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By J. Trevor Eyton

This paper addresses some of the financial risk hedging mechanisms available to a corporation contemplating entering the mining business at a significant level of investment. The approach which I have adopted is that of a case study relating to the risk hedging aspects of Brascan Limited's acquisition of 46% of Noranda Inc., formerly Noranda Mines Limited, followed by some remarks on options open to mining companies for reducing financial risks. To appreciate the rationale for Brascan committing over (Can.) $800 million to the natural resource sector, some knowledge of Brascan's parent company, Edper Investments Ltd., is required at the outset. Edper Investments, prior to acquiring a 48% interest in Brascan, controlled Trizec Corporation, one of the world's largest property companies. Edper also was involved in the financial services sector through Continental Bank of Canada and Hees International Corporation. For some considerable time prior to Edper's investment in Brascan, Edper felt a need to provide a better balance to its portfolio of property and financial services. Brascan was rich in cash, relatively unleveraged, and with important existing holdings in natural resources and consumer products. The acquisition of a controlling interest in Brascan provided an opportunity to balance Edper's portfolio of property and financial services with world class acquisitions in natural resources, supplemented by consumer products and financial services. The end result of Brascan's activities over the last few years is illustrated by the following analysis of the book value of Brascan's assets at the end of December 1983. [Can.$% Millions _ Natural Resources81748 Consumer Products 654 38 Financial Services 157 9 Other Operations895$1,717100% ] Source: Brascan 1983 Annual Report. The large emphasis on natural resources came about from the fact that for Canadians operating mainly in Canada, natural resources were attractive. We were impressed by Canada's position in the world natural resource industry as illustrated by some of the following statistics: [CommodityCanadian Estimated Production In 1983 As % of World Total Newsprint 30 Potash 21 Uranium 18 Molybdenum 17 Zinc 17 Pulp 16 Nickel 16 Saw Logs 11 Silver 8 Copper 7 Lead 6 Gas 5 Oil3] Source: U.S. Bureau of Mines and Brascan estimates. In addition, the quality of Canada's reserves looked good to us. The polymetallic nature of many of Canada's orebodies offered a hedge against risk relating to any one metal. Put another way, the by-product metal credits offered a net operating cost advantage with respect to many of the metals mined. Our energy costs also appeared to provide Canada's natural resource industries with an advantage. We considered Canadian mining expertise as amongst the world's finest, as were the exploration equipment and technology developed in Canada. In addition, Canada offered a stable political climate and one we knew. Further, we felt the Canadian Government's future role in the industry would, on balance, be benign, partly because the Canadian content of the mining industry was very high in contrast to the petroleum industry. Granted, we could find cheaper sources of copper; however, to do so would involve venturing into regions where country risks were higher.

Jan 1, 1985

By AIME AIME

M ALBERTSON is research engineer for the Shell Petroleum COT. He joined the Roxana Petroleum Corp. (later the Shell) in 1920, at Hanger, Texas, became district geologist at Shreveport, and after two years was transferred to the production department, where he has been for the past fifteen years. His jobs have ranged from a modest field engineer up to assistant production manager. During this time hc has successively resided in Texas, Louisiana, Missouri, Louisiana, Oklahoma, Missouri, Texas, The Hague (Holland), and Texas. II? the Yates Pool, Texas, in 1929, "Al" initiated' the tubing of wells under pressure to control gas-oil ratios, particularly at restricted rates of flow. This led to the compulsory tubing of all oil wells drilled in the State

Jan 1, 1937

By Edward H. Robie

AT a recent meeting of the AIME Board there was considerable discussion of a suggestion that companies should be more interested in promoting AIME membership among their employes. The advocate of this idea argued that companies benefit greatly if their employes are active AIME members, so even on purely a selfish basis they should use various means to encourage membership. Also he argued that companies in general make no contribution to the support of the AIMS although benefiting from its work, so should not object to making more of a contribution, financial or otherwise, than they do. One Director stated that an investigation had developed the fact that a large majority of members felt it unwise for employers to pay the initiation fees or dues of employes. They felt that AIMS membership should be on a purely personal basis; that the rewards of active membership were sufficient so that it is a good investment for a man in developing his own professional stature, presumably resulting in an increase in salary sooner, or in greater amount, than would otherwise be the case. If an employer paid a member's dues or initiation fee the member would take less interest in the Institute. But this Director felt that an employer should otherwise encourage his employes to join the Institute, attend its meetings, and write papers based on company work for presentation and publication. Another Director reported that his company pays the expenses of AIME members in its employ to meetings; the company also encourages nonmembers to attend AIME meetings but does not pay their expenses unless they present papers of interest to the company. Another Director, representing a supplier, stated that his company's policy was to send some of its staff to all AIME meetings at which papers of interest were to be presented or at which valuable contacts could be made.

