| Show OIL SHALE AS A stabilizer IN PETROLEUM OIL AND GAS reference to the vast resources of oil in the oil of colorado and utah as a likely stabilizer in the markets for crude petroleum in the near future made at a recent meeting of the rocky mountain association of petrol petroleum i eum ceolo geologists b ests at denver by 0 H shoup former president of the midwest refining co and john C howard president of the utah oil refining 6 co have attracted considerable attention according to a correspondent of the wyoming oil index it served to call attention to a phase of crude oil production from wells which has been but little discussed in connection with the development of oil from shale the speakers pointed out that the producers of crude oil are generally faced either with a feast or a famine and that these varying conditions are responsible for the frequent fluctuations in the market prices an unlimited and available supply of oil from shale which can be used to supplement the supply from wells in a famine period will haye have a tendency to prevent unduly high prices while the nature of the oil shale industry is such that in a period of oversupply no great economical loss is faced in shutting down when operations can be conducted only at a loss in this manner the new industry will act as a stabilizer in the crude markets and overcome at least in a measure one of its most serious problems oil producers grabbing shale lands shale oil at this time is not a factor in the market on account of the small quantity produced but that it has great potential values is no longer denied some of the larger producers of crude from wells have not been blind to the possibilities of shale oil the union oil co of california for instance has been acquiring shale lands in colorado straightening out titles performing assessment work building roads and making laboratory experiments for several years and is said to have expended close to in this work other large concerns have been equally as active and if the facts were known it would be found that the oil industry is very closely allied with the development of shale lands in the west victor C alderson president of the colorado school of mines recently attempted to describe the vastness of colorados oil shale lands in a manner that would convey their extent to the lay mind he said that if 1000 plants treating 2000 tons of shale a day were in continuous operation for SW years they would not exhaust the available supply in colorado it would appear on its face that such tremendous supplies of petroleum making minerals would swamp oil well production but in that direction the facts are deceiving oil do not contain crude petroleum in the sense that oil is found in sands in wells the oil in is in III process of making in retorting the shale the process is completed and then the oil and other products are recovered oil recovered in this manner is too costly to compete with well oil when the latter is cheap as a result of overproduction it will be when well oil advances in price to a point where the production of shale oil can take place at a profit that the producing of shale oil will be undertaken on a large scale it is at this point that shale oil will come upon the scene as a stabilizing agency in petroleum prices A realization of this fact is what is prompting some of the larger companies to fortify themselves with shale lands at this stage of development oil day is coming dean C winchester gave a talk along these lines recently before one of the denver civic bodies in which he said that now is the time for colorado people to take action so they could realize later upon the oil shale resources of the state he stated that it takes approximately seven years to obtain government land on which were the deposits and to begin the production of shale hale oil he further said that in seven years shale oil probably will be a much needed commodity those companies which are already in the shale oil field fortifying themselves with holdings 6 have the march on those who have not y yet et awakened to the importance of the situation it is understood that midwest interests and interests inheres ts with which mr shoup is identified have been active in acquiring shale lands and going through the preliminary stages for about five years and the union oil co the pure oil co the ventura consolidated oil fields co the cities service subsidiaries and others have been active for about three years the latter through the empire gas fuel co has also large shale holl holdings dings in southwestern wyoming the actual production of shale oil at present is insignificant ant the industry has been going through 6 the experiment stages but many problems have been solved and at the proper time the oil will be produced as required colorado has only two plants at this time both are located at debeque one is being adapted to the production of carbon black the other is is expected to be in full operation by february 1 producing gasoline fuel oil and flotation oil the only plant actually working steadily on a commercial basis is located at elko nev where experimental work has been in progress for the past six years this plant is owned by the catlin shale oil company |
