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By Cecil Hagen

All of the production for Ecuador during 1940 came from the Santa Elena Peninsula, Province of Guayas; the major portion coming from the Ancon field, which is controlled mostly by Anglo-Ecuadorian Oilfields, Ltd. A small amount was produced from the shallow pumpers and pozos, or oil pits, at Cautivo-Achallan, Carolina, Santa Paula, Concepcion, El Tambo and Mina Tigre. Considerable exploration was carried on in the country during 1940 and numerous concessions were in force, as shown by the accompanyiag map. Anglo-Saxon continued its exploratory work in the Oriente by surface geological methods and some geophysical surveys. It is understood that this concern did considerable airplane mapping. International Petroleum, on its large concessions between the Andes and Pacific Coast, did considerable surface work as well as some geophysical. No exploratory test wells were drilled by either of these

Jan 1, 1941

By J. W. Ristori

During the year 1940, production of crude oil in RiIexico totaled 43,914,000 bbl., or 2,776,000 less than in 1937, the year before expropriation. The 1940 output was I,2000,000 higher than in the previous year. In 1937, Poza Rica production accounted Declines in exports of Panuco crude, fuel oil and gasoline were recorded but these were more than offset by increased exports of 4,000,000 bbl. of Poza Rica crude, which was the approximate amount shipped to Sinclair during 1940 under the terms of the settlement. Over-all exports increased by 1,500,000 bbl. over the preceding year. The outstanding development regarding the destination of Mexican exports in 1940 was the increase of I0,000,000 bbl. in the exports to the United States. Exports to Germany ceased toward the end of '939 and to Italy in the second half of 1940. During the year 1940 the Sinclair interests and the Mexican Government settled their expropriation question. By the terms of the settlement Sinclair is to be compensated by cash payments and oil-purchase contracts. On Dec. I, 1940, Ada Camacho was inaugurated President of Mexico for a term of six years. Among his first acts following his election were: I. A proposal to change the Constitution to restore Supreme Court Judges' terms to life tenure. This has been ratified by both chambers of the Mexican congress and is now before the legislatures of the States of Mexico for ratification. The, taking away of the administration of the railroads from labor and restoration to the State.

Jan 1, 1941

By O. B. Hopkins

The total production of oil in Peru in 1940 was 12,127,135 bbl., or about 10 per cent less than in 1939. Most of the reduction can be attributed to the fact that the export market under war conditions is much restricted and naturally is more than ordinarily competitive. Development and Exploration in Older Areas As evidenced by Table I, almost all production continued to come from the three established fields in coastal northwestern Peru. Zorritos Field.—Exploration in this small field, which was purchased by the Peruvian Government in 1939, continued with that in near-by areas in the adjoining National Reserve. Several wells were drilled, regarding which details are not as yet available. It is estimated that the production rate for a total of some 45 old and 15 new wells approximated zoo bbl. per day, or about 3 bbl. per well per day. Lobitos Fields.—The Lobitos area produced 2,435,504 bbl.; about 10 per cent less than the amount for 1939. La Brea-Pari9zas.—This property of International Petroleum Co. continued to account for nearly 80 per cent of Peru's production. During the year, drilling was stepped up to 139 wells, as compared with 73 wells completed in the previous year; 123 were producers and aggregated a total of 287,867 ft. Of this total, more than 85 per cent was drilled by rotary tools, which are steadily displacing other equipment. Although most of these wells were drilled in the proved or semiproved areas, eight

