xt72z31nj52w https://nyx.uky.edu/dips/xt72z31nj52w/data/mets.xml  Kiessling, O. E. (Oscar Edward), 1901- 1939 Other contributors: National Research Project on Reemployment Opportunities and Recent Changes in Industrial Techniques (U.S.); United States. Bureau of Mines. xxvii, 346, [3] p. : ill., maps ; 26 cm. Mineral technology and output per man studies ; rept. no. E-10. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call number FW 4.7:E-10. books  English Philadelphia, Pa. : Work Projects Administration, National Research Project in cooperation with Dept. of the Interior, Bureau of Mines Contact the Special Collections Research Center for information regarding rights and use of this collection. Maryland Works Progress Administration Publications Mechanization, Employment, and Output Per Man in Petroleum and Natural-Gas production by O.E. Kiessling [et al.] text Mechanization, Employment, and Output Per Man in Petroleum and Natural-Gas production by O.E. Kiessling [et al.] 1939 2015 true xt72z31nj52w section xt72z31nj52w I
      I I H ICr\/\/·’—}`.·7* I   .
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  V D TE<;I-INDI.DcY, EMPLOYMENT,
 · %     I AND OUTPUT PER MAN IN ~
    A    PETROLEUM AND
U   v NATURAL-GAS
   _    A PRODUCTION  
3 I    
        MUSAM
  1 I >’2’§%'§,!§.
  `.   I WPA
      wDRI< PRDJEcTs ADMINISTRATION
    I . O· NATIONAL RESEARCH PRDJEc;TA~¤
;   ‘¢ j DEPARTMENT OF THE INTERIOR
    BUREAU OF MINES I
I  2g~T

 i
WPA NATIONAL RESEARCH PROJECT
Reports issued to date
General
G-1 Unemployment and Increaslng Productlvlty (out of print}
G-2 The Research Program of the National Research Project
G-3 Summary of Flndlngs to Date, March 1938
G-4 Effects of Current and Prospectlve Technological Developments
Upon Capital Formation
G—5 Industrial Change and Employment Opportun1ty--—A Selected Bibliography
A—3 Selected References on Practices and Use of Labor on Farms (out of print}
Studies in Types and Rates of Technological Change
Manufacture
M—1 Industrial Instruments and Changing Technology
M—2 Mechanlzatlon ln the Brick Industry
B—2 Mechanical Changes in the Cotton-Textlle Industry, 1910 to 1936 (Summary}
5-3 Mechanical Changes ln the woolen and worsted Industrles, 1910 to 1936 (Summary}
B-5 systems of shop Management ln the COCEOH-Garment Industry (out of print)
Mining
E-1 Technology and the Mineral Industries (out of print}
E-3 Mechanlzatlon Trends ln Metal and Nonmetal Mlnlng as Indicated by Sales of
Underground Loading Equipment
E-5 Fuel Efficiency ln Cement Manufacture, 1909-1935 (out of print}
V E-6 Mineral Technology and Output per Man Studies: Grade of Ore (out of print)
Agriculture
Changes ln Farm Power and Equipment:
. A-2 Mechanical Cotton Picker
A—9 Tractors, Trucks, and Automobiles
A—11 Field Implements (in press)
Studies in Production, Productivity, and Employment I
Manufacture
9-1 Production, Employment, and Productivity in 59 Manufacturlng Industries, 1919-38
Productivity and Employment In Selected Industries:
N-1 Beet Sugar
N-2 Brlck and Tlle
B-1 Labor Productivity ln the Leather Industry (Summary)
B—4 Effects of Mechanlzatlon ln Cigar Manufacture {Summary}
B-6 Labor Productivity ln the Boot and shoe Industry (Summary} ·
(List continued on inside back-cover}
-P'
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 5
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FEDERAL WORKS AGENCY
WORK PROJECTS ADMINISTRATION
F. C. HARRINGTON CORRINGTON GILL
Commissioner Assistant Commissioner
umwy) NATIONAL RESEARCH PROJECT
on
Reemployment Opportunities and Recent Changes
in Industrial Techniques
Y DAVID WEINTRAUB
Director
#2
In cooperation with
. UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF MINES
JOHN W. FINCH, Director
L919—38
Mineral Technology and Output Per Man Studies
O. E. Kiessling, Economist in Charge

