Papers - Unitization - Suggested Procedure for Exploitation of an Oil-bearing Structure by Unit Operation (With Discussion)

There is much comment at present in the ranks of the oil industry regarding unit operation of oil fields and the benefit that would accrue if it could be extensively applied. It seems certain that, as an immediate corrective of the present situation, overproduction could be effectively curtailed with all the advantages of proper conservation of petroleum resources and with no important loss to anyone connected with the industry. Unit Operation in Certain Foreign Fields Many an oil operator in America would doubtless like to have exclusive control of one or more oil-bearing structures for development in accordance with the economic position of the industry and especially in accordance with the best production practice known. A few operators now have this privilege, particularly in certain foreign fields, and are following lines of procedure which show that they are aware of the great opportunity that is theirs. We find in an article by Professor Strigeoff,1 and in a paper read by Captain Comins2 before the American Petroleum Institute, the outlines of procedure adopted, respectively, by the Soviet Government for the nationalized Russian oil fields and by the Anglo-Persian Oil Co. for its fields in Persia. Comprehensive plans for the unit operation of other oil fields may have been described publicly but no such descriptions have come to the attention of the writer. New fields are coming more and more into the hands of single operators or of a few who control large activities and who appreciate fully the need for cooperative action and are willing to forego the lure of a large quick profit from high flush production in order to secure the advantage of better stabilization in the industry and a larger though more deferred profit by operating the field as a unit. Much can be done toward efficient development of an oil field controlled by a few operators who are willing to cooperate for that purpose, but the best result can be obtained only by pooling their interests in the field