Casper Daily Tribune Newspaper, February 15, 1925, Page 24

ro ay PAGE TEN NATURAL GAS COMES INTO ITS OWN HISTORY HOLDS LIME INTEREST Industrial and Domestic Consumption Now Large ge. BY MAXWELL W. WINTER Secretary New York Oil Company Natural gas in Wyoming, until rece years, } the poor re- lation of the oil n fan I days when the annu: terri resources cas the pr f oll, through the years when eries were disappointment equivalent to fallure abandoned, and the gas this great resource of W gradually come into today its value to the s develop- » oll de. that can- Naturally ment did n velopment 1 and there ket of consequence for the individual producer tically all early develc n Gov- ernment 0% ands. Distance to thickly settled cor ities, the question of title to the properties, and the er nvestments re quired for £ asport- ing the gas to n. ot until the oll ped to the point t It was ths dev H establish of ng re ries in Wyo- ming, thus building up the commun!- tles and establishing a market for that any impetus was given ent. The of! indus- d 1s the chief main- industry in Wyo- to the records ey, approxi. bic feet of gas 1 utilized tn Wyo € ison of the de. ndustry may }-¢natthe weak ears ago now r fuel consumption and residents of eight gas producers of 1a market composed of 1 and some domes suiners. At the present time the prodjicers are numbered by the industrial consamers tn eds, and the domestic con ands. ndustri h sumers in the tens of thouss the Gas {n commercial quantities has \ €be Casper Daily Cribune Some of the 8,000 Tank Cars Operated Out. of Casper been found tn: some 18 to 20 produc ing structures in Wyoming. ( proven sources of gas supply without « present market or eo sated that not ava utiliza time. As the de- this industry de- velopment pe of dent upon utilization of the com odity, the production as here men. has been confined to the ‘om which gas {s marketed By far the greater part of the owth of the industry, both of mar- ket and production has ocourred during the past five years, ni-hough all of the deyelopment since 1911 and 1912 1s worthy of note. Prtor to th tinte natural gas In Wyom- ing 1 no market other than for field purposes and well where gas production happened to be avatilable. While large quantities of gas in 6 or 8 prospective ofl fields were re- ported by the Territorial Geologists, in 1886 and 1888, the real gas devel- opment and first attempt at perma- nent utilization may be sald to have commenced with the discovery of commerctal gas in a well drilled by Philip Miner near Basin and Grey- bull in 1908 and a well in the Byron field by John D, Lescamp in 1909. The well near Basin was partially plugged and abandoned but tn some way was set on fire and burned for some three years The Alvord Brothers and Homer Lamb of Sis- tersville, West Virginia, attracted by reports of the hurning gas well se cured acreage in the vicinity and riled several wells. . Their pany, the Blg Horn Of! and G Company, piped gas to Greybulll and Basin, constructed a distributing system and furnished gas to the res- identa. Natural gas has been used con- tinuously for domestic consumption in Greybull and Basin since 1911, It THE HOME OF ee Ferndell PURE FOODS With the customer is the k thandising. Our delivery This makes it possible for promptly and with a minir Bran Purchasers of These S Gr Pcure COFFEE seit SPICES AND FERNDELL PURE FOOD PRODUCTS ILLMAN’S QUALITY exacts PRODUCTS is of our success in mer facilities are unsurpassed us to handle all our orders mum per cent of errors. d Of uperior Table Supplies lue for Their Money These Are the Finished Products of Sixty Years ’ Experience WE SOLICIT YO! UR PATRONAGE QUALITY—COURTESY—SERVICE PHONES 4251 AND 1252 JohnsonBros. GroceryCo. 638 East Second St. TRADE HERE--IT’S A DISTINCT Casper, Wy ECONOMY Gasoline extraction plants in Wyo- ming are capable of treating” a to- tal of 104,258,000 cubic feet of na ural gas dail icing together from E more than 92,000 gallons of casinghead gasollne. There are + thirteen to be the most popular method, since {t tn used by en of the operators, while compression is used four. Natural condensation serves read fly enough for Wertz Dome gas which is heavily saturated with gas- oline. Carter O!l company ----..-. B. T. Williams O4 cumpany ~ Hope Natural Gas conipayny - Lovell Gasolino cotapany ... Midwest Refining company —-. Midwest Refining company — Ohio Of company ~. Ohi¢ Ol company Producers and Ref! Producers and Refine! Wyo-Kans Oil company TOTALS Armstrong Gas company --_.