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Jan 1, 1939

Jan 1, 1939

By M. W. Strong

The technique of handling drilling muds varies somewhat, partly because of personal factors but mainly because of differences in formation, the type of problems, and the general drilling conditions in different localities. The much greater depths to which bore holes are now carried have made necessary closer attention to and great modifications of all aspects of drilling-mud technique. Increased depth means smaller hole, smaller drill pipe, smaller clearances, higher pumping pressures, higher differential pressures between shows and the mud column, less accurate control of the weight of the mud column, delayed receipt of formation data, and poorer samples. It means longer delays and greater hazards in rectifying mistakes or dealing with accidental occurrences. Equipment on a larger scale is necessary and more pains must be taken with layout. Lastly, the budget costs of raw materials have risen to high figures and economy of time and of direct monetary expenditure have come to mean much more than formerly. A mud laboratory is now part of the essential establishment of a modern oil field and to it current problems can be submitted for the most thorough investigation. The detailed chemical properties of all materials purchased or quarried have to be investigated. Detailed data on the physical properties have to be ascertained and research on improvement of material and its most efficient use has to be carried out. In this paper will be discussed the main mud problems of Iran, some of which are peculiar to local conditions while others are of the general type common to all workers in this subject. Underground Conditions In deep wells in Iran the normal overburden may consist of: (1) up to several thousand feet of marls with interbedded sandstones and limestones of varying porosity and permeability; (2) beneath this a chemical series of rock salt and anhydrites, containing various marls and thin limestones,

Jan 1, 1939

By E. V. Foran

Among the many newer disclosures that have accompanied the petroleum industry's progressively deeper exploratory drilling is the increased frequency with which the operators are encountering reservoirs of which the products at the time of discovery exist wholly or predominantly in the gas phase. The popular term "distillate pool" is most often used within the industry when referring to this type of reservoir, and in this paper the term is used in that sense. These pools have been observed in many different surroundings. In some places the entire reservoir is filled with the wet gas containing its water-white condensible products in the gas phase but apparently with no dark oil or other hydrocarbon liquids in the reservoir. The 8200-ft. horizon in the Big Lake field in West Texas is a good example of this type. At other places the wet, or distillate-bearing, gas may form a large gas cap directly overlying and in contact with an extensive reserve of dark oil. Oklahoma City, Kettleman Hills, the 8500-ft. horizon in the Big Lake field, and many others are examples of this type. There are also many places in which the wet distillate-bearing gas fills nearly the entire reservoir space, while the dark oil occupies only a narrow, bandlike zone, which marks the boundary of the reservoir along its lowest productive contour. The heavier components of these deep pool gases are generally water white in color, a large portion of which are condensible in a conventional oil and gas separator, when operated under pressures of the order of 400 to 800 Ib. per sq. in. Although the water-white products recovered in the separator sometimes have end points of 650" F. and higher on standard Engler distillation, they occur only in the gas phase in the reservoir. It is entirely possible that even some small amounts of dark colored reservoir components may occur in the gas phase when the temperature is 300" F. and pressures exceed 6000 Ib. per sq. in. Close approaches to these conditions have been encountered in the deepest producing wells. The condensible content of the deep reservoir gases of the many pools that have been tested or produced to date shows a wide variation in both condensible content, per 1000 cu. ft. of gas, and physical character.

