Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1932-06-04

dent of that concern
Estimating the consumption Of
crude Oh a. one billion barrels
for 1882. which IS approximately
the figure both FOR 1889 and
1881, additional net profits Of
$500 eos. 600 will accrue to the
oil companies and petroleum pro-
ducers Of the United States this
year As the direct result Of re-
sent price advances.
on Prices Up
Crude oil prices. the survey
points out. have increased SO per-
cent in the last year while re-
finery gasoline and tank wagon
prices have advanced rs percent
in the same period.
stll further advances, quite as
drastic as those which already
have been made, may be looked
for during the next twelve
months.
Need More OH
with regard to over-supply,
the survey says in part The
United States faces. within
much shorter time than most
people imagine. an actual short
age in its crude oil supplies.
During the lsst rive years It has
not been the discovery Of new
pools that has produced an over
supply All OF the new pools
found in that period would not
have prevented an acute short
age.
1T has been because the
development Of very strong al
10y steel. which lIghtens the
weight OF drill-stems and increas-
es their strength. has made pos
sSble the drilling Of horizons
which profitably could not be
reached before. AS the result
Of suddenly improved drilling
equipment and drilling methods
the fields that have been discov-
cred BY approximately $4,000
welIs during rs years, Of which
10000 we're dry holes. were
drilled to depths Of 5000 to
1000 feet below the depths pre-
viously developed.
Drilled Deeper
.eFhe fields which had produc-
ed to depths Of s.00e to 1900
feet some eight billions barrels
o. oil during something less than
20 years. we're in the last five
years in large measure duplicat-
ed as to production without the
expense and hazards Of explOra-
tion and the time element which
always is involved IN locating
new structures.
these deep drilling cam
paigns on known structures, COM
bined with water flooding the
application Of the air-gas lift
and other methods for more rap
idly exhansting the supplies Of oil
IN known sands, have been re-
sponsible for 4,s0o.ooo out Of
The 5000, 600 barrels or more
.hat were suddenly made avail
sble. But even with al this, the /
Dver-supply was not as great,
when reflected in terms Of days .
Il consumption. as the industry I
las seen a dozen times since is h
beginning as years ago
No Over-supply
Since the beginning OF the
industry. total productlon has on
y amounted to shout fouTteen 4
,Hllon barrels. Although improv y
d cracking methods. hydrogeaa~ h
ion and other scientific devel y
lpments make one barrel 81 Oh q
% more than two would hare II
one few years ago. consump D
ion ID AZ the rate Of a.ooo. 0oe
90 barrsla ysar and Is steadily u
increasing.
There are comparatively few a
reas which offer the possibili-
les Of new Wildcat fields. Moss
( them have been partially de-
med by previous drilling and are
cid In large solid blocks, There I'll
ore, such new fields a. can be
iscovered can be expected ia
are cases only TO be built 10
ito many ownershsps and in
spable 81 control as we're the
ID fields that have been re
rilIed At now depths 10 the Lass
w years
Al to conditions within the ia
uatry itself. tbs suEveY points al
6a 49, - .14~.-.l4 - t M