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Jan 1, 1936

Jan 1, 1936

Jan 1, 1936

The officers and staff of the Petroleum Division are the servants of the members, and to the extent that the wishes of the members are made known and are practicable they will be carried out. The tentative plans outlined here are in general accord with previous custom, but modified by suggestions received recently from various members. The advice of all members is solicited, and it is hoped that the general expression on matters of policy can soon be facilitated by circulation of a questionnaire. Plans for two mid-year meetings of the Petroleum Division and for participation in the annual meeting at New York were inaugurated at the last annual meeting and are being carried forward as rapidly as possible in the belief that an early start will increase the possibility of finding the best available program material and permit the careful preparation, review, editing, and advance discussion of papers. While a number of papers have already been solicited, both members and nonmembers are hereby invited to submit additional papers, with the assurance that such papers will be given just as favorable consideration as the papers that have been requested. Mid-year meetings will be held at about the same time both in the Mid-Continent and California. The time will be selected if possible to coincide with the visits of President Lovejoy, who expects to be in California the last of September and in Texas early in October. Fort Worth, Dallas and Austin have been suggested for the Mid-Continent meeting. The Pacific Coast meeting will be held at Los Angeles. It is to be noted particularly that a Pacific Coast meeting was waived last year in favor of the annual meeting of the American Petroleum Institute, which was held at Los Angeles for the first time in nine years. It is hoped, and it was the understanding at the time among a number of individuals interested in both organizations, that in view of this action of the Petroleum Division the industry will give more than the usual support to the A.I.M.E. meeting this year. Ultimate Recovery is being considered as the keynote topic for the mid-year meetings. In view of trying financial conditions combined with an exceptionally high current potential rate of production, it is natural that the attention of the industry should be focused upon means of controlling production and reducing cost of operation. It seems that the Petroleum Division of the A.I.M.E., as a professional group, might

Jan 1, 1936

Jan 1, 1936

By M. Albertson

The purposes of this statement are to define a problem that exists in regard to the estimation of developed petroleum reserves, to analyze the problem in an abstract manner, and to discuss it as an introduction to certain papers that follow. The problem is to devise and develop a suitable procedure to permit more accurate estimates of developed petroleum reserves. Part of the problem is to make such estimates available earlier in the life of any particular pool. The problem of securing more accurate estimates of developed petroleum reserves existed prior to curtailment of production. With curtailment, however, the problem became acute, some of the more prominent reasons being as follows: 1. The standard method of estimation depended on production-decline curves. This method is inapplicable while curtailment prevails and available methods arc insufficient. 2. The retarding influence imposed by wide open flow conditions upon overdevelopment is absent. Great losses of capital by overdevelopment can now occur before realization of the true situation occurs, or before effective steps can be taken to stop such wastage. This increases the need for early, accurate estimates. 3. Above-ground stocks have diminished and the equivalent of such supply tends more and more to be retained underground in the natural reservoirs. It becomes increasingly necessary to know accurately the amount of these stocks. To direct attention to an additional point of different nature: improved accuracy of reserve estimation can be obtained only by closer scrutiny of the factors that determine recovery. This examination and the resulting efforts to measure the effect of these factors in terms of ultimate recovery must tend to improve ultimate recovery. The statements regarding the acute nature of the problem also indicate to some extent the importance of the problem and the necessity of finding a solution. Developed reserves of the industry, and of individual opera-tors, are one of the great factors that properly should determine explora-

Jan 1, 1936

By D. L. Katz

In the management of oil properties, it is always desirable to know the future behavior of oil wells and oil reservoirs. Some estimation of the quantity of oil and gas that will be produced must be made as a basis for decisions on possible returns on investments in lifting equipment, drilling of additional wells, and other operating expenditures. In new or wildcat areas, operating expenditures are considered highly speculative, but in the completion of partly drilled and the operation of producing fields it is good business to remove as much speculation as possible. An accurate knowledge of oil and gas reserves in such cases would solve many management problems. The term "oil reserves" usually signifies the future ultimate recovery without specifying the method of production. Thus with changing methods and innovations in the production industry, reserves of any definite reservoir may be increased by increasing the portion of oil recovered. The usual reserve estimates are made by comparisons of well and formation characteristics, by using a percentage recovery on the oil content of the formation volume using porosity data, by extending production curves on non-prorated wells, or by extending bottom-hole pressure-production curves. The most reliable method would appear to be one that would estimate the initial quantity of oil and gas present and then obtain percentage recovery values for various productive methods and formations from experience. It is the purpose of this paper to describe a method of estimating the initial quantity of oil and gas present in a reservoir. The method is based on field operating data and the properties of crude oil-gas mixtures. The principles involved, the data required, the assumptions necessary, and an example of the method will be given. The method is entirely independent of sand volumes and formation porosities. Principles of Method The method of estimating the initial quantity of oil and gas present is based upon the premise that the volume occupied by oil and gas in the reservoir is constant and that a mixture of crude oil and gas will behave in