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'COMING OUT OF THE HOLE" — A ROTARY DRILLING CREW
"BREAKING A STAND" OF DRILL PIPE
In rotary dri]Iing it is necessary to remove the driii pipe from the hoie
and to return it in the performance of certain tasks. This operation -
caiied a "round trip"- consists of unscrewing the driii pipe in sections
(usuaI_Iy IH "stands" of 3 or u joints), racking the stands, and Iater
reyoining the stands as the pipe Is returned to the hoie. where the weiis
are deep and 2 miies OF VTIOFG 0f_DIP€ mu$I_ D8 handied, 12 hours or more may
be required to make_ a round trip. Special equipment, such as the tongs
shown dripping the Joint to be "oroken", are essentiai aids to manpower In
Virtua Iy ali oai-fieid operations.
I
I
—" V V V f'
5
 

 TECHNOLOGY, EMPLOYMENT, AND OUTPUT PER MAN
IN PETROLEUM AND NATURAL—GAS PRODUCTION
;, O. E. Kiessling, H. O. Rogers, G. R. Hopkins, N. Yaworski,
H R. L. Kiessling, J. Brian Eby, Lew Suverkrop,
A J. S. Ross, R. E. Heithecker, W. B. Berwald,
A Andrew W. Rowley, M. A. Schellhardt,
Richard Sneddon, Boyd Guthrie,
Herbert Schimmel, and
| J. C. Albright
  l
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  -
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{R; WORK PROJECTS ADMINISTRATION, NATIONAL RESEARCH PROJECT
3;; In cooperation w1t.h
ln DEPARTMENT OF THE INTERIOR, BUREAU OF MINES
Report No. E—1o
Phtladelbhia, Pennsylvanta
July 1939

 1
l
y
r
, THE WPA NATIONAL RESEARCH PROJECT
l ON REEMPLOYMENT OPPORTUNITIES AND RECENT CHANGES
IN INDUSTRIAL TECHNIQUES C,
Under the authorlty granted bythe President in the Execu-
tlve Order which created the works Progress Administration,
Administrator Harry L. Hopkins authorlzed the establlshment
` of a research program for the purpose of collecting and ana-
] lyzing data bearing on problems of employment, unemployment,
and relief. Accordingly, the National Research Program was
established 1nOctober 1935under the supervl sion of Corrington
` Gill, Assistant Administrator of the NPA, who appointed the
directors of the lndlvldual studies or projects.
The Project on Reemployment Opportunities and Recent Changes
ln Industrial Technlques was organized in December 1935 to
inquire, with the cooperation of lndustry, labor, and govern-
mental and prlvate agencies, into the extent of recent changes
in industrial techniques and to evaluate the effects of these
changes on the volume of employment and unemployment. David
Weintraub and Irving Kaplan, members of the research staff
· of the Division of Research, Statistics, and Finance, were ap-
pointed, respectively, Director and Associate Director of the
Project. The task set for them was to assemble andorganlze
the existing data which bear on the problem and to augment
these data by field surveys and analyses.
To this end, many governmental agencles which are the col-
lectors and repositories of pertinent information were in-
vlted to cooperate. The cooperating agencies of the United
States Government lnclude the Department of Agriculture, the
Bureau of Hines of the Department of the Interior, the Bureau
of Labor Statistics of the Department of Labor, the Railroad
Retirement Board, the Social Securlty Board, the Bureau of
Internal Revenue of the Department of the Treasury, the De-
partment of Commerce, the Federal Trade Commission, and the
Tariff Commission.
The following private agencies joined with the National
Research Project ln conducting special studies: the Indus-
Cl"1Bl Research Department ofthe University of Pennsylvania,
the National Bureau of Economlc Research, Inc., the Employ-
ment Stablllzatlon Research Institute of the University of
, Minnesota, and the Agricultural Economics Departments ln the
` Agricultural Experiment Statlons of California, Illinois,
Iowa, and New York.
 _;;_-
2
 