Jan 1, 1952

By H. J. Hager, P. H. Haskell

Fox the past 20 years Alabama has probably led all other coal-producing districts in the proportion of coal prepared by wet washing. All rail mines, with one exception, and a high percentage of truck mines now wash all coal under 3 or 4 in. Most of this coal has been cleaned by jigs, though within the past few years one or more wettable plants have been installed for cleaning some of the coal from practically all the major seams. These tables supplement either single or multicell jigs usually for one of the following purposes: (I) to wash the finer sizes of raw coal, (2) to rewash the finer sizes of washed coal after they leave the jigs, (3) to retreat jig middling products. The main purpose of this paper is to present cleaning data and operating factors involved in the preparation by tables of the finer sizes of raw coal. The specific information and data pertain to the Mary Lee seam of coal as extracted at three of the mines of the Alabama By-Products Corporation, which produces coal for both by-product coke-oven consumption and the general steam market. The Mary Lee seam has long been recognized by coal-preparation authorities as presenting a very difficult ash-reduction problem. Washing characteristics and physical structure of the seam vary widely. Its thickness ranges from 32 in. with no rock parting to l00 in. with from one to three partings. Over the entire field the bed contains bands of bone and rash. These are distributed throughout the seam cross section. A portion of this bone or bony coal occurs as definite bands 1 in. or more thick; however, some bone is interlocked as layers within the coal and consequently breaks into flakes when the coal is broken. This material is relatively high in ash and its specific gravity varies widely. It has been observed that in most cases in the washing of Mary Lee coal from 10 to 18 per cent of the raw coal is within ±0.10 specific gravity of the attempted point of separation. Therefore with the average wet jig, only with extreme difficulty can a low-ash product be obtained without loss of much marketable coal in the refuse. Without entering into the controversial question as to whether modern washing equipment can efficiently handle simultaneously all sizes up to a given maximum, suffice it to state that the comparatively old-type jigs in service at the Alabama By-Products Corporation's mines could not clean the fine sizes satisfactorily. Therefore, in 1931 that company installed six diagonal-deck tables at the Barney mine, which were installed as an addition to a complete plant cleaning all coal below minus 3 in. The primary washed product is shipped as steam coal and another portion may be prepared as washed nut for domestic trade. These tables are washing 9 tons per hour of raw coal sized to ¼ in. to 0. The washed table coal is mixed with the 3 to ¼ -in. jig product to constitute a 3 in. to o steam coal.

Jan 1, 1941

By AIME

Lewis E. Young, who will formally assume his duties as President of the AIME at the Annual Meeting in San Francisco in February 1949, was born in Topeka, Kansas, Oct. 1, 1878. Dr. Young received his engineering education at the Pennsylvania State College, where he received the degree of B.S. in Mining Engineering in 1900. In 1904 he received his E.M. degree from Iowa State College, and in 1915 a Ph.D. from the University of Illinois. In 1947, the University of Missouri conferred on Dr. Young honoris causa the degree of Doctor of Engineering. His active career began in the educational field as instructor at Iowa State College, and following that, as professor of mining at the Colorado School of Mines, 1903-1907. While he was at Golden he launched hi: career as consulting mining engineer for various Western companies. Leaving the Colorado School of Mines, Dr. Young returned to Missouri, serving the University of Missouri as director of the School of Mines and Metallurgy at Rolla, 1907-1914. Leaving Missouri he went to the University of Illinois as assistant professor of business organization, 1915-1918, during which period he wrote exhaustive treatises on mine subsidence and mine taxation, which won for him the degree of Ph.D. before mentioned.

Jan 1, 1949

By Louis C. Just, Robert L. Sandefur, Carl E. Williams

In 1981 Ertec Rocky Mountain, Inc. completed a significant development in contemporary planning support; MINEPAK was completed, tested on various properties and offered for license. MINEPAK was one of the first computer systems for ore body analysis and mine planning that - Was designed as an interactive and completely integrated system - Was portable so that it can run on many hardware systems - Was really user friendly - Can run on minicomputers and on some microprocessors - Was built around a data base management system MINEPAK was designed to be a completely general block modeller and it achieved that goal. Since it contained a gridded file type, surfaces could be easily modelled but the system needed extensions to allow layered deposits to be modelled with the same ease as block models. So COALPAK was designed. COALPAK is an extension as well as a modification of MINEPAK. A 'layer' file type was defined and retrofitted into the existing system, new software tools were developed for modelling layered deposits, and tools for strip mining were written.