Jan 1, 1941

THE activity of the principal oil fields of Rumania followed the same course as in 1939. It was marked by (1) collaboration between the various companies, particularly in exploiting oil at great depths with a view to rationalizing the exploitation and decreasing the difficulties inherent in very deep drilling; and (2) economy in the exploitation of the older pools in reducing to a minimum the cost of the extraction and working over of wells by the concentration of productive wells in groups. The pooling arrangement continued at Tintea as a measure of conservation, and exploitation of the unitized region went forward on the basis of the norms established in 1939. The same methods were applied in the fields of Liesti, Ceptura and Boldesti. The petroleum industry had some difficulty in providing the necessary material and the hands for work. Importation of material and machines from the United States was virtually stopped. Substitutes were provided from Germany but particularly useful were certain dispositions made by the local metallurgical industry. Despite the higher cost of the production of local material and machines, they were superior to the German product, the difference in quality justifying the higher price charged as the materials were found to be particularly adapted for the purposes of the petroleum industry. The cost of production was still further raised by the work that was imposed for national defense. The rise in costs per meter drilled was 50 per cent over those of 1939. According to bimonthly tables furnished by the Moniteur du Petrole Roumain, the deepest well completed in 1940 was an exploratory well, No. 201 of the Concordia company, drilled at Tintea and suspended at 3338 meters. This depth was reached toward the close of 1939 and the well was not deepened in 1940 became of large deviation from the vertical. The record for productive wells had been held by No. 429 at Tintea, drilled by Unirea to a depth of 3200 m., and in 1938 well No. 317 Cocorasti-Mislea, of the Colombia company, but these records were passed in 1940 by well No. 613 Liliesti of the Con-cordia company, which reached a depth of 3294 m. and had an initial production of 10 tons per day. In 1940, the same number of wells, II, had been drilled to a depth of over 3000 m. as in 1939. Five of these wells are at Tintea and six at Liliesti. Table I lists these very deep holes in the order of their depth. Table i.—Deep Wells Drilled in Rumania in 1940 Initial No. Produc- of Company Field Meters tion, Well Meters Tons per Day 405 Colombia......... Liliesti 3,001 10 629 Unireu............ Tintea 3,005 73 426 Unirea............ Tintea 3,050 48 410 Colombia. ........ Liljesti 3,055 30 627 Concordja (Unirea). Liliesti 3,072 75 430 627ConcordjaConcordia (Unirea). (Unjrea 3,II9 30 618 Colombia......... Liliesti 3,168 70 24 Steaua Romana. . . Tintea 3,184 18 412 24Unirea............ Tintea 3,211 23 613 Concordia......... Liliesti 3,294 10 Production in Rumania in 1940 reached 5,813,000 tons, in contrast to 6,~40,0oo tons in 1939, a decline of 427,000 tons, or 6.8 per cent. Drilling reached 241,500 m., in

Jan 1, 1941

By Basil B. Zavoico

Production of crude oil in the U.S.S.R. during 1940 is estimated at 222,600,000 bbl., as compared with the revised figure for the preceding year of 220,866,000 bbl., an increase of 0.79 per cent, and at least 20 per cent under the planned output. Baku district (Transcaucasus) remained the outstanding producing area, accounting for 72.33 per cent of the country's production, and this relative importance of the Apsheron Peninsula oil fields will probably continue lor many years to come. In the North Caucasus the Grozny-Dagestan area further extended its decline and the current production in this district amounts to only 6.06 Per cent Of the total U.S.S.R. output, as compared with 35.76 Per cent in 1931 The production of the Kuban-Maikop district remained virtually ullchanged from the preceding year, amounting to 7.64 per cent of the country's total. The Caucasian Province, therefore, in I940 produced 86.03 Per cent of the total production of the U.S.S.R. The promising new Permian Basin district, called Ural-Volga, and referred to sometimes as the "Second Baku," increased its production appreciably during 1940 and the output of that area amounted to 8.31 per cent of the country's total, as compared with 6.35 per cent during 1939. Production in the secondary districts of Russia continued unchanged though some new discoveries in the Emba salt-dome basin suggest that the output of that district may show some increase during the coming years. The drilling operations in Russia during 1940 reached a stage of virtual breakdown and the original footage plans were fulfilled only to the extent of around 50 per cent, while exploration drilling schedules were fulfilled only to the extent of about 25 to 35 per cent. This condition was due to the obvious lack of modern drilling rigs, of good drill pipe and of strong casing. Extended breakdowns occurred with deeper drilling, particularly because with few good drilling rigs available speed was being attempted with rotation rates that the inferior drill pipe and bits could not stand. Twistoffs and endless fishing jobs resulted. The difficulties became so serious a handicap to the Soviet oil industry that it was found imperative to order American drilling equipment and pipe in quantity, a policy that was never favored in the U.S.S.R because it requires expenditure of gold or exchange in major volume, and such exchange usually is reserved only to less bulky key items or to orders directly connected with armaments; also, oil-field machinery is very bulky and the prevailing lack of bottoms makes the transport of the indicated equipment a major problem. But little progress was similarly made in other branches of the Soviet oil industry. NO new major pipe-line construction work was undertaken, consequently the railroads continued to be overburdened with traffic that could be much more effectively handled by pipe lines. No new refinery construction of any magnitude was initiated, though several plants that had been in course of construction for several years were completed during 1940 and operation 554