 FEDERAL WORKS AGENCY
WORK PROJECTS ADMINISTRATION
I734 NEW YORK AVENUE NW.
WASHINGTON. D. C.
i F. C. HARRINGTON
COMMISSIONER OF WORK PROJECTS
 -
  Juiy 2s, 1939
 
B.
as Colonel F. C. Harrington
on Commissioner of Work Projects
ne
Sir:
BS The report on Technology, Employment, and Output per
*9 Mon in Petroleum and Fatural—Gas Production, submitted
l` herewith, deals with an industry which occupies an im-
I portant place in our national economy. Oil and gas
id together now supply more than a third of the country's
H, total energy requirements. Total gross investment in
)_ the industry was reported to have been 14.5 billion
ne dollars in 1957. Annual expenditures for supplies needed
ze in oil and gas production were estimated at 876 million
in dollars for 1935. Three—quarters of a million workers
were engaged in the transportation, refining, and market-
L- ing segments of the industry in 1955, and an additional
1- 135,000 wage earners were employed at oil and gas wells
za and natural—gasoline plants in the same year.
ZE Contrary to the outlook for most of the other
ld extractive industries, it is expected that over-all em-
yy ployment opportunities in oil and gas production probably
a- will increase for at least the next decade and a half,
ne although the manpower requirements of the different
divisions of the industry will vary. The upward trend
al of employment at oil and gas wells — characteristic of
3- developments until 1929 — has been resumed and probably
i, will continue for the next 10or15 years. Thearresting
v- of employment expansion in this segment of the industry
JY during the depression years resulted largely from the
*6 drastic curtailment of drilling and its restriction
S' to proved areas rather than from advancing technology.
With growing consumption, the drilling operations, which
require a large part of the labor force in oil and gas
production, have been resumed ona more extensive scale
in recent years. This development may be expected to

  
1
 
` continue, for it appears likely that demand will continue
to increase.
It isalso likely that a larger labor forcewillbe
requiredeatnatural-gasoline extractionplants. Astead-
, ily growing demand for the lighter constituents of raw
t natural gasoline, which for many years were allowed to
go to waste, plus the wider use of polymerization at
natural-gasoline plants are factors tending toward an
upward employment trend.
Corresponding closely tothe trend ofcrude-oil and
natural-gas production, employment in refining reached
an all-time highiri1937, when 83,i83 wage earners were
employed in the manufacture of petroleum products. On
the basis ofpresentanticipateddevelopments, moreover,
labor requirements at refineries probably will continue
to increase for possibly the next 15 years.
No extensive changes areanticipated inthe employ-
ment needs of the transportation andstorage segment of
the industry in the next decade. The relatively small
labor force now required for maintenance and operation
possibly will continue to decrease slightly with the
installation of more efficient equipment at remaining
old plants, but with<1large part ofpipe—line operations
alreadynmchanized,futureopportunitiesforlaborsaving
in this manner are very limited. On the other hand,
there is little promise of resumption of an extensive
construction program which would greatly increase em-
ployment. Theneed forstoragefacilitieshasdecreased,
for example, becausecafmore effective proration of oil
production. Furthermore, the crude-oil and gas pipe-line
network isnow fairly well completed. Prevailing tanker
rates have operated to increase the tanker movement to
the East Coast andto eliminate through-pipe-line move-
ments from the Mid-Continent, and the shifting of the
center ofproduction southwardin recent years has reduced
the average length of pipe-line movement incident to
consumption at Gulf and East Coast refineries. In view
of thesedevelopments only<1moderate extension ofcrude-
oil lines may beexpected forthe next decade. Likewise,
y the prospects favor gradual extension of gas lines in
i the East, and gas from the recently proved deposits in
California eventually may be piped north to Oregon and
Washington. Continued gasoline pipe-line construction
on a moderate basis will doubtless continue.
A factor that cannot be ignored when future employ-
ment possibilities are being consideredis the length of

