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<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 />of the prototype phase is not to produce large quantities <br />GO of oil, but to firmly establish the technology and economics <br />~ of shale fuels production before making the large invest- <br />c::... <br />ment required for shale oil to contribute significantly to <br />our oil supply. <br />To keep the investment for Phase II to a minimum, the <br />product of the first plant(s) will be marketed insofar as <br />possible by existing transportation systems. (Unfortunate- <br />ly, the local market cannot absorb the output of even the <br />smallest prototype plant.) Studies have shown that 25,000 <br />barrels per day of shale oil can be fairly economically <br />transported to market in California by way of connections <br />to an existing pipeline (7). Other crude oil pipeline <br />systems in the area also could be used to transport shale <br />oil to refineries in Colorado, Utah and Wyoming. These <br />existing pipelines now convey about 195,000 barrels per <br />day of petroleum and at maximum capacity can move 300,000 <br />barrels per day, It seems reasonable tpat at least 25,000 <br />barrels per day of carrying capacity can be allocated to <br />shale oil when the time arrives. <br />It is thought that the Phase II plant(s) will not in- <br />clude shale oil refining facilities except for a means of <br />reducing the pour point and viscosity of the crude oil to <br />meet pipeline specifications. The processes by which shale <br />oil will be refined already are in commercial use, and need <br />no demonstration such as is the case for mining and retort- <br />ing, Furthermore, the investment for refining facilities <br />is large, about equal to that for oil production. It is <br />probable that the ultimate refining of the product of <br />-17- <br />