-—___. Corporation - Producers and Retinara Corporation — Casinghead gasoline is highly yol- utile and ordinarily requires dilu- tion before use in a motor. In real- ity the extraction plant is one branch of refining in an elementary stage. That 1s considerable factor in the total output of gasoline in in the state, each of th » j this state, converting in a way a ing one or a combination of sey-| by-product of natural “wet gas, is eral processes. Absorption appears | seen in the full capacity dally out- put 400 gallo; to barrels of 42 gallo: a day, Ps Kiggest tants at Casper. ‘The lergest plant in the state and closes to the greatest In the world, is the 82,000,000 cubie-foot capacity Location Method Rock Creek Salt Creek or reduced 2,100 barrels Absorption « Necural Absorption -Salt Creek is now distributed by the Wyoming Gas Company through 18 miles of gas mains. In 1918 Greybull Refinery was constructed at Greybull. Gas for fuel wands supplied to the refin- ery in 1914 through a 41 mile 6-Inch Pipeline of the Illinois Pipeline corm pany from the Byron field, but tn 1920 the Midweat Wyoming Corn- pany constructed a 35 mile pipeline to the refinery and the towns from the Ohfo Oil company wells at Hid den dome. The Hidden Dome pro- duction utilized amounts to some four billion to 800 million cuble feet per annum of which the domestic consumers, numbering more than a thousand, used about 10 per ce In 1912, according to the of the survey, cas was piped fr the Byron Field .o the town of By- ron for domestic con town owning the distribut This ‘project resulted from well drilled by Lescam 1916 gas service was the Byron fleld to Lovell Lovell Gas and Electric At the present time thi is distributing ¢ industrial o by Compan of Lovell, Byron 4 has @ distributing miles of mains and supp! 500 domestic and small consumers. The production from the Byron field utilized this mar ‘oximates some cut niivear Gas for domestic, field and camp Dp oses has been used in the § c camp, n Midwes: and t } ld since 1913 ‘ mption in Wy r field t nestio consumption lustrial reached the billion cubic eet mark, By 1918 this had increas ed to ex t . by 1920 to ten bil Mon, and by 1921 to 15 billion. Gas consumption in Wyoming is now es- timated to be in excess of 30 billion euble per annum. The increase in 1920 and 1921 was due principally }to the refinery industria! and do- | mestic consumption at Casper. 7 New York O!! company 1 commercial gas at Iron 18 the Ohio Oi! com as wells in the 1 South Casper three gas Nes west of I n1920 the y from its wells and those of ‘argo Ol] company brought gas to Casper and the refineries through Casper New York Oil pA a 28% milo pipeline and for more than three years supplied the market with some 5% billion cuble feet per annum, The domestic market in creased enormously with Casper's growth until at the present time this company {s supplying some 6700 do- mestic consumers through a 45 mile pipeline from theso fleids and the Boone Dome structure with a dis- tribution system of some 62 miles of matns, The present consumption from these fiefs is approximately two billion cuble feet per annum. In 1921 the Rocky Mountain Gas Company constructed a 12-mile pipe- Une from the Byron Field to Powell, supplying about 65 million cublo fect per annum to between 300 and 400 consumers through an eight mile dis tributing system, In 1922 it constructed a pipeline from the Ohie Ol Company is at Mahone to Rawlins oming distributing through some 33-mile w w | to Thermopolis where it ¢ gas 1 from t 3 Dome domestic and 3 the Midwest Re 11 miles of gas mains to more than 1,000 domestic and small industrial consumers. The annual consump, tion by this market ts approximately 600 million cuble feet. * In 1921 the Producers and Refin- ers Corporation and the Midwest He- fining Company constructed a 90. mile pipeline from Wertz and Ma honey Domes to Casper, the largest tural gus pipeline in Wyoming From the Producers and Refiners wells in these fields and Ferris field and from the Ohio Ofl Company wells in"Mahoney Dome, some 30 to 35 million cubic feet per di | delivered to the Midwest and Stan-| dard Refineries. ss the Producers and Refiners | ation constructed a 23-mile from Its woils fn the to Riverton exter a distance to Lander, a 66-mile pipell sin Field where t had developed s gas to Bil and Bric This company conve: ‘actured gas distr e from » Ohio lings nat syat and these four tows and 4,000 domestfe and Indus. | 1 consumers with, approximately | ton cuble feet per 4nnu ugh a 58 mile distributi: tem, | nil In 1922 the Thermopolis Gas Com pany constructed a 30-mifle pip constructed a 46-mil pany Ine from the ming, to Casper where saved from casing head gas in Salt Creek is utilized for fuel by the Mid west and Stands tefinertes. The gas utilized in Casper from this source amounts to some 4% billion guble feet per annum. During the present year the Pro- ducers and Iefiners Corporation has constructed a 20-mile pipeline from its wells in Baxter Basin to Rock Springs where it distributes gas to domestic and industrial consumers | through a 26-mile distributing sy tem. During 1924 {t has also construct: ed a 14-mile pipeline frorg the wells of the Hatfield O11 ands Gas Com pany on Eight Mile Lake structure to Its refinery at Parco and to the town of Parco. The distributing system Is several miles in length and the consumption is approximately | six or seven million eublo feet per | day. These pipelines aggregate more than 355 miles {n length and the dis. tributing systems more than 245, a total of some 600 miles of gas mains in Wyoming. Wyoming natural gas {ts supplied to 14 citles and towns tn Wyoming and four in Montana. These, to- gether with the refineries, field camps end drilling wells, constitute the present fuel market for our nat- ural gas. No attempt has been made to pre- sent in detall the present availiable gas production {n Wyoming or the apparent probable supply for the fu. ture. While the present avatiable production ts more than sufficient Absorption .