 intlnué the workweek. How important thisxnaybe is illustrated
by a brief resume of significant changesirxwork sched-
Mill be ules in the past two decades. After the World War the
St€¤d_ majority of refineries established an 5-hour day with
Of raw a 48- to 56-hour workweek. Under the NRA the length
wed to of the workweek was reduced UD4O hours. This schedule
ion Qt for refinery workers and a similar one for operating
Grd an employees ofmajor transportation companies were gener-
allv followed at the time of the enactment of the Fair
Labor Standards Act of 1938. Since both the refining
il and and the transportation divisions were already largely
Qached complying with the maximum-hour provisions of the 1938
s were act, no large increases in employment took place in
s. On the industry when this law became effective, and only
eover, a moderate increase can be expected in the future. In
ntinue drilling operations, however, therehas been anincrease
in employment dueto the maximum-hour provisions. Prior
to this regulation the employees of a number of pro-
npl°Yi ducing companies, as well as drilling contractors, worked
Ent OI a 56—hour week. To conform with the 44-hour maximum
Small prescribed for the first year of the law•s operation,
rGtiOn these companieshired<1considerable number ofadditional
n ing men. Purtherincreases inthe number ofnmn mnployed are
lining anticipated in the second year of the law•s operation,
ltions when the workweek will be shortened to 42 hours, and
saving again after 2 years, when the workweek will be limited
hGnd» to 40 hours. The long-time trend shows a notable re-
Bnslvg duction in the length of the workday and the workweek,
*9 @m* and this reduction has been an important factor in
Eisen; maintaining and expanding employment in the industry.
>i oi
"linQ Respectfully yours,
Lanker \ l
ent to //{f:::>*
mOV9_ 04*0-1-•-• 0;... /
»f the
>duc@d csrxingtsn eiii
¤T TG _ Assistant Commissioner
nview
rude-
wise,
es in
ts in
n and
ction
p1¤Y-
th of

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A
F

 CONTENTS
Chapter PBQQ
PREFACE. ..................... xix
ACKNOWLEDGMENTS .................. xxv
I. INTRODUCTION . .................. 1
Objectives of the study. . . . . . . . . . . . . 2
Scope of the inquiry . . . . . . . . . . . . . . 3
II. LONG—TIME TRENDS IN PRODUCTION, EMPLOYMENT, AND
OUTPUT PER MAN. . ....... . . . .... B
Factors influencing early development. . . . . . B
Growth of production . . . . . . . . . . . . . . 11
Crude oil ................... 12
Natural gas. . . . . . . . . . . . . . . . . . 15
Petroleum refining . . . . . . . . . . .... 15
Natural gasoline . . . . . . . . . . . . . . . 16
Trend of employment. . . . . . . . . . . . . . . 16
Oil and gas wells and natural—gasoline plants 18
Refining ................... 22
Pipe-line transportation . . . . . . . . . . . 24
Increasing output per worker employed ...... 25
Oil and gas wells and natural-gasoline plants 26
Refining . . . . . . . . . .......... 27
Pipe—line transportation . . . . . . . . . . . 28
Recent tendency toward greater divergence
between trends of production and employment 3O
III. INFLUENCE OF MIGRATION TO NEW FLUSH—PRODUCTION
AREAS .................... 34
Shifting centers of oil and gas production . . . 35
Rise and fall of producing States ...... . . 37
Increasing size of producing units ....... 42
Regional differences in output per man ..... 46
A IV. DEVELOPMENT OFEXPLORATION AND DISCOVERY TECHNIQUES 5O
Early exploration methods ........ . . . . 52
Surface indications. . . . . . . . . . . . . . 52
Rising importance of geology ........ . 53
Geologic mapping ............... 54
Modern exploration and discovery methods .... 54
Development of geophysics ........... 56
Aerial photography .............. 57
Paleontology turned to practical account . . . 59
Achievements of scientific exploration . . . . . 59
ix

