Show Up and Down the Street Output of Liquid Fuels Tied to Price factor By ROBERT W. W V. V BERNICK BERNICE What consumers can afford to pay and will pay for liquid fuels determines the volume of production production production pro pro- according to the National National Na Nl- lional Petroleum Council The group in its 1952 report tackles the issues of liquid fuels made from tar sands oil shale and coal And it leads into the discussion discussion discussion discus discus- sion by bringing out the fact that much more gasoline for example example ex ex- ample could be produced froma from a barrel of crude oil than now is the practice saying Larger Yield Possible I Currently the industry converts converts converts con con- verts about 43 per cent of a barrel bar bar- bar I rd rel reI of crude oil into gasoline in which i ican Equipment is now can secure a larger yield of gasoline gasoline gaso gaso- j line from a barrel of crude oil but it is not economically attractive attractive tive to do so in terms of relative prices and costs cost of making the various arious products The council counci says that it Cit would require only a few cents increase in the price of gasoline relative to heating and fuel oils ois to bring about larger production of gasoline gasoline gaso gaso- line lne from a barrel of crude oil oi known by Processes are arc also known by which almost all al of a barrel of crude oil oi could be changed into gasoline but the cost of gasoline made by these processes would be considerably higher Flexibility Cited I The important point about petroleum refining technology is the great flexibility which can be attained in the output of prod- prod depending upon economic incentives the council counci reports It I adds that liquid fuels can be made if i necessary from materia materials materials mate mate- ria rials s other than crude oilIn oiIn oil oi In In terms of cost the substitutes substitutes sub sub- sub most closely approaching a competitive basis basis' seem to be shale oil oi and gasoline from natural natural nat nat- ural gas The later latter possibility natural seems limited because gas is such a convenient fuel in inthe inthe inthe the form in which it exists in nature states the report report Prospects Good The council counci adds that the ultimate ultimate uli- uli ulti ulti- mate prospects for production of liquid fuels from oil oi shale are aregood aregood aregood good even though costs cost are not yet et competitive for competitive for for the cost of oC gasoline from shale is is still substantially substantially sub sub- higher today than the cost from crude oil oi There are technical problems Involved in the development of large supplies of oil oi from shale however particularly with respect respect respect re re- re- re to sufficient water for the plants plant and a low cost for disposing disposing disposing ing of the large amount of shale left lef after the extraction of the oil oi the council counci warns warn It I notes that the investments in shale oil plants plant are tremendous tremendous tremendous dous and the risks in competition tion ton with crude oil from domestic domestic domes domes- tic tc and foreign sources are consequently consequently con con- quite serious Research Advised The wise vise course seems to be continued research on the production production pro pro- pro ducton of shale oil oi and to let the economic forces determine the natural development of this supply under competitive conditions conditions condi condi- tons the council counci says But there is this reminder It I has been estimated there are more than billion barrels of oil oi that can be recovered from in the Rocky Roche Mountain area area Whether this thi oil oi can or will willbe willbe wil be recovered depends upon eco ceo Problem in Shale Cheaper supplies of oct of energy from other sources may be available available avail avail- able in such quantities that the use of shale oil oi will wil be very ver urn lim lm- lm lied Technological p pro progress r o g r res e s s might make the liquid fuels obsolete obsolete ob oh- solete while supplies of oil oi still sti are abundant and before beCore the commercial development of oil oi shale is i feasible As for coal as a source of liquid fuels the council counci says flatly that cost of liquid fuels in this form would be prohibitive under present present present pres pres- ent technology and competitive conditions TEST VI WILDCAT CAT Shell Shel Oil Oi Co has recovered feet of heavily oil oi and gas cut drilling mud in a test of the basal formation between feet at its is South Red Wash Vash wildcat The test several miles mies southeast southeast southeast south south- east of production at Red Wash Vash WashField WashField Field is one of the most Important important tant tnt being sunk in the Uintah County part of the Uintah Basin Stanley Woodward Shells Shell's Shel's dis dis- dis- dis trie geologist said the firm in inthe inthe inthe the next 1000 feet should penetrate penetrate penetrate pene pene- the most decisive part of the objective formation A total depth of oC feet is projected STORE SALES GAIN N Gi Sales of Safeway Stores Inc and subsidiaries increased 1286 per cent during the four weeks ended July 12 compared with a similar period a year ago it was reported Tuesday They amounted to as against last year |