-. Absorption - NATURAL GASOLINE PLANTS OF STATE EQUIPPED TO RECOVER 02,000 GALLONS OF FLUID DAILY compression plant’ of the Midwest Refining company in Salt Creek. Second largest in the state {is the ab- sorption plant of the Producers and Refiners corporation (Prairie Oil and Gas company) west of Casper two miles, The capactiy of this giant ex- tractor of gasoline from gas is 30,- 000,000 cubic feet. In the future as Wyoming im- mense natural gas fields are opened up and utilized, other extraction plants will be built in all parts of the state, adding to the already large casinghead gasoline output in Wyo ming. Cap. Ou Ft. Yid Gal. 3,000,000" 3,000 10,000,000 . 10,000 1,500,000 1,500 6,000,000 2,400 3,000,000 1,500 32,003,000 45,000 1,500,000 6,000 10,000,000 10,000 750,000 000 on .. 80,000,000 00% Condens 8,000 4,000 6,090,000 1,000 690.000 1,000 - 104,258,000 92,400 to come, @ large proportion must nec- essarily await the time when new industries or increasing demands of the residents and industries of Wyo- ming justify the expenditures nec- essary for transportation to market. While the economic use of oll with its varied constituents has been de- veloped by the utilization of many by-products, the only progressive steps toward economic and efficient utilization of gas has been the ex- traction of the gasoline content and refinement of appliances for effi- cient burning of gas for fuel. Gasoline extraction 1s an {mport- ant phase of the industry. It per- mits the utilization of a commodity ally wasted. Re- nline content slightly moval Dn decreases the heat value and volume of the gas treated but in turn, over comes the tion in t losses due to cordenss gas mains and pipelines. There are ten gasoline extraction | plants In oper this is but phase tion in Wyoming, and the beginning of this of the industry. In almost instance the residue gas is| for tield, ddmestic and it | purpose: The Midwest Refining Company in 1917 constructed tho first gasoline traction -plant in Wyoming, ex: acting gasoline from easing head gas in the Salt Creek Field. Addl tons have heen made until the time its lants 1 Sab Creek have a capactty to handle of gas per da ollne recovery amounts approximately 20 million gal'ons pe annum, In 19f8 the Obto Of Compar compression plant in the « field with a « acity sufficlent to handle four lion cubic feet of casing head gas per da The gasoline recovered by this plant amounts to some 8,000 ns pes day, absorption plant tn Salt Cree canacity sufficient to handie intilion cuble feet pf gas daily, has 10 approximately 10,000 ilions of gas: oline being recovered dally. The residue gas Is returged to the fle] lines for camp and field purposes. \ to| In 1922 the Producers and Refiners | constructed a gas! plant at Casper ine absorption Wyoming, having « capacity of 50-million cubie feet of gas per day. This plant ex tracts the gasoline from the natural gas from Wertz, Ferris and Mahone Domes, the entire residue gas being utilized by the Midwest and Standard Refineries for fuel. The gasoline recovery is understood to be in ex cess of 1% million gallons per an num In 1923 the Producers and Corporation constructed a sorption process plant Wyoming with a capacity eight million ecuble feet day, This plant Refiners gasoline Riverton of gas pe extracts gasoline from the gas produced from Sand Draw, The entire residue gas ts used ‘by domestic and industrial consumers at Riverton and Lander for fuel. The gasoline recovery 1s understood to be in excess of 160 thousand gallons per annum, The Eastern Fuel Company at Cowley, The Lovell Gasoline com- pany at Lovell, The Armstrong Gas Company at Rock Creek, the Hope Natural Gas Company at Cowley, the Carter Oil Company and E. T. Willams Of! Company at Salt Creek according to information furnished for Wyoming needs for many years | by the Bureau of Mines are also to handle | SUNDAY, FEBRUARY 15, 1925 operating gasoline extraction pl The Producers and Refiners Cospor- | ation at Wertz Dome byj natural condensation recovers some 400 gal- lons of gasoline per day. The yearly recovery of gasoline by extraction from gas in Wyoming is some 38 million gallons of gasoline. The investment in the gas ‘indus- try in Wyoming has of course béen enormous. Pipeline investments alone aggregate some eight millions of dollars. Field equipment and well drilling investments havé been in proportion, As an example of this, 68 wells for gas have been drilled in the ‘territory tributary to the New York Of] company pipeline to Cas. per, 24 are now productive. Like all industries the natural gas business has its pecullar problems. The chief trouble les in the need for observation of the enormous quantities of