Show NS WORLD WIDE OIL markets Wellesley Hills Mass There is a growing awareness in the petroleum industry industry in in- that demand for its products is outpacing the discovery of new oil re reo serves Ideally each year new new petroleum finds should exceed consumption assuring assuring assur assur- ing a predictable future supply This is not the case today With thousands of additional cars coming coming com com- ing on the road each year and increasing increasing ing numbers of jumbo jetliners in the theair theair theair air petroleum products are being gobbled gobbled gobbled gob gob- bled up at a tremendous rate At the same time antipollution restrictions eliminate eliminate eli ell minate certain grades of oil as fuel and foster demand for other grades low in pollutants Babson's Baboons Reports does not by any means fear running out out of oil but substantial new reserves must be constantly constantly constantly con con- searched out to meet the growing needs of the future Virtually No Limits To meet these requirements and maintain maintain main main- tain an orderly economic distribution pattern the oil oU industry now now explores in almost every corner comer of globe Only limits restraining the industry Ind stry are the water depths offshore beyond the continental shelf and these will doubtless be conquered With today's advanced seismic techniques the industry has been able to map potential oil-bearing oil acreage in places never before dreamed of As such locations come into production production tion the entire economies of nations are altered The wealth of the Arab countries is well known Libya in arid North Africa not not only recently became a benefi- benefi cary of oil but is also a tremendous reservoir of underground water discovered by Occidental Petroleum Petroleum Petrol Petrol- eum Nigeria in West Africa is another undeveloped country that could eventually eventually even even- prosper from huge oil tion Australia and New Zealand will become more sufficient self self sufficient in petroleum if promising onshore and offshore exploration exploration exploration ex ex- proves productive Lastly there are indications of a sizable pool of oil beneath the China Sea between Japan and Taiwan Development here could involve complex international political political political pol pol- moves since Communist China could logically be a claimant to this oil At home the Alaskan North Slope has been much in the news with a to 5 5 to 30 billion-barrel billion pool of oil awaiting tion lion Even further to the north the Canadian Arctic islands could l I be even more prolific The problems of extraction and distribution from these regions will willbe willbe willbe be massive and costly but eventually this wealth of black gold will have havea a marked effect on world world petroleum Political Climates An Important consideration in pursuing pursuing In ing continuing world-wide world exploration is the degree of economic and political stability a region possesses This explains the current Interest and activity in Indonesia Indonesia esia which although long a significant producing oil-producing country has achieved political stability only in recent years Prior to that oil concerns either were not permitted to operate in the area or were reluctant to commit capital because because be be- cause of the unhealthy political climate The Middle East and South America must also be considered somewhat unstable unstable un un- stable with an an ever present risk of expropriation or stringent royalty terms However Babson's Reports feels that the abundance of oil reserves in these areas tends to offset such risks Recommendations Most of the major oil companies have diverse world wide exploration and development development de de- programs Investors looking at these companies should closely examine ex ex- amine the pot potentials potential and pitfalls of foreign operations as well as the bastes basics b of the firms j AS linthe inthe case of the Alaskan North Nort North nope Slope many spectacular spectacular spec spec- discoveries will be a long time translating Into earnings per share Among companies the staff of Babson's Baboons Reports now favors for purchase are Continental Oil acreage in Indonesia Africa Can Canada da etc Standard Oil OU of California Venezuela Alaska Canada Middle East etc and Standard Oil of New Jersey Canada Australia Alaska Libya etc NEW OIL RECOVERY METHOD The U. U S. S Bureau Dureau of Mines has published pub a new technical report on the successful recovery of oil from Sweetwater Sweetwater Sweet Sweet- water County Wyoming shale without mining Senator Gael McGee Wyom D-Wyom- ing announced recently MR McG McGEE E E said the present experiment experiment exper exper- was begun in 1966 but reached its Us present point after a propane burner was lowered into a well and ignited April 23 of this year The propane flow was shut off oU after alter one week A p combustion in the shale formation had been self self- sustained for several weeks Oil in the form of mist began to appear hours after the propane was Ignited ignited Ig ig- ig and production in the small scale experiment has been as high as 45 barrels barrels bar bar- per day Mr Mm McGee said though efficiency of the operation cannot be estimated estimated es es- until the combustion is extinguished extinguished extinguished extin extin- and and the foot 20 thick shale zone is exposed for forr examination |