Jan 1, 1939

By Howard C. Pyle, John E Sherborne

Core analysis is a recent development in the field of petroleum technology. The earliest work on this subject was done in connection with evaluating and planning secondary oil recovery by water-flooding. Present-day analysis of sands of flush fields requires new and independent interpretations of the data provided by cored material. Particular attention is being paid to the development of rapid, routine methods for measuring physical characteristics of sandstone, such as permeability, porosity and grain size, as well as the sand's fluid content. Permeability may be defined as the fluid-passing capacity of a rock. For a sandstone to be permeable it must be possible to pass a measurable quantity of fluid through the material in a finite period of time. The common unit of permeability is the darcy, which may be defined as the rate of viscous flow, in milliliters per second, of a fluid of one centipoise viscosity through a porous medium having a cross section of one square centimeter, under a pressure gradient of one atmosphere (76.0 cm. Hg) per centimeter.' For convenience the subunit millidarcy, or one-thousandth darcy, is often used. Porosity is defined as the fluid-containing capacity of a rock and is usually expressed as a percentage ratio of the total pore volume to the rock or bulk volume. Since measurement of only the effective or communicating pore volume is often made, porosities are distinguished as total or effective.2,3 Net effective porosity is defined as the net pore volume available for oil and gas. Oil and water content of sand is measured and expressed either as the percentage saturation of the total pores or of the bulk rock. The oil content may also be expressed as the percentage saturation of the net effective pores. In connection with water-flooding, methods of core analysis were developed to furnish data that could be used in determining the quantity of recoverable oil14-6 and the probable rates at which various sands or divisions of a sand open to the wells would take water or produce oil. In flush fields, the analytical data are used to predict the productivity of a cored interval. They indicate the presence of oil, gas and water and may

Jan 1, 1939

By J. J. Jakosky

The fundamental hydrodynamic principles governing the production of oil from wells have been carefully studied and evaluated by many investigators. These prior studies are quite complete and cover virtually the entire field of oil production and recovery.' One of the most important measurements in production studies is that of the bottom-hole pressure at various rates of production.2 It is the purpose of this paper to outline the technique and economics of fluid-level measurements as applied to pumping wells and to review briefly other methods for obtaining bottom-hole data. The applications of bottom-hole pressure or fluid-level measurements are based on simple hydrodynamic principles. Under equilibrium conditions, pbh = hd + pg + pch [1] when pbk = bottom-hole pressure, Ib. per sq. in. absolute, h = height of fluid in well, ft., d = average fluid density, Ib. per sq. in. per foot, p, = weight of section of gas column 1 in, square from fluid level to casinghead, Pch = casinghead pressure, Ib. per sq. in. absolute. In words, equation 1 states that the bottom-hole pressure is equal to the weight hd of the column of fluid plus the weight of the column of gas between the fluid and the casinghead plus the casinghead pressure. At moderate rates of flow, the rate of production is approximatcly proportional to the difference between the reservoir, or static bottom-hole. pressure and the flowing or producing pressure; i.e.: Q = c(pr - pbh) [2] pr = the reservoir pressure, c = the constant of proportionality. However, at production rates approaching zero and also at high rates the proportionality may break down. By combining equations 1 and 2 the

Jan 1, 1939

By E. G. Leonardon, D. C. McCann

The search for oil has required, and without a doubt supplies, a tremendous amount of information on the structure, composition, physical properties, and history of sedimentary rocks. The earliest and most complete source of knowledge is the sample or core of the rock itself, the uses of which are well known. The purpose of this paper is primarily to discuss a new method for obtaining these cores, and to illustrate its use in connection with electrical logs. Most cores have been obtained through a special adaptation of rotary drilling, and the results have been remarkably good, considering the mechanical problems involved. Unfortunately, because of the time and expense, this method cannot be used for the entire length of the drill hole. Even though ingenious contrivances have been evolved in order to reduce the time spent in round trips, such as wire-line coring equipment, mechanical coring still remains too expensive to be carried out continuously. In practice, therefore, one is finally compelled to estimate the probable depths of the more interesting horizons and, allowing a wide margin of safety, to core through those sections only. It is true also that interesting results have been obtained by examining the cuttings brought to the surface by the mud circulated in the well during the process of drilling. Be that as it may, the inescapable fact remains that key horizons may be passed inadvertently, for one reason or another, while the drilling operations are being performed. The only continuous record of the formations encountered is that furnished by electrical surveys. Obviously, it would be desirable to make the electrical survey first and to take the samples from the wall of the hole according to the indications on the electrical log. In this way, it would be possible to core only the exact sections desired, eliminating the otherwise inevitable estimates as to the point at which to start coring, and thereby reducing to a minimum this expensive operation. At the same time this method would provide a maximum of useful samples. A device for taking samples of the formation from the walls of a hole therefore offers the possibility of recovering cores from zones otherwise lost as a source of this type of information. Furthermore, by coring

