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<br />Fri., Feb. 22, 1974, Denver, Colo.
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<br />16_RockyMounlainNew!t
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<br />Shale development offers uncertainties,
<br />I (('ontlnul',1 'rom {>1l11:" 5) tions will lower Iheir !;IV'S and royallif's In a like oil 5hal~ and offshore drilling, It OMsn'!
<br />, consciolls effnrt to lower price!!. here ond In- 6eem to mollify the public."
<br />l'iquldn t look all that bleak. Indu!>try '''1\lrc('1'; (' rea s e Am['rh'lln d.'pendell 'e on ford"" I I t k '! t th I
<br />es~imnt[' Ihat at $Ii a harn'] they could 6till . .. . c .... n( us ry spo f'Smffi pm~ (1\1 f' new pr res
<br />reWlle an 11 ]lc"r ('rnt Elnnlllli return. Allhous;:h ('rudes. . wID en~rage Investment 10 a ntlmh('r or m'.'re
<br />thIs would still he /I("','plab]e, thcir f('ar Is that Mnrc snn~\lln,: Industry ~O\lrces point out ell:~nsl\"c nnd ell:oll~ pclro]('um SOUJT('S \\hlch
<br />t;Qnl('Ihinli ('Is.' wOll]d J.:O Wrorl~ _ It trchnlca] thRt IIII' Arab n~lln~s Rre. In the long nUl, cle- ",,'On t be In productIOn for se\"crlt] .l('ars. In.
<br />problem or cflsl nv('rrun _ which woultl quick- p<>nrll'nl un thf'lr OIl res(,1"ves to provide the eluded ore def>p woler offshore d,nllllll:,rJ('w
<br />'jl''''''Cf thl' rille ~Iilllurlher, ""eallh nf'cd('d 10 r!ltab\i~h permanent seml- reco\"ery y'ch~lqlle!l for conv('~llfJnal \\el1~,
<br />.' industria] or industrial eronomie!!. They ar~lJe coal gas!\lflcatum and ll'lUlflcatllm, A]aska s
<br />. At prl'~l'nt. Slwh prl<"f' r('dllCllnnl; RJ>(lNlr un- lhol th.. Arabs arc unlik('ly to drop IHirE's Rnd Xorth Slope oil fie]d!!, tar sands and, ul courst',
<br />h" f'1): 10 man~' 1ll1ll(lustry and ).:U\"crnment. Bul !\IIUandl.'r their resourrl.'s ror short-tr,rm po]iti- on shale.
<br />pttr<.J!eum prl<"l'S orl' the p,rndlh'l nf nn extraor- cal 'onls and Ihat II thE' did!;(] the fedl'rlll .." . . . . .".
<br />rllnarlly ('{lmplirOll,',l bi('ml "r {adors Rnd e\'en f.: ..' Y ., tt,\H,R :rrriO:'lO.Ut.l.lf.\f,nS
<br />.. .. . "....IH'mment cou]" be rE"hed upon to prolect tpe
<br />trj]l eXl'CIl!l\("S fHI'. frnm Inne to time, be- domestic Indus!"" wilh uotas or taxes. Because of the range of !,os!\I~ll(" futurE'
<br />.....Ildered. . .~ q enerh'Y souN'es, not e\'('ry major IIlI f11Tfl Is
<br />P' . It" II I .. I" .," II Od shale deve\npment Inl.'\"ltably In\olves fallinK over its cornllf'titoT1l in a scrllmble {or
<br />,net's fir""" \,Its rn 1" 0... 01 -:- 0 long trrm capital commitments-aneCfJnomic 'I So h' . ,I'
<br />Wluch was bemK PUll1l'1'1\ from wells durm~ a .' ." SIll e., me lI~e maul' I."mpurnry rr(>.ern]ll\l'
<br />b'n' . " , '1 fpd of hfe whll'h milk..~ ~{Jme In the lIldu~tr)' a cnmmilmeng to olher ,'"'J"el.'ts 1I1ll1 t'ner,y
<br />. l' perl\){ as >'I."ar _ arc nu('n 0 an a\'f'r- 1'" I I . , nl'lb d " . .
<br />I $525 b I' " rl' I I I e wary 0 I' lln~Irn: OfV,'O WI 1'\(' of>- ~our('e~ and some Just don't bl."lil."ve in oil sh",]e
<br />",'1' 0 . "~I """h" 'I' 'II' PIWTf.:Y c l"I~'IJ('; ment In the llKht of tt'Chnologlclll ullknmo.ns. J'et" . .
<br />C.Jl'lf'll rpitl>'. e ('<f'ra J:tl\rmml'n I ell . ....
<br />lis ce-i1in!':s <111 pMrt'~ fDr '"nl'W oil" _ eithcr A $-\00 !"lIilh~lll commcrclal 011 shale faclhty But the r("('ord.breakln" bids on fe,Ieral
<br />ftom entirely II"W SOllff'es ur Incrrilsed pnxtur- would r~{IUlre SIX obove-grOlmd re-Iorts capable tracts and activity on private shall' lands indi.
<br />lion from old Wf'lIs _ 10 spur new production of h~rllll\g 11,000 tons of shale "II day. The larg- cate that this second group is shrinking.