 5
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‘ x CONTENTS
Chapter Page
I Contribution of various methods of discovery
· to production and reserves. . . . .... GO
Cost and employment involved in finding oil. . 64
Future of discovery ....... . ....... 67
Chances of random drilling . . . . . . .... 68
Prospects forscientific exploration methods. . 69
Future employment in exploration ....... 73
` V. DEVELOPMENT OF DRILLING TECHNIQUES ........ 75
Early drilling practices . . . . . . . . .... 77
Technical advances in drilling ......... 79
Shift from cable to rotary drilling ...... 90
4 Technique of water exclusion . . . ...... 85
Trend toward deeper drilling .... . .... 92
Directional drilling . . . . . . . . . .... 93
Larger derricks .... . . .......... 96
Improved circulating systems ......... 99
Coring formations. . . . . . . . . . . . . . . 102
Formation testing. . . . . . . . . . . . . . . 107
Improved power plants. . . . . . . . . . . . . 107
Unitary drilling machinery . . . ....... 111
Other improvements in equipment ........ 111
Portable drilling rigs . . . . . . . . . . . 114
Better materials ............... 115
Improved completion practices ......... 116
Efficient transportation of machinery and
p supplies. ........ . . . . . . . . 119
Prospects of further technical progress in
drilling ...... . ........... 119
VI. TECHNOLOGIC ADVANCES IN PRODUCTION ........ 124
Early production practices . . . . . . ..... 126
Early advances in production methods ...... 127
` Large flowing wells as a special problem . . . 132
Increased importance of production engineering 134
` Present production practices . . . ....... 136
Tubing wells for production. . . . . . . . . . 137
Oil and gas separators ............ 14O
Advanced lifting techniques. . . . . . . . . . 141
Mechanical pumping systems .......... 143
Better handling and temporary storage
facilities at wells . . . . . . . . . . . 146
water from oil wells, oil and water emulsions,
and paraffin formation. . . . . . . . . . 147
Squeeze cementing. . . . . . . . . . . . . . . 149
E Acid treatment . . . . . . . . . . . . . . . . 15O
3 Natural forces harnessed and controlled for
greater recovery. . . . . . . . . . . . . 153
 
 

 CONTENTS Xi
Paée chapter Paée
ry Unit operation the technical ideal ..... 157
. . 60
1 B4 Technical aspects of production regulations. . 159
Secondary, or stimulative, recovery methods. . 163
. . 67
Water-flooding . . . . . . . . . . . . . . . 164
· · 68 Repressuring with air or gas . . . . . . . . 165
s. . 69
73 Improvement in production technology to continue 167
_ 75 VII. TECHNOLOGIC PROGRESS IN NATURAL—GAS AND NATURAL-
GASOLINE RECOVERY .............. 170
. . 77
_ _ 79 Technologic developments in natural-gas
production ................. 173
. . 80
85 Improvements in discovery and drilling
O _ 92 techniques ......... . ...... 173
93 Improvements in gas-well operations. . . . . . 176
' ' 96 Advancing technique in natural-gasoline
' ' 98 production. . . . . . . . . . . . . . . . . 180
. . 102
. . 107 Early production processes .......... 181
. . 107
111 Rise of the absorption process . . . . . . . . . 182
· l 111 Prospective changes in labor requirements. . . . 186
114 VIII. DIFFICULTIES INCIDENT TOINCREASING PRODUCTIVITY. . 190
115 Mounting physical difficulties . . . . . . . . . 190
• • 116 Increasing depth of wells. . . . . . . . . . . 190
Engineering problems introduced by deep
· · 119 drilling ................. 194
Rising costs ofdrilling and equipping wells. . 197
119 Increasing ratio of dry holes. . . . . . . . . 199
° I Decline in discoveries by random drilling. . . 202
. . 124
Legal and economic handicaps .......... 204
. . 126
127 Competitive drilling and the law of capture. . 205
l O Trend toward control . . . . . . . . . . . . . 207
. . 132
ring 134 The worker's stake in waste prevention and
production control .......... . . . 210
_ _ 136 Results of the struggle against hardicaps to
efficient production and against increasing
· · 137 physical difficulties . . . . . . . . . . . 213
. . 140
_ _ l4l IX. ADVANCES IN TRANSPORTATION AND STORAGE TECHNIQUES 217
‘ ' l43 Early transportation methods for crude oil . . . 217
Development of tank wagons, trucks, and cars . . 216
’ ‘ 146 Development of oil pipe lines. . . . . . . . . . 221
ons,
. . 147 Pioneer experiments with pipe lines. . . . . . 222
. . 149 First successful pipe line . . . . . . . . . . 223
. . 150 Beginning of longer and larger lines . . . . . 223
r Requirements of manpower for transport . . . . 226
. . 153

