Search Documents

By George Macready

TRINIDAD, British West Indies, is an island near the north coast of South America, situated between latitudes 10° and 11° N:, and. opposite the numerous outlets of the Orinoco River Delta. It is separated from Venezuela by the Gulf of Paria (salt, water) and straits over 5 mi. (8 km.) wide. The area of the island is approximately 1750 sq. mi. (453,- . 250 hectares) and the population is approximately 400,000. The climate is tropical with an annual rainfall of from 45 to 60 in. (114 to 152 cm.). The oil fields consist of several units, or fields, located in the southern half of the island. Approximately 90 per cent. of the total production has been yielded by fields situated within 7 mi: (11.3 km.) of the famous asphalt lake and on the southwest peninsula. The most important producing fields, or units, are the following, which are shown on the accompanying map: Brighton, or Pitch Lake Field, operated by the Trinidad Lake Petroleum Co., Ltd., is situated beside the famous Pitch Lake; it, even encroaches on the lake. Vessigny Field, operated by the Trinidad Lake Petroleum Co., Ltd., is situated 2 mi. (3.2 km.) south of Pitch Lake. Lot One Field, operated by the Petroleum Development Co., Ltd., the United British Oilfields of Trinidad, Ltd., and Stollmeyer, Ltd., is situated 3 mi. south of Pitch Lake upon Lot One of Morne 1'Enfer Forest Reserve and adjoining properties. Parry Lands Field, operated by the United British Oilfields of Trinidad, Ltd., and the Petroleum Development Co., Ltd., is situated 3;2 mi. south of Pitch Lake on Lot Three of Morne l'Enfer Forest Reserve and adjoining properties. Point Fortin Field, operated by the United British Oilfields of Trinidad, Ltd., is situated at Point Fortin, 6 mi. southwest of Pitch Lake. Fyzabad Field, operated by Trinidad Leaseholds, Ltd., is situated several miles southwest of Fyzabad Village and 6 mi. south-southeast of Pitch Lake. Barracpore Field, operated by Trinidad Leaseholds, Ltd., is situated several miles south of. San Fernando and 15 mi. (24.14 km.) east of Pitch Lake.

Jan 9, 1920

By C. V. Millikan

THE year 1930 in the petroleum industry has been characterized by the establishment of large potential production of crude oil. This has resulted in closer cooperation between companies by proration and unit operation agreements in order to afford an equitable outlet to all, and to prevent a flood of oil being forced on the market with attendant tremendous material and economic waste. Drilling wells in proved areas and wildcat wells are fewer than in the past several years. Restricted production and low prices have caused greater effort to increase producing and recovery efficiencies. Increased refinery efficiencies have amplified the effect of overproduction. Pipe line departments have been especially busy. New oil lines have reached more refineries by new and shorter routes. Establishing greater gas reserves by new fields has justified new gas lines to industrial centers, and has brought this fuel to thousands of new domestic consumers. Two long gasoline lines, a new venture in pipe lines, are being built to obtain a lower cost of transportation and less loss between the refineries and their distribution centers. The chairmen of the various divisions have discussed the developments of their respective branches more fully in the following reviews.

Jan 1, 1931

By LESTER H. WOOLSEY

IT IS doubtful whether anything new can be said upon this subject and, therefore, it is with considerable hesitation that l prepare this paper. On account of my recent connection with the Department of State as its law- officer, perhaps I will be pardoned if I discuss this subject briefly from the point of view of that branch of the Government. , I cannot, of course, speak for that department, since I have-no connection with it at-present, but it may be helpful if I set down certain* of the factors which in my opinion and from my experience have a bearing on this international problem. With oil-burning ships, motor vessels, motor vehicles, airplanes-all consuming, astonishing quantities of petroleum or petroleum products; with the United States having within its borders only 12 per cent. of the petroleum resources of the world, and consuming about 70 per cent. of the world's output; with the more enterprising nations wide awake to the necessity ; of obtaining and preserving as large a share as possible of the oil resources extant ; the 'problem is peculiarly and in a, very practical sense an international one.