Jan 1, 1936

By R. J. Schilthuis

In 1929, Coleman, Wilde, and Moore1 undertook an investigation of the theoretical decline in reservoir pressure as related to the production of oil and gas. The most important part of this work was presented in an equation defining the relationship between the reservoir pressure, the quantities of oil and gas produced, the oil and gas content of the reservoir, and the properties of the reservoir fluids. With this equation, it appeared that, with sufficient data, it would be possible to calculate the oil content of the reservoir and predict quantitatively the effect of gas-oil ratio on the decline of reservoir pressure. Needless to say, such an expression would be highly important in evaluating fields and in arriving at a choice of production methods to be used. Unfortunately, at the time these investigators published their work, there were not sufficient data available to permit application of the equation. The technique of measuring reservoir pressures had not been developed, gas measurements were uncommon, oil and water production records were in most cases inadequate, and little was known of the properties of the complex hydrocarbon mixtures making up the oil and gas in the reservoirs. For these reasons, little additional work of a similar nature could be done. However, during the past four years many data have been systematically accumulated on reservoir pressures and the properties of oil and gas, and it is now possible to use these data in furthering the studies on the behavior of oil and gas reservoirs. It is the purpose here: first, to present the derivation of a modified form of the equation given by Coleman, Wilde and Moore, which will permit the calculation of what later will be defined as the "active oil" content of a reservoir; second, to derive formulas for calculating the reservoir-energy changes that occur during the course of production, and finally, to discuss the limitations and application of the equations developed.

Jan 1, 1936

By Alexander Deussen

The figures listed in a table for Gulf Coast fields given by L. P. Teas1 in 1934 are so greatly at variance with results that I have obtained from a serious study of this subject over a number of years, that I am disposed to challenge the correctness of Mr. Teas' figures as an accurate representation of acre-foot yields of Gulf Coast fields, and as regards at least two of the fields listed by Mr. Teas I desire to "put into the record" some figures that, according to my study, are more nearly in accord with what I conceive to be the actual facts. Upon investigation I find that Mr. Teas' figures, inadvertently no doubt, arc not what they purport to be. Apparently the figures were arrived at by considering as thickness of the producing formation the net thickness of producing rock corresponding "to the total of the net portions of the producing zones which actually yield oil into the drill hole"—and in following this method I am under the impression that Mr. Teas was acting under instructions of the Institute in the preparation of this paper, in order to get comparable figures from the several fields of the United States. Apparently the author interpreted these instructions to mean that in the absence of cored thicknesses of producing horizons the actual number of feet of screen set in the various producing zones was to be taken as the basis for arriving at the thickness of these zones and the "acre-foot" yields. It is obvious that in many instances only 20 ft. of screen, or even 10 ft. of screen, might be set in a well, when there might be actually 100 ft. of oil sand present. In the early operations in the Gulf Coast it was usual to set much less screen than the amount of sand. It follows that the "acre-foot yields" so arrived at would be much greater than those found by using the full amount of sand. In Mr. Teas' table, it was indicated that up to the end of 1933 "acre-foot" yields had been obtained in the several fields as listed in Table 1. A casual inspection of these yields will show that certainly they do not properly reflect the amount of oil produced from an acre-foot of the

Jan 1, 1936

By J. E. Gosline

In any theory of a hydrodynamic nature dealing with the vertical flow of gas-liquid mixtures in pipes, the two factors that present the greatest difficulty are the relative motion between the phases and the energy loss resulting from turbulence work. The former has generally been referred to in the literature as "slippage" and the latter as "friction." A third factor of importance is the nature of admixture between liquid and gas for both the relative motion between the phases as well as the turbulence work are functions of the type of mixture. Although much work of a general nature has been performed on the vertical flow problem, there have been very few attempts made to study experimentally the factors involved in the phenomenon individually. Of these, perhaps the most notable is the work of Moore and Wilde1 on slippage. Some writers on the subject have assumed that over a wide range of operating conditions the controlling type of mixture is one in which gas bubbles of uniform size are distributed throughout the liquid, and that the data obtained from experiments on the motion of single bubbles through various liquids may be used in evaluating the slippage. Ver-sluys2 has further assumed another controlling type of mixture in which the liquid occurs as a dispersed phase within the gas and applies data on the fall of drops of water in air to calculating the relative velocity. It was for the purpose of studying the applicability of data on single bubble motion to the slippage factor and to further observe the nature of mixtures that a research program was conducted at the University of California during 1932 and 1933. These experiments formed a basis for

