159
44
At present it looks as if the world's requirements are likely to be readily met from natural sources of petroleum for many years and as long as oil prices in America remain at a low level and fresh fields continue to come into production it is difficult to see how oils prepared from coal can make much headway for commercial and industrial purposes. The same applies to oil produced from shale of which there are vast quantities available both in America and Australia, the cost of mining and retorting rendering their use unprofitable under existing conditions.
Notes are appended on recent developments in the chief oil producing
countries.
AMERICA.
CANADA, Canada's production of crude petroleum is comparatively small. The Ontario fields are yielding smaller quantities each year and the New Brunswick fields are responsible for only a few thousand barrels annually. The Alberta wells are yielding increasing quantities and exploration work is being carried on, principally by the Imperial Oil, Ltd, in several areas including the Peace River District. Trans- portation and climatic conditions in that area are difficult.
An interesting bulletin has been issued by the Geological Survey of Canada, dealing with the new Turner Valley oilfield (Alberta). This field, which is only 35 miles from the city of Calgary, is situated on the eastern edge of a relatively narrow belt of hilly country known as the Foothills, which lies between the Rocky Mountains and the plain country of Alberta. The oilfield is at present regarded as offering not only the possibility of good individual wells, but also encouragement for drilling on other favourable structures within the foothills.
UNITED STATES.-Crude oil production reached a maximum in July, the daily average for the week ended 30th July being 2,586,100 barrels. Since then production has slowly fallen off to approximately 2,400,000 barrels per day for the week ended 10th December. Production in both Oklahoma and California, the two leading states, decreased in October and November. An agreement to restrict output in the Seminole field came into effect on 5th August for 60 days and was renewed for another 30 days ending 5th November. The output of crude petroleum in Texas, however, recorded another increase in October and established a new record, for daily average production, of 609,700 barrels. Production in the majority of other states has declined due both to continued low prices and the approach of winter.
It will be seen, therefore, that the situation has temporarily changed from that indicated at 30th June, but it is questionable how long the decline in American output will continue. It is evident that the United States could produce a much larger quantity of oil than is shown in the figures of the daily average output. A large amount of production is "shut in," 80,000 barrels a day being estimated as shut in in California alone. Texas is regarded as being the largest source of potential future production. West Texas has the greatest possibilities. In four counties there are already five proved fields, and in fifteen other counties test drilling is under way. Some of these fields seem alone capable of producing as much oil as the great Seminole field. The West Texas output is steadily rising and will be increased materially as soon as certain pipe lines are completed.
During the year 1927 to the end of December it is estimated that crude oil stocks had increased by the large amount of 70,000,000 barrels.
1 595
45
The total stocks of oil at the end of December represented about 7 months' supply at the current rate of consumption, and it is obvious that the American oil industry is overburdened with crude oil in storage.
VENEZUELA. The production of Venezuela is increasing very rapidly. Figures for 1927 are only available up to the end of October and for that period the monthly production has averaged over 5,000,000 barrels as compared with 3,100,000 barrels in 1926 and 1,700,000 barrels in 1925. In July for the first time Venezuela exceeded Mexico in the volume of crude oil produced and it appears likely to become the third largest oil producing country, exceeded only by the United States and Russia. By far the two largest producing fields in Venezuela now are La Rosa" on the north-east bank of Lake Maracaibo, and Lagunillas" which has rapidly developed as a new field since 1926 and lies on the shore of Lake Maracaibo about 30 kilometres south of the La Rosa field.
cr
Disposal of Crude Oil. The bulk of the crude oil produced is exported in shallow draft lake tankers across the bar of Lake Maracaibo to ocean terminals outside and only a comparatively small quantity is refined in Venezuela.
CURACAO.-At Curacao the Royal Dutch Shell have a large installation and refinery at Willemstadt with storage accommodation for crude oil comprising 29 tanks having a total capacity of 1,822,500 barrels. New tankage is being built which will bring the storage capacity up to 2,160,000 barrels. There are built or building 171 tanks of various capacities for refined products and 135 tanks for refinery purposes making a total of 335 tanks. At Caracas Bay, about five miles east of Willemstadt, there is a fuelling station at which several new tanks are being erected with a total storage capacity of 675,000 barrels.
PARAGUANA. The Gulf Oil Corporation (of Pennsylvania) has established an ocean terminal outside the Maracaibo bar on deep water at Paraguana from which shipments are made to the Gulf refineries at Port Arthur, Texas and Bayonne (New Jersey).
ARUBA. The Lago Petroleum Corporation transports its oil in lake tankers from La Salina to its sea terminal at St. Nicholas Bay on the island of Aruba. St. Nicholas Bay is about 14 miles south-east of Oranjestadt (the capital) and is a good harbour completely land-locked by a coral reef. There is a T-shaped concrete dock 1,000 feet long, having a depth of 30 feet of water. Storage accommodation consisted in September, 1927, of seven steel tanks, having a total capacity of 520,000 barrels.
The Mexican Eagle Oil Company (Royal Dutch Shell) are reported to have ordered 22 tanks of 65,000 barrels each and 37 other tanks to be installed at their terminal and refinery site on this island.
EUROPE.
FRANCE. A Government Bill has now been laid on the table of the Chamber of Deputies to regulate the importation of petroleum. There have been proposals during the past two years for a French Government monopoly of petroleum. It appears that the Government have arrived at the conclusion that proposals for the purchase and import of petroleum by the Government itself are not practicable and the present
160