Jan 1, 1921

By AIME AIME

TWO technical sessions, an excursion through the Midwest refinery and a smoker, marked the first day of the meeting of the Petroleum Division at Casper, Wyo., on Aug. 28. Ninety-nine members and guests registered and there was an excellent attendance at 'all functions. The -local committee under the general chairmanship of J. C. Lindsay, general manager of the Western Pipe Line Co., had made every possible arrangement for the convenience and comfort of the visiting members and the Program Committee under E. L. Estabrook, vice-chairman of the Petroleum Division, had brought together a most interesting series of technical, papers. The meeting centered mainly on the various features of the Salt Creek field but there were also contributions from the technology of production in California, the Mid-Continent, and the Texas fields. The opening session was called to order by Mr. Estabrook at the Townsend Hotel on Friday morning. The members and visitors were welcomed appropriately by Ex-Governor B. B. Brooks, president of the "Rocky Mountain Oil and Gas Association, who recalled the changes that had taken place as Casper, a frontier cow town, became a thriving oil metropolis. F. Julius Fobs, chairman 'of the Petroleum Division, responded and then took the chair. He introduced H. Foster Bain, Secretary of the Institute, who expressed the regret of those members members who found it impossible to stop over en route to Salt Lake City and his own pleasure at meeting with the Division in the field. Following these introductory ceremonies the technical session began with a "Sketch of the Geological Formations of Central Wyoming," presented by J. G. Bartram of the Midwest staff. It was brief and to the point and contributed greatly to the easy under¬standing of the succeeding papers by those unfamiliar with the region. The talk was illustrated by a large scale columnar section -and a copy of the excellent, geological map of the State recently issued by the U. S. Geological Survey.

Jan 1, 1925

By John M. Lovejoy

CURRENT production of petroleum on such a vast scale presents many interesting problems- the solutions of which are important not only to those directly interested in the business, but to the nation as a whole. The industry is relatively young. Until the discovers of the Lucas gusher at Spindletop in 1901 petroleum production had not exceeded 60,000,000 bbl. per year compared with 1,100,000,000 bbl. in 1936. In 36 years then, the modern oil business, production, transportation, refining, and marketing has developed. I will first present a brief history. of oil production as a background for consideration of the present situation.

Jan 1, 1937

By Gilbert P. Moore

Bolivia does not yet have any production which is being marketed. It does have a potential production, however, from wells which have been completed by the Standard Oil Co. of Bolivia, a subsidiary of the Standard Oil Co. of New Jersey. No other company is active in drilling and development work to date. The total potential production from wells now completed is about 6000 bbl, daily. Wells Completed Completions during 1928 and their initial daily productions. if any, were as follows: Camatindi No. 1, 350 to 1000 bbl.: Camiri No. 1, 500 bbl.; Sanandita No. 3, 100 bbl.; Tatarenda No. 1, dry hole, and Bermejo No. 2, deepened 50 ft. made 1000 barrels. The most striking development of the year was the Camiri No. 1 well which, after just entering the sand, made 500 bbl. per day of 52" B. oil. This well is the northernmost good producer which the Standard has brought in to date. Oil from this well is used without refining in the tractors and trucks of the company. A small topping plant has been installed from which high-grade gasoline is obtained for use in motor cars and some is being produced for the use of air plants stationed at Villa Montes. The results for Sanandita No. 13 were somewhat disappointing since Sanandita No. 2 was rated at about 3000 bbl. Tatarenda NO. 1, located on a large unbroken structure, was drilled to 4000 ft. and abandoned as a dry hole. Bermejo No. 2 was deepened 50 ft. to 2085 ft.. and on a 10-day test averaged 1000 bbl. per day. This well is on the border between Bolivia and the Argentine. Wells Drilling The wells drilling are Camiri No. 2, Sanandita No. 5, Machareti No. I and Bermejo No. 5. This is the smallest number of drilling wells which the Standard has had for several years but is principally due to