gas waeted in the Production of ail. The estimates of the Bureau of Mines of 141 billion cubio feet of casing head gas lost in the United States in the year 1921 and a dally loss of 42,500,000 cubic feet in Salt Creek in 1922 are as tounding. Naturally a great deal will always be lost in this way, but the produ- cers in Wyoming have been and are doing their utmost to put this re- source to economic use. The ex- traction of the gasoline content and consumption of the residue gas for tuel has afded materially in this direction. Another problem of the natural gas industry is that {t {s necessarily coupled with the public utility bus- iness. This applies to all diatrib- utors of gas for domestic consump- tion In cities and towns, In this phase of the gas industry gas does not remain a commodity to be purchased and sold. - It becomes a service, owned by the public, pur- chased from the producer and dis- tributor, to be paid for in partial payments with interest over a long i of time upon condition that distribu operate for the pub- until the property is paid for ys with the proviso that pay- ments ahajl stop when the gus be- comes exhausted, no matter what proportion of the purchase price re- mains’te be paid. ' In Wyoming a pecuéar condition confronts the gas Industry in the Mutter of gas from Goverpment owned jands. Royalties are not de termined on w sliding scale fepend ent upon production as in the case of ofl but are based on two °! of production, one percentage apply ing tq all production when it does not eXceed three million cuble feet per day per lease, and a highgr roy alty on’ all production of threo mil- lon ecuble feet per day or more the other hand the producer must sell on a decreasing scale depending on consumption. The more the con Nsumer purchases the less he pays per unit, Iy addition no allowance Is made for the increasing cost of gas pro duction as the-fields become depleted The time ning when ti s | industry in Wyoming must look to jour Unele Samuel for relief these lines. ¥ | While the ofl industry has been | the chief mainstay of the gas indus try in Wyomlnz, the industry has become the chief assistant of the ofl industry. Our fefineries in marketing their preducts must ship long distances to markets more eas. ily accessible to mid-continent and eastern refineries. They are hand ieapped in the competition with these refineries by the higher cost of plac- ing thelr products on the market This can only be overcome by lower refining costs. One of the most vital factors in permitting them tp overcome this handicap has been cheap fuel, and that cheap fuel has been satural «i along W3 largely increased by the ofl and gas oming’s population has been industry. Its future growth for some time at least {s dependent on sions IN LONG FIGHT § the growth of the industry, Nat- ural vas is playing {ts part in Wyo- ming’s development in the securing of néw industries, assuring the per- manence of the present industries, increasing its communities and in furnishing to its people what gas men whhout, contradiction cla'm to be the “cleanest and best fue! known to man.” a Compensation Claims Large A recapitulation of the workmen's compensation department compiled by Frank Clark, commissioner of la- istics, shows that th qeaistay: saw thar ues YS of st. year. The coal industry paid in 30 per cent of the money recelved by this department and tock out 50 per cont tor injuries received by men engaged the department for in this industry. The ofl companies paid in 31 per cent and took out per cent, All other industries paid cent and took out 30 p cent. A detailed statement from the co: pertsation department reveals the fui- lowing fact or 80 per cent of total premivfns received was paid by the cecal industry. $153,220.60 or 31 per cent of total pfemiums received was paid by the oil industty. $194,085.37 or 39 per {cent of total premiums received was paid by all other industries. $325,600.76 or 50 per cent of this total orders of award paid out wus charged against the coal industry / $135,925.03 or 20 per cent of the to- tal orders of award paid out was charged against the ofl industr: $200,557.08 or 30 per cént of the to- tal orders of award paid out was arged against all other industries Phone 1620 Is this the kind of bank you like? A Bank whose methods are modern and progressive. May Tank and Supply Co. 326 Midwest Bldg. Salt Creek, Wyo. Sole Distributor for Marion Machine Foundry & Sunply Co.’s Oil Field Machinery and Equipment Exclusive Agent for BUTLER BOLTED STEEL TANKS AND PORTABLE STEEL BUILDINGS Casper, Wyo. Whose teliers and officers want to know you pezsondlly, and are eager to help you in any matter requiring individual attention. Where yeur account is welcome and appreciated, though it may be one of modest size. The facilities and helpful service of our organi- zation are at your disposal. We will be glad to have you call and talk with one of our officers with regard to opening your account with us. The Stockmens National Bank of Casper and First Trust & Savings Bank Combined Capital and Surplus $225,000.00