Increased Profits Through Low-Cost Alarm Telemetering On Producing Leases
Authors: Statton R.E. 
Published: December 2007

Publication Rights Reserved
This paper is to be presented at the 38th Annual Fall Meeting of the Society of Petroleum Engineers of AIME in New Orleans, La., on October 6–9, 1963, and is considered the property of the Society of Petroleum Engineers. Permission to publish is hereby restricted to an abstract of not more than 300 words, with no illustrations, unless the paper is specifically released to the press by the Editor of the JOURNAL OF PETROLEUM TECHNOLOGY or the Executive Secretary. Such abstract should contain conspicuous acknowledgment of where and by whom the paper is presented. Publication elsewhere after publication in the JOURNAL OF PETROLEUM TECHNOLOGY or SOCIETY OF PETROLEUM ENGINEERS JOURNAL is granted on request, providing proper credit is given that publication and the original presentation of the paper.
Discussion of this paper is invited. Three copies of any discussion should be sent to the Society of Petroleum Engineers office. Such discussion may be presented at the above meeting and considered for publication in one of the two SPE magazines with the paper.

Abstract
Two unique alarm telemetering systems were recently installed on leases in Southeastern New Mexico. Purpose was to increase profits by reducing lease attendance and downtime for equipment failure. The lease is dialed through conventional telephone facilities and signals are received on a lighted panel board which tell whether various equipment is operating normally or is in need of attention. Telephone facilities between the lease transmitter and the office receiver are furnished by the telephone company at a monthly cost slightly higher than normal telephone services. The systems were installed on eight-party lines and do not interfere with normal use of the telephone lines. The first system included four alarms and cost $3,700 installed for an estimated two-year payout. The second 12-alarm system was an integral part of automatic production facilities; estimated payout for the entire facility was two years. Reduced installation costs and improved economics are anticipated on future installations through varied modifications and applications.

Introduction
Many of the trips made by a pumper to an oil lease are made only to make sure equipment is operating normally.
Alarm telemetering is another method of making this check; for some leases it is a more profitable method.
The purpose, then, of alarm telemetering is to increase profits by reducing lease attendance and/or downtime for equipment failure.
Two-alarm telemetering systems were recently installed in Southeastern New Mexico. The purpose of this paper is to tell of my experience with these systems and what was learned from this experience.
In this paper I will try to make three points:
alarm telemetering is profitable on certain leases, we encountered some difficulties installing and operating the systems but these difficulties were minor relative to profit potential and there are several possible modifications for improving economics of future systems.
In making these three points I will answer eight questions:
What is alarm telemetering? What is different about the systems installed?, What equipment was used and how does it work?, How much did it cost and what profit will be realized?, What difficulties were encountered?, What are its limitations?, Where is it applicable? and What plans and changes are proposed for future installations?