Jan 1, 1929

By R. V. Whetsel, Valentin R. Garfias

Mexican petroleum production for 1928 was approximately 50,000,-000 bbl., the lowest in 12 years, showing a decrease from 1927 of over 14,000,000 bbl. The steady downward trend for the past 7 years has allowed Russia to outrank Mexico by a wide margin for third position and if the expected decline continues during 1929 it should place Persia ahead of Mexico as fourth in rank. The year 1928 was characterized by a continuation of the reentrench-ment previously begun by the oil industry in Mexico in an attempt to adjust itself to the adverse conditions caused by the steady depletion of the fields, the rapidly increasing competition from Venezuela and the United States and the as yet unsettled petroleum legislation and taxation situation. With the exception of the Isthmus of Tehuantepee, drilling in proved fields was considerably curtailed and although the number of wildcats completed exceeded those of the previous year, no extensive drilling programs were undertaken. Practically without exception, the major companies reduced personnel and operations to a point where they could meet existing conditions and mark time while awaiting a more stable basis for the future testing of unexploited regions. Many terminal and transportation facilities were abandoned during the year. Development Only 371 wells were completed during 1928, as against 583 in the previous year and 808 during 1926, and although the percentage of producers in 1928 was 34 per cent., compared to 26 per cent. in 1927, the initial production of -wells was considerably lower than during the previous year, a great number of the wells showing salt water and becoming "strippers" from the time they started to flow. Development is summarized in Table 1. Drilling in the Northern fields did not prove any new pools of importance, the most successful wells being located in the old producing areas of Cacalilao, Panuco and Topila. (Fig. 1 Very few of the producers made more than 1000 bbl. daily, and a great many less than 300 bbl. a day.

Jan 1, 1929

By James Terry Duee

No important producing developments took place in Colombia during the year 1928. This was at least partly due to the paralysis of operations by the passage, during the latter part of 1927, of a law which was regarded by the oil companies as confiscatory and unjust, and the promulgation of exceedingly stringent regulations of this law under decree No. 150, published Jan. 28, 1928. This decree, which contained 24 articles, practically prevented not only producing operations by the oil companies but even such activities as geological explorations and surveying, as severe fines were imposed for the possession of maps not registered with the Ministry of Industries. Both this regulatory decree and the law were subject to attack in the courts by several of the oil companies. The regulatory decree was suspended May 22 by Presidential proclamation, until the suits against it are decided by the Supreme Court and Council of State. Though another law was introduced into the Colombian Congress at a later date, no action was taken on it, and at the time of the writing of this paper, it would appear that no oil bill will pass the Colombian Congress during the present session. The Barco concession, which was revoked in February, 1926, still continues an unsettled matter, although there have been rumors that the government was attempting to come to some decision on this rather difficult question. A hopeful sign toward the close of the year was the settlement of negotiations with the Tropical Oil Co. over the acceptance of the payment for royalties due the government from that company. This settlement, which covered a royalty on crude oil produced from June 30, 1926 to June 30, 1928, represented a cash payment for approximately 3,000,000 barrels. It is to be hoped that during the coming year the Colombian government will see its way clear to clarify its position on petroleum legislation. A good augury for the future was the statement made by President Abadia Mendez on New Year's Day, in which he courageously admitted the errors of previous legislation and said, regarding oil, "Very soon

Jan 1, 1929

By A. M. McQueen

Activity in the oil industry in Peru was somewhat above normal in 1928. Probably the most significant feature was the interest displayed in the oriental region in the northeast part of the country (Fig. 1). This region, though little known, has long been considered potentially rich in oil! gold, coal and other minerals, lacking only transportation to make it the country's most valuable source of income. The Standard Oil Co. of New Jersey, through its recently formed subsidiary the Standard Oil Co. of Peru, has acquired various tracts along the Maranon and Ucayali rivers in the neighborhood of the Brazilian border. Standard Oil Co. interests have had geological and surveying parties in this part of Peru since 1921, and as a result of the work done, we understand they have under lease at the present time some 2,500,000 acres of prospective oil lands. Development in the coastal region continued along normal lines during the past year. Production figures for both the International Petroleum Co. and Lobitos Oilfields show a small increase over the last few years. Total production figures since 1924 for the International Petroleum, Lobitos Oilfields and Zorritos companies, only in a minor degree estimated, are as follows: 1924, 7,924,700 bbl.; 1925, 9,138,042 bbl.; 1926, 10,750,676 bbl.; 1927, 10,110,696 bbl., and 1928, 11,969,677 barrels. International Petroleum Co., Ltd. Operations on the La Brea-Parinas Estate during 1928 continued with satisfactory results; nearly all branches showing improvement over the previous year. The average daily production for 1928 was 25,966 bbl., compared with 21,282 bbl. for 1927, an increase of 22 per cent. During the last two or three years, production methods on the company's property have been improved in line with the advance in scientific technique throughout the oil fields of the United States. Extensive investments were made in compressor equipment for handling surplus gas with the result that the gas-lift and repressuring operations are in no small way responsible for the increase in the 1928 production. In addition, the company's three casinghead plants produced 24,847,708 gal. of gasoline compared with 17,240,865 gal. in the previous year.

