Large Oil Companies Research Articles

Future of Petroleum Geologists

The future of the petroleum industry continues to be bright because of the ever-increasing demand for energy, both in the United States and in the rest of the free world. There will continue to be a demand for well-trained petroleum geologists both in this country and abroad. The large oil companies will continue to offer high salaries and increasing technical challenge to those petroleum geologists who can maintain their knowledge level at capacity, overcome technical obsolescence, and successfully employ their creative talents toward the finding of more petroleum.

Future of Petroleum Geologists: ABSTRACT

The future of the petroleum industry continues to be bright because of the ever-increasing demand for energy both in the United States and the rest of the free world. There will continue to be a demand for well-trained petroleum geologists both in this country and abroad. The large oil companies will continue to offer high salaries and increasing technical challenge to those petroleum geologists who can put Rocks and Dollars together. End_of_Article - Last_Page 454------------

Office of Coal Research Continues Liquid Extraction Projects

Abstract The Office of Coal Research has several active contracts for projects designed to develop competitive processes to convert coal into liquid and gas fuels- usually gasoline and pipe-line-quality gas. A general description of the various processes is presented with some comparison of the means of supplying hydrogen, results of experimental programs to date and future plans and expectations. Among the projects discussed are the pipeline gas programs being conducted by the institute of Gas Technology, Consolidation Coal Co., Bituminous Coal Research, Inc. and The M. W. Kellogg Co., as well as the liquid fuel programs conducted by the FMC Corp., Consolidation Coal Co., the Atlantic Richfield Co. and Hydrocarbon Research, Inc. Introduction Coal conversion is a large subject and to place the present activities in proper perspective, some of the historical background is necessary before describing the work now being done by the Office of Coal Research (OCR). There is presently much interest in this subject, both within and without the coal industry. Coal has been completely replaced by hydrocarbons from wells in two of its traditional major markets-as railroad locomotive fuel and as the source of gas. In addition, the other major fuel markets (automobiles and aircraft) have always been supplied by petroleum. The total U.S. demand for petroleum products is running around 3 1/2 billion bbl a year. By 1980, it is expected to be 6 to 8 billion bbl, and by the year 2000 it could possibly be 12 to 15 billion bbl a year. Corresponding figures for natural gas are: present, 16 trillion cu ft; 1980, 25 trillion cu ft; and 2000, 35 trillion cu ft. Thus, it is apparent that if coal-derived liquid fuels and pipeline-quality gas were available at commercially competitive prices, they could share in a large and growing market with a resulting large increase in coal consumption. In the long run, as indicated by the figures just noted, it is not apparent that the availability of liquid fuels and gas from coal would have any deleterious effect on the oil and gas industry as we know it today. Rather, it would be the other way around. Coal could be a boon to the industry in helping it to supply the ever-increasing demand for domestic and industrial heating gas, gasoline, diesel fuel, LPG and similar products at lower cost than otherwise. There are ample signs that the large oil and gas companies recognize this and many are extending their bases so as to have sources of raw materials other than petroleum. The projects being supported by OCR to produce liquids from coal are generally designed to produce a refinery feed stock which is then processed in standard oil refinery equipment to salable end products. Thus, we expect that eventually the liquid fuel industry will have another choice in seeking new sources of raw materials. For instance, it may be cheaper to exploit the available coal reserves of Appalachia, the Midwest, the South and the immense Western deposits than to drill new wells in other areas at great difficulty and expense and this latter is already being done. Our gas projects are designed to produce a pipeline-quality product which will be interchangeable with natural gas. it will flow through the same pipelines, where they pass near coal fields, and be distributed in the same systems. Thus, it will supplement and strengthen the gas industry. The original impetus for the large-scale production of gasoline from coal was wartime necessity. During the war the Germans, with their mechanized war machine, were lacking in petroleum resources. This had been foreseen, and for many years they had been developing processes for producing liquids (aviation and motor gasoline, diesel fuel and lubricants) from coal. To produce the analogs of petroleum-derived liquids from coal. it is necessary to add hydrogen. Thus. all processes were, and are, hydro-genation processes. Early Processes A process which had much early development, although not the first discovered, was Fischer-Tropsch synthesis-essentially the hydrogenation of carbon monoxide. In 1923 Fischer and Tropsch, in the Ruhr, described a catalytic reaction of hydrogen and carbon monoxide gases, at relatively low temperatures and pressures, which produced an oily liquid. After much further research, largely on catalysts. petroleum-type hydrocarbons were produced and some commercial-scale operations were started in Germany during the 1930'sNevertheless, because of complicated equipment needed to handle and control the catalytic reaction and difficulties with the catalyst itself, plus cost of the synthesis gas, it was not the major liquid fuel source in wartime Germany. JPT P. 939ˆ