Jan 1, 1936

By W. K. Lewis, Lombard Squires, W. I. Thompson

The authors presented an article2† last year on colloidal properties of clay suspensions in which they attempted to sustain the position that the behavior of clay suspensions is due primarily to the mechanical interference of the platy particles, the nature and extent of the interference being profoundly influenced by the character of the surfaces of the particles, which in turn is determined primarily by the nature and amount of adsorbed foreign materials held on the surface of the particles by forces which are predominantly chemical in type. The following discussion is a continuation of that article to extend these same interpretative points of view to the behavior of clay gels. Insight into the mechanism of gelation is certainly of outstanding importance in the handling of drilling muds. In the former article it was suggested that the thin, flat plates that constitute the ultimate clay particles may build up aggregates by the overlapping of the ultimate plates face to face much longer and perhaps also much wider than the ultimate plates themselves, but not appreciably thicker. Exhaustive microscopic examinations of characteristic clays show no tendency for the larger particles, clearly visible under the microscope, to orient themselves in this way. It is true that the gelation of the clays is due primarily to the smallest particles, unresolvable other than by the ultramicroscope, so that the possibility of the deve1opment by them of an overlapping structure is not excluded. Furthermore, as one approaches the limit of resolving power of the microscope, the difficulty of observing accurately the shapes and relative positions of particles incresses excessively. However, in the absence of any observable tendency toward overlapping orientation of the large, visible particles, one hesitates to ascribe such a tendency to the smaller particles beyond the range of visibility. Should it develop that one must exclude the assumption of overlapping orientation, the explanations offered in the previous article are changed in only one respect; namely, one would now have to assume that the ultimate particles themselves have length, and probably also width, very large in comparison with their thickness.

Jan 1, 1936

By D. T. Jones

In view of the importance of the application of scientific principles to the production of oil from the reservoir, the Production Staff of the Anglo-Iranian Oil Co. (late Anglo-Persian Oil Co.) has been engaged for some years on an intensive program of research on the physical properties of crude oil. Problems involving the retention of crude oil in capillaries and fine fissures demanded for their solution a knowledge of the surface tension and specific gravity of the crude under reservoir conditions, and it is the purpose of this paper to describe briefly the methods adopted for the determination of these properties, and to present the more important results. A detailed article was published in volume 1 of the World Congress Proceedings (1933). Surface-tension observations on crude oil regassed at high pressures with natural gases have been made in the past by Beecher and Park-hurstl and Swartz2, but up to the time of the investigations in Iran no one seems to have carried out experiments with gas-saturated crude direct from the reservoir and kept at its original pressure. Results obtained in this manner are obviously of greater practical value for solving problems connected with the reservoir. Method of Measurement No apparatus for the measurements, under the pressure conditions involved, was available, and a suitable instrument had to be designed and constructed in the Fields workshops. Careful consideration of the matter led to the adoption of a method for measuring the surface tension which did not involve a knowledge of the specific gravity of the oils under the working conditions: the main reason for this being that up to that time no accurate determination of the specific gravity had been made under these conditions. The method adopted involves the measurement of the actual tension in an oil film, and is effected by means of

Jan 1, 1936

By Emory Kemler

The problem of determining the most desirable operating conditions of an oil-well pumping unit, the selection of the proper material and size of sucker rods, and the design of the pumping unit, requires that the sucker-rod loads be known with a reasonable degree of accuracy. In production practice, it is also desirable to know the effects of operating speeds and strokes on a plunger motion, as well as on the rod loads. For a particular well, data on rod loads can be obtained by measuring the load in sucker rods with a dynamometer. This method is not satisfactory because it does not permit the various factors to be investigated independently. It is also impossible to measure the plunger motion simultancously with rod motion under operating conditions. The mathematical solution is impractical because of the simplifications that have to be made to get a solution and the tremendous amount of numerical work that is necessary after such a simplified solution has been attained. This paper shows how analogies and models can be applied to the solution of these problems. The loads set up in a sucker-rod string during the ordinary pumping cycle are made up of the weight of the rods, force required to accelerate the rods, weight of the oil and force required to accelerate the oil on the upstroke, rod friction, stuffing-box friction, plunger friction, friction of the oil in the tubing and rods, arid friction loss through the valves. The problem of determining the sucker-rod load is further complicated by the fact that the long oil column and the sucker-rod column act as springs, which affect the transmission of the polished-rod motion. A further complication is the fact that the motion cannot be transmitted at a speed greater than that of the velocity of sound in the material, and this means that there will be a time lag in the transmission in the motion, as well as a modification of its magnitude and a phase displacement.