Jan 1, 1939

By R. E. Heithecker

Almost every oil well drilled into limestone formations in Kansas is treated with hydrochloric (muriatic) acid upon completion: to increase potential capacity of well and thereby increase its "daily allowable" production; to shorten time required to produce recoverable oil; and to increase quantity of oil recovered ultimately from reservoir. Acid treating marked a forward step in the producing fields of Kansas; in fact, many old limestone fields that almost had reached their economic producing limit were "rejuvenated" with acid and their capacities to produce increased several times. It also caused a marked increase in the ultimate oil recovery of some old and nearly depleted fields of Kansas. The effect of the acid was due to the cleaning-out action by the acid at the face of the limestone, the enlargement of the small drainage channels, and the apparent penetration of the acid to previously undrained porous and saturated strata. Studies of the effects of acid were made in the Fairport field, three groups of wells in the El Dorado field and the Shutts field. Estimation of increased recoveries resulting from acid in these fields and groups of wells ranged from 1000 to 2400 bbI. per acre. Limestone structures that had been tested by drilling and found noncommercial were later completed as commerical oil-producing formations through the use of acid. The Kansas City formation, Valley Center field of Kansas, is an example. Increased oil production and revenue from the old fields justified the reconditioning of equipment, which in most cases had become in poor mechanical condition. The first treatment with hydrochloric acid of an oil well in Kansas was in October 1932, and by the end of 1937 almost 6000 wells had been treated. Many wells were treated more than once and the total number of treatments exceeded 8000 by the end of 1937. Approximately 12 3/4 million gallons of acid was required for these treatments. The report includes 15 illustrations and 16 tables.

Jan 1, 1939

By Henry Emmett Gross

Two types of decline curves are considered and their applications are discussed. The first is the well-known semilogarithmic decline curve having the rate of production plotted on the logarithmic scale and the time on the horizontal scale. The other curve is the percentage of oil in the fluid versus cumulative production, and it is plotted on Cartesian coordinate paper. These curves are illustrated by carefully and adequately labeled graphs. Where conditions permit application of both types of curves for rationally determining the reserves of a well, both should be applied and the most conservative reserve should be chosen. Formulas are given for determining the economic limits. For a semi-l~~arithmic~decline curve the formula is: A = B X C X D X E X F or B = A/C ? D X E X F A = total monthly operating cost (average of past year), B = economic limit in barrels of oil per day, C = days in an average month = 30.4, D = market price of crude per barrel, E = 1-royalty, F = 1-gross production tax, G = water production in barrels per day at the economic limit, H =per cent oil in fluid at economic limit. The economic limit for a per cent oil in the fluid curve is: H = B/B+G X 100 The semilogarithmic decline curve is treated first. Straight-line extrapolations on semilogarithmic paper follow the compound interest compound discount law, hence the ensuing formulas derived from this law may be used in computing reserves for such extrapolations: [1___1/(1+Y)]