Jan 1, 1983

By R. S. Hadi, L. Svarovsky

SUMMARY This is a report of a new development in on-line particle size measurement of fine powders in dust-laden gases. A continuous sample of the solids-air suspension is drawn from the process stream via a sampling probe by means of an air operated ejector into a cyclonic separator whereby the sample is subjected to a particle size dependent separation process and split into two streams, "overflow" and "underflow". The overflow stream carries most of the fines at a relatively low concentration and the underflow stream carries the coarse particles at a relatively higher concentration. The concentration of solids in the two streams is detected by electrostatic noise level technique which utilises the electrostatic charge accumulated on the solid particles due to their high velocity in the turbulent air stream, for the mass concentration measurement. The ratio of the solids concentration of the fines stream to that of the coarse stream is then correlated against the average particle size in the main process stream by a calibration curve. The in-plant tests clearly indicate that this relatively simple instrument offers good sensitivity in the size range from 2 to 6 µm, and is capable of giving a continuous indication of average particle size for process control purposes. Although the instrument was developed for a particular application, it may be used in other situations where fine powders are conveyed in gas streams. British and foreign patents are applied for.

Jan 1, 1980

By Stirling Huntley, R. H. Johnson

Pennsylvania will be remembered, as long as oil is produced, as the cradle of the industry of petroleum in North America. It was on Oil Creek, near Titusville, Venango Co., that Col. Edwin L. Drake, superintendent for the Seneca Oil Co., brought in the first commercial oil well on Aug. 28, 1859. Great difficulty was experienced in getting the well down to the producing depth of 69 ft. (21 m.) with the spring-pole system then in vogue for punching shallow water wells, so the novel expedient of driving an iron tube through the surface clays and quicksand was finally resorted to. The well had an initial yield of 25 bbl. a day on the pump, but soon went off, though 2000 bbl. were produced by the end of the year. With the Drake well a success, a young industry sprang into being, the rapid growth of which has been second to none in the country and the value of whose product is only surpassed by that of coal. For years the only producing territory, the Pennsylvania-New York field attained its greatest production in 1891, when the bringing in of the McDonald pool, between Pittsburgh and the West Virginia line, gave a total of over 33,000,000 bbl. At present the field, combined with West Virginia and southeast Ohio, gives 25,000,000 barrels. Geology and Stratigraphy In general, the Appalachian field is a huge geosyncline, the axis of which runs roughly northeast-seuthwest, from north of the New York state line south through Brookeville, Kittanning, Pittsburgh, Washington, through the southwest corner of the state of Pennsylvania into West Virginia. Minor folding has accompanied or followed the dominant fold of the field, and it is from these structures near the Pennsylvania-West Virginia line and their influence on the accumulation of oil and gas that I. C. White, state geologist of West Virginia, obtained his evidence for anticlinal guidance of prospecting. Many horizons in the geologic column of the field serve as reservoirs, and there arc several pools that have wells producing side by side from different and widely vertically separated strata. The strata show a promising succession of porous sand and conglomerate horizons alternating with numerous gray and dark brown 01. black shales, admittedly

Jan 1, 1921

By J. K. Stanley, R. F. Meel

The recrystallization of cold-worked metals is studied ordinarily by determining the temperatures required for complete recrystallization to occur within a given arbitrary time period, usually within 15 min. to 2 hr. The results obtained are conventionally assembled in a three-dimensional diagram relating this temperature to the amount of cold-work (percentage deformation) and the resultant grain size, though sometimes other modes of representation are emp1oyed.l Such three-dimensional diagrams are not complete, for the number of variables exceeds the number represented. The process of recrystallization is characterized by a time-rate, a fact that is not portrayed upon ordinary recrystallization diagrams. It is known that recrystallization consists in the formation of new nuclei and the growth of these nuclei, a process that continues until the matrix is completely consumed and the original set of grains entirely replaced by the new. This knowledge is old.2 Truly heterogeneous reactions invariably proceed by nucleation and growth; the decomposition of eutectoid solid solutions provides an example about which much is known,3 and freezing, originally studied by Tammann, provides the classic example. Although recrystal- lization is not a heterogeneous reaction within the orthodox meaning of the term, the mechanism of the process is the same. As in eutectoid inversion and freezing, it should be possible to study the rate of isothermal recrystallization as a function of time, and it should also be possible to analyze the isothermal reaction curve into the component rates of nucleation and growth that determine them.* Other methods, not employing the rates of nucleation and growth, have been used to represent the rates of such reactions, but these in general have been artificial and have not led to progress. 4,5 The theory of recrystallization is not in advanced state; if recrystallization data were obtained in terms of the rate of isothermal recrystallization, and in terms of the rate of nucleation and the rate of growth of recrystallized grains, and in particular if the temperature coefficients of these rates were measured accurately, an adequate theory should be more readily developed.27 Such an effort requires proper experimental technique, but especially requires suitable methods of mathematical analysis to convert mcasurements made upon a surface of polish into values for the rate of nucleation and the rate of growth and to combine these into a rate of isothermal recrystallization. These methods are now available for the case of three-dimensional recrystallization (recrystallization of

