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Show Al 1 wy.ftovemU.r 5.1980.THEHERAU).rr(no.ltah-Pae3- 1 r--i bloomy wend Oil forecasts Yielding fo New Optimism B LEftftY MOT people following wiser policies in UPI BUSINESS WMTEE future on such matters as expanding NEW YO (UPI) Americans are nuclear policies in future on such mathearing fever predictions that the ters as expanding nuclear power, con world will run out of oil for fuel by the version to coal, expanding the drilling W of the century, that whatever oil for petroleum on government offshore then is available will have to go into and onshore lands, a more realistic fertilizers and other chemicals. ecological attitude and greater reliance The remarkable drop in gasoline con- on the private development oi sumption produced an actual glut of synthetic fuels. If this is done, the API supplies late in the summer of 1980 said, oil imports can be halved by 1990. Shell's optimism is not based entirely although the fighting between Iraq and Iran threatened a serious new curtail- on its high hopes for Belridge. In ment of output. There now is con- September, Llovd G. Otteman, general siderable optimism that the world will manager of Shell's eastern offshore exbe able to burn oil a lot longer than was ploration and production operations, believed 13 years ago. told a hearing in Wilmington, N.C.. that One dramatic expresson of this op- the oil industry is willing and has the timism was Shell Oil Co 's record intechnology to drill in ocean waters up vestment of $3 billion to buy Belridge to 6,000 feet deep. Oil Co., which owns vast reserves of Otteman did not go deeply into the heavy oil in Kerny question of how well the geological bluntly Shell was crazy to spend that evidence supports the hope for finding much on Belridge. petroleum under the outer continental Shell officials disproved that. The shelf at that depth, but he implied that discovered the Belridge reserves were the evidence was sufficient to induce much bigger than other oil men the companies to spend many millons suspected and that, while the heavy oil on the necessary research and equipis expensive to get out, it is not all that ment to find the oil and gas and bring it to the surface of the sea. difficult. On the side of conservation and con"Ten years ago Shell would have agreed with Exxon and other big oil version, Sam Schwartz, a Continental Oil Co. official, predicted in a speech in companies that, by the end of the century, all oil would be needed for petro- San Francisco Sept. 23 that "by the end chemical feedstock but not now," a of this decade the burning of petroleum Shell official told UPI. fuels by public utilities and industry in An equally optimsic view was expresthe United States will all but have sed in August in a lengthy reprt by the ended." CONOCO also is a big coal American Petroleum Institute. The producer. Schwartz also said oil imAPI conditioned ts optimism on the ports should drop in this decade to half U.S. governent and the American peothe present level. Chairman William T. Seawell of Pan ple following wiser policies in future on such matters as expanding nuclear American World Airways said in a power, conversion to coal, expanding speech in Chicago on the same day that the drilling for petroleum on governthe world's airlines could well be using ment offshore and onshore lands, a a synthetic jet fuel made from coal by more realistic eological attitude and sometime during the 1990s. But it is the greater reliance on the private develop- Belridge story that is Immediately ment of syntheti fuels. If this is done, fascinating. . Shell won out in the bidding for the API said, oil Imports can be halved by 1990. Belridge after a battle with Mobil and An equally optimistic view was exTexaco, each of which owned about 17 pressed in August in a lengthy report by percent of Belridge and hoped to retain the American Petroleum Institute. The these shares. API conditioned its optimism on the The owners of the central interest in U.S. government and the American Belridge wanted to sell. They were the - heirs of the founders. MehcosWhit-tier- . Burton Green (die real estate tycoon who developed Beverly Hills) and Frank Suck. The company was founded in 1910 and prospered slowly but steadily as an oil and farming complex. Ironically, Shell had a chance to buy it for a paltry St million in 1924. but nobody was much interested in heavy oil then. Ia addition to defeating or pacifying Texaco and Mobil, once having made the decision to go all out to get Belridge. Shell had to raise the money for the biggest corporate acquisition in history. It was a complicated and difficult deal, involving the single largest bank loan ever made to an American industrial corporation $21 billion. Shell had to take an enormous risk, borrow the money at 1979 s high interest rates and tamble that Belr- - idge's heavy oil eventually would quidate the expensive loan. li- The owners ot Belridge had operated in a very private way. Comparatively few people had even a clue to its potential value. When Beryl Buck, one ot the owners, died in 197V she lett a diock oi Belridge stork to the San Francisco Foundation with the stipulation that 17 million worth of the stock go to benefit the performing arts and other projects in Marin County. Shell's acquisition of Belridge raised the value of this $7 million bequest to 1253 million! The financial story of Belridge is spectacular but the energy story is more important. Shell will spend at least another fl billion in this decade to increase Belridge's output from around 43.000 hard-to-recov- er barrels a day to 100 000. Since acquiring Belridge. Shell has raised the estimate of its reserves to 587 million barrels 364 billion cubic feet of natural gas ftlus the 347 million barrels of oil and gas liquids calculated at the time of the sale. This reduced the estimated price Shell paid for the oil in the ground to around $5.50 a barrel from $9. Moreover, Shell had concluded that 60 percent of the oil in the deposits could be recovered. DeGolyer It Naughton, the engineering firm, engaged by Belridge and its Wall Street adviser, Morgan Stanley k Co., prior to the sale, had estimated that only 40 percent could be recovered. Possibly more significant is the fact that the Belridge deal is the first giant tertiary recovery deal in the history of oil. Tertiary recovery means using . i Reg. 79.99. lf purchased separately as open stock In our FallWinter Catalog would cost 117.48. Sturdy cast aluminum with porcelainized exteriors and Sunray polished interiors. Includes 1 and 2 qt. covered saucepans, 4V4 qt. covered Dutch oven, 10" open fry pan, 1Viqt. double boiler insert. ! non-stic- s I Reg. 13.9S gal. One Coat Plus interior flat latex paint is ideai for living room, bedroom, and dining room walls angV ceilings, it gives one coat coverