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Ever since petroleum and its products entered the realm of commercial commodities, there has been a ceaseless search throughout the two hemispheres for crude oil, and to-day there are comparatively few countries in the world where the presence of petroleum has not been proved. The ever-expanding uses of petroleum, which in their train have called for a continually increasing demand for crude oil, have given an impetus to the search for commercially productive oil-fields, which, in mining history, has no parallel. On the one hand, we have those important oil-producing regions which embrace enormous regions of the United States, Mexico, Russia, Roumania, the Dutch Indies, India, and Galicia; on the other, we find comparatively recent enterprise which is bringing into prominence the newer oil-producing regions of Egypt, Trinidad, Canada, the Argentine, Algeria, and various parts of Australia and Japan, though in several of these latter mentioned countries, the production of petroleum has been carried on by private means for not only many years, but even for centuries.

It naturally follows that, with the constant withdrawal of large supplies of crude oil from Mother Earth, Nature’s stores must be growing less, and it is not surprising, therefore, to hear, with persistent regularity, alarming rumours of the coming dearth of crude oil. Experts have devoted considerable time and thought in an endeavour to arrive at a conclusion as to the length of time it will take for the withdrawal of practically the whole of the crude oil from the known deposits in the more developed fields: their conclusions, however, are widely different, for while some assert that in the United States, for instance, the known fields will cease to be commercially productive within forty years, others there are who declare that centuries must elapse before the question of a failing supply need call for serious consideration.

But there is one point which must not be overlooked in this connection, and that is the fact that, while thus far very few thoroughly developed oil-fields have shown signs of permanent decay, there are numerous others which, while having already furnished conclusive proof of their productivity, have, for the most part, been but slightly developed. Each passing year registers the incoming of fresh oil-producing areas, while numerous regions in practically every part of the world, giving much promise of the success of ultimate oil developments, are as yet virgin territory.

The cry of possible shortage of supply was, fortunately, made at the opportune moment: it was a word of warning, and was taken to heart especially by those associated with the development of the older producing oil-fields. In these fields—whether we look to America or Russia—there has always been considerable waste of crude oil, mostly in regard to furnishing power for oil-field operations, while the natural gases which exude from the wells themselves, and to which reference is made in another chapter, have, in times past, been allowed to pass uncontrolled into the atmosphere. To-day, however, we see conservation in every direction—thanks to the application of scientific and engineering knowledge, combined with the exercise of care—and there is no doubt that this new factor will tend in a greater degree than may at first be imagined toward the preservation of Nature’s stores of crude oil for unlimited time.

With these few general remarks, let us proceed to briefly survey the principal oil-fields of the world, leaving those which are in the process of development or exploitation to later consideration.

The United States.—In no other country has such continuous progress been recorded in connection with the production of petroleum as in the case of the United States. Quite recently, the U.S. Geological Survey estimated that there are no less than 9,000 square miles of oil-bearing territory in the States, yet the petroleum industry was not commercially established until the early sixties of the last century. It was in Pennsylvania that the industry had its birth, and the troubles which beset Drake, the pioneer, have filled many pages of early oil literature. His first well, which produced quite a modest yield of crude oil, was at Titusville, Pa., which spot soon became a thriving town. And as Pennsylvania was the scene of the early successes, it also became the pivot round which the petroleum industry of the States prospered for many years. Until 1885, the Pennsylvanian fields furnished over 98 per cent. of the production of crude oil: then a gradual decline set in, until, at the present time, Pennsylvanian regions do not produce 10 per cent. of the oil output of the United States. No sooner had the petroleum industry been firmly established in Pennsylvania than an active search was made for the precious fluid in various parts of the States, and one by one new oil regions were opened up, but it is interesting to recall the fact that, even in the first developed oil-producing region, no district has been entirely abandoned as exhausted of oil, for to-day wells are being pumped quite close to Drake’s first well and the scene of the birth of the American petroleum industry. In the zenith of its prosperity, the Pennsylvanian field produced nearly 5,000,000 tons of crude oil per annum, but to-day the output has fallen off nearly 40 per cent.