 1
x
 
  xii CONTENTS
t Chapter Page
¤ Changes in construction and maintenance
i_ methods and their effects upon labor
M` requirements. . . . . . . . . . . . . . 229
Development of pumping equipment . . . . . . . 233
Modern pipe—line operation . . . . . . . . . . 236
Natural-gas and gasoline pipe lines ..... . . 237
` Natural-gas pipe lines .... . . . . .... 237
y Gasoline pipe lines. . . . . . . . . . . . . . 238
Marine transportation. . . . . . . . . . . . . . 239
;, Improvements in tanker design. . . . . . . . . 241
Development of storage techniques. . . . . . . . 242
Growth of tank storage and tank farms. . . . . 243
_ Reduction of storage losses. . . . . . . . . . 246
Other changes in storage practices . . . . . . 249
* Advances in transportation and storage
techniques to continue. . . . . . . . . . . 251
Effect of technical improvements on employment 251
j_ X. TECHNICAL ADVANCES IN REFINING ........ . . 254
p The crude beginnings .............. 255
The batch era ................. 255
Developments during transitional period. . . . . 257
Beginning of continuous distillation . . . . . 257
Improvements in steam distillation . . . . . . 258
Growing recognition of petroleum's
potentialities. . . . . . . . . . . . . . 259
Cracking and accompaniments. . . . . . . . . . . 260
Changing character of demand . . . . . . . . . 261
Refining technology revolutionized by cracking 261
. Development of pipe stills .......... 262
J Introduction of the fractionating tower .... 263
Modern refining technology . ..... . . . . . 266
Growth ofcracking and itseconomic significance 266
. Manufacture of lubricants. . . . . . . . . . . 269
Improvements in treating processes . . . . . . 269
Development of complete plants . . . . . . . . 270
Vapor-recovery and stabilization plants. . . . 271
Development of automatic control ....... 272
Decline of hand firing and advances in fuel
_ efficiency. . . . . . . . . . . . . . . . 277
Hydrogenation and polymerization . . . . . . . 280
?