Jan 1, 1942

By R. F. Meel, J. K. Stanley

The recrystallization of cold-worked metals is studied ordinarily by determining the temperatures required for complete recrystallization to occur within a given arbitrary time period, usually within 15 min. to 2 hr. The results obtained are conventionally assembled in a three-dimensional diagram relating this temperature to the amount of cold-work (percentage deformation) and the resultant grain size, though sometimes other modes of representation are emp1oyed.l Such three-dimensional diagrams are not complete, for the number of variables exceeds the number represented. The process of recrystallization is characterized by a time-rate, a fact that is not portrayed upon ordinary recrystallization diagrams. It is known that recrystallization consists in the formation of new nuclei and the growth of these nuclei, a process that continues until the matrix is completely consumed and the original set of grains entirely replaced by the new. This knowledge is old.2 Truly heterogeneous reactions invariably proceed by nucleation and growth; the decomposition of eutectoid solid solutions provides an example about which much is known,3 and freezing, originally studied by Tammann, provides the classic example. Although recrystal- lization is not a heterogeneous reaction within the orthodox meaning of the term, the mechanism of the process is the same. As in eutectoid inversion and freezing, it should be possible to study the rate of isothermal recrystallization as a function of time, and it should also be possible to analyze the isothermal reaction curve into the component rates of nucleation and growth that determine them.* Other methods, not employing the rates of nucleation and growth, have been used to represent the rates of such reactions, but these in general have been artificial and have not led to progress. 4,5 The theory of recrystallization is not in advanced state; if recrystallization data were obtained in terms of the rate of isothermal recrystallization, and in terms of the rate of nucleation and the rate of growth of recrystallized grains, and in particular if the temperature coefficients of these rates were measured accurately, an adequate theory should be more readily developed.27 Such an effort requires proper experimental technique, but especially requires suitable methods of mathematical analysis to convert mcasurements made upon a surface of polish into values for the rate of nucleation and the rate of growth and to combine these into a rate of isothermal recrystallization. These methods are now available for the case of three-dimensional recrystallization (recrystallization of

Jan 1, 1942

By E. P. Mathewson

THE OLD Pueblo smelter is being dismantled after 43 years of continuous operation, from 1878 to 1921. It was built by Mather and Geist, on a bluff overlooking the Arkansas River just below the, city of Pueblo. At the time of its construction Pueblo was considered a most favorably situated town for a custom smelter. Coal, coke, fuel, limestone, iron ore, lead, silver, and, gold ores were plentiful. It was a "downhill pull" from all directions to Pueblo. Labor, both common and skilled, was plentiful and efficient. Leadville was in bonanza and there were not sufficient furnaces in Colorado to handle the ore offered. The plant prospered from the start. It soon required more capital; so the owners; with the assistance of Thomas Nickerson of Boston, at that time prominent in the affairs of the A., T. & S. F. railway, formed the Pueblo Smelting & Refining Co. About this time, also, very heavy shipments of rich silver ore from New Mexico began to come in. Agencies were established for the purchase of ores in the most important mining camps in the country from Kingman, Ariz., to Butte, Mont. Highly siliceous silver-bearing ores from Butte were shipped to Pueblo in train loads. This was used chiefly in the concentration of leady mattes. RECOLLECTIONS OF MR. GEIST, FOUNDER OF PLANT Mr. Geist is living in Guadalajara and has sent the following brief letter: "Early in 1878 the firm of Mather & Geist, which had been operating in Utah and had then closed their smelter there, after diligent search for a new location selected Pueblo. We erected the first smelter in the valley, blowing in the first furnace in 1878. Mather & Geist carried on until January, 1882, when they transferred all their business to the Pueblo Smelting & Refining Co., which had been organized in December, 1881. Full details of this transfer are given in the enclosed Report, which was issued early in 1882, for the purpose of interesting more capital, in which we succeeded admirably. "I personally did all the work of manager and super-intendent, some job in these days. My technical quali-fications were that I was a member of the class of 1866, Yale Sheffield Scientific. I was born in 1848, so was the youngest member of the class.