When it is mentioned that the output of crude petroleum from the various fields of the United States last year was over 40,000,000 tons, the magnitude of America’s oil industry will at once be apparent. The regions known as the Mid-Continent fields—and which embrace the extensive oil-producing regions of Kansas and Oklahoma—are responsible for a very large portion of this output. Each field has its various “pools,” the most famous of this part, perhaps, being the Cushing pool, which came into prominence but a few years ago. Toward the end of 1914, it was estimated that the daily output of Cushing was 35,000 tons of crude oil. Cushing, like all other prolific oil districts, has many interesting stories associated with its rapid rise as an oil-producing centre, and there are instances on record where, in the course of a few days, land values have increased tenfold.

The rise of the Californian fields, too, is an example of the rapidity with which oil regions can be developed. California’s output in 1919 was, roughly, 120,000,000 barrels of crude oil, or over 14,000,000 tons. It possesses nearly 900 square miles of oil-lands, and though at one time a great difficulty was experienced in disposing of the crude oil production, since it was of a somewhat low grade, the position has now been reversed, and the consumption of petroleum products is greater than the supply. With the improvement of the methods of drilling, and the debut of the rotary system, it has been possible not only to drill to much greater depths, but to considerably reduce the time requisite for drilling a well to the oil sands. Californian records for quick drilling with the rotary machine show that wells have been got down to the producing sands, in some fields nearly 4,000 feet below the surface, within one month. This deep drilling policy, which is now much in vogue among Californian oil operators, has proved the existence at the greater depth of larger volume of oil of far better quality than that met with in the shallow strata, and it is to the discovery and consequent development of the deeper oil horizons that much of California’s recent advance is due.

Though but of small significance, the oil-wells in Summerland, Cal., call for mention for the reason that these are drilled in the sea at quite a distance from the coast. The encroachment of sea-water to the wells themselves is prevented by the continuance of the tubes in the wells to a height above the level of high-water mark, the produced oil being piped to the mainland.

There is no doubt that a wonderful future awaits California in regard to its oil export trade. The Far East is largely drawing upon the State for crude oil for treatment in the Far Eastern refineries: the oil-burning vessels of the Pacific rely upon Californian fuel oil for their supplies, while the opening of the Panama Canal, and the establishment of oil storage depots there, has brought California within easy transport distance of the European markets. During the past few years several cargoes of Californian refined oil have, in fact, come upon the English market.

The oil-fields of Texas have, perhaps, witnessed more “boom” periods than any other oil regions of the States. The Gulf coastal fields which embrace Texas and Louisiana, came into prominence some seventeen years ago, and they were not long in recording an output of over 5,000,000 tons in a single twelve months. The prolific districts of Spindle Top, Sour Lake, Humble, etc., attracted rapid attention, and the speculator in oil lands became immensely rich. But these boom periods cannot be said to be of much real value to the oil industry, for they are always followed by times of depression, when fortunes are lost almost as quickly as they have been made. To-day, the Gulf coast fields have settled down to a period of steady expansion; systematic development is taking place in every field, and, as in California, the policy of deep drilling has been eminently successful.

THE GLEN POOL—ONE OF AMERICA’S OIL PRODUCING CENTRES

Space forbids my entering into details respecting the more recently developed or partially exploited fields of America, but it is safe to say that there is scarcely a single State that does not hold out hope for profitable oil development: this is evidenced by the large amounts of new capital which are to-day finding employment in regions which are only commencing their oil-field history.

There is no other oil-producing country in the world where the petroleum industry has reached such a highly organized state as in the United States. Each producing field is connected by means of underground pipe-lines with the trunk pipe-line system, by which it is possible to pump oil from the most distant fields direct to the Atlantic seaboard. Some of the principal lines are hundreds of miles in length. In another chapter I deal with this wonderful system of oil transportation: it is, therefore, unnecessary here to more than mention it en passant. The oil-refining branch of the American petroleum industry is also particularly well organized and up to date, but with this subject, too, I deal at length elsewhere.

A TYPICAL GEOLOGICAL SECTION SHOWING THE OIL SANDS

Mexico.—The oil-fields of Mexico can claim to have leapt into prominence at a far more rapid rate than any other oil-field of importance in the world. Their development has been phenomenal, and from being practically unknown sixteen years ago, they now rank as the third largest producing regions, coming but next to the United States and Russia. My object in dealing with the Mexican fields prior to referring to the Russian petroleum industry is that they may be said to form an integral part of the fields of the New Continent, and, from many points of view, are linked up with the petroleum industry of the United States. Indeed, there are several authorities who are now urging that it is to Mexico that the United States Government must look if it is to be in a position to furnish the major portion of the petroleum products required for the markets of the world. Another reason for my dealing with Mexico at the moment is that, when development operations are carried a little further, and when ocean transport facilities are available for adequately dealing with the flood of Mexican petroleum, there is not the slightest doubt that Mexico will rank as the second largest country of petroleum production. Its annual output of crude oil is, approximately, 8,000,000 tons, but even this figure in no way represents the productivity of its prolific oil-producing regions, for according to the official statement of the Mexican Government the production in 1918 represented only 10 per cent. of that possible. The Mexican wells have no parallel in the world, large as have been some of the oil-fountains in Russia.

