Lubbock Avalanche-Journal from Lubbock, Texas on April 6, 1975 · Page 36
Get access to this page with a Free Trial
Click to view larger version
April 6, 1975

Lubbock Avalanche-Journal from Lubbock, Texas · Page 36

Publication:
Location:
Lubbock, Texas
Issue Date:
Sunday, April 6, 1975
Page:
Page 36
Cancel
Start Free Trial

Page 36 article text (OCR)

6-F—LUBBOCK AVALANCHE-JOURNAL—Sunday Morning, April 6, 1975 Discussion Of Pump Monitor Planned At Course Electronic monitoring of motor current during oil pumping can analyze'equip- ment wear and help prevent pumping malfunctions and expensive damage to pumping equipment, according to a Houston-based electronic instruments manufacturer. T. A. Hudgins, executive vice president, Delta-X Corp., Houston, will detail the function and benefits of the average motor current method for oil field pump-off control April 17 during the two-day Southwest Petroleum Short Course at Texas Tech University. Lack of proper pump control can cause mechanical damage to pumps, gear boxes and sucker rods, according to Hudgins. Lack of control also is largely responsible for fluid pound, gas locks and other pumping problems. "There are significant differences in motor current during normal pumping versus pump action when the well is pumped-off (fluid level is low)," he said. "Equipment is available which monitors motor current and can provide information about pumping action, certain malfunctions and rod parts and pump wear from the same input information. "The average motor current method is adaptable to automation," Hudgins said, "and economic analysis of method applications indicated very early payout and high return on the investment. " Hudgins' discussion is one of 44 technical and general in- terest presentations scheduled. More than 350 members of the petroleum industry are expected to attend the two-day meeting sponsored by Texas Tech's Department of Petroleum Engineering. Registration for the 22nd annual short course will begin at 8 a.m. April 17 in the Texas Tech University Center. Presentations will begin at 10:Ob on.several topics concurrently in locations throughout the campus. Sessions will continue through April 18. Registration fee for the short course is $30. Course in- formation may be obtained through the Department of Petroleum Engineering at Texas Tech. Proceedings of the course will be published before the meeting and made available to participants. The proceedings are sought each year by oil companies, libraries and research laboratories both in this country and abroad. A-J Oil News ] PGP Names Taxes May Drop President r\ -11- T i Drilling Level THE ROUSTABOUT By RAY WEST BROOK THE INTERSTATE OIL COMPACT COMMISSION claims the lifting of price controls on oil produced through secondary and tertiary procedures would increase daily production by 350,000 barrels and U.S. reserves by 10 billion barrels. In exchange, the consumer would pay about two cents extra per gallon, IOCC says. A study compiled recently by the commission at the request of the Federal Energy Administration, concluded that with such a return, decontrol would be a bargain for the nation. lOCC's report is derived from data representing 4,300 enhanced recovery projects and 125,000 producing wells. The wells are produced by some 900 operators from 28 states which account for 98 per cent of all oil recovered by extraordinary means. While initial flowing or pumping operations sweep some 30 per cent of the oil from an underground formation, a rising percentage of the remaining oil can be gathered by waterflooding and other repressuring devices. IOCC contends that if higher prices were received for oil produced by secondary or tertiary methods, .declining reservoirs would suddenly become targets for the workover rig. And additional oil supplies would follow that type of activity. U.S. PRODUCTION currently totals 9.2 million barrels per day. with 3.8 million barrels of that amount contributed by enhanced recovery processes. Of the 3.8 million barrels, approximately 2.4 million barrels have a federally controlled price of $5.25 a barrel. Decontrol would likely increase that price to $11.50, IOCC indicated. The commission said decontrol could be expected to result in nn average increased production of 350,000 barrels a day between 1975 and 1980 over that expected under the tsvo-tier price system. During the same period, U.S. reserves would increase by approximately 