RI 2104 Engineering Aspects of the Petroleum Industry

"Since the beginning of the petroleum industry in 1839, up to within two or three years ago, these has been a dearch of engineers who have had the fundamental technical training also sufficient practical experience so that they could compete with practical men. Need for Technical Investigations in Industry: As in the early stages of the mining industry, the petroleum industry has been rather slow in realizing the need for technical assistance and investigators in the development and production of oil lands. The rapid increase in consumption, however, during the past few years has accentuated this need more than anything else could have done. When it is realized that our production cannot longer keep pace with the demand, it is easily understood why it is imperative that be instituted which will tend to conserve and prolong the supply of oil from the fields now known. It is interesting to note from preliminary production figure given cut by the U. S. Geological Survey, for the year 1919, that the United States produced about 430,000,000 barrels, an increase of 22,000,000 or 6 per cent over 1918 production and also there was imported, chiefly from Mexico, a little over 52,000,000 barrels, making a total of 430,000,000 barrels, to satisfy the trade demand in the United States of which almost 6,000,000 barrels was exported. Stocks were not materially increased.Other significant facts regarding our petroleum industry, are that just recently the U. S. Shipping Board in soliciting bids for 24,000,000 barrels of fad oil to meet prospective needs, received bids for only 1,500,000 barrels at prizes ranging from 75 to 90 per cent higher than was paid last year. One large company on the Pacific Coast has stopped its export trade, and has notified consumers,of gas-engine distillate that they will no longer make deliveries of this product. This will materially affect the farmer, in many instances, through his use of the truck and tractor."