<br />f1~(1 {,lI:plnraIJOll, {'st pl]ot rel<!rt l:'Jat has hern bU,lit handll."S about There remain four ff'drral tracts to be bid -
<br />I" ., . I'" "" 1.000 tons" SC01111K up to rull Slle may l'rcsent two In Ctah and t\vo in Wyumin" X..ne Is ex-
<br />.~l'W 01 IS nOI\" se m" or on O\"I',rlllo:f' 0 .' bl ".
<br />'Ibnrn>l. new I'ngmel."rlng pro ems. pectrd 10 attract bids os hli':h as thc $210 mil.
<br />T ,{ I" "I r Ib I' ., l!:'IOt'OItt:Sf:t~S lIl'HnI.E~ lion Ilml S117 mlllion Colorado If'asl''S !weRuse
<br />0(011 lJM.' t I( I'll url' ur er, some 0 ( 01 the depo!';its are neither as rich nor U Illlcessl-
<br />(jlln !w scld al nt'W 'lIl prices lhrough.a rel-'ll,ln- Any prohJems, RmI an>' labor difficulties or b]e. The Wyoming trncts In fllct may ne\...r lw
<br />t\un whkh m I'Iff'l'l nll",,"s" c~mpames whll'h dl'la>'s in delivery of c<lnslnlction malerlals, let nt all becnu.~e of the I:w., (Iuality of the s]lale
<br />bet"t. ul' prndu<:llon rr~J1l1 I'lI:lstmg w('l1s to sell will hold up the plnnt IInd Increase the period ueposits there.
<br />1;11P lI\('l"ea~l'd I'rodl~dllln lInd th~ same amount during which capitRI !nvestmpnls af(' tied up Tht'se (le<,uHarilies may lIen'e brleny to
<br />4f the oMl'r l,ro.Juf'lllll1 at new I'nct's. ",,1tbout all:( return, :;Orne unforeseen hurdle5 k('ep some industry gionlJl in Ihc backgrlluml flf
<br />II'OHF.IG:'IO :;.l'!'I'LIf:S ":lIght reqUIre expensl\"elllst.m.lnule {Ilant re\"I-
<br />, !lIOnS bolh increasing the capilli! budget and
<br />The lns,'rulllhll' mo.rllS!l thlll resu\ls from further delaying Ihe pmnt at .....hlch mOne)'
<br />lht'se 1I1l11 111>'ri;,d ulhl'l' rl"gullltiuns lInd var!- bt'glns to now in.
<br />~bll's. Is eonsl;~ntly affrdel1 b)' forei.!:n crude :\Injor pnlhlems o! this sort eon make ~';::--
<br />'Uf'I)hes Dnd pr1te!\ as \\1']1. nltiranl Inroads on rlrofit projections. And
<br />I }o'orei"n nil pricr! lire largely determIned many industry sources feel Ihat the wrprlses
<br />py the IllXI'S ami rnYllltif's imposed by Ihe go\" along the path to oil shale develollment are
<br />~rnllll'nls l'onlrol1ing th[' \Hlrl"'S In.rgest easily likely 10 b(' unpleasant ones.
<br />1-t'Cl:.lverRhle l'elroll'\lOl n'serve! - in partil'u- Sharp publh: criticism o! 0 II <:Oml'llny
<br />lar, the Arllh 1"'!lIll'u. profits has Jlut mllny f'xecuti\"e!!. on the def('n.
<br />1 Less Ihan t....o Yl'llrs ngo importrd oil cost I\h"e. Th('y'\'1' t..nded, sometimes, to harp on
<br />phollt $1.80 1\ bllrrel (leliv('rl'tl 10 the Unitrd the risks they ra<'e, Many are uncomfortRbly
<br />iSlalt's. Thl' ,'ompn,rahll' figure now Is about aWRrt' that Congressional crlUrs ar~ likely to
<br />~10, and ""rJl{' "!ltiun~ are chaq:;:ing twice Ulllt bt' even horshl:'r a >'ear rrom now when $10 011
<br />amount. price, have InerE"asl'llprofits further.
<br />!. Thf're al"f' no 'l\lf)!ll~ "r tariff!\ on Imported "We're a illl]e rmharrassed about $10 oil
<br />pll, and Its IIW"f' play!: H ~")' ro]e In d~Iermln- right now," 5!l!d one oil eM'cutive. "11'5 going
<br />ling av(>rnl:e IU'W 011 prlrf's. Some Industry to take some lIme for our cosls to justify Ihat
<br />(:\,I'clltives un' .....)1\.'1'1"111'11 thaI the A I' a b na- ligure, AIlII whl.'n ....f' f('lnvt'st profits in things
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<br />enormous profits
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<br />the 011 shalf' pkture. But Ih...lirms now moving
<br />1l11e8d expcrt thflt Illl<le Ih('ir !ir~f'r.enel"ati(Jn
<br />p]anls RTI' In "perlllion. nlhl'r <,ompanil's "ill
<br />SWilrm tn Ih,. shah.- c(lun!ry IlS Iluickly 1I1I fedcr-
<br />1:\1 lands are lIIadcIl\"lIiluble.
<br />The ill.lustry that n'sulls ellll'! ""s~ihly rrow
<br />100r~:1' enough tu 1'.ol\'e tht' ('nf'r~y I'n~i~ on II!!.
<br />own" But it clln hf'I'.'me an Importanl ~"urrf' ut
<br />nl'w lJ('trnll'\un I'rmlllds null mak<.' lhe maJor
<br />'''11 C"01ll1.nl\if'S n good deal of m..,,('y In Ihe bill"'
<br />gall1.
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