Oil Viscosity as a Factor in Cold Starting

ONE WINTER MORNING, many years ago, we observed with interest a road tank wagon belonging to one of the large oil companies being towed round a piece of waste land by a stable companion, in an endeavour to bring its reluctant engine to life. The vehicle with the dead engine bore a slogan in large letters which read : “Use Pratts for Easy Starting”.

Instrument Roles in Lubrication Research

TO WATCH RESEARCH in any field is to witness the growing ascendancy of the instrument which, in turn, becomes increasingly automatic. Reference has been made in a previous article (Automation in the Laboratory, January, 1964) to the gradual automation of some of the routine chores in the petroleum laboratory, so that lubrication research is undergoing very much the same evolution as that on, say, biological or purely physical investigations. But with the growth of instrumental techniques comes higher accuracy and a closer response to what is statistically desirable in arriving at sound conclusions. It is sufficiently well‐known that the large oil companies and the leaders in the additive field deploy instrumental methods to the full, as an inescapable approach to their problems many of which could hardly be handled by other methods, and certainly not by older manual methods.

Recent Performance and Outlook for Petroleum Securities

Abstract The review of investor attitudes towards the petroleum industry during the 1950 decade reveals the fever-pitch attraction experienced in the mid-1950's and the period of selling in oil shares following the Suez crisis. In the last two and a half years, oil shares have experienced renewed interest on the part of the investment community. The growing demand for energy and petroleum should support an anticipated annual growth in oil demand of 5.6 per cent. The problems facing the industry, such as oversupply invasion of natural gas into oil markets, governmental demands, Russian exports, and internal industry competition are all discussed and placed in their proper perspective. A series of figures compares the earnings and dividend progress of domestic integrated a international oil companies with the Dow Jones 30 Industrial Companies. While gasoline price wars and weather cycles still influence earnings of many companies and, in fact, cause them to be somewhat cyclical, the economy measures employed by the larger oil companies in the post-Suez period support the expectation of an upward trend for earnings. Return on borrowed and invested capital has shown slight improvement since 1958. Though it is likely that some differential will continue between the multiple paid for oil earnings and that paid for the Dow-Jones industrial earnings, it is expected that oil earnings may well experience a higher multiple in the foreseeable future. The long range outlook for petroleum companies, particularly those with well diversified markets and supplies, is constructive. The well-guided investor should be amply rewarded in oil shares. Introduction During the early and mid-1950's, oils were one of the most favored investment media. It was during this period that the investor, both public and institutional, was captivated by the romance of discovery inherent in the oil industry. It was a seller's market for crude oil, which in the post war period had been enjoying periodic price increases, and demand for petroleum was growing at a rate well in excess of the general economy. Exploration and development activities were watched closely by the investment communities. In fact, during those years, maps of the Williston and Permian Basins and offshore areas of the Gulf of Mexico were almost as commonplace in some brokerage offices as charts of the Dow Jones averages. For the investor such interest did not go unrewarded. Stocks of oil companies, particularly straight producers, often experienced spectacular gains in a few days based on oil discovery news. The international oil companies and many integrated domestic companies, along with the so-called domestic producers, gave significantly better performance than the general stock market. To a degree, the performance was spectacular enough to somewhat spoil the investor. His illusions of grandeur led him to think of a proper oil investment being a stock which would double in price in no more than six months and one day, increase the dividend and possibly split the stock two-for one. Little nuisances inherent in the oil industry were put aside and dismissed as trivial although these same nuisance factors were at a later day to be used as arguments against investing in oil. Even political upheavals were taken in stride. In the period of 1950–55, the Dow Jones averages rose by 108 per cent. During that same period, most of the major oil company securities more than doubled. In fact, a number of these securities more than tripled. While some of the more spectacular rises were shown in some of the smaller producing companies, the larger and more traditional names also participated in this rise. During that period, the stock of Gulf Oil rose 140 per cent -- those of Standard Oil of New Jersey and Texaco tripled in price. The market price of oil shares discounted far in advance earnings that might be forthcoming from announced discoveries which sparked the rise in a security. For instance, Texas Gulf Producing stock rose from $13/share* at the beginning of 1954 to $31/share* at the beginning of 1955. Yet, predicted on developments in the Headley field, the earnings of the company were $1.43* in 1954, $1.72* in 1955, and back to $1.46* in 1956.Amerada, basking in the glory of oil discovery in the Williston Basin, was an outstanding investment. In terms of adjusted price for the stock splits that occurred since 1950, the stock rose from $20/share* at the beginning of 1951 to $58/share* by April, 1952. Yet, the earnings in 1951 were the equivalent of $1.30/ share* and in 1952 were $1.26/share.* JPT P. 633ˆ