Jan 1, 1939

By C. C. Singleterry, D. L. Katz

The critical phenomena have been studied during the past century but our knowledge of the critical temperatures and pressures of complex hydrocarbon mixtures still is very limited. The critical temperatures and pressures of pure substances have been examined in large numbers120 and in great detail.11.17 No experimental determinations of the critical phenomena have been reported on such complex hydrocarbon systems as a reservoir fluid. The critical temperature is defined by Taylor18 as follows: "there is some temperature for each gas above which the gas cannot be liquefied. This temperature is called the critical temperature." The critical pressure of a pure substance is the vapor pressure at the critical temperature. It should be noted that these definitions refer to a given substance in the pure state and do not mean that the pure substance cannot be liquefied in the presence of a second constituent. The normal procedure for obtaining the critical temperature of a substance is to heat it in a glass tube 1,20 under pressure until the meniscus between the liquid and vapor phase disappears, although other methods, especially for mixtures, have been used.13,14 However, when considering oil and gas reservoirs, it is more enlightening to consider a critical phenomenon that occurs when a mixture of oil and gas are compressed at a reservoir temperature until the meniscus disappears because the two phases become equal in composition. This conception, along with erroneous applications of the definition of the critical phenomena of a pure substance to that pure substance when it is part of a complex mixture, has caused confusion even among persons familiar with the classical theories. The purpose of this paper is to discuss the critical phenomena of pure substances and mixtures and to report experimental data on a mixture of

Jan 1, 1939

By B. H. Sage, W. N. Lacey

Variations in the composition of the liquid phase of natural reservoirs which are continuous through significant ranges in elevation have been noted by petroleum technologists. In general, there is a greater gas-oil ratio and the gravity of the oil is higher in production from the upper parts of the formation. In the present paper the possible changes in composition with elevation which would result from the attainment of thermodynamic equilibrium in a uniform gravitational field have been evaluated for a naturally occurring hydrocarbon liquid, a binary hydrocarbon liquid phase and a binary hydrocarbon gas. The results indicate a progressive decrease in the mole fraction of the components from methane through the butanes with increasing depth, accompanied by a corresponding increase in the amount of the heavier components making up the system. The magnitude of these variations is perhaps insufficient to explain completely the variations in the properties of the liquid phase that are encountered at various elevations within a particular producing horizon. However, the changes are significant and the treatment presents an example of the application of thermodynamic data to the evaluation of the properties of hydrocarbon fluids under the conditions approaching those encountered in natural reservoirs. Theoretical Considerations Muskat1 has discussed the work of earlier authors relating to the equilibrium relationships of multicomponent systems in a gravitational field. He also presented explicit solutions for several cases and discussed the physical significance of gravitational concentration gradients. In engineering work it is customary to consider the pressure, the temperature and the composition of a phase to be the independent variables sufficient to establish its state. This procedure neglects the effect of gravitational or other types of fields upon the energy associated with the system and assumes, among other things, that the pressure is uniform in

Jan 1, 1939

By R. V. Lukes, H. W. Scheeline

Knowledge of a large number of the physical properties of the hydrocarbons is needed in the calculations and studies of the production engineer. Since experimental data on these properties of the individual hydrocarbons and their mixtures are available in only a relatively few cases, the use of generalized correlations has developed rapidly in the last decade. The generalized correlations of pressure, volume and temperature,' enthalpy2 and vapor-liquid equilibria13 on the basis of reduced temperatures and pressures, are outstanding examples of this development. These correlations are of particular value to the production engineer interested in the flow of oil and gas, since they can be used to estimate the conditions under which segregation of phase occurs as well as the composition, density, and relative amounts of the phases. The technique of using the correlations for such estimations has been published by several authors4 and will not be considered in this paper. A considerable number of data have been obtained to check the generalized pressure-volume-temperature correlations, and these data indicate that such relations hold for the hydrocarbons from methane to heptane. The accuracy is in general sufficient for most engineering pressure-volume-temperature calculations. However, the generalized correlations of enthalpy and vapor-liquid equilibria have in general been developed from the pressure-volume-temperature correlations by thermodynamic calculations and only a relatively few experimental data are available to check these calculated values. The calculations from pressure, volume and temperature are likely to lead to large errors in the calculated enthalpy and vapor-liquid equilibria. Thus, in the calculations of enthalpies, slopes of the pressure-volume-temperature data are employed, and determining these slopes can greatly amplify small errors in the original data. In the vapor-liquid equilibria calculations it is necessary to have the pressure-volume-temperature relations of the mixture, and the latter propertics are much more questionable than those of pure components, particularly in the critical region. A considerable number of experimental data are