Jan 1, 1929

By Sir John Cadnan

The production from the Maidan-i-Naftun area for the year ending March, 1928, was 5,340,000 tons (40,210,200 bbl.), an increase of nearly 13 per cent. over the production for the year ending in March, 1927. The production by years since the opening of the field in 1912 is given in the following table: [1 ton = 7.53 bbl.] Year Ended MaRch Tons Year Ended March Tons 1912 (7 months)............. 43,084 1920....................... 1,354,631 1913........................ 80,800 1921....................... 1,767,070 1914........................ 273,635 1922....................... 2,310,098 1915........................ 375,977 1923....................... 2,913,908 1916........................ 449,394 1924....................... 3,583,000 1917........................ 644,074 1925....................... 4,221,000 1918........................ 897,402 1926....................... 4,470,000 1919....................... 1,081,919 1927....................... 4,735,000 1928....................... 5,340,000 The actual production represents only a small proportion of the potential production. The Masjid-i-Suleiman Field The present producing unit, the Masjid-I-Suleiman, is an anticline some 20 miles in length by 4 miles in width, including three domes as so far proved. The producing horizon is a very open, dolomitic limestone, which, while showing much variation in texture and porosity, is so connected that the lowering of pressure in one section of the field quickly affects the whole area. The topography of the field is broken, with differences of well elevations of as much as 1100 ft. The depths to the limestone vary from about 800 to about 5000 ft. The closed-in pressure of the oil wells varies from zero to 50 lb. per sq. in. and that of the gas wells is about 450 Ib. Although the static oil level may be several hundred feet below ground level, in oil wells of high elevation, all the wells flow continuously or intermittently after they are once started—the majority continuously. The gas is very high in hydrogen sulfide in gas-oil wells of low pressure.

Jan 1, 1929

By H. J. Wasson, E. B. Hopkins

Throughout 1928, production of oil from Venezuela steadily increased, and at the close of the year, the output was at the rate of nearly 400,000 bbl. a day. The total for the year was approximately 106,500,000 bbl., representing an increase of about 66 per cent. over the 63,000,000 bbl. produced in 1927. Venezuela now stands next to the United States as the second largest oil-producing country in the world; and there is abundant evidence to suggest that this relationship will endure for a number of years. Reserves were notably increased in the Lake shore fields, and the potential output of the Maracaibo Basin is much greater than the current production. In spite of this, the percentage of production increase was comparatively moderate, and the rate of this increase continued to fall off slightly, as has been the case for the last three years. This does not suggest that further annual increases in Venezuelan output will not materialize; only that the rate of these increases appears to be on the decline, and that with every succeeding year the future tendency will be in the direction of a stabilized level of output. The following table shows the production trend of the country since 1925: 1925 increase over 1924, 132 per cent. 1926 increase over 1925, 80 per cent. 1927 increase over 1926, 75 per cent. 1928 increase over 1927, 66 per cent. Many factors will work to prevent a reversal of this trend, but the principal ones are strong ownership in large-acreage units, and the probable indisposition of the world market to absorb a more rapidly increasing Venezuelan output at prices profitable to the producers. The distress oil element is not a factor in Venezuela; also, any unforeseen jump, such as results in the United States from the discovery of a Seminole or a deep sand at Long Beach, or Santa Fe Springs, is impossible in Venezuela, on account of lack of means for transporting a sudden surplus of oil, and the slowness with which additional transportation equipment in the form of shallow-draft tankers can be obtained.

