Salvage of Material in the Oil Industry Page: 1
iv, 32 p. : ill. ; 24 cm.View a full description of this report.
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SALVAGE OF MATERIAL IN THE OIL INDUSTRY1
By C. P. BOWIE
INTRODUCTION
Oil companies expend annually large sums of money in the pur-
chase of new equipment, such as casing, sucker rods, drilling and
fishing tools, engines, tanks, boilers, stills, compressors, and the hun-
dreds of other essentials that go to make up the necessary equipment
of the oil industry. This new material generally replaces used or
partly damaged equipment that often is consigned to the scrap pile
without proper thought as to the possibility of its being worked over,
repaired, or made to serve some other useful purpose in the industry.
For a number of years some of the larger oil companies have been
doing considerable salvage work; many of them have departments
whose particular object is the repair and care of salvage materials.
Bureau of Mines engineers have made a study of the methods of sal-
vaging used equipment as practiced by various companies; the
author's purpose in presenting this paper is to disseminate the infor-
mation gathered, in the belief that these methods, if not overdone,
will result in a saving of millions of dollars annually to the industry.
The salvage department of the larger companies is usually con-
ducted by the store division of the purchasing department, as this
branch of the organization has the best knowledge of the requirements
of the operating divisions and can provide proper distribution of the
reclaimed materials with new supplies. The bookkeeping methods
for handling salvage-material accounts differ considerably among the
various companies. The usual procedure in handling accounts for
materials to be reworked and made serviceable is to credit the depart-
ment making the return of material to be renewed with 75 per cent
of the current market cost of such material when new. Materials
that have gone through the salvage department and have been made
serviceable are placed in the warehouse, and "stock salvage" is
credited with 100 per cent of the current market value of the goods.
These goods when requisitioned are charged out at full value to the
next job in the same manner as new material. Some companies have
specially prepared forms for use in handling their salvage work.
Forms used by the United North & South Oil Co. (Inc.) are described
by McTee.2
This company makes a record on a field transfer form of all equip-
ment as it comes into the salvage department. The form gives the
location of the lease from which the equipment was taken and the
I Work on manuscript completed March, 1929.
2 McTee, A. R., Making Salvage Departments Return Real Profits: Oil Weekly, vol. 41, June 4, 1926,
pp. 37-38.
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Bowie, C. P. Salvage of Material in the Oil Industry, report, 1929; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc66458/m1/5/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.