OCR Text |
Show Shortage of Oil Speeds QuestFor QuestFor Quest QuestFor For New Producing Wells in U . S . H L Rath Discusses Acute Situation Facing Petroleumi Petroleu.mIn Petroleu.m Petroleum PetroleumIndustry . In Industry ustry , Eastern Utah Pronounced Likely Spot for forlIuch forMuch l\Iuch l Iuch 1 \ Iuch Exploration Eplorahon " { Work to Locate New Producing Producmg Areas- Areas - _ . Hot Springs Spnllgs Ark January 2 25- 25 25Oil 25 25Oil - - Oil men from ten states today con- con considered considered con considered 21 -1 1 - sidered the prospect of 50 cent centI centgasohne centgasoline centgasoline I gasohne gasoline and the task of producmg producing producing25000000000000 25 000 000 000 000 barrels barreIs of crude crudeoil crudeoil 011 oil from hitherto undlscovpred undiscovered undlscovpredsources undiscoveredsources undiscoveredsources sources to supply demand in the thenext thenext thenext next 20 yearsAlexander yearsAlexander years yearsAlexander Alexander McCoy a geologist geologisttold geologisttold OIOgISt OIOgISttold told delegates that 34000000000 34000000000barrels 34000000000barrels 34000000001)barrels 34000000001barrels ) barrels represented the total de demand demand demand mand for crude crucie oil in 1Il the U Sn S \n n in inthe \ inthe nthe the next rtext 20 yearsIn yearsIn years yearsIn In order to meet meE't ' that demand It ItWIll itwill itwill WIll be necessary in addition to toproduction toproduction toproduction production from known reserves to todiscover todiscover todiscover discover 25000000 25 000 000 000 barrels of new newoil newoil newoil oil he said This rate of discoverywould discovery discoverywould discoverywould would be equal to the rate of dis discovery discovery discovery covery in 1Il the United Umted States since1924 since1924It smce since 1924 1924It It is difficult to conceive how howsuch howsuch howsuch such a large amount of oil as wll will wllbe willbe willbe ! be required can be found v.lthout vlthout without v.lthoutthe withoutthe . withoutthe the expenditure of vast sums in inprospecting inprospecting Inprospecting prospecting " " he declared Tie The in industry industry Industry dustry will have to drill dnll approxl approxi approxlmate approximatey approximatey mate matey y 900 900000 000 new wi-lls wi lls wtlls wills - of which whichabout v.l vl . whichabout ch chabout about 400 000 will be producers and andthe andthe andthe the rest dry holesGov holesGov holes holesGov Gov E W Marland of Oklahoma Oklahomavtho Oklahomawho vtho \ \ ho proposed the meeting meetmg pre predieted predieted predieted dieted a gasoline price of 50 cents centsa a gallonFiom gallon _ I Fiom Flom Alexander McCoys McCoy s caIeu calcu calculations calculations I IlatIOns latIOns it can read readily y be seen that that25000000000 25000000000 25 000 000 000 barrels barreIs of new oil oilVlII oilwill oilwill \VlII VlII will \ have to be discovered and pro produced produced produced duced to make up the above men mentlO'1ed menttoned mentioied tlO'1ed tlO1ed ttoned ' 34000 34 000 OCO OGO 060 000 barrels of rrude crude rrudet crudeto crudeto t to supply suppl ) the United Umtt'd Umttd ' States State " for the thene'Ct thenext thenext ne'Ct neCt next ' 20 years Considering Consldermg the above abovefigures abovefigures abovefigures figures thereould there \ nould \\ould ould would be only about about9 9 000 000 000 barrels of oil in knownnatural known knownnatural knownnatural natural reservoirs and storage at atthe atthe atthe the present time This supply of ofcourse ofcourse ofcourse course is calculated from the flow flowof flowof flowof flowofwells of \ -wells wells - ells area of known producing producingfields producingfields producingfields fields thickness and porosity of the theo o 01 I sands or reservoir roc rock ! . . \ which nich IS ISobtaIned isobtained isobtained obtaIned Irow fro'll\ fro'll froll from fro'llthe ' \ . the logs of tto th ; ? pro producmg producng producing ducmg ducng