Jan 1, 1939

By M. C. Leverett

The behavior of mixtures of immiscible liquids in porous solids is of rapidly increasing interest to those engaged in the production of petroleum. The operation of artificial water-floods and the control of natural ones immediately raise questions concerning the fundamental nature of such processes. Moreover, it is now recognized that often water occurs dispersed throughout the rock from which the oil issues into the well,' and thus tends to move toward the well simultaneously with the oil. The work reported here is a laboratory investigation of the simultaneous, steady-state flow of oil and water through the same column of uncon-solidated sand. It is thus directly related to the situation in which water occurs in oil-producing sands; it may have less direct implications for the displacement of oil from sands by water. However, it is to be clearly understood that the experiments to be described were performed primarily to obtain information of a more or less fundamental nature, and are not an attempt to reproduce, on laboratory scale, any part of an oil field. The dynamic behavior of a system in which oil and water are flowing simultaneously through sand is best described in terms of its "effective permeability" to either phase. For incompressible fluids flowing through a system of uniform cross section, the effective permeabilities to the two phases, in darcys, may be defined by the equations: Ko = PA6A [la] and Ku = Q [lb] In order to put the results obtained on a comparable basis for different sands, the effective permeabilities will be stated as fractions of the normal permeability of the sand; i.e., fractions of its permeability to a homogeneous fluid. Algebraically, these fractions are: KO' = Ko/K, and KWr = K,/X [2a] and [Zb]

Jan 1, 1939

By M. Muskat, H. G. Botset

Any information that will increase the accuracy of our knowledge of the conditions prevailing in petroleum reservoirs should be of direct value in the determination of the proper operating technique as well as in the estimation of reserves and of ultimate production. The obvious method of obtaining this information is by studying a sample of the reservoir rock and its contents. In any such study, the problem of primary importance and maximum difficulty is that of getting the core to the surface in such a manner that its original fluid content is undisturbed, which has so far proved to be an impossible task. Though it might be rash to say this will never be done, it is certainly safe to assume that a, method for the recovery of a core at the surface in its undisturbed original state may not be developed in the immediate future, and certainly will not be forthcoming without a great deal of costly experimentation. Therefore any information that may be obtained that will help to correlate the state of a core (its fluid saturation) at the surface with its condition at the time it was drilled should be of value to the petroleum industry. The experiments described in this paper were undertaken with the purpose of determining, if possible, any relationship that might exist between the saturation of a core at the surface and its original fluid content. No consideration has been given to the question of contamination by penetration of drilling water, since this problem has been extensively studied by other investigators.1-3 Furthermore, it was regarded as outside the scope of these experiments, which were concerned only with the effect of pressure reduction upon the liquid content of cores. In an experimental study of this sort involving a large number of variables, accurate control of all factors is very important. The essential and obvious procedure is to vary systematically one factor or condition while keeping all the others constant, which necessarily involves a rather protracted and sometimes tedious experimental program. The procedure adopted was essentially very simple, and consisted merely in filling a given core with fluid (gas and oil, gas and water, or

Jan 1, 1939

By C. R. Hocott

The distribution and movement of fluids in oil reservoirs are influenced to a great extent by capillary forces, which depend upon the size and shape of the pores in the reservoir rock, the surface characteristics of the rock, and the interfacial tension between the fluid phases. This paper presents the results of an investigation of the interfacial tension between salt water and crude oil containing dissolved gas under reservoir conditions. Apparatus and Procedure In the preliminary phases of this investigation, it was found that a scum formed at the oil-water interface, which made measurement of interfacial tension by either the ring or capillary rise methods unreliable. Accordingly, the drop-weight method, in which a fresh interface is continuously formed, was selected. In this method, a tip through which drops of one fluid can be expelled is immersed in a second fluid. At the instant that the drop becomes large enough to fall, the gravitational force tending to pull away the drop exactly balances the interfacial force tending to hold it. From the size of the drop, the dimensions of the tip, and the density of the two fluid phases, the interfacial tension may be calculated. The apparatus consists of a circulating pump for bringing the oil to equilibrium with gas at the desired pressure, a displacement pump for forming the drops, an interfacial tension cell in which the drops are formed, and a density cell to determine the density of the oil. The density of the water is determined separately in another apparatus. A flow diagram of the assembled equipment is shown in Fig. 1. The interfacial tension cell contains a stainless-steel dropping tip suspended from the top and extending below the surface of the oil. The tip is a cylindrical rod with a small hole in the center through which the water was forced to form the drop on the lower face. The walls of the tip were highly polished, to prevent the water on the tip from creeping up the side and increasing the effective diameter. The face of the tip, how-

