Show BABSON'S THE NEW BLACK GOLD RUSH RUSHBy RUSHBy RUSHBy By Babson's Reports Incorporated Incorporated Wellesley Hills Mass Just as Prudhoe Bay Alaska was familiar mainly to geographers geographers until recently so Melville Melvil Melvil- le Ie Bathurst and Prince Patrick Patrick Pat Pat- rick now share the same degree of relative obscurity These are three of the larger Arctic Islands Islands Islands Is Is- lands of Northern Canada at about the latitude of Greenland Just as Prudhoe Bay gained gamed overnight fame due to a major oil discovery the Arctic Islands too may soon reveal a jackpot of oil reserves Two exploratory wells will be drilled soon on Melville Island by Oils Ltd a combine of 21 participants including the Canadian Canadian Canadian Can Can- adian Government 45 per cent interest Potential Yields I Showing exceptionally favorable favorable favor favor- I able physical characteristics I Ifor for oil production the Arctic Islands Islands Is Is- lands and their offshore areas could hold an estimated 50 billion billion bil bil- lion llon barrels of oil and trillion trillion trillion lion cubic feet of natural nat ral gas Land areas to the south In hi the Canadian Yukon and Northwest Territories could hold an equal amount of oil and gas These reserves reserves re reo re- re serves approach the total production production production pro pro- of petroleum to date In United States history 1 Such tremendous tremendous tre tree quantities of oil and gas together with Alaskan crude could easily alter patterns patterns pat pat- terns of production and distribution distribution distri distri- on a worldwide basis Even now Venezuela is anxiously anxious anxious- ly viewing Its North American market in the light of potential Arctic oil Strategic Location Today well before commercial commercial commer commer- cial production of Northern Alaskan Alaskan Al Al- askan and Arctic Island oil will begin studies of markets for forthe forthe forthe the huge reservoir of black gold are taking place If we examine a polar projection of the world we note the dream of early mariners mariners mar mar- iners the Northwest Passage From the Arctic Islands it is possible to reach both the Pacific Pacific Pac Pac- and the Atlantic by water routes and the Islands are well centered In hi relation to the major world petroleum markets Ship- Ship pling distances compete favorably favorably favor favor- ably with those from the Mid Mid- east and South America Japan miles Western Europe miles mlles U US U.S. S. S West Coast miles US U.S. East Coast miles However fabled as it has been In to maritime history the Northwest Passage has not proved a feasible route for general gen eral shipping Obviously it is a question of ice j thick polar ice locking the straits for over half their length for more than eleven ele dc- dc ven yen months of the year The The solution then must mud be he unconventional use of a conventional conventional conventional conven conven- tool It has been proposed that large supertankers up to toI r reinforce and I equipped ed with an ice plow could economically transport trans port Arctic and and- Alaskan oil oll to world markets An Ice plow is a fairly new concept in hi ice Ice breaking A conventional icebreaker icebreaker ice ice- breaker progresses through heavy ice mostly by riding up upon upon on it and breaking through by sheer weight opening a pass- pass agway An ice plow on the theother theother theother other hand Is I in fact a plow plow- shaped ships ship's bow which forces for ces the ice up and to the sides as the Ship plows ahead This action creates a relatively ice ice- free lane for following vessels The ultimate in hi Arctic shipping also under study would be ship ship- I ment t of oil from Prudhoe Bay Alaska to Western Europe by bya a route passing close to the North Pole and Pole and north of Green Green- land Caution Is Needed Many companies mostly Canadian Canadian Can Can- adian hold Interests in the Arctic Arctic Arc Arc- tic Islands Some have shown substantial advances in hi the price of their shares as the exploration exploration ex ex- and development program program program pro pro- I gram has has' progressed But no wells have as yet been completed ed While there is Is every indication indication indic indie that oil and gas are there production and marketing problems problems pro pro- may not be resolved until the mid Much the same holds true for the Alaskan North Slope although production may develop by 1970 or 1971 Without other basic values present shares of the oil com corn panics operating In the Far North must be regarded as The Research Staff of Babson's Baboons Reports favors Standard Standard Stand Stand- ard Oil of New Jersey and Standard Standard Standard Stand Stand- ard Oil Oll of Cal California two California two ornia-two two worldwide worldwide world world- wide oil oll giants also prominent in hi Alaskan North Slope develop develop- ment I |