From Bulletin 2003, N.1
by Francesco Guidi (Assomineraria) and Franco Di Cesare

HOW THE NATURAL GAS INDUSTRY STARTED IN ITALY

July 1944 is an important moment of the long AGIP history. It marks the discovery of the first large gas field in Southern Europe: the Caviaga Gas Field with reserves of approximately 12 billion cubic meters.

This is a very important success of all the technical people of AGIP which was just coming out of the war wounds. It is a success that stems from the past efforts of AGIP in Italy and abroad.

We shall review the period of AGIP exploration in Italy from 1937 to 1946, which were the most important years of the national company for its survival and we shall highlight the persons who more participated to this success.

Hydrocarbon occurrences, especially gas, have been reported in Italy since Renaissance. Oil and gas shows occurred, more frequently, in the North Apennines Chain, in Central Apennines and in Sicily and, at the very beginning, AGIP exploration focused some areas of hydrocarbon shows, and two large regions of thick sedimentation: the Bradano Trough and Po Plain.

The Gravity Surveys: During the entire 1920 decade the research for hydrocarbons in the Italian peninsula, in addition to the geological surveys, utilized the only geophysical methodology available at that time: the gravity survey. In fact, in 1927, one year after its foundation, AGIP committed the German Exploration GmbH from Berlin for a gravity survey all over the Plio-Pleistocene sedimentary section of the Po Plain, utilizing the Eotvos Torsion Balance.

In 1929 AGIP had its own Geophysical Department headed by Ing. Arnaldo Belluigi and the Gravity Crews of Exploration GmbH were relinquished and replaced by AGIP ones. In 1935 the Geophysical Department managed to produce the Gravity Survey of the Po Plain. Gravity measurements were recorded even in Abruzzi, Basilicata and Sicily as well as abroad in Albania and in the Red Sea, the Dahlac Archipelago.

The Bradano Trough: In the area of Matera, Spinazzola and Melfi, from 1936 until February 1940 AGIP, utilizing its own instruments, recorded several refraction profiles: 55 from November 1938 to February 1940. The well Taverna Mannuti, drilled in the area, utilizing the first refraction profiles and gravity stations, had discovered some important gas and oil shows.

The refraction campaign succeeded in putting in evidence an important high just in the center of the Trough, anticipating future geological reconstruction but the activity in the area was stopped by the war events. Future positive exploration activity would have put in evidence the correct formulation of the research as decided by AGIP geologists.

The Po Plain: Professor Guido Bonarelli, the Responsible for Exploration of AGIP since 1927, was convinced of the hydrocarbon potential of the Po Plain. The structures of this alluvium plain, thick more than 6.000 meters, were considered important targets and every effort had been devoted to obtain clear images from the underground.

This geological model, derived from Bonarelli past experience abroad (Borneo, Argentina), was confirmed by a gravity survey that in few years covered the whole area.

Having obtained from the gravity surveys the general trends, it was necessary to ascertain the details and thence the necessity to survey seismic (reflection) lines.

But seismic instruments as provided by the Italian industry were not so efficient so that it had been compulsory to ascertain how the foreign petroleum industry was treating the same problem.

Germany Visit: After many internal debates, a Team of AGIP people went to Germany to assess the Status of Art of the seismic activity in that country. The mission lasted from 20 July 1937 to 1st August of the same year and participants were Prof. Francesco Vercelli from the Geophysical Institute of Trieste, Consultant to AGIP and head of Mission, together with Tiziano Rocco, Chief Geophysicist of AGIP.

In Berlin they paid visit to many German institutions: Abteilung Angewandete Geophysik, German State Organization, in charge of the geological and geophysical survey of the whole Germany, Askania, maker of the famous Schweidar seismograph, Siemens-Stadt and its geophysical Division Wernerwerke Abt. M.

Conclusions of the report, dated 2nd August 1937, were not suggesting to immediately import from Germany the truck recorders or the recorders the German industry was producing at that time.

USA Visit: The same persons, Vercelli/Rocco went to the USA after having received the approval from Benito Mussolini, the Head of State. The mission lasted from 11 December 1938 to 16 January 1939. The report is dated March 1939 and is extremely accurate and complete. Various items are treated: from reflection methodology to crew organization, from instruments to data interpretation.

Contrary to the German mission they had the opportunity to visit the most important geophysical companies, and, most important, to discuss the Italian geological problems with Oil Companies operating in Texas, Oklahoma, California.

The Americans, as always, were open and available to disclose all their information with extreme generosity. In Tulsa they met with the President and owner of the Western Geophysical Company, Henry Salvatori, born in Italy in Tocco da Casauria in 1901. At that time Western had been committed by the Standard Oil Company and had to work in the Mid Continent for this company only. In Dallas they met with doctor Westby, President of Seismograph Service Corporation, SSC.