Jan 1, 1939

By Allen D. Garrison

The chemistry of clays and shales has been assuming increasing importance in the petroleum industry, and two factors have greatly influenced this trend. The first has been the growing evidence that the marine shales are source beds, and that the petroleum compounds have migrated to the sand reservoirs overlying or underlying these shales: the second has been the demand for drilling fluids better adapted to penetrate these marine shales without difficulty and expense. Origin and General Composition of Clays and Shales Clays, shales and surface soils are all closely related materials. They are mixtures of finely divided compounds formed during the weathering of the solid crust of the earth. Their nature is essentially colloidal; that is, their behavior is determined by the state of division of the materials and the surface reactions of the smallest grains. Many of their chemical changes affect only the exposed areas and do not involve the interior of the grains of matter. The extent of these reactions is more nearly proportional to the area of the substances than to their mass, therefore it is possible for a small amount of a material in an extremely fine state of division to completely dominate the character of the mixture. More than 83 per cent of the crust of the earth is composed of three elements—oxygen, silicon and aluminum. Consequently, the corrosion products of the crust are predominantly aluminosilicates, or compounds of aluminum, silicon and oxygen. If we add the compounds of six elements—iron, calcium, sodium, potassium, magnesium and hydrogen—more than 98 per cent of the crust has been accounted for. These six elements, together with the first three, also appear in soils, clays and shales. But direct chemical analysis is of little value in describing the nature of such materials. Many chemical individuals may be present in variable amounts, and the extreme subdivision of any one of the individuals may contribute qualities that dominate the mixture.

Jan 1, 1939

By Nico Van Wingen

Experiments performed with distilled water, unconsolidated sand and dead oil for the purpose of determining the influence of oil flow on the water content of sands were described. While results found are not necessarily, therefore, identical with those that would be obtained under natural petroleum reservoir conditions, the following conclusions were drawn. 1. When oil under constant head is flowed through an unconsolidated sand, the amount of water retained in the core is inversely proportional to the specific permeability of the core. This corroborates the view that the degree to which oil displaces water out of the pore space is limited by the size of the pores. 2. For the range investigated, the displacing action of a more viscous oil of higher specific gravity was found to be the same as a less viscous oil, or lower specific gravity. 3. The amount of interstitial water retained in the sand bears an inverse relationship to the pressure head of the displacing liquid. 4. The degree of retained water saturation of the sand appears to approach 100 per cent as the specific permeability approaches zero. 5. For the higher values of specific permeability and for the pressure range investigated the remaining amount of water in the sand occupies approximately 10 per cent of the pore space. This, together with the fact that the limiting oil velocity curve approaches approximately 10 per cent water saturation as an asymptote, indicates that beyond this point removal of water is achieved only by a stripping of the grains requiring considerable pressure drops across the sands; or by a balancing of the molecular forces. 6. As the water saturation of the sand exceeds approximately 15 per cent of the pore volume, the permeability of the sand to oil decreases rapidly. 7. Sands with water saturations as high as 40 per cent were found to produce 100 per cent oil.