Oil in a Changing Era

'MORE THAN ANY ONE MAN HAS A RIGHT TO KNOW is the way Mark Twain assessed the art of navigating the Mississippi River in the days of its great commercial glory. Today the investor, present or prospective, in petroleum securities faces a problem of similar magnitude. But unlike the great river, tamed in time by channels and bouys, the hazards of investing in even the largest oil companies are far more substantial than only ten years ago. In 1952 oil stocks represented in the minds of most investors an unusual and perhaps unique combination of inflation protection on the one hand, through the widely heralded concept of an asset in the ground, and growth on the other hand along with a continuing rise in the demand for petroleum and petroleum products. Yet today, despite the sharp increase in earnings multiples afforded most common stocks during the past decade, those of the five largest American oil companies are currently selling at cash earnings multiples little changed from 1952.

Selling the Tropical African Market

The stepped-up tempo of economic development in Tropical Africa is opening new sales opportunities for American business. But for most companies the area is still a marketing “Dark Continent”; other than the large oil companies, few have ventured in on any sizable basis. This article discusses the potentials and the problems involved in tapping the market. It also offers suggestions to cope with the anticipated difficulties.

Selling the Tropical African Market

The stepped-up tempo of economic development in Tropical Africa is opening new sales opportunities for American business. But for most companies the area is still a marketing “Dark Continent”; other than the large oil companies, few have ventured in on any sizable basis. This article discusses the potentials and the problems involved in tapping the market. It also offers suggestions to cope with the anticipated difficulties.