wellsThese wellsThese wells wellsThese These figures are substantiated to toa toa toa a certain certam extent by an article prmt print printed printed I Ied ed in the Re'ieof Review Re\'ie\\ Re 'ie ie \ ' \ of the Petroleum PetroleumI PetroleumIndustry PetroleumIndustry I Industry 1934 by United Ul1lted States state Department of Interior where es- es , - estimates estimates esc-timates esc timates - - timates of reserves in known sand sands : > sandsin sandsIn in proven fields recoverable by cur con current conrent current rent methods are on record 83 as 83follows asfollows asfollows follows followsBarrels followsBarrels Barrels 1922 U S C"rt Crt Geological GeologicalSurvey " GeologicalSurvey > ologlcal ologlcalSurvey Survey & AM AssnPet Assn AssnPet AssnPet Pet Geologists 5 5000000000 000 000 OM 000 1925 American Amencan Petro Petro- Petroleum Petroleum Petroleum - - leum Insitute 0 ; ) o300000000 300 000 OO 000 ! ) 1926 Federal Oil Ol ' Con Conservatlon Conservation Conservation servatlon servation Board 4 500 000 000 009 1932 Federal Oil Con ConservatlOn Conservation Conservation servatlOn servation Board 10000000000 10000000000- 1000000000011933 10 000 000 000 - ' 1933 Valentm R Garfias Garfias Gar Garflas flas fias Am Inst MittMct , Min Mitt MinMet Un UnMtL 11933 Met MtL Mct Engineers Engmcers 12000000000 12000000000As As there have been but very fe fefields fe\\ fe fefields fewfields w \ fields of importance discoveredsince discovered discoveredsince discoveredsince since 1933 and with the oil 011 con consumed consumed consumed sumed since that time Mr Me Mc McCoy MeCoy MeCoy Coy s figure of 9 billion bllhon at the pno pre pnosent present present sent writing wntmg checks closelv closely to the theestimate theestimate theestimate estimate of ' Mr 'fr fr Garfias Gamas of 1933At 1933At 1933 1933At consumption At the present rate of consump consump- consumption consumption . - - tion Increasing increasmg each ) year ear with the thegreater thegreater thegreater greater number of cars and l11gher higher l11gherpoered higherpowered higherpowered po\\ered po ered powered \ \ automobiles wjhich wlluch uch con- con consume consume con consume - sume more gasoline gasolme than thO those thosemanufactured thosemanufactured e emanufactured manufactured a few ) years ears ago the the9000000000 9 000 000 000 as now in sigiht Sight wouldlast WoulCl would WoulCllast wouldlast last approximately six or seve sever severyears severyears ! ' jears years There is a general tendency tendencyto to overestimate o\erestlmate o erestlmate \ ultimate produc productlon production production tlon tion of fields The few large flush flushfields flushfields flush.fields flushfields . fields have created a fictitious .c c pie ! . picture pieture .cture ture but statisticsdhow statistics " ohow "how how dhow that most mostof mostof mostof of the \ wells \ elIs that are drilled and andfind andfind andfind find oil 011 are small smallft wells wellsOfficial -ft ft \ - ellsOfficIal ells ellsOfficial Official satisfies satlstlc satisticc " of petro'eum petroeum petro'eumproduction petro'eumproduction petroeumproduction ' ' production placethe from 18 18o9 9 to 1933 place placethe placethe the t total tal recovery of crude oil at at15700000000 15 700 000 000 barrels in hr the Umted United UmtedStates UnitedStates UnitedStates States which is equal to t 65 pe-"cent pe "cent cent pe pe- pe pecent - - " cent of the total production of the the"orld theworld theworld "orld orld world " dunng during that time The Theenormous Theenormous Theenormous enormous growth In the use of ofgasoline ofgasoline ofgasoline gasoline began , with nth the advent of ofthe ofthe ofthe the auto Beginning Begmning in m 1895 W1Ih with : W1Ihfour withfour withfour four motorehlcles motor \ vehicles \ehlcles ehlcles the number number-in number in numbe1-in- numbe1 numbe1increas.d numberincreased : - - ia- ia iacreased - creased creas.d creasd ) . ) to 32 329- 329 3290 9 ' > - > 0 in 