Jan 1, 1941

By D. C. Porterfield

-4s a result of world economic conditions brought about by the European war and the consequent loss of European markets for Venezuelan crude, production in Venezuela decreased from 205,433,000 bbl. in 1939 to 186,134,000 bbl. in 1940, or 9.4 per cent. This decline interrupted a steady annual increase in production from the country, which had been continuous since 1932. The Maracaibo Lake Basin in western Venezuela accounted for 135,738,000 bbl. during 1940, or 73 per cent of the total, as against eastern Venezuela's production of 50,396,000 bbl., or 27 per cent of the total for the country. Corresponding figures for 1939 were 167,688,000 bbl., or 82 per cent of the total from the Lake Basin, and 37,744,000 bbl., or 18 per cent from the east. These comparisons indicate the increasing importance of the newer developments in eastern Venezuela, but it is unlikely that production from the east will ever exceed that from the west. In all, 429 new wells were completed in Venezuela during 1940 as compared to 438 in 1939. Of the 1940 completions, 411 were in proved areas and 18 were wildcats; 389 (95 per cent) of the exploitation wells drilled were producers, I was a gas well and 21 were dry holes, while 6 (33 per cent) of the wildcats drilled were producers and 12 (67 per cent) were dry; 263 of the exploitation wells and 4 of the wildcats were in the Maracaibo Lake Basin and 148 exploitation wells and 14 wildcats were in the east, mostly in the State of Anzoategui. Exploration of the light-oil areas in the Tia Juana and Lagunillas fields was con- tinued during the year with favorable results. Along the lake shore, drilling was confined principally to fill-in wells in the La Kosa, Tia Juana, Laguni!las and Bachaquero fields, although some important semi-exploratory drilling was done in the Pueblo Viejo area between Lagunillas and Bachaquero fields. The only other developments of particular interest in the west were the successful completion of a step-out well lying to the south of the former southern limit of Mene Grande field, which adds considerable proved acreage to that field; and the failure of two wildcats that were drilled near the Colombian border to determine whether the productive sands of the Petrolea field in the Barco Concession, Colombia, extend into Venezuelan territory. In the east no new fields were discovered during the year, although five wildcats were completed as producers. Three of these, Guario No. I, Jusepin-56 and LM-I (Leona), discovered important extensions to previously proved areas and the remaining two, Cantos-I and SPN-I (Socororo), were subsequently proved to have tapped productive sands of small extent and operations in these areas have been suspended. The greatest activity in the east was concentrated in the Oficina field, where 105 new wells were completed during the year and production was increased from 22,540 bbl. per day during January 1940 to 57,627 bbl. per day during December 1940. Important development work was also done in the Jusepin. San Joaquin and El Koble fields.

Jan 1, 1941

In the special number of the magazine Ocl und Kohle (Oct. 22, 1940) dedicated to the petroleum industry of southeastern Europe, there appeared several articles relating to Yugos1avia.t In the first article the author calls attention to the fact that there are two fields in Yugoslavia that have been explored and exploited by more than 100 wells at variable depths during the last 50 years. These are on the Island of Mura, at the confluence of the Mura and the Drave. Additional exploration drilling in various other parts of the country has been without result, but certain ones of these explorations have revealed the existence of gas horizons that have some value, which are being used for industrial purposes. Table I shows the production of oil and gas between the years 1900 and 1939. TaBle —Production of Oil ad Gas in Yugoslavia . n,i Natural Natural Years oil Years Gas, Cu. Years Gas, Cu. Meters Meters T900-1929 10,000 1923 507,000 1934 1,388,000 1930 277 1924 567,000 1935 1,401,000 1931 202 I92S 691,000 I936 1,483,000 t932 289 19261 1.472,000 1937 1,841,000 1933 629 1927! 1,732,000 193s 2,431,000 1934 324 1928 2,515,000 1939 2,628,000 1935 260 1929 4,700,000 1936 137 I93O 5.345,200 1937 463 1931 6,376,153 1938 1,091 1932 1,661,737 1939 1,114 1933 959,574 The number of wells drilled from 1884 to the present time was in the neighborhood of zoo and the total footage drilled was 65,000 m. up to July I940 They may be divided roughly as follows: 12 wells in the region produce natural gas; 134 wells in the two old fields of the Island of Mura and about zo wells for the exploration of the zone of the Flysch, in Bosnia. The depths of 50 of these wells was roo to 200 m.; the depths of 50 wells oil the Island of Mura ran from zoo to 500 m.; of 2 ; wells, 500 to I000 m.; of ro wells from rooo to 2000 meters. The deepest well drilling in Yugoslavia has reached 2000 in. In the Valley of Morave, in the region of Selnica, I00 km. south of Nish, there have been discovered asphalt-bearing limestones, which contain about 15 per cent asphalt and are associated with bituminous clays. Later, at Paclenica, important deposits of natural gas were found. A zone rich in gas and oil seepages runs through Pracec, Miklenska, Bujavica, etc. The author studied these regions from the point of view of stratigraphy and tectonics. The anticlines and gas-bearing domes are concentrated in two zones: the region of the Drave (Island of Mura) and the region of the Save, southeast of zagreb, which contains the gas field in exploitation in the region of Bujavica. A full description of the productive region of the Island of Mura has been given by Egon Bohm, a geologist, in the second article mentioned. This includes a history of the exploration and exploitation that took place under Hungarian rule in this region. The most important exploration was effected between 1884 and 1885 by Stavenov and Stinger, of Vienna. In 1927 work was done in the same region by Anton Raky, a well-known explorer who makes work of this kind his specialty.