Jan 11, 1923

By F. C. Miller

The metallurgical fuel of Colorado, Utah, and New Mexico has been a Veiny tardy member in the caravan of western industrial progress. The history of western coke has naturally been closely related to the development of the metallurgy of iron and steel and the precious metals, in the State of Colorado. It was at Leadville, with a population of 300 in 1877, that the Sentinel was published by Richard S. Allen. The Sentinel gave very full accounts of the various mineral discoveries at the new town of Leadville, which found their way to the more widely circulated journals of the East, and attracted the attention of many people. At the close of 1878, a census slowed a total of 5040 persons. The first smelter was established in 1877, at Malta, two miles from Leadville, by A. R. Meyer, but was not successful. It was succeeded by the Harrison Reduction Works, in 1878. The La Plata began with one furnace in June, 1878, and in 1879 had four furnaces in active operation. These furnaces used charcoal for fuel, and, because of hot tops, suffered a tremendous loss in lead and silver. This difficulty was overcome by the erection of 50 single-bank 10-ft. beehive ovens at Crested Butte, Colo., in 1880. The slack coal sent to these ovens was very pure, and yielded a coke carrying as little as 4.5 per cent. ash. Among the pioneers in the Leadville district were Grant, Eddy, James, Billings, Eiler, and Dickson. To these men the West owes the present expansion of its mining industry, and the erection of metallurgical processes for the treatment of precious metals. On Mar. 1, 1876, Pueblo was connected to the Atchison, Topeka & Sank Fe by the Pueblo & Arkansas Valley branch. The first smelter was erected in Pueblo by Mather and Geist. This modest plant grew into the immense Pueblo Smelting and Refining Co., now a part of the American Smelting and Refining Co. Coke for these small furnaces was made from unwashed Engleville coal, in 186 single-bank 12-ft. ovens at El Moro, in the Trinidad district, and it was not uncommon for the percentage of ash to exceed the percentage of fixed carbon in the coke. On Jan. 23, 1880, the Colorado Improvement Co. consolidated

Jan 1, 1920

By David J. Mack

A survey and critical appraisal of published information about Young's modulus was originally made by the writer because of a complete lack of information about this very important quantity in works on. mechanics, physical metallurgy, physics, and other sciences. It was felt that a comprehensive summary of such information about Young's modulus might be of general interest and may suggest new problems or lines of attack on other problems that involve E. Hence this paper has been prepared even though it is only a review, with no new ideas or experimental data. The references are only those used in assembling the paper. No attempt was made to compile a complete bibliography on the subject of Young's modulus. CalculatioX oP YouNg's Modulus from Theoretical or Empirical CoNsidera-tions Many attempts have been made to compute E from theoretical considerations. The earliest calculations were probably those of Tomlenson (1883) and Souther-land (1891), but Fess'enden4',~ made extensive calculations a few years later and arrived at the relationship: £ = 78.TOw(i)* where V is the atomic volume. In 1923, Peczalski, working from the same standpoint but with more information available on atomic structure, arrived at an identical relationship, which he expressed as: where B is a constant of value about 8 . 107, p is density and mis atomic weight; the atomic volume, of course, being ml p. Portevind4 immediately pointcd out that while the equations of Fessenden and Peczalski were true of the common metals, they gave low values for the refractory metals with high moduli (Fig. I). He showed (Fig. 2) that much better concordance was obtained by means of an empirical equation of the form: F- KT" where K is a constant; T the absolute melting point; V, atomic volume, and a and b constants of value approximately I and 2 respectively. This constant K in the Portevin equation is not necessarily the same for all elements, as shown by Thompson. Other equations for E based upon theoretical considerations have been derived by Honda and Yamada49 and Lasareff.50 The most recent calculations of elastic moduli based upon quantum mechanics are probably those of Fuchs He extended the method of Wigner and Seitz for calculating the lattice energy and compressibility of monovalent metals and computed the elastic constants of lithium, 18