It will be of great interest here to refer briefly to these, and though it would be impossible to detail all those Mexican wells which have ranked quite outside the limits of ordinary producers, I will touch only upon two of these remarkable oil gushers. They both were drilled on the properties owned by the well-known English firm of Pearsons, the operating company being the “Aguila” (Mexican Eagle) Company. It was in 1906 when the Company commenced active drilling operations in Northern Vera Cruz, and though these were very successful from the start, it was two years later that the famous “Dos Bocas” well came in. A heavy gas pressure developed when the rotary drill was down just over 1,800 feet, and in a few minutes the internal pressure manifested itself by bursting the wire-wrapped hose connected with the drilling apparatus. The oil then commenced to come to the surface in an immense stream, and in twenty minutes the well was beyond control. Fissures began to appear in the ground at considerable distance from the well, and through these came oil and gas. One of these fissures opened directly under the boilers, and though the fires had been drawn, the gas ignited. The position was well-nigh hopeless from the start, the well itself was throwing out an 8-inch column of oil hundreds of feet in the air. The force of the volume of oil below ground flung the heavy English drill pipe out of the well, and soon it became impossible to approach within 300 feet of the “mad gusher.” The flames of fire are said to have reached 1,000 feet in height, and inasmuch as all ground round the well had fallen into the cavity caused, they were over 50 feet in diameter. And for 58 days did this gusher burn with all the fury imaginable, its glare being seen far out at sea. Anything approaching an approximate production of oil from this well will never be made: it can safely be recorded, however, that its mad flow of oil ran into many millions of barrels, and it is placed on record that nearly 2,000,000 tons of solid earth were carried away by the force of the oil from the well’s mouth, for a crater of nearly 120,000 square metres was formed round the well.

A GUSHER OF THE MEXICAN EAGLE CO. UNDER CONTROL—A DOME BUILT OVER THE MOUTH

Toward the end of 1910 another surprise was in store for those in charge of drilling operations for the Company, for it was then that the world famous “Protero del Llano” gusher came in. This well ranks as one of the largest, if not the largest, ever associated with the petroleum industry. Its estimated daily flow was over 125,000 barrels, and within three months the well had produced over 8,000,000 barrels of crude oil.

During November, 1919, a new field at Naranjos was developed by the Mexican Eagle Co., and the first three wells to come into production, commenced to yield over 30,000 tons daily.

It says much for the enterprise of the Pearson (Lord Cowdray) interests that they have been able to build up such a remarkable business in Mexico’s oil industry in so comparatively a short space of time. The production of crude oil, as everyone knows, is but the first link in a long chain of commercial oil operations. To-day, the Mexican Eagle Oil Company owns considerably over 250 miles of pipe-line (mostly of 8-inch capacity), possess several miniature railways, and on the fields of production has bulk oil storage accommodation for several million barrels of crude oil. It has also two large refineries—one at Minatitlan and another at Tampico, which together are capable of handling over 5,000 tons (about 35,000 barrels) of crude oil daily, and turning the same into a complete range of high-grade products—motor spirit, illuminating oils, lubricants, fuel oil, paraffin wax, and an asphalt for road-making.

An interesting equipment of this Company in Mexico is that of its sea-loading pipe-lines at Tuxpam. Here, the water inside the bar is too shallow to allow the gigantic bulk oil-carriers of the Company’s associated concern—the Eagle Oil Transport Company, Ltd.—to come alongside and load. Pipe-lines have accordingly been laid on the bed of the sea reaching out to a loading terminal a mile and a half out at sea. Here, the pipe-lines are connected with the steamers by means of flexible hose, and three or four tank vessels can be loaded simultaneously from the storage tanks on shore. In one recent twelve months alone over 200 oil tankers were so loaded in this way, and on the average, each was loaded and dispatched within 2½ days, for the pipe-line facilities permit of 10,000 tons of oil being pumped into the vessel’s tanks every 24 hours.