Jan 1, 1941

By Harry H. Power

While the attention of all engineering branches is focused today on changes and improvements in the several curricula, we are concerned here with the many questions arising in industry and college concerning the preparation for the petroleum engineering profession. The succession of problems confronting the petroleum engineer demands a degree of versatility not ordinarily encountered in other professions. As a consequence, the student cannot acquire mastery of all the several engineering branches represented in field practice, and as an alternative, he has learned to appreciate the value of thorough training in the basic or fundamental sciences as a Preliminary foundation for professional work. While our attention is directed primarily to the training of engineers in educational institutions, it is necessary that the ultimate education of the professional engineer be kept in mind. It is apparent that his success as an engineer is limited not only by his educational and job experience, but by his native endowments: mentality, Personality and health. The engineer's lack of job experiences often proves as much a handicap as the lack of adequate college training. If the final product proves to be satisfactory, both industry and technical institutions are to be congratulated. However, if the Product is found wanting, the one most responsible should For the most part, students of engineering colleges have had their interests in applied science awakened at a relatively early age. Manyof them entered college as a convenient means of acquiring a technical education, but undoubtedly would have had better prospects in a shorter program offered by institutions of non-college grade. The activating motive of practical interest is also strong in students suitable for college training, but in many cases an intellectual interest must be awakened in order that it may survive graduation. Numerous engineers believe that this progressive process of selection and determination of career aims is one of the essential services rendered by the engineering colleges. Industrialists, who are more inter. ested in quality than quantity of petroleum engineering graduates, have pointed out the good that should result if more emphasis were given to the work of eliminating the misfits. They also point out the protective measures that have been taken by other professions for the betterment of professional standards. Mention has been ,de of the beneficial results to be obtdned by collective determination of the market for the products of engineering schools, particularly in that the students unsuited to the profession would have an opportunity to prepare themselves for employment more suited to their personalities and other qualifications. In the event that such a system of coordinated personnel direction is developed by the

Jan 1, 1941

By Walter Miller

Petroleum refining, like other industries in the United States in 1940, focused much attention on its duties and opportunities in the field of national defense. In crdiiter-distinction to the situation during the World War, the industry is well constituted as to existing equipment, processes, and capacity, together with planned additions, to handle any demands that may be made upon it by the defense program needs. Evident throughout was the growing sense of ability to manipulate oil molecules for the production of materials not hitherto considered as being available commercially from petroleum. The development and application of catalytically induced reactions on a broad front is one of the distinguishing characteristics of refining progress during the year. In the hands of the refiner, catalysis has developed into a most important means to secure higher antiknock motor fuels and 100-octane fighting grade aviation gasoline in greatly increased quantity. One illustration of the importance being assigned to catalytic refining is the construction by the Houdry group of an experimental laboratory at a cost of $7'307'30'3, to be staffed with over 100 research men7 solely for the purpose of studying catalytic reactions. In the aviation gasoline picture a modification of specifications by the Government widened the field from which acceptable fuel can be secured, and the continued expansion of the alkylation process in itself promises to go far in filling the demands expected from 50,000 fighting planes. It is conservatively estimated that eyen now the industry can turn out 1,300,000 gal. of 100-octane aviation gasoline daily. The upper limits of octane numbers for regular grades of motor gasoline reached in 1939 were not exceeded, but the average octane number approached the upper level more closely. A survey made of the 1940-model cars showed no rise in average octane requirement of the engines. The trend throughout the year was for greater reliance on the A.S.T.M. method for octane determination. The "1939 Research Method" is less widely used, although still considerably in evidence; the older L-3 method seems to have lost considerable ground and to be on the way out. Re-forming Capacities Increased Interest continued to grow apace in re-forming low-octane naphthas into high-octane gasolines. Some additions, although not great, were announced in thermal re-forming capacity. Interest in catalytic re-forming was greatly stimulated by the technical success of the operation of the converted hydrogenation unit at the Bay-way, N. J., rehery of the Standard Oil Company of New Jersey, mentioned in last year's review, and also by the knowledge that recoverable proportions of toluene are present in the hydroformed (catalytically

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Jan 1, 1941

During 1940, the Bahrein Island field produced a total of 7,073,919 bbl. of crude oil- an average of 19,328 bbl. per day. This is a decline of 514,635 bbl. from the I939 production of 7,588,554 bbl. At the end of 1940, there were 70 producing wells.

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