1903 1 1711,33 171133 1711,33in 711,33 71133 , , 1 < 1in in 19\4 19 4 1914 19 \ 4 26545281 in 1930 24136- 24136 24136879 24136879 24136-879 24136 879 - 879 in 1932 with the wholesale wholesalevalue wholesalevalue wholesalevalue value ranging from $1 1 $1567 1567 $ 567526000 567 526 00 000- 000 000to$3722793000 : - to to$3722793000 to3722793000 $3722793000 3722793000 $ in ill 1919 to 1931 There ThereContinued ThereContinued ThereContinued ( Continued on last page ) i Shortage of OilContinued Oil 011 ( Continued from first pageere page ) v \ were \\ere ere ere approximately 30 30000000 000 000 cars carsIn carsin carsin In 1937 The 1937The first commercial 'ommerclal ommerclal ( ' ploduction production pioductionof ploductionof productionof of crude prtroleumas p prtroleum troletun \ was \\as as icco-del icco del leco"dE'i lecodEi reco'del recodel " ' - ' m in in18o9 18 1809 ; > 9 after the disco\ disco discoerv \ erv of th the theDrake theDrake ( . Drake well on August 29 1859 The Theoutput Theoutput , output for that year vear amounted to toi tothe tothe tothe i the modest quantity of 2 2000 000 bar barrels barrels barrels rels The annual production m in mcreased increased increased creased by leaps and bounds how howe howec howeier e\ e ec eer \ er so that by 1900 it was 63 61 6'l 6l 67 67000 ? ' ' ! -000 000 - 000 barrels However this Increase Increaseover increaseover Increaseover over 40 years was small comparra conrparea compared\ compared comparedith \ ' ith that'olnch that \ which \'olnch 'olnch olnch ' has occurred dur durmg durmg during mg the first third of the present presentcentury : piesentcentury Jle ent entcentury century During that 33 year pCllod period pCllodthe periodthe peiiodthe the production of elude Clude crude incleased increased incleasedfrom increasedfrom inci easedfrom from 63621 63 63621000 621 000 barrels In 1900 to toabot.t toaboi.t toaboi-t toaboi t abot.t abott aboi.t aboit . - . 900 900000000 000 000 barrel's barrels barrel ' in W3 19'13 1913 1943 ' or ormore ormore ormore more than fourteen fold Tills This sen sensatlOnal sensational sensational orI I satlOnal sational Increase " was "as as not contl'1U contl1U continu contl'1Uous continuous continuous ' ous as in m 1906 1924 1930 1931 and and1932 1932 there was no Increase over overthe overthe overthe andI I the preceding precedmg year The high lugh ycar year ycarwas yearwas yearwas ] . was 1929 when the production , was wasI was"1007323000 was1007323000 " I 1 007 323 000 barrels Except in 1929 1929'o 1929when 1929when wasI I I 'o o ' when hen production productJon was unusual u'1usual u1usual ' y yhigh yhigh yhigh high and 1932 when it vas was .va va . > c ; un unus unus unusially us 1ally rally 10our low 10\\ 10 \ our annual production productionfor I for the last seven years has been beenabout beenabout beenabout about 900 900000000 000 000 barrels or a dally daily dallyaverage dailyaverage dailyaverage average of 2466 2 2466000 466 000 barrelsNmeteen barrelsNineteen barrels barrelsNineteen Nineteen Nmeteen hundred thirt thlrt that yseven y- y ysevenwas - seven sevenas sevenwas sevenwas \\as as was \ \ thf the peak lear year ) ear for domestic domest'c domestc ' i - estimated estimatedt at t estimatedi i productioll production crude 011 oil against 1 g as 1 280 000 000 barrels 1936 APproxi APproximately ApprO d dmately 098516 098 516 000 barn'ls barnls barrels ' wells in were drlJl'd drlJld drilled drlJl'dIn drilledin ( ' mately 7000 more 1936 Total comple completlonS completns In 1937 thl111 than in at 32500 32 500 wtlls wclis wtllsi wtllsonly tlonS tns tlonS.ere \\.ere .ere were \ . estimated the record recordI i only slightly 1920 1920t1Of t1Of t1Ofa t1Ofthese Of fewer a these . . _ than . well wells recordI 26,200 26200 26,200were 26,200were , , 1920 w w.were --.were .were - - 3 ) iear ear ivw ( of If oil 011 ornatural ornatural or ornatural either elther orI I were productive iproductl\e iproductl e productioe \ natural gasDuring