Jan 1, 1946

By Sam N. Dewitt, Albert S. Trube

This paper presents a discussion of the pressure maintenance operations which were begun in the New Hope Field. Franklin County. Texas. in 1944. The project has required the injection of extraneous waters at depths from 7.300 to 8.000 ft with intake well-head pressures up to 4.000 psi in three different reservoirs — the Bacon. Hill. and Pittsburg. Records of oil and water production. water injection and the GOR have been kept for each reservoir and reservoir pressures were taken at regular intervals. These data indicate that the Bacon Reservoir had no apparent water encroachment up to the time of water injection. However. the Pittsburg and Hill reservoirs had some natural water influx hut not sufficient to prevent pressures from declining below the bubble point. The Bacon and Hill reservoirs responded almost immediately to water injection. while the Pittsburg which is the least permeable. has shown good pressure response only since .August, 1948. The principle objective of the project has been to increase ultimate recovery. Success of the project to date also has resulted in reduced lifting costs. Esti- mates based on the initial water breakthrough patterns indicate that the primary objective of substantial additional recovery will he accomplished, and there is a possibility that the original estimates elf oil recovery with pres-sure maintenance will he exceeded. INTRODUCTION This pressure maintenance project was one of the earliest primary pressure maintenance programs to he attempted on a multiple zone field. There are three producing reservoirs into which water is being injected for the purpose of maintaining pressure and increasing the ultimate recovery- from each. This paper is limited in scope to al1 account of the development of the project. the pressure production relationship prior to the injection of water and the effect of water injection on the producing reservoirs. Also discussed are the nature of the injection system and the indicated results on initial water break-through in the Bacon Reservoir. FIELD CONDITIONS The New Hope Field, which is located about 12 miles northeast of Winusboro, Franklin County, Texas, is an elongated symmetrical anticline containing four known oil reservoirs. The reservoirs are of the Trinity group of the Comanchean or Lower Cretaceous period and are found in Table I. The oil productive portion of each reservoir is not present in all of the producing wells because their areas and positions vary with respect to one another. Fig. 1 shows the relative position of the four reservoirs and illusIrate? how some wells could penetrate all four, while others are restricted to three. two. or perhaps one. depending on structural location. The first three reservoirs contain undersaturated oil. The deepest. the Elledge, has a primary gas cap. Although this reservoir covers a considerable area of the field. it has a very thin section and a low order of permeability. Elledge producing wells have generally been characterized by an early increase in GOR, making it necessary to recomplete them in other reservoirs. (At present. one well is completed in the Elledge. which is still producing.) Because of the difficulties en-countered in producing oil from this reservoir. and the small quantity of oil actually present. future attempts at producing it will probably be on a salvage basis during the later life of the program. For this reason, the remainder of this report will be confined to a discussion of the Bacon, Hill and pius-burg reservoirs.

Jan 1, 1950

By Joseph A. Holmes

Although Venezuelan production attained a new peak in 1938, passing the 190 million barrel mark for the first time, there was a distinct flattening of the steep upward trend that marked 1937 and preceding years. The annual total of 190,231,780 bbl. was only 31/3 million barrels above the 1937 figure, an increase of slightly less than 2 per cent, which contrasts sharply with the 20 per cent increase of 1937 over 1936. As in the previous year, the Lake Maracaibo fields supplied approximately 73 per cent of the oil produced, Lagunillas remaining the largest single contributor in spite of a 17 million barrel decrease in its annual output. Tia Juana increased its percentage of the Venezuelan total from 14.1 per cent in 1937 to 23.4 per cent in 1938; La Rosa showed little change with 13.7 per cent; Quiriquire in eastern Venezuela was also little changed with 13.2 per cent; Mene Grande, the only other field of real importance, declined from 7.7 per cent of the total in 1937 to 6.6 per cent for 1938. Two new fields, Temblador and Bachaquero, began actively to ship oil during the year, and by November were averaging 7600 and 10,000 bbl. per day, respectively. The former is in eastern Venezuela, and the latter is the most southern of the proven Lake Maracaibo fields. (A map of Venezuela was published in Volume 127 of the Transactions.) Table 1 gives a complete résumé of Venezuelan production by fields for 1937 and 1938, and shows that 1,685,575,663 bbl. had been produced to Dec. 31, 1938. The percentage contributed by each of the principal fields to this total is shown in Table 3, as well as their trends over the past several years. From these data it is apparent that the Maracaibo Basin is the principal source of Venezuelan production, and will probably continue to hold this position for some years. At the year's end 2657 oil wells were producing, of which 2425 were in western and 232 in eastern Venezuela; 36 per cent were on natural flow, 57 ppr cent were pumping, and 7 per cent were on air or gas lift. Out of 523 wells drilled, 507 producers were completed in 1938, five less than in the previous year and nearly 100 less than in 1929. These