In Tulsa they met with Mr. H. Katreker, President of Geophysical Service Inc. GSI, the most important Geophysical Company of that time which systematically utilized reflection seismic survey, anticipated, in certain cases by gravity or magnetic or refraction.

Independent Exploration Company, Torsion Bl. Exploration Company, Schlumberger, were the other contractors visited. The experience of Humble Oil Company and Standard Oil of California were compared and discussed, not to mention the various visits to the main Geophysical Institutions such as US Coast and Geodetic Survey, Saint Louis University, Pasadena Seismic Observatory, Scripps Institutions of La Jolla.

Stirring conclusions were offered to the President of AGIP: "Time factor, which sometime we disregard, here (i.e. USA) is valued more than money… We have not observed a certain superiority of intelligence, of culture, of diligence, but rather a discerning organization, coordination of works, rational subdivision of work, finance and administration straightforwardness, very fast field procedures and immediate interpretation".

With this prelude it is not difficult to understand why AGIP Exploration People recommended the President to commit with an American Seismic Company for a two year contract in Italy. Western Geophysical Company was chosen and a heavy seismic crew, equipped with two truck recorders, landed in Italy in the Genoa harbor in January 1940 and began the survey on June 10th, the same day Italy declared war. The area chosen for the first survey was near Lodi.

The Caviaga Gas Field: During the II W.W., AGIP people who had been exonerated from active participation in the conflict, having being considered their activity very strategic, succeeded in utilizing one of the five drilling rigs previously imported from USA, to explore the structure of Caviaga, located some 10 km South East from Lodi and 40 km South East from Milan. The well spud on 15 May 1943 and lasted almost one year; on 15 July 1944 the production test confirmed the presence of gas in the Pliocene section in the interval 1.374/1.403 meters. The ultimate gas production of the field accounted for 12 billion cubic meters. The Caviaga field is something that goes beyond the material discovery of gas; in fact it marks the beginning of a new scenario for the exploration people of AGIP committed in this difficult task.

After Caviaga, having well assimilated the relevant geological model, it was possible to drill, with success, new gas/gasoline prone structures.

The idea of professor Guido Bonarelli that the Po Plain had to conceal deep sedimentary structures had been what recent methodological studies classify as the victory of discontinuity over continuity. It must happen always in this way when our knowledge and creativity makes a leap ahead of the current knowledge i.e. when there is a real breakthrough. For instance this is the case of Galileo Galilei, Albert Einstein, Guglielmo Marconi, Louis Pasteur and many others who had the intelligence and boldness to jump out of their cultural context and create truly innovative solutions.

But the idea by itself needs a process of validation which necessitates the product of an entire team dedicated to the project. It is a process where many factors must coincide like it happened for AGIP i.e. the presence of the right Man in the right moment: Enrico Mattei, the utilization of appropriate and rationale seismic reflection survey in the Po Plain: Henry Salvatori owner and President of Western Geophysical Company and a person who was capable to make the correct interpretation of seismic data, the strong resolution to pursue the target, a person with an impeccable experience: Tiziano Rocco.

Four important personages: Enrico Mattei, Henry Salvatori, Tiziano Rocco and Carlo Zanmatti

Enrico Mattei: On 28 April 1945, immediately after the liberation of North Italy, Enrico Mattei (1906/1962), at the age of 39 years, was nominated by the Prime Minister Ferruccio Parri as Extraordinary Commissioner for the AGIP Management. That means he had to close down the company, sell all the equipment and send home all the employees and workers. Mattei, instead of acting in this way, wanted to better understand the gas situation in Po Plain. The results obtained from seismic but especially from the first well of Caviaga convinced him that in the underground of the Peninsula there was a treasure which had to be utilized by the Italians.

The team dedicated to the exploration was so convincing that Enrico Mattei immediately imposed, not without resistance, his decision to keep alive the petroleum activity in Italy which was so much coveted by other American Companies, such as the Standard Oil of New Jersey, the main shareholder of SPI (Società Petrolifera Italiana), Gulf Oil, D’Arcy, and many others.

Enrico Mattei, here is another example of leaping ahead of the knowledge of the time, immediately realized the importance of natural gas as energy source, at least 30 years ahead of the other European countries. At that time natural gas was considered to be a poor relative of the oil and oil companies engaged in the E&P activity, especially in Middle East countries, deemed to be a negative element the finding of gas. Gas wells usually were plugged and abandoned.