Jan 1, 1929

By Jose M. Sobral

The approximate production of petroleum in the various fields and for the country as a whole is shown in the following table, the figures for the later months of the year being estimated. Among the developments of the year may be mentioned the finding by the Standard Oil Co. of a small production, about 6290 bbl., at Aguas Blancas in the Province of Salta near the Bolivian border, and of about 88,000 bbl. at Lomitas, near Tartagal in the same province. The Government (Yaciementos Petroliferos Fiscales) in the last four months of the year also obtained about 6290 bbl, from Quebrada Galarce. .The oil found in Salta is of good grade and while the quantity is small great hopes of larger production are entertained. Approximate Total Argentine Production for 1928 Barrels Barrels Comodoro Rivadavia............................... 8,165,615 Plaza Huincul..................................... 783,514 8,949,129 Distribution of Production Government, Comodoro Rivadavia................... 5,165,159 Government, Plaza Huincul......................... 306,166 5,471,325 Private, Comodoro Rivadavia....................... 3,000,456" Private, Plaza Huincul............................. 477,348b 3,477,804 a The companies represented are Astra, 649,474 bbl.; Oriente, 42,237; Ferrocar-rilera, 1,337,380; Comp. Indust. y Comm., 609,092, Solano, 64,158; Diadema, 298,114. b Standard Oil Co. and a few smaller companies, Exploratory drilling has also been conducted around the Comodoro Rivadavia field. The Government is drilling at Vuela del Senguer south of Colonia Sarmiento and about 200 km. west of the main field hut the prospect of success is not as yet large. The country around Castillo, where the Royal Dutch Co. has property, is regarded more favorably. perhaps the most interesting event of the year was the discovery of a productive horizon at Comodoro Rivadavia about 200 m. below that previously exploited. This new horizon was found by the Ferrocarrilera Co. at 769 m. in its well No. 81, the previous yield for this

Jan 1, 1929

By J. Th. Erb

Oil is found in commercial quantities in the islands of Sumatra, Java, Borneo, Tarakan and Ceram. The oil deposits of the Dutch East Indies and Sarawak are with one exception of Tertiary origin and as a rule are bound to anticlinal structures. The number of layers varies in most fields and in some of them asmuch as 14 oil-producing levels have been established. The crude oil varies rather much in composition. Some of it, particularly from North and South Sumatra, has a gasoline content up to 50 Per cent. Borneo produces mainly wax oil, while the Tarakan oil can be used directly as liquid fuel. In Java both wax and wax-free oil are produced. ' In all important fields installations have been erected to treat the wet gas. The lean gas is used for gas-lift purposes, Marietta process, and as fuel for boilers and motors, either in the fields or in the refineries. Formerly only percussion systems (Canadian, Californian and a drilling system devised especially for the purposes of the Royal Dutch Petroleum Concern) were applied in the Dutch East Indies, but in recent years the rotary system has been predominant and good results have been obtained with it. The deepest producer has recently been struck in South Sumatra at a depth of 1624 m. (5328 ft.), with a daily production of about 350 cu. m. crude oil. The crude is brought by an extensive system of trunk lines to the refineries, of which one is in North Sumatra (Pangkalan Brandan), two arc in South Sumatra near the town of Palembang, two in East ,Java (Tjepoe and Wonokromo), one in East Borneo (Balik Papan) and one in Sarawak (Miri). Production The principal producing concerns in the 'East Indies are: De Bataafsche Petroleum Maatschappij, the producing subsidiary of the Royal Dutch Petroleum Concern; Sarawak Oilfields Ltd., one of the