Jan 1, 1939

By Joseph A. Holmes

Although Venezuelan production attained a new peak in 1938, passing the 190 million barrel mark for the first time, there was a distinct flattening of the steep upward trend that marked 1937 and preceding years. The annual total of 190,231,780 bbl. was only 31/3 million barrels above the 1937 figure, an increase of slightly less than 2 per cent, which contrasts sharply with the 20 per cent increase of 1937 over 1936. As in the previous year, the Lake Maracaibo fields supplied approximately 73 per cent of the oil produced, Lagunillas remaining the largest single contributor in spite of a 17 million barrel decrease in its annual output. Tia Juana increased its percentage of the Venezuelan total from 14.1 per cent in 1937 to 23.4 per cent in 1938; La Rosa showed little change with 13.7 per cent; Quiriquire in eastern Venezuela was also little changed with 13.2 per cent; Mene Grande, the only other field of real importance, declined from 7.7 per cent of the total in 1937 to 6.6 per cent for 1938. Two new fields, Temblador and Bachaquero, began actively to ship oil during the year, and by November were averaging 7600 and 10,000 bbl. per day, respectively. The former is in eastern Venezuela, and the latter is the most southern of the proven Lake Maracaibo fields. (A map of Venezuela was published in Volume 127 of the Transactions.) Table 1 gives a complete résumé of Venezuelan production by fields for 1937 and 1938, and shows that 1,685,575,663 bbl. had been produced to Dec. 31, 1938. The percentage contributed by each of the principal fields to this total is shown in Table 3, as well as their trends over the past several years. From these data it is apparent that the Maracaibo Basin is the principal source of Venezuelan production, and will probably continue to hold this position for some years. At the year's end 2657 oil wells were producing, of which 2425 were in western and 232 in eastern Venezuela; 36 per cent were on natural flow, 57 ppr cent were pumping, and 7 per cent were on air or gas lift. Out of 523 wells drilled, 507 producers were completed in 1938, five less than in the previous year and nearly 100 less than in 1929. These

Jan 1, 1939

By Max C. Eastman, V. H. Wilhelm

California had a record year in production and drilling activity, but the results have not been sufficient to keep up with the enormous increase in demand due to war activity. During the year, 164 dry wildcats were drilled, 80 dry wells in proved areas, 31 gas wells, and 1158 successful oil-well completions for a total of 1433 wells, compared with a total of 765 in 1942. With new discoveries of only 20,000,000 and production of 283,000,000 bbl. for the year, total reserves of California oil have decreased more than 250,000,000 bbl. However, revised estimates of the reserves of old fields indicate an increase in the state's reserves of I00,000,000 barrels. The completion of 1158 wells has served only to maintain the maximum efficient daily rate of production at 800,000 barrels. There is evidence in many fields that oil is being withdrawn too rapidly to obtain the maximum recovery, and more rapidly than is conducive to good production practice. Statistics for 1943 as compared with I942 are shown in the table in the next column, Supply and Demand Steadily mounting needs of the military forces and increased industrial consumption raised total demand for all petroleum products on the Pacific Coast to 914,000 bbl. daily in 1943. That all-time record demand was 149,ooo bbl. daily higher than in 1942 and 214,000 bbl. daily above 1941 demand. Despite restrictions due to shortages of critical material, crude-oil production was boosted from 680,000 bbl. daily in 1942 to 779,000 bbl. daily in 1943, the highest level in 15 years. However, the new crude supply plus natural gasoline production and imports from other states totaled only 840,000 bbl. daily, leaving a deficiency between supply and demand of 74,000 bbl. daily. That shortage had to be made up by withdrawals from inventories, which had been steadily depleted during the previous four years. Aboveground reserves, which totaled 159,574,000 bbl. on Jan. I, 1939, were down to ~8.000,000, bbl. at the end of 1943. Significantly enough, the greater part of that decrease occurred during the last six months of I9437 when more than 23,000,000 bbl. was taken from inventories of both crude and products. Although the size of total inventories on Dec. 31, 1943 might appear substantial, about 65 per