But who was Enrico Mattei and why so young appointed to such a delicate position? Born in Aqualagna (Pesaro) on 29 April, 1906, graduated in accountancy, soon he went to Milan where many opportunities of careers were available and there he founded a chemical industry, mostly based on special paints. The success was immediate and with success good welfare came after.

During the war he preferred to fight for freedom and became a leader of the partisans fighting in North Italy. He was so successful in this action that by war end, General Mark Wayne Clark awarded him the Silver Star.

Enrico Salvatori: In Abruzzi, a central region of Italy, in the town of Tocco da Casauria, on March 28, 1901 Enrico Salvatori was born. After few years the family decided to emigrate to USA and they set in Philadelphia. In 1919 he entered the School of Electrical Engineering at the Pennsylvania University where obtained the BS degree in Electrical Engineering, four years later. Enrico, now Henry, started working in the Bell Laboratories and continued his studies so that, after three years only, he obtained the MS in Physics from the Columbia University.

He moved then from Bell to the Geophysical Research Corporation, the first American Geophysical Company, where, as first job, he had to build a borehole differential thermometer with 1/1000 degree accuracy, while those available at that time had an accuracy of 1/100 degree. The target was successfully hit and on 1926 Henry arrived at Tulsa and started a career of brilliant operative scientist. The young Henry, who at the time was just 25 year old, reached many successes and many important seismic surveys in Kansas, Oklahoma, Louisiana were assigned to GRC.

In 1930 he started working with Geophysical Service Incorporated, GSI founded in Dallas. In 1933 Henry at just 33 years, leaved GSI and set in Los Angeles, the Western Geophysical Company, with a personal capital of 9.000 US$. By the end of 1934 Western Geophysical had 10 seismic crews operating, in 1936 it was the second geophysical company after GSI and in 1955 had become the largest marine geophysical Company. And it is with Western Geophysical Co. as recalled in the previous paragraph, that AGIP made a contract for the utilization of one seismic crew, with two truck recorders, in the Po Plain and this was the first industrial reflection survey in Italy which drove the discovery of Caviaga.

Tiziano Rocco: Born in Motta di Livenza, in the Treviso province, on 8 February 1908, he graduated in Mechanics and Mining Engineering in the Polytechnic University of Turin in November 1930. Then he entered AGIP in August 1931, five years after its foundation.

He immediately worked in the G e o p h y s i c s Department, set up during those years and run by Professor Arnaldo Belluigi, a former University Professor. At that time geophysics encompassed gravimetric, magnetic and electrical surveys only, so that Tiziano Rocco was immediately involved in these, carrying out surveys throughout Italy. At the start of 1936 Tiziano Rocco became Manager of Geophysics in AGIP and he immediately insisted in introducing reflection seismic in Italy, being this methodology the only one capable to define subsurface structures.

After September 8th, 1943, Tiziano Rocco, having decided not to follow the transfer of the AGIP Management from Rome to the North, had to quit the Company.

He resumed activity on 1945 at war end but with Società Petroli Italiana SPI in Fornovo Taro which was under control of Esso. After two years the passed to Western Geophysical Co. which had come back to Italy with new seismic crews for which Rocco became the Supervisor. In May 1951 Rocco re-entered AGIP in the position of Director for Exploration and remained in that position until February 1968 after retirement at the age of 60.

Rocco was a deep pundit of the researches problems and he organized AGIP Exploration setting a system where the ultimate goal was to produce the best available interpretation, coherent with all the available data, both geological and geophysical.

Another person who has been essential for the discovery and the development of the Italian gas reserves, together with the growing of AGIP is:

Carlo Zanmatti: he was born in Travo (Piacenza) on October 5, 1896. He graduated in 1921 in Milan Polytechnic in Industrial Mechanical Engineering. He soon joined the oil sector which was just beginning to get off its feet in Italy, recruited by the Ballerini Company which built and operated drilling rigs. He made its first experience in Albania, where he organized the drilling of the first wells, near Devolli, 80 km SE of Tirana.

In 1927, he joined AGIP, and here he made a splendid career, working besides Italy, Romania, Iraq and Eritrea, reaching the position of General Manager in 1939.

Under his management, in 1940 AGIP started to employ the seismic survey, arriving to delineate the structure of Caviaga and to drill the well that stuck gas in 1944.

He became Chairman of AGIP in 1943. He managed all the tests of Caviaga 1 well, in the very heavy conditions of the war, putting the well in production. So, when Enrico Mattei arrived in april 1945, the situation was very clear: Italy is very rich of gas.

Mattei wanted Carlo Zanmatti to be at the helm of the new AGIP. He was formerly appointed General Manager, and later Managing Director. He retired in 1973 and moved to Rome, where he died in 1978, at the age of 82.