Page 268 - Records of Bahrain (7) (ii)_Neat

658 Records of Bahrain
UUL*X

uun-926. 31st December, 1933.

Hiu Mghnoss, uhaikh iiir dulman bin llainnd
Al Khalil'ah, K.u.m.u. , lC.U.l.iS. ,
Hulor of Bahrain,
uahkAjln.

After Greetings,
During our meeting 011 December 26th, 1933 , Your Highness
roquostod tbut production from the Bahrain pi eld be
iricroQood immodiutoly from the present rate of 30,000
barrels per day to 60,000 barrels por day. You wore
informod that this increase in production was not possible
and, on the contrary, it is the Company’s intention, in the
interests of increased ultimate recovery, to start reducing
production from its prose lit rate in throe to four yoars.
This letter is in compliance v/ith the roquost bl' your
llighnoos for a written explanation of tho essential features
of this situation.
Studios which are based on information collectod during
the time the Company has boon operating in Bahrain, and which
have been continued during the whole of the period, show that
tho ultimate recovery of oil from the reservoir is dependent
upon tho rate at which the oil is produced. gach barrel of
oil taken out of tho reservoir must be replaced by an
equivalent volume of wator or gas; if the oil is token out
at a slow rato it is displaced more evenly by tho water and by
the gas but if it is taken out too quickly large quantities
of oil remain bohind tho advancing edge water and the
dioplacing gau and uro lost.

prom tho information collected it is possible to predict
the amount of oil which will he recovered at various rates of
production, and hence develop a plan for the future which will
keep tho production rate at tho highest possible level
consistent with the cost of operations, and provido Bahrain,
v/ith a reasonable income for many years to come.
A request for an incroasc in production rate has never
< been contemplated as all of tho information indicates that
such a' course would load to a greatly reduced revenue within
a comparatively short period of time; consequently detailed
studios in that direction have not been made. uowever, as
an illustration of tho effect of an increase, a production
rato of double tho proscat figure would result in the virtual
depletion of the main producing horizons in approximately
throe years and a yield of less than a quarter of the
quantity of oil which could be obtained by following a
properly i>Ianucd and controlled method of production; there
would, of course, be a small continued production following
the depiction of the main producing horizons but at a
drastically reduced rate, probably in tho order of a few
thousand barrels per day. If production is maintained nt
its present lovel of 30,0U0 barrels per day to depiction,
tho ultimate yield will bo reduced by more than ono third.
/The

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