Jan 1, 1936

By F. B. Plummer, R. B. Newcome

The practice of introducing acid into oil wells to increase production of oil and gas has been in use since 1894, when it was first used in the Pennsylvania oil fields30.‡ It is only since 1928 that it has been used to any extent in the Mid-Continent18. The process has proved successful in increasing production, at least temporarily, in depleted oil fields where the producing formation is highly calcareous and where water drive is not too pronounced. In the Zwolle field in Louisiana, where the producing horizon is a chalk, increases of 100 per cent have been recorded25. In north-central Texas, where the oil is produced from the Marble Falls limestone, equally pronounced increases have resulted3. The production also in some fields yielding oil from quartz sand cemented with calcitc has been benefited. The evidence of actual increase in total recovery of oil, however, has been questioned by some engineers18. It has been pointed out that the results of the treatment of a well in a now district, where the process has never been tried out, can never be predicted with certainty, since other factors besides percentage of calcareous content of the oil sand play a large part in determining the success of the method. Numerous articles have been published on acid treatment and on the effects of acid on limestone1-35, yet very little has been written concerning experimental work on the actual effect of acid on capillary pores and larger oil-coated voids of oil sands. This is due partly to difficulties in duplicating field conditions in a laboratory and partly to the fact that the process has been carried out largely by contracting companies that have been unwilling to publish details of their results for fear of loss of business to competitors. The authors, using equipment developed to measure the radial permeability of oil-sand cores2', have developed a method of investigating the results of acid treatment which has enabled them to test numerous cores and to study in some detail the action of acid on the different types of rocks, particularly fine-grained rocks.

Jan 1, 1936

By Erwin H. Leeman, Raymond R. Rice, Gerald L. Hassler

In the past few years a great deal of preeise information has been obtained about the relation of natural gas to oil production1. The improvement of our understanding has been of great value, both in prolonging the life of wells and in providing a much needed technical background for the legal problem of proration. But there are two principal aspects of the problem of production. It is necessary to consider not only the energy available, in the form of compressed and dissolved gas and in the pressure of driving water, but also the tenacity with which the sandstone holds the oil. The amount of oil that each sand condition will produce under given conditions of gas content should be determined. Hitherto the effect of the sand has been judged by a study of the flow of each well coupled with a procedure for extrapolating the production curve; hut, as is well known to evaluation engineers, such production curves are subject to changes that are not well understood, and often are affected by outside disturbances. On the whole, the concept of "potential production" is vague principally because the influence of the sand in production is not known beyond the simple ideas of porosity and permeability. The permeability is a quantity that has only inference value where mixtures of gas and oil or of gas, oil and water are present. Excellent studies of the production of oil from reservoirs packed with unconsolidatcd sand are available2, but these studies treat largely of small-scale analogzes to a producing field, and the conclusions to be derived from them arc necessarily of a qualitative character because it is not known in what way these miniature oil fields resemble large ones.

Jan 1, 1936

By Kenneth B. Barnes, George H. Fancher

With the advent of water-flooding into active commercial usage in half a dozen areas in the Mid-Continent, the process passes the experimental stage and joins other methods and processes now in use which have been found suitable in one oil field or another in securing a more profitable production than has existed heretofore. The use of the air-gas lift, acidization, pressure maintenance and repressuring have presented their problems in economics and engineering during their introduction and extended application. When a new field is discovered or attention is turned to an old producing area in which these methods have not been considered, it is to be expected that these problems again arise. While some information is available as to the results obtained by water-flooding in a few localities in the Mid-Continent, the extrapolation of the sand data on which the results are based, for even generalized use in other areas and fields in the region, is hazardous. It is precarious to assume that the same physical condition will obtain in a sand over more than small, special areas. This paper is concerned with a brief presentation of such data as are available to the authors on existing operations, a survey of the region and extent to which application of the method seems most likely to be made, an estimation of the crude reserve existing for such operations, suggestions as to the importance of core analysis in guarding against uncontrolled floods and its usefulness in predicting ultimate recoveries, and comment on some of the economic phases involved. These subjects, as concerned with water-flooding in the East (notably Bradford, Pennsylvania), have been discussed in detail in the literature and are generally well known. Especially is this true of discussions of the mechanical equipment and various lease layouts and development patterns for water-flooding.