Jan 1, 1944

By Max C. Eastman, V. H. Wilhelm

California had a record year in production and drilling activity, but the results have not been sufficient to keep up with the enormous increase in demand due to war activity. During the year, 164 dry wildcats were drilled, 80 dry wells in proved areas, 31 gas wells, and 1158 successful oil-well completions for a total of 1433 wells, compared with a total of 765 in 1942. With new discoveries of only 20,000,000 and production of 283,000,000 bbl. for the year, total reserves of California oil have decreased more than 250,000,000 bbl. However, revised estimates of the reserves of old fields indicate an increase in the state's reserves of I00,000,000 barrels. The completion of 1158 wells has served only to maintain the maximum efficient daily rate of production at 800,000 barrels. There is evidence in many fields that oil is being withdrawn too rapidly to obtain the maximum recovery, and more rapidly than is conducive to good production practice. Statistics for 1943 as compared with I942 are shown in the table in the next column, Supply and Demand Steadily mounting needs of the military forces and increased industrial consumption raised total demand for all petroleum products on the Pacific Coast to 914,000 bbl. daily in 1943. That all-time record demand was 149,ooo bbl. daily higher than in 1942 and 214,000 bbl. daily above 1941 demand. Despite restrictions due to shortages of critical material, crude-oil production was boosted from 680,000 bbl. daily in 1942 to 779,000 bbl. daily in 1943, the highest level in 15 years. However, the new crude supply plus natural gasoline production and imports from other states totaled only 840,000 bbl. daily, leaving a deficiency between supply and demand of 74,000 bbl. daily. That shortage had to be made up by withdrawals from inventories, which had been steadily depleted during the previous four years. Aboveground reserves, which totaled 159,574,000 bbl. on Jan. I, 1939, were down to ~8.000,000, bbl. at the end of 1943. Significantly enough, the greater part of that decrease occurred during the last six months of I9437 when more than 23,000,000 bbl. was taken from inventories of both crude and products. Although the size of total inventories on Dec. 31, 1943 might appear substantial, about 65 per

Jan 1, 1944

By Edwin Ludlow

THERE has been so much misinformation sent out through the newspapers, and I find so few people who are really acquainted with the true facts in regard to the coal strike, that I feel it would be advan-tageous to present the facts as I have been able to gather them. One of the great points that the miners are now mak-ing is the fact that the operators of the central competi-tive field, consisting of the states of Illinois, Indiana, Ohio and Pennsylvania, have refused to meet them in a joint conference such as has been customary in previous years. There are two reasons why the operators de-clined to hold such a meeting. In the first place, the last time they held a meeting of this kind they were all indicted under the Sherman Act for making an agree-ment in restraint of trade. In the second place, the miners at their convention did not authorize their dele-gates to negotiate a new contract, but instructed them that nothing less than a scale based on the present wage, with the addition that there should be a six-hour day, a five-clay week, time j and a half for over time, and double time for Sundays, would be accepted. These additions would very much increase the cost of coal over the present wage scale. The operators could not consider renewing a contract on the present scale, as it would mean ruin for them, and as the miners were not authorized to negotiate a new scale on a fair basis that would enable the operators to mine coal in competi¬tion, with the open-shop mines the operators did not feel that there was any use in meeting the delegates. Thirty per cent. of the output of bituminous coal comes from the open-shop mines of West Virginia, Alabama and Pennsylvania. During the strike, in 1919, this 30 per cent. was increased to 50 per cent. and it has affected the operations of the union mines to such an extent this year that they have been able to run only 15 to 30 per cent. of their time, while the open shop mines have run from 60 to 80 per cent. as the wages in these mines had been reduced to the 1917 scale.

Jan 5, 1922

By H. C. Otis

During the past year or two considerable time and money have been spent in developing equipment for tubing large-volume high-pressure oil and gas wells without loss of production. That the efforts have met with success is proved by the fact that any properly cased well, regardless of its production or regardless of its rock pressure or working pressure, can now be safely tubed with no appreciable loss of production, provided experienced crews handle the new equipment. It is conceded that a far better gas-oil ratio can be secured by flowing a well through tubing of a proper diameter—the diameter of the tubing depending, of course, upon the volume of fluid and gas and the depth of the well—than by the more usual method of installing a choke at the mouth of the well. Where possible it is becoming the practice to bring wells in through tubing, though in the majority of instances this is not feasible. In many instances it has developed, after a well has been brought in through tubing, that the tubing installed is either too large or too small for the most efficient operation or that the well had not been drilled deep enough. The equipment described in this paper, in the hands of experienced men, permits the tubing of these wells after they have been brought in, with the size of tubing then determined by actual observation to be best suited for each particular well, and with no danger of the well getting out of control, of catching fire, of drilling itself deeper, or of any loss of production. The deeper the flowing production with the consequent future higher lifting costs, the more essential it is that the size of tubing used be such as to give the best possible gas-oil ratio. The ability to bring in these deep wells through the casing and then, immediately after their completion, regardless of volume or pressure, to tube them with the size of tubing that permits the most efficient use of the gas present will doubtless save many dollars. Uses for the New Equipment The equipment permits a further step in the operation of wells where the conservation of gas is of major importance. Perhaps 3-in. tubing

Jan 1, 1930