Plans for Petroleum Division in 1932 – Earl Oliver

As we understand the functions of the A. I. M. E. Petroleum Division, they are to discover and promote knowledge for the benefit of society on the mining of oil and gas. To the individual member of the Petroleum Division, there are certain advantages of social and professional contacts, but the collective purpose is that described. And the individual is benefited by membership only as the Division measures up to the purposes of its existence. Consequently, the welfare of this Division and that of its members depends upon the extent to which it keeps pace with the needs of society on matters relating to the mining of oil and gas. To some extent, A. I. M. E. activities must be determined by the changing current needs of society. The great problem ahead of the world for some time is to evolve equitable types of production control in many industries, and especially is that true of the oil industry. Production control in this industry is as much an engineering function as is production development, notwithstanding it also involves the lawyer, the economist and the politician. It must be built on and around suitable engineering planning enforced by public opinion and legislation. We believe the prerequisite to any satisfactory solution of the oil industry's ills is an educational campaign establishing a better public understanding of the needs and merits of production control, by which we mean the maximum yield at the minimum cost coordinated to society's current needs. The underlying causes of the oil industry's ills are well known and generally agreed upon. In like manner there is general agreement among students of the industry that the first step toward their correction would be general adoption of oil-field developing and operating methods that would permit most efficient use of reservoir energy; that would provide for equitable distribution of oil and gas among the several owners in the pool; and also for the extraction of these products in response to market demand. It is now found, however, that general adoption of such developing and operating methods unfortunately cannot be brought about without changes being secured in certain basic laws of oil and gas, and perhaps also in the anti-trust laws. These legal changes are difficult to secure because of the widespread fear that they would tend to place the oil industry more exclusively in the hands of the major companies, and that