10 billion barrels because of a longer operating life for enhanced projects and expected increases in capital investments. IOCC said. The report indicates the producing life of a project is directly related to the price of oil. A $1 increase in price results in the additional recovery of over 100 million barrels of oil and additional production of 10.000 to 15,000 barrels daily, IOCC said. The commission thinks a good portion of the increase in production and reserves would be made possible by capital expenditures in new and existing enhanced recovery projects. DURING THE NEXT FIVE YEARS, an estimated 4,000 new projects are expected to be initiated if price controls are dropped. "Over halt of these projects and nearly half of the anticipated investment of $6.9 billion would not be economically feasible under the present two-tier arrangement," IOCC said. The study indicated that decontrol of enhanced recovery would have little effect upon consumer prices. "At 58 per barrel, refined product costs would rise less than one cent per gallon. At $15 per barrel, the cost would be about three cents per gallon." the report stated. At current free market prices for crude, consumer costs would likely increase by about two cents a gallon. The IOCC executive committee, in voting to back price relief on enhanced recovery oil, concurred with the report's prediction that oil from this source will increase in both importance and proportion. The study indicated that 14.6 billion barrels of recoverable oil now exist in enhanced projects, and that at least 60 billion barrels of oil may eventually be recoverable. LOUISIANA'S GOVERNOR, Edwin Edwards, told a recent FEA hearing that decontrol of enhanced recovery would also benefit his state's marginal wells. Marginal producers, or stripper wells, operate in a free market so long as they produce 10 barrels per day or less. Any oil above that level is subject to controls. Edwards, this year's IOCC chairman, contends that such an economic climate discourages operators from doing additional work on a stripper well since increased production comes under the federal price ceiling. Edwards told the FEA that while stripper well lease exemptions provide essential revenue and incentive to the small operator, it docs nothing to promote more daily production. "In fact, present regulations penalize an operator for improving his well, and they reward him for ignoring enhanced recovery and other methods of stimulating more production," liRsaid. "If price controls were lifted on enhanced recovery oil, America could substantially increase its daily production and its reserves, while saving billions of dollars in balance of trade deficits," Edwards said. Company Spuds Offshore Test FINDLAY, Ohio (Special) The first well to be drilled in Turkey's Sea of Marmara was spudded recently. The well is being drilled on a block of almost 988,000 acres held by a wholly-owned subsidiary of Marathon Oil Co. The well is being drilled from the drillship Glomar North Sea in approximately 377 feet of water at a point about 15 miles offshore. The site is some 43 miles southwest of Istanbul and 28 miles northeast of Bandirma. Planned well depth is approximately 8,500 feet. Members of the group include Marathon Petroleum Turkey, Ltd., C&K Petroleum,' Inc., Cheyenne Corp., and Terra-Marmara, Inc. ODESSA (Special) - Joe Feagan, of Midland, has been named president of PGP Gas Products, Inc., a subsidiary of Perry Gas Companies, Inc., headquartered in Odessa. Feagan has been manager of pipelines and plant operations for the West Texas district of Texas Oil and Gas Corp. since 1968. Prior to that assignment, he had been employed by Texaco, Inc., first as a gas engineer at the Fuller Plant ; near Snyder, then in Midland as a gas engineer and in gas contracts and plant operations. A native of Sweetwater, he graduated from high school there in 1953. Following service in the U.S. Army, he entered Texas Tech in 1957 and graduated in 1960 with a B.S. degree in Petroleum Engineering. He is now serving as a director of the Natural Gas Men of the Permian Basin, and is a member of the Society of Petroleum Engineers of AIME. Temporarily, Feagan is located in the parent company offices in Odessa, but plans call for the opening of offices in Midland within the near future. AIR COMPRESSORS .IAMTORIALSUPPURS KUMIGANTSAMORE! 1NDUSTIUALCHF.MICAI. 