Jan 1, 1936

By H. T. Kennedy

The fact that intrusion of water into oil wells can be prevented by treating the sand adjacent to the well seems to have been only recently recognized. Swan1 mentions the process of solidifying naphthalene in strata. R. Van A. Mills2 recommends the use of materials such as sodium silicate and sodium carbonate, which react with oil-field water to form solid plugging agents. When a well is drilled in a new field the oil sands are found essentially devoid of water (Fig. 1). Unless a completely impermeable break exists over wide areas in the field, no water is found above the lower limit of the oil zone and no oil is found below the upper limit of the water zone. After considerable oil has been taken from the well, however, it is almost universal experience that water intrusion occurs. This intrusion may be of two kinds. The water may follow a path parallel to the bedding planes of the producing formation through loose streaks in the pay sand, as shown in Fig. 2, or the water level of the field may rise and enter the well by coning (Fig. 3). Water entering from the side is called "edge water," and that coming in from the bottom is called "bottom water.'' Effectiveness of any method for shutting off water depends not only on the effective treatment of the sand adjacent to the well but on

Jan 1, 1936

By C. P. Parsons

During the past year considerable interest has been shown in cementing operations for shutting off bottom water, whipstocking, etc. A number of plug-back methods have been used, with various adaptations for special conditions, but those described in this paper are representative of the methods now in use. Conditioning the Well Various preliminary operations for improving the results from plug-back operations have been evolved. In one method, a nitroglycerin shot is discharged at the upper portion of the formation to be plugged off, the purpose being to make a wide place in the hole in order to give the cement a more secure anchor against thrust pressure of the water against the bottom of the cement plug after the well is again put on production. Another is intended to attain a similar result by under-reaming a wide place in the hole by means of a rotary wall scraper. In one well in which this device was used there was a water sand at the bottom of the well immediately below the cap rock above which the oil sand occurred. Before the plugging back operation, the water sand was underreamed in an attempt to get a square shoulder on the underside of the cap rock, in order to prevent the water from breaking in over the top of the cement plug after the well should be put on production, and also to get a more secure anchor for the cement plug against the thrust pressure of the water against it. As an aid in calculating the amount of cement required to fill a given amount of hole to be plugged back, a device has been developed for measuring and recording the irregularities and cavities in open holes, called an "open-hole recording caliper." If consists of a steel shell, 5 in. in diameter, which encloses a recording mechanism that receives impressions from four movable arms that make sliding contact with the wall of the hole. The arms operate a ratchet, which raises and lowers a recording stylus against a chart. Each arm registers its own radius. The device is run into a well on a steel measuring line. While the device is being lowered, the arms are folded inside the shell; they are

Jan 1, 1936

By Joseph E. Pouge

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

Jan 1, 1936

By Northcutt Ely

A year ago the petroleum code was in effect, and Congress had before it bills with powerful backing designed to extend and put on a permanent basis the Federal authority impliedly recognized in the petroleum code. Those men in the industry who were convinced of the unconstitutionality of Federal regulation, who believed in conservation, and who were seeking accomplishment of a conservation compact among the oil-producing states, were at that time encountering difficulties in bringing about such an agreement. Since then there has been a shift in the center of gravity. Today, by virtue of the Supreme Court's Schechter case decision, the petroleum code is not in existence, the industry is not operating under an oil administrator, and the Federal-control bills are not on Congress' calendar. In view of what the Supreme Court has said in the Schechter case and the Hoosac Mills case about the local character of mining and manufacturing, the problem today is not whether the Federal Government or the State Governments ought to regulate oil production, but how effective we can make the devices that are available to us under the constitution for the conservation of the nation's oil resources. The interstate oil conservation compact ratified during the past year by Texas, Oklahoma, Kansas, New Mexico, Colorado and Illinois, approved by Congress, but not yet in effect in California, is the mechanism now at work. Interstate Oil Conservation Compact What is this interstate compact? The basic theory is simple and logical. It has four elements to it. The first point is that in order to effect the maximum recovery of our oil arid gas reserves it is necessary for some governmental authority to regulate the way in which those resources are taken out of the ground, so that the reservoir energy is efficiently used, and used equitably by the various owners of the pool. Second, that the state, as distinguished from the national government, possesses the police power necessary to protect the public interest and to protect the correlative rights of the common owners of the oil pool. Third, that the state governments ought to cooperate with each other through an interstate advisory commission so that orderly production in one state is

Jan 1, 1936