Jan 1, 1939

By Norman D. Fitz Gerald

The lack of a continuous operating balance in petroleum refining, which is analyzed in this paper, is by no means a feature solely of this division of the oil industry. Serious disequilibria of a capital as well as an operating nature exist both in the producing and marketing departments, while problems in the former and to some degree the latter are complicated by political involvements. Attention has previously been directed to the unstabilizing influence of present proration formulas in stimulating unnecessary drilling.' While equilibrium in petroleum refining operations has been fairly well maintained in the past decade, examination of departures may prove fruitful. Economic analysis is the application of time and motion study to the functioning of management, rather than labor. Properly applied it may reveal changes in policies that would increase the utility of the properties and facilities of the industry for stockholders, employees and the public, while contributing a stabilizing influence to the general economy. The study of economic equilibrium is essentially one of measurement and interpretation, requiring adequate data and the development of a technique of analysis that employs statistical and mathematical methods as a supplement to the broad descriptive phase of economics. Economic equilibrium in petroleum refining is a dual concept. It embraces both the over-all balance between total storage and total demand for major products and the internal balance between the demands and inventories of the various products. The latter is the more complex of the two for it is concerned with proportionating the supplies of the several products stemming from the joint source to the demands for the individual products which are subject to wide variations. All the products are essentially nondurable goods, and they are used both by producers and consumers but in varying proportions. Motor fuel is very largely a consumer's good, while residual fuel oil is almost entirely a producer's good, the other products falling between these extremes. The peculiar-

Jan 1, 1939

By Joseph E Pogue

Over a period of years the writer has presented a number of studies1 on various aspects of proration, in a progressive attempt to analyze critically and constructively the economic complexities of this interesting institution, which in a decade has revolutionized the economics of oil production in the United States. In the course of the investigations leading to these papers, the changing nature of proration and the principles underlying its evolution have gradually become clear, so that it is now possible to depart from the analytical method and to construct a synthesis of the steps that, if furthered by the industry, should carry proration past the economic hazards that still surround it to the goal of maximizing the value of the petroleum resource to the industry and the public alike. Nature of Proration Proration literally means the allocation of demand among competing producers on a pro rata basis, but the term now carries a much broader significance for it is employed to describe the entire process by which the production of crude oil in the United States is regulated. There is naturally much confusion of thought on the subject, for proration is an evolving system of control based upon principles of conservation and equity and embracing a body of practices that are tending to adjust themselves to the needs of the situation but are subjected to varying and divergent influences in the process. As it is now constituted, proration is a planned production measure designed to prevent waste, insure ratable takings, and balance supply and demand. The procedure is administered by State regulatory bodies through use of the police power of the States under authority of State conservation laws; the practice is supported by a considerable degree of voluntary conformance on the part of operators; and the Federal Government has accorded its cooperation by providing advisory quotas, circumscribing imports, checking movements of hot

Jan 1, 1939

By V. R. Garfias, R. V. Whetsel, J. W. Ristori

Preliminary estimates indicate that world consumption of petroleum and related fuels in 1938 will be close to 1,908,000,000 bbl., or approximately 7,000,000 bbl. less than in 1937. This total does not include military consumption in foreign countries, which for obvious reasons is not made public. Foreign military consumption in any one year, however, is approximately represented by the difference between the total production of petroleum and related fuels and the "partial total" consumption above noted, after adding any decrease, or subtracting any increase in stocks in the United States. Fig. 1 illustrates this "difference" and shows that in 1937 and 1938, owing to the wars in China and Spain and the possibility of armed conflict in Central Europe, foreign military consumption—and possibly additions to foreign stocks—increased nearly 70,000,000 bbl. in 1937 over 1936 and remained at this high rate throughout 1938. No official information on foreign oil stocks is available to the writers. Table 1, recently published, purports to give the oil in storage in some of the European countries, but it is not known whether the figures include oil stocks for military purposes. It should be noted that with the annexation by Germany of Austria and part of Czechoslovakia the consumption of the country has increased to 53,000,000 bbl., which is about 36,000,000 short of the German produc-

Jan 1, 1939