Technology is the art of applying the laws and principles of science in an economic manner for social benefit. The American petroleum industry stands as an outstanding example of the social service accomplished by technology in competitive industry under the American republican form of government. Petroleum and its products are made available in large volume and at low cost to all citizens. Petroleum and its products are the bulwark supporting American industry, military defense, and standard of living. Modern petroleum production technology is relatively new, although it is founded on long established scientific principles. The new production technology is founded in part on the principle that America must conserve its petroleum resources, and in remaining part on the pr nciple that the production industry must continue to supply America with petroleum in large volume at ever lower and lower cost to consumers. The new technology came into existence with the acceptance of the principle of petroleum conservation. Conservation involves the concept of "wise use" in elimination of obvious waste and the utilization of practices that bring about the maximum recovery of oil and gas consistent with economic use. Conservation is accomplished by maintaining production within the limits of reasonable market demand for petroleum and by resort to practices that efficiently utilize reservoir energy usually by the practice of pressure maintenance operations.

The objectives of conservation are best achieved with the new technology by resort to unit operation of oil and gas pools whereby the inescapable necessity to divide the common source of supply among its owners is accomplished before the oil and gas are recovered in order to eliminate destructive competition and to permit all owners to work cooperatively to reduce the maximum amount of the petroleum to beneficial use.

The public has a very substantial interest in conservation, and, therefore, the modern petroleum technology is of great public benefit. In addition, a large segment of the public has direct or indirect ownership of the petroleum industry and a large segment of the population finds employment. Conservation is achieved in the leading oil and gas states through appropriate legislative enactments which are accomplished only as a consequence of public understanding of the problem involved. An obligation rests upon technologists interested in petroleum production who have a regard for the importance of petroleum conservation to educate the public and those charged with the administration of conservation laws in the purpose, the method and the objective of the new production technology.

Any competent person can practice the new production technology. It is not, however, a field for amateurs, the uninformed, or the individual who would substitute opinion for fact and who would be satisfied to sacrifice a part of the resource for individual gain. Under the new technology, outmoded concepts in respect to well spacing must be re-examined, and an understanding of the conservation aspects of unit management and operation of common sources of supply must be developed.

End_of_Article - Last_Page 1671------------