 CONTENTS xiii
Paée Chapter Page
Influence of technologic change on labor
requirements. . . . . .... . . . . . . . 282
• 229
Displacement caused by continuous process,
· 233 improvement of equipment, and increased
· 236 capacity. . . . . . . . . . . . . . . . . 283
Changes effected by adoption of automatic
· 237 control . . . . . . . . . . . . . . . . . 284
_ 237 Net effect of technologic advances . . . . . . 286
. 238 Outlook forfurther technical advances inrefining 288
. 239 Impending changes in techniques. . . . . . . . 288
_ zél Prospective changes in labor requirements. . . 292
_ 242 XI. EMPLOYMENT PROSPECTS IN THE PETROLEUM AND NATURAL-
GAS INDUSTRY ................. 294
. 243
· 246 The bounty of nature . . . . . . . . . . . . . . 294
· 249 Petroleum reserves . . . . . . . . . . . . . . 295
Natural-gas reserves ............. 296
251 Prospects for the future ........ . . . 297
b 251 Probable future demand . . . . . . . . . . . . . 298
254 Trend of population. . . . . . . . . . . . . . 299
I Probable increase in number of motor vehicles 3OO
, 255 Prospective course ofmotor-fuel consumption. . 301
Outlook for future requirements .... . . . . 304
. 255
Future demand for manpower . . . . . . . . . . . 306
. 257
Oil and gas wells. . . . . . . . . . . . . . . 307
. 257 Refining ................... 310
I 258 Natural gasoline ............... 310
Transportation ...... . . . ....... 311
. 259 Summary of short- and long-time outlook. . . . 312
260 STATISTICAL APPENDIX . . ........ . .... 315
261
S 261 TEXT CHARTS
252 Figure
263 _ _
1. Illustration of production ofpetroleum, natural gas,
255 and natural gasoline, and principal steps in flow
of products to consumers ............. 5
2 266
259 2. Employment in the oil and gas industry in the
259 United States, by major division, 1935 . . . . . . 6
270
27l 3. Long-time trends of production in the petroleum and
272 natural-gas industry . ............ . . l3
4. Long-time trends of employment in the petroleum and
277 natural-gas industry ............... 19
280

  
I
3
 
I xiv CONTENTS
TEXT CHARTS—C0ntinued
Figure Page
· 5. Rise in output per man-hour in the production of
oil, natural gas, and natural gasoline and in
‘ petroleum refining ........ . . . . . . . . 27
5. Volume of transportation service, number of wage
earners, and output per man in transportation of
` oil by pipe lines, 1922-37 . . . . . . . . . . . . 29
7. Contrasting rates of change in production, employ-
ment, and output per man for major producing
divisions of the oil and gas industry, 1909-37 . . 31
, 9. Shifting centers of petroleum and natural-gas
production . . . . . . . . . . . . . . . . . . . . 36
Q. Changes in relative importance of major petroleum
and natural-gas producing districts. . . . . . . . 4O
10. Trend of number and average output of oil and
x natural-gas wells, 1902-87 . . . . . . . . . . . . 43
11. Impetus given petroleum production bygreater average
output per well in newer producing States and by
, the increasing importance ofStates with relatively
high average production per well . . . . . . . . . 45
j 12. Variations in average output of crude petroleum per
wage earner employed byregular producing companies
in selected States in 1935 . ...... . . . . . 47
13. Number of million-barrel oil fields, by method of
discovery, 1922-38 . . ......... . . . . . 61
Z 14. Cumulative production and cumulative ultimate
, production of million-barrel oil fields, by method
J of discovery, 1922-38. . . . . . . . . . . . . . . 62
. 15. Reserves at the end of each year in fields with more
than a million barrels of ultimate production, by
` method of discovery, 1922-88 . . . . . . . . . . . 64
16. Number of geophysical crews and cost of geophysical
` field work for petroleum exploration in the
United States, 1934-38 ........ . ..... 65
17. Important features of a hole being drilled by modern
rotary methods . . . . . . . . . . . . . . . . . . B4
18. Record of increasing depth of drilling in the
United States, 1925-38 . . . . . . . . . . . . . . 92
19. Important features of a modern rotary-drilling rig
and accompanying surface equipment . . . . . . . . 109
4 20. Indicators of increasing physical difficulty ex-
. perienced in petroleum and natural-gas productior
1890-1988 .................. . . 192
 

