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Show xfSSk X(rV' Rocky Mountain OIL & MlftMIMG JOURNAL 25 Cents Per Copy VOLUME 2 NUMBER 34 Copper capacity will outstrip demand, Anaconda chairman tells London meet LONDON World copper capacity will increase faster than demand in the next three years, C.Jay parkinson chairman of Anaconda Co., said. Parkinson told a metals conference world copper supplies will be in surplus by about 850,000 metric tons by 1975, with supply and demand moving back into balance late in the 70s or early in the 80s. The conference was sponsored by American Metal Market, a New York-base- d metals daily. He said production will increase an average seven per cent a year until 1973, while the demand rate in the 70s will be four to five per cent. Between 1973 and 1975, he said. PETROLEUM ENGINEER Harold Thomas walks toward oil shale recovery well on Bureau of Minestest site near Rock Springs, Wyo. Storage tanks are at rear. Research on oil shale recovery going on states of Utah, Wyoming and here is important to the shale-ric- h Colorado. Shale experiments hold promise of clean, economical oil from shale (Ml - fracturing of underground formations by nuclear explosive followed by heat application to recover the hydrocarbon content. fractured throughout by a small explosive charges. And now bureau staffers have ignited the center the hexagon. They hope the heat will be conveyed to the rest of the fractured formation, thus driving the oil shale content off as vapors. These will be drawn for recovery and storage. The project headed by the It still poses unanswered ot The formation has been bureau s Laramie (Wyo.) Research Center, will take about two years to complete and evaluate. formation involved is estimated to contain the equivalent of about 55,000 barrels of crude oil, assuming The optimum recovery. The method applied is a variation of so - called retorting. Another concept in situ in situ - and as yet untried - is One of the compelling arguments for in situ recovery is there is no waste dumps created as in the case with oil shale that is mined and then retorted on the surface. The waste is nearly equivalent to the volume of the shale mined. questions of where to put it and how to stabilize it. Although some claim vegetation Skyline Companys opportunities have been considerably enlarged in view of rapidly changing world energy and political conditions, Rulon K. Neilson, president of the Salt week.' He noted that the price the will stablize oil shale waste dumps, the Department of Interior recently postponed a leasing program on federal lands because of what it of import oil has dramatically increased. He cited the impending energy fuels shortage. he cited, in particular, the cost of liquified natural gas imported the East Coast from Algeria. in this instancw, the Federal Power Commission (FPC), which has restricted domestic producers to a field price of 1 7 cents for a 1,000 cubic feet of gas to be delivered at cost of SI. 70 a questions It is hoped to achieve ignition at the Rock Springs project and then have the shale itself provide the fuel for further burnings, says Harold Thomas, petroleum engineer on the project. Air is pumped down into the well to sustain the burning. The recovery of the kcrogen content of oil shale requires precise temperature values on the Continued on Page 2 or which the copper industry worldwide has had its full share in the past decade. The Anaconda executive said there will be about 250,000 metric tons of surplus copper next year, rising to 320,000 metric tons in 1972 and to 500,000 tons in 1973. It was the first market dictated reduction in the U.S. price for almost 10 years It was the first market dictated reduction in the U.S. price for almost 10 years. NEW YORK Coal shortages are so severe that some big will surely have generating plants to shut down if any of the materialize and last for more than a week or two a business magazine says. the November issue of Fortune points out that coal operators are exporting 60 mil- - lion tons of coal annually. Though exports constitute only about 10 per cent of total U.S. coal output, Conald C cook, president of American Electric Pbwer claims Its the 10 per cent margin that is killing the utilities. the magazine reports. 1 cut in There was a one-ceNovember 1965, but it was rollback of a short-live- d one cent The world copper market boost following a hassle between began turning into a buyer s the Johnson Administration and market last summer began to the copper and aluminum inslacken in key consuming nations. dustries over prices. An aluminum Foreign prices tumbled sharply increase also was rolled back then. nt thousand cubic this is three times the price allowed for domestic gas delivered at cost in Boston, he said, he strongly criticozed the FPC: This imported gas comes from, of all places, the radical socialist country of Algeria, which expropriated oil and gas reserves developed within its borders by foreigh companies. He said it appears certain that FPC will announce belatedly a substantial increase in the producer price for interstate natural gas within the next few months. Even with such an increase, it will take years of renewed and vigorous ex- - ploration activity before there will be any possibility of alleviating the impending undersupply crisis now confronting this nation. Skyline, he said is pressing natural gas exploration in the Powder River Basin of Montana where several important discoveries have been made. He said he expected that the international environment should improve prospects for a Western oil shale industry. The company now holds 16,000 acres of fee land in eastern Utah. Prospects are dim, he said, for piping oil from discovery areas in northern Alaska to port at Valdez in the sourthern part of the state. The test trips of the tanker Manhattan also appear to have been a failure, he added. All directors and officers were d. Coal shortage threatens power plants, Fortune magazine claims in article alleged to be unanswered threatened railroad strikes in environmental preservation. economic influences and lastbegan to slacken in key consuming nations, Foreign prices tumbled sharply and last week American producers reduced their primary copper price by four cents a pound, or about 6.7 per cent, erasing one of two four cent boosts this year. Skyline Oil chief sees enlarged for energy fim opportunities Oil feet. Lake City based company, pointed out to stockholders last A ROCK SPRINGS WYO. of pipes on a barren bluff east of here is part of an experiment to recover oil from oil shale without fuss or muss by the Bureau of Mines. The pipes located within a hexagonal piece of ground about 300 feet wide, tap a 45-fothick section of oil shale about 100 feet underground. small forest production will increase by about three to four per cent. Parkinson said his surplus projections are strictly theoretical in that they do not take into account unforeseen developments arising from labor, political or A number of utility executives have urged a cutback in coal exports to levels that prevailed in the late 1960s. A basic factor in the high level of U.S. coal exports has been the sensational rise in Japanese steel output, forcing Japanese steel makers .to scour the world for more coal, the Fortune article says. In some cases, the magazine says Japanese buyers have even helped finance new mines or new equipment in this country, and foreign buyers have been willing - con- - tracts at to sign long-terprices that were once regarded as m extremely generous. Fortune quotes Gen Wilson, vice president of Ferroalloy Division of Foote We used to think the Japanese were signing up for coal at ridiculous prices. They dont look so ridiculous anymore. Another article in the same issue says that the United States, snug in the compla- - cency that its technology world, leads all the, has not kept its eye on the major index of modern - industrial civilation energy. The country that built the worlds first central power plant, is now in danger of losing its leadership in the new level of technologies the times require. |