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- W2050557009 abstract "The purpose of this paper is to sum up for you the economic point to which our technological progress in reservoir engineering has brought us; to analyze some of the current obstacles to more rapid progress; and to point out the broader responsibilities in the area of executive work that are more and more being opened to engineers. With this group there is no need to trace the beginnings of reservoir engineering, nor to emphasize the accelerating rate of growth of our knowledge and understanding of its principles. Today reservoir engineering and it concepts are an accepted branch of oil producing technology; accepted by producers, by regulatory bodies, and by the courts. Its principles are inextricably woven into the general concept of oil and gas conservation. In fact the legal basis for acceptance of its findings by regulatory bodies and courts of law rests largely on the concept that application of reservoir engineering principles will result in conservation of oil and gas resources for the welfare of all the people. Only a few of the new crop of engineers each year are unaware of the importance of economics in the practical application of reservoir engineering principles. The rest of you learned because management executives were always scrutinizing projects and laying down the law about the economic practicality of various proposals. But that situation is changing rapidly these days. Many engineers are themselves part of management; others are in the process of being trained to become part of management. Therefore the detailed screening of the economic phases of reservoir engineering projects is being done more and more by engineers themselves. Top executives are apt to check only the overall figures and conclusions. This is a highly desirable trend. But if it is to continue and accelerate, then engineers must become more executive minded in their thinking about the practical economics of reservoir engineering projects. They must display a willingness to accept responsibility for checking broader aspects and longer term phases of economic problems. Let me cite an example of executive minded thinking about conservation projects. For many years now the elimination of flaring of casinghead gas has been recognized as a highly desirable conservation objective. Literally hundreds of people have talked and written about the subject. Less than 10 years ago, two distinguished authorities in this field were testifying before a Federal Power Commission hearing on gas in Houston. Here is the gist of what they told the Commissioners at that meeting. A price of 10 cents per thousand for gas at the well head will do more to stop waste and achieve true conservation than all of the actions of all the regulatory bodies in the country, plus all the public agitation on the question. Subsequent developments in gas prices and conservation results have served to emphasize the sagacity of these two men." @default.
- W2050557009 created "2016-06-24" @default.
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- W2050557009 date "1953-10-19" @default.
- W2050557009 modified "2023-09-25" @default.
- W2050557009 title "Conservation Versus Realistic Economics" @default.
- W2050557009 doi "https://doi.org/10.2118/294-g" @default.
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