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<br />-14- <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />While the minimum investment for economical production <br />cost is high, the unit investment seems reasonable compared <br />with current exploration and development costs for petro- <br />leum. One estimator (47) places the investment in new and <br />replacement petroleum productive capacity in the United <br />States between 1955 and 1960 at $7,500 per daily barrel. <br />Shale oil capacity certainly is less than this figure. <br /> <br />Whv No Commercial Shale Oil Production? <br />Since the lifting of \-Torld \;ar II restrictions, there <br />has been no shortage of petroleum products for the American <br />consumer. Until 1948, the United States produced more oil <br />than it consumed and was a net exporter of petroleum and <br />petroleum products. As foreign crude oil became available <br />in quantity at low cost, we have gradually increased im- <br />ports until, on balance, we are a net importer to the <br />extent of 15 to 20% of our petroleum demand. <br />Shale oil is not being produced commercially because <br />there is no market for additional oil supplies. The <br />National Petroleum Council estimates that we now could in- <br />crease petroleum production from present sources by at <br />least 2,000,000 barrels per day, were there a market. This <br />production is available with little additional investment, <br />but it cannot compete with foreign imports. <br />Owing to shale oil's large initial investment and the <br />necessity to utilize new technology, production on a commer- <br />cial basis will begin only when presently deveioped petro- <br />leum productive capacity is being used to the maximum <br />practical extent and there is protection from competition <br />by imported oil. <br />