Developments in Mississippi in 1940

Development in Mississippi during 1940 passed through two phases. The first was hysterical resulting from the fact that only a few of the major companies and independent operators had scientific data or lease protection prior to the discovery of Tinsley. This resulted in rapid and necessarily sketchy geophysical work, promiscuous leasing, and drilling of wells by crews largely inexperienced in Gulf coastal formations. The second phase was marked by a slowing of all activities and many of the smaller companies and independents became discouraged and withdrew from the state. Hasty haphazard work gave way to sounder practices in both exploration and drilling and the final play has been characterized by sanity. During the first half of the year leasing activity was largely in the north portion of the state but during the later months the play shifted to the south. On January 1, 1940, there were 1,221,412 acres owned by major and large independent oil companies. At the end of the year this figure increased to 4,775,619 acres, making a total of 3,554,207 acres leased during the year. If acreage owned by individuals and small independents is added to this figure it is probable that approximately 5 million acres were leased during 1940. On January 1, 1940, there were sixty-one geophysical parties operating in Mississippi. This number was increased to sixty-four on June 1, and decreased to twenty-two parties on the last day of the year. At the peak the greatest concentration of geophysical parties in the United States was located in the state. No new discoveries of importance were made; the Pickens field with four producers, was disappointing; the Tinsley field spread beyond early expectations with 101 producing wells. The production for Tinsley was 4,208,021.43 barrels and Pickens 286,256 barrels, making a total of 4,494,277.43 barrels for the state. Of the 208 wells drilled, 103 were dry holes and of the latter only seven resulted in positive proof of the existence of structure. Many of the dry holes drilled were financed without any geophysical work or any geological evidence whatever, some were located on geophysical evidence which was unsatisfactory, and others were drilled on seemingly good prospects which were disproved by drilling. It is generally agreed that many of this later type were drilled on prospects where the geophysical work had been done too rapidly. One of the main purposes of this paper is to evaluate the results outlined here and to point out their influence on future activity. Although the results of exploration during the year 1940 were disappointing a true evaluation leads to the conclusion that the state has not had a fair test, especially in the southern part, and that the future as an oil-producing area has not been materially changed. Toward the end of the year all work was moving at a slower tempo and this should benefit the quality and reliability of the geophysical work. The trend was toward more careful work with more emphasis placed on geological research and a closer correlation between the two. Sufficient time had not elapsed to obtain results from this but the coming years should prove the wisdom of this change i procedure.

THE ORGANIZATION OF AN EFFECTIVE EXPLORATION DEPARTMENT

The author reviews the functions of a Land, Lease and Exploration Department in a large oil company, and describes in detail the integral parts. Criteria are furnished for the background of men suitable for the various positions, and a detailed organization chart is submitted which also shows the flow of information secured from the various field methods. Much stress is placed upon the need for detailed, routine reports. The part played by contracting geophysical exploration companies is also described, and the extent of the service which they should render is shown.

Preventive Medicine and Health in Venezuelan Oil Fields

Extreme tropical conditions characterize the Maracaibo Basin, but the entrance of large oil companies into the area has dispelled many erroneous ideas about the terrors of the jungles. No one need hesitate about going to Venezuela if he possesses ordinary health. None of the deadly plagues exists there. Malaria is common, but readily controlled by protection against mosquitoes and by the proper use of quinine. Although the jungle is inhospitable and is inhabited by tigers and snakes, the insects are the most dangerous, and these can be successfully combated. Temperance and morality are necessities to health in the tropic. Anyone leading a clean life and observing a few simple rules of prophylactic medicine will find the tropic wholesome.

Petroleum in the Philippines

It has been 5 years since the writer left the Philippine Islands and whilein that country his chief work did not lie in this field, though he has visitedall but one of the localities mentioned in this article. The principal fieldstudies relating to oil were made by his colleague, Mr. Wallace E. Pratt. Thewriter's investigations dealt with the general stratigraphy and paleontology ofthe Philippines. With the exception of the investigations made by Mr. Pratt andthe writer very little information on this subject is available. A number of geologists in the employ of large oil companies have visited theIslands from time to time but, following the general rule, the public hasscarcely ever been permitted to learn anything of the results. The writer isindebted to the Bureau of Insular Affairs, Washington, for late informationregarding recent legislation in the Islands relating to petroleum. All the known oil seeps, petroleum residues, such as ozocerite, and natural-gasemanations are associated with Tertiary sediments. The chief seeps and mostpromising prospects are located as follows:Bondoc Peninsula (lower end), Tayabas Province, Southeast Luzon.The west coast of the island of Cebu from Alegria north to, and perhapsbeyond, Toledo.Central Mindanao not far from Lake Lanao.The ozocerite veins on the Island of Leyte in the northwestern part in thevicinity of the town of Villaba.Natural gas from some deep wells in Tertiary shale formations on the easternflank of the Cordillera and extending out under the plain on the island ofPanay. The first mention in geological literature, to the writer's knowledge, of gasor petroleum in the Philippines is found in the description of the Island ofPanay by the Spanish geologist, Abella, in the year 1890. AIME 065–09