 CONTENTS xv
TEXT CHARTS-Continued
Page Figure Page
21. Long-time changes in prices of crude petroleum and
petroleum products relative to the general price
. . 27 level in the United States, 1869-1937. . . . . . . 215
22. Principal pipe-line movement of crude oil, gasoline,
>f and natural gas, January 1, 1939 . . . . . . . . . 225
. . 29
23. Indicators of technical progress in the pipe-line
'- transport of natural gas . . . . . . . . . . . . . 239
_ _ 31 24. Crude petroleum conserved by the cracking process,
1920-37 ...................... 268
_ _ 36 25. Control instruments available for modern straight-
distillation unit (topping plant). . . . . . . . . 275
_ _ 40 28. Control instruments available for a modern
rectifying unit. . . . . . . . . . . . . . . . . . 276
_ _ 43 27. Increasing fuel efficiency in petroleum refining,
1909-37 ......... . .......... . . 278
age
Y 28. Energy consumed in petroleum refining, by types,
Bly 1909-37 ..... . ................ 279
' ' 45 29. Effect of increasing capacity and continuous process
_r on labor requirements in petroleum refining. . . . 287
Les 30. Estimated trends of crude-petroleum production
· - 47 to ieee; ...................... sos
61 APPENDIX CHARTS
A-1. Comparison of number of wage earners employed, as
reported in census of mines and quarries, with
nod number of gainful workers attached, as reported
· 62 in census of occupations, in the oil and gas
re industry, 1870-1937 ................ 347
~y A-2. Indexes of production, man-hours, and output per
. 64 man-hour in crude-petroleum, natural-gas, and
l natural-gasoline production, 1880-1937 ...... 348
A-3. Crude petroleum run tostills, employment, and output
. 65 per man in petroleum refining, 1880-1937 . . . . . 349
"‘ TEXT ments
· 84
Table
. 92 1. Production and value of the major products of the
petroleum and gas industry, 1937 . . . . . . . . . 4
109 2. Cost of drilling wells in selected oil fields, 1935 QOO
3. Cost of drilling and equipping oil wells and cost of
I drilling dry holes, by State, 1935 . . . . . . . . 203
192

 1
X
ig
`Y xvi CONTENTS
APPENDIX TABLES
Q Table Page
` A-1. Number of wage earners employed in petroleum,
natural—gas, and natural-gasoline production and
the number employed in other mineral industries,
1909-35 ..... . . . . . . . ......... 316
A-2. Employment in the oil and gas industry, by major
division, 1935. . . . . . . . . . . . ..... . 317
A—3. Number of wage earners and salaried employees
employed by regular producers and by contractors,
in petroleum, natural—gas, and natural—gasoline
, production, 1935 ....... . . . . . . . . . . 318
A-4. Employment in wholesale distribution of petroleum
and its products, 1935. . . . . . . . . . . . . . 319
A—5. Employment in retail distribution of petroleum
i products at filling stations, 1935. . . . . . . . 320
A—8. Number of oil wells, production, and value of
~ output, 1859-1937 ....... . ........ 321
A-7. Number of natural-gas wells, production, and value
of output, 1889-1937. . . . . . . . . . . . . . . 322
i A-8. Number of natural-gasoline plants, production, and
p value of output, 1911-37. . . . . . . . . . . . . 323
A-9. Number of petroleum-refining establishments,
quantity of crude oil run to stills, and value of
products, 1880-1937 . . . . . . . . . . . . . . . 324
A—10. Comparative summary of salient census statistics
‘ for producing enterprises, excluding contractors,
in crude-petroleum, natural-gas, and natural-
gasoline production, 1880-1935. . . · . . . . . . 325
A-11. Number of wage earners employed in petroleum,
natural-gas, and natural-gasoline production,
1880-1937 . . . . . ........ . . . . . . . 327
A-12. Number of gainful workers attached to the crude-
petroleum and natural-gas extractive industry,
1870-1930 .................... 328
A—13. Barrels of crude oil run to stills, employment, and
output per man inthe petroleum-refining industry,
1880-1937 ................. . . . 329
A-14. Number of gainful workers attached to the pipe-line
industry, 1910, 1920, 1930 ............ 329
A-15. Volume of transportation service, number of wage
earners, and output per man in oil transportation
by pipe lines under the jurisdiction of the
~ Interstate Commerce Commission, 1922-37 . . . . . 330
 
 

 CONTENTS xvii
APPENDIX TABLES-Continued
Page Table Page
A-18. Indexes of production, man-hours, and output per
man-hour in crude-petroleum, natural-gas, and
natural-gasoline production, 1880-1937. . . . . . 331
316
A—17. Average output per oil w