Further Views on Economics of Oil-production Practice

THE paper by C. H., Lieb on the "Economics of Oil-Producing Practice" (June issue, M. & M.) contains much food for thought. The engineers should be gratified that an executive with Mr. Lieb's. responsibility should recognize their standing in the industry. Yet after giving them that recognition, he proceeds to spur them on to greater accomplishments by pointing out that their job is only partly done and in some instances poorly done. The operating policies in this paper when applied to new pools with flowing wells are sound. Neither do I take exception to their application to pumping wells. But I do wish to comment on what lie says about price when applied to the many more wells that are approaching abandonment that is, the small producing wells. Mr. Lieb states in effect that higher prices would be detrimental from the long range viewpoint. I doubt that the present prices of crude will provide an ample return from the hundreds of thousands of small wells that have possibilities of substantial recovery by means of water-flooding, repressuring with gas, and air drive. Probably expenditure for experimental work can he justified, but at this time it must usually be considered as experimental. Recently I visited a property where it was estimated that $250,000 would be spent on a 160-acre tract for flooding purposes. The rate of r e t n r n and amount of profit at today's prices are uncertain. It can be argued that if this type of recovery is not economic with crude at $1 then it can he delayed as it is now possible to secure economically an ample supply of crude from our flush fields. But these old fields still retain large quantities of crude in a dormant state, and should not he abandoned per-