Jan 1, 1929

By Basil B. Zavoico

The production of all Russian fields incressed from approsimatctly 74,000,000 bbl. during 1926-27, to approximately 83,000,000 bbl. during 1927-28. Of this amount Baku was responsible for 54,.500,000 bbl., Grozny for 25,800,000 bbl., and Emba for 1,200,000 bbl. Accordingly, the proportional importance of the Grozny oil field has been considerably increased, the present production being twice that of 1913. The most notable factor of production during 1927-28 was the importance of gushers; 40.8 per cent. of the total was thus obtained. In the Baku fields 26 per cent. of the total, and in Grozny 74.2 percent'. of the total were produced by naturally flowing wells. This may be explained by the reduction in authorizations for drilling by the central authorities, and, accordingly, the local trusts increased the production to the planned figures at the expense of the proved prolific reserves. In Baku region, the Surnkany oil field produced 36.1 per cent. of the total Baku production, or an equivalent of 53,800 bbl. per clay, the largest percentage coining from the fifth horizon. Nest year's plans call for continual development of that horizon as well as of the sixteenth horizon in the Bibi-Eibat field, which was opened lately. In the Grozny fields the New Area (Bellik) WAS responsible for 79.4 per cent. of the total production. The authorized plan for 1928-29 production calls for 92,200,000 bid., and a reasonably accurate estimate for 1932--33 production is placed at. 156,000,000 bbl., with Baku contributing 101,800,000 bbl., Grozny 44,100,000 bbl., Emba 6,200,000 bbl., Kuban 2,100,000 bbl., Saghalien Island 1,400,000 bbl., and Russian Turkestan 400,000 bbl. In connection with recent discoverices in the Baku area these figures art. quite conservative. The average production per well per day in the Baku oil fields was 49.2 bbl., in Grozny 175 bbl.; in detail, Surakany oil field averaged 250 bbl., and the New Area in Grozny 514 bbl. per day. New completions in all Baku fields averaged 264 bbl. per day, and in Grozny 970 bbl. pel. day. These figures show a considerable progress in the technical developnlent of all fields, compared even with the prerevolution figures, since all the mprovements are noted in the fields that arc over 30 years old.

Jan 1, 1929

By Valentin R. Garfais

The world's petroleum production in 1928 is estimated at 1,322,896,-000 bbl., an increase of about 62,000,000 bbl. over 1927, as compared with an increase of over 133,000,000 bbl. in the previous year. The daily average was close to 3,600,000 bbl., of which the fields on the American continent produced about 84 per cent. The most important development during the year has been the partial success of the attempts to temporarily control production without appealing to legislation and, as a consequence, the increasing realization that, in order to reach a permanent cure for this situation, some form of legislation is necessary to' make possible the conservation of the oil supply and the stabilization of the industry. The importance of such a control over American production is not merely local but worldwide, as the American oil supply is now and for years to come will be the controlling factor of the industry. United States.—Production in the United States, which in 1927 increased about 15 per cent. over the previous year, remained practically stationary in 1928, the total being estimated at 902,000,000 bbl., or 68.2 per cent. of the world's output. This uniformity in production during the last two years was due primarily to the curtailment of output from wells already drilled, it being estimated that the available or shut-in production at the end of the year was close to 500,000 bbl. per day, or equivalent to the combined production of Venezuela and Russia, the countries ranking second and third. Venezuela.—With a production estimated at 106,000,000 bbl., Venezuela has trebled its output in the last three years. The increase in 1928 was 43,000,000 which placed this country as second in rank, a position which it should easily maintain for years to come. The output could have been considerably larger had not the oversupply in the United States made it advisable for Venezuelan operators to enter into tentative conservation agreements. Russia.—In Russia, production has doubled in the last five years, and reached a new peak in 1928 with an output estimated at 87,800,000 bbl., or an increase of 10,000,000 bbl. over the previous year. Difficul-

Jan 1, 1929

By AIME AIME

Annual net production of crude oil from the Anglo-Iranian, Oil Company's fields in Iran for the years 1940 through 1945 amounted to: YEAR TOTAL PRODUCTION (Long Tons) 1940 8,626,639 1941 6,605,320 1942 9,399,231 1943 9,705,769 1944 13,274,243 1945 16,835,000 (preliminary figure) All developed fields were on almost continuous production throughout the war, though their operation naturally was hampered by war conditions, which affected particularly supplies of equipment.

