Papers - Unitization - Principals of Unit Operation

It is believed that in connection with the study of unit operation by the Petroleum Division of the A. I. M. E. a review of the simple principles of unit operation would be helpful. To that end, the following discussion is submitted. It is not to be considered in any sense as the conclusion of the committee, but rather as material submitted for its consideration and represents at this time only the viewpoints of its authors. Growth of the Oil Industry In 70 years the oil industry has grown from a single well on Oil Creek, Venango County, Pennsylvania, producing 25 bbl, per day, to more than 400,000 wells scattered over five continents with a daily output of 4,000,000 bbl. In that time petroleum has expanded from its simple use as a medicine in a few localities to a multitude of diverse uses in homes of every country the world over. During those years the oil fields of the United States have produced two-thirds of the world's output and have shipped their excess production into almost every country. In those years several hundred thousand good wells in the United States declined into small ones and depleted shallow deposits gave way to deep zones; so that the United States crude oil industry gradually changed from one of low cost production to one of higher cost. Throughout its entire life it has labored under two serious economic disadvantages, namely, constantly recurring periods of demoralization through overproduction, and competitive development methods that are wasteful. Development of Foreign Competition During the transition from low to higher cost production in the United States, events even more significant were taking place in foreign lands. Jungles were tamed and deserts conquered. Oil deposits were found and developed until, in the words of Sir John Cadman, "the globe is now drenched with a commodity which, although necessary to life, involves but an irregular and sometimes meager expenditure of life in its