gasDuring gas gasL gasI demands at att atnew atnew at- at att with L During 1937 tftiii ftiii i - t- t - stllls-1 stllls 1 stills-1 stills - I refiners ran an to new peaks crude 011 01 01slightly slightly 180 000 000 000more more more morebarrels barrels than of 100 000 000 0001 0001barn bar barrels barn barnslightly also a year yearor 1937 was slightlyof rels or of neW newrecords above records records 1936 for the American P " per pertrolewn industry The natIons nation s ap approxtmatelY approximately trolewn motorists motoristscons motoristsmore 30 000 000 proxtmatelY proximately 22 000 000 000 000gallons cons morecons tmed more moreg thon tfuhan tfuhanel elTitlSOvolume TitlSOvolume TitlSOvolumeaggregWitendist volume volumeIs allons consallons gallons allonsof of motor motortfuhan fuel el ThIs g an anaggleg'lte their c.rs crs : . is sufficient Sufflclent to fc fcLOOO drive 330 000 ) 000 aggleg'lte aggleglte aggregWitendist aggregWitendistncevofth330001)000 ' dIstance ncevofth330001)000 ncevofth330001000 of about 80 souuuuuuuuxmiles 000 000 000 000miles 000miles LOOO 000 miles miles mtles further or than estimated travel travelin travelm m in 1931 1931To discover new fields to produce To oil tosupply tosupply to of new 000 000 barrels 25 25000000000 000 - " " consu ' " > ncu nptc nption nptionfor > intlnn ! > n nfor the . _ estimated supply / - * - - - OMl/i-J OMl i J consldering considering conslderingthat consideringthat consideringthat the next 20 years vears for that the important oil 011 producIng producIngstates producingstates producingI states have been becn combed and prospected prospected pros pected for the past number of Sears Searsshould ) ears earsshould tremendous task when whenone whenone be a should conslders considers that only 15600 15 600 000 000 000barrels 000barrels one and andproduced andproduced barrels have been discovered from 1859 to 19.13 1913 19J3 1933 . or a apenod aperiod aLpenqd produced also beremembered beremembered be It should penod period of 74 years - ' ' L- L L1 - " 1 oil oilstructures oilstructures nfl remembered that the exposed structures In the oil 011 producinl1 producing producingstates producinfstates ' states have of ( ' course 'ourse ourse been QUlte quite QUltethoroughly quitethoroughly quitethoroughly thoroughly tested . with v.lth vlth modern modernequipment modernequipment modernequipment [ equipment and thousands of square squaremlles squaremiles squaremiles mlles miles have been surveyed by geo geophysical geophysical geophysical physical instruments In the most mostfavonble mostfavorable mostfavorable favonble favorable areas in i search for newstructural newstructural new newstructural structural highsutah highsUtah highs highsUtah Utah i ig ; > piobably plobably probably one of the fewremainmg fewremaining few | remaining remainmg undeveloped stat states " ' ! m in mthe inthe inthe the . United Umted States where marine marinesedimentaries marinesedimentaries marinesedimentaries sedimentaries geological geologlcal and struc strut structural struttural structural tural conditions condltJons are extremelY extremelYfavorable extremelyfavorable extremelyJayorable favorable for the accumulation accumulatlOn accumulation of [ I I t 1 , i . I I i petroleum indicating mdlcatlng oil ancin gas gasin I in large- large largequantities . - quantities This ThlS is evidenc eviaenc- eviaenc evinenc- evinenc eviaencled evinencIed evidenced - ed by the Cane Cieek Cleek Creek discovery discoverygusher discoverygusher discoverygusher led Ied gusher well "ell ell sell " Big Blg Six well Salt SaltVaUey SaltValley SaltValley VaUey Valley anticline antlclme San Juan oil 011 field fields fieldsand fieldsand ' ! and other highly h1ghly saturated 011 oil 011sandb oilsands oilsands sandb sands as discoveied discoveled discovered in the Bloom Bloommgton Bloomington Bloomington mgton ington dome etc This oil 011 horizon or orzones orzones orzones zones in the above mentioned mentlOned struc structUles |