Jan 1, 1946

By J. HUNER

Twenty-four new fields were found in Louisiana during 1945. Of this number 15 were oil fields, eight were gas condensate, and one a dry gas field. None of these fields, with the exception of West Delhi, is as yet of any great consequence. The Weeks Island field in Iberia Parish may eventually develop into a considerable reserve.

Jan 1, 1946

By J. M. GARZA

The production of oil in Mexico during 1945 was 43,402,852 bbl., or a daily average of 118,912 bbl. In March 1938 most of the oil properties were taken over by the Mexican Government and since then have been operated by Petroleos Mexicanos, an agency of the Government. The variations in the production during the last 8 years have been due to- fluctuations in the export market demand for Mexican oil rather than to the productive capacity of the fields. Since 1937, yearly production, to the nearest hundred thousand barrels, has been as follows :

Jan 1, 1946

By V. F. Marsters

THE main producing oilfields in Peru are located in the department of Piura and province of Thumbes, adjoining Ecuador on the south and west. In the department of Puno, a small field known as the Pirin or Hauncané Area was exploited some years ago by Fred Brown and associates and considerable production obtained. As. shown by the statistical table of production, this area reached its maximum production about 1909; since 1915, operations have been suspended. During the past year, however, the Peruvian Corpn. has acquired some interests in this section. It is reported to have made a few shallow tests with the hope of obtaining sufficient production to supply fuel for its railway lines, which operate between Mollendo on the coast and Puno and Cuzco in the interior. Only partial success has accompanied these efforts; nevertheless, exploitation is being continued. The petroleum of this region contains a paraffin base with small amounts of asphalt. While the gasoline content is small, the kerosene content runs as high as 30 per cent., with the fuel element varying from 50 to 72 per cent. While it is known that the structural conditions of the Huancané area are somewhat complicated, it is believed that exploitation based on a careful interpretation of the geology of the region will eventually yield commercial production of at least modest proportions. In the main fields in Piura and Tumbes, drilling operations were somewhat more active during the first half of the year, than in 1922. The latter half of the year witnessed curtailment, owing to the abnormal situation in the petroleum industry at that time. For the same reason, no attempt was made to obtain the maximum production from existing .wells. Production was pinched down and exportation of crude was correspondingly reduced during the latter half of 1923. Nevertheless, the total production of the Peruvian fields is considerably in excess of that for 1922, as is also the production of the Negritos area alone.

Jan 3, 1924

By V. F. Marsters

THE oil-producing territory of Peru is confined to the province of Tumbes and the department of Piura, located in the extreme northern end of the republic and adjacent to the southern border of Equador. The first real production came from Zorritos field, located on the shore line and in the province of Tumbes. The production of this territory was soon exceeded by that of the Negritos field, also located along the shore line and in the northwest corner of the department of Piura. Talara, lying a short distance north of the original or early producing area was made the shipping port. This field was developed by the London Pacific Petroleum Co.; it is now-operated by the International Petroleum Ltd. (Toronto, Canada). A little later, the Lobitos field came into prominence; it was first exploited by the Lobitos Oil Co. At present, it is operated by the British Oilfields Ltd. This field is located between Talara, on the south, and Zorritos, on the north. It is now the second largest producing area in the country, the Negritos being by far the largest both in area and production. In other parts of Peru, there have been periods of desultory prospecting, particularly in the department of Puno. This work was carried on in the surrounding region of what,is locally known as the "Pirin" field, developed by the Brown Brothers. It lies between Juliaca, a railway junction point and Lake Titicaca. No favorable results from the latest prospecting have been reported. During the past few months, an opinion has been expressed in various journals that it is doubtful if commercial production will be found in the high plains of the Lake Titicaca region. It is, however, due to the Peruvian oil industry to remember that the Pirin field, although covering but a small area, was a fair producer even under adverse circumstances. If the author's interpretation of the geology of the Titicaca section is correct, certain sections of the high plains will be found to be commercially productive, not-withstanding the unfortunate geographical position from the standpoint of transportation; or its elevation.

Jan 3, 1925