lease tanks will withstand corrosion by hydrogen sulphide, but it was found that aluminum was susceptible to attack by salt water, which was invariably present in certain portions of the tanks, and that hydrogen sulphide accelerated this salt-water corrosion in an indirect manner, as will be explained hereinafter. In order to study corrosion conditions encountered in the tanks during the test period, a laboratory was maintained at the site of the aluminum lease tanks.

Jan 1, 1931