4 EQUIPMENT COMPANY :iMWEST7th AMAR1M.O, TEXAS APRIL It-WEDNESDAY 1»:Ma m. .larger Floury Air Comp.. Trlr. Mounlcd-Curtis Air Comp.. 10 hp.. gasolint • Spttdaire AirComp. 3hp- TJavInn Portable Generator, Dhp. R&S-High Pressure Spray Rig -SlreclMarkinf! Machine • FlameThrovrtrs • .Surcon Glass Peering Machine! Poliscnib Floor Scrubber - By MAX B. SKELTON HOUSTON (AP) Domestic oil and gas drilling activity held steady at a 13- year high the first three months of the year. Warren L. Baker, a veteran observer of such operations, predicts, however, that new taxes on the industry will bring a sharp decrease in drilling in coming months. Baker now is a consultant to the International Association of Drilling Contractors after having served the trade group as its executive vice president the past 16 years. "More U.S. taxes means less money to invest in U.S. drilling, which in turn means the discovery and development of less new oil and gas producing sources," Baker said. "The new tax bite will offset the favorable influence of higher crude oil prices which have stimulated U.S. drilling over the past 18 months." Baker said this means incentives to invest in the risky business of seeking new supplies of oil and gas will be curtailed severely. "However, repercussions will go far, far beyond this JOE FEAGAN raiol I yola Ma lion Wagon, OmpteleBrochu LIQUIDATION SALE! IRRIGATION EQUIPMENT NEW&USED WHILE IT LASTS . NOW THRU MARCH.. COME EARLY Located at WOLFE PECANLANDS Stephenville & De Leon,Texas If you come early... you'll find bargains in both new and used pipe ... because it was purchased before inflation... plus no commission involved . . . you deal with us direct. Call now! WHEEL SYSTEMS 19 Quarter mile units (used). PUMPS & MOTORS 4 Butane units (used). 10" ALUMINUM PIPE 16.630 It. (new). 4.690ft. (used). 8" ALUMINUM PIPE 4,830 It. (new). 15.330ft (used). 6" ALUMINUM PIPE 750 It. (new). 16.75011. (used). 5" ALUMINUM PIPE 5.940 It. (used). 4" ALUMINUM PIPE 4.560 ft. (used). MISC. FITTINGS Assorted sizes and unils. Call point," he said. "Without enough drilling to replace amounts produced, the nation's producing ability inevitably will gradually decrease and thereby cause thu U.S. oil and gas shortage to grow progressively more acute." Baker said it is unfortunate that new alternate sources of energy cannot be developed fast enough to furnish any appreciable supplies for at least another 10 years. "Hence, the nation will be in the throes of a truly serious shortage of domestic energy supplies within five years," he said. "As the shortage worsens, consumers will be forced to rely more and more upon the importation of large quantities of foreign oil for supplies to operate the .vast numbers of vehicles and industrial plants and for the production of heat, fertilizers, insecticides, and synthetic and plastic products." He said this will create higher inflation rates and higher unemployment in that increased imports will boost U.S. balance of trade deficits to intolerable levels before alternate domestic sources of energy can be developed. COTTON BXL COTTONSEEP Is A Time-Tested, Reliable MONEY CROP ...And GOOD QUALITY PLANTING SEED Of A Proven Variety Is A Major Factor In Producing A PROFITABLE CROP. LOCKETT BXL COTTONSEED • Resistant to NEMATODE FUSAR1UM WILT, the disease complex that is such an economic problem for cotton farmers in the light soils of the Southwestern U.S. • In the new red bag. THE FLEXIBLE VARIETY LOCKETT 4789-A COTTONSEED • Already a proven top performer in standard 40" rows, 4789-A proves out in extensive testing to be well-adapted to the new narrow row system. • in the blue bag. AVOID UNNECESSARY RISK... Plant Your1975 Crop With LOCKETT CERTIFIED High Quality 73 Crop Carryover Seed GINNERS AVAILABLE DEALERS • OR AT DIRECT FROM US. seed company S1A1E RtGlSURED PLAN! BREEDERS Vernon and Ropesville, Texas J' l! If you opened a savings account with Plains a few years ago, you've probably already built that home you were planning for back in those days. It's never too late to start planning your dream home. Put that home In your future; start saving with Plains where you receive highest rates of interest allowed by law. the MONEY people- helping M6NY people KUllllS* Ask For.'..' Q«n* O'Ntal (117) MS-3135 or Mftro 2S1-3491 Scatty Cimpb*H (»17) S93-85I5 •v < 4 j \MEMBER, FDIC NATIONAL BANK 50th & University 795-7131

Get full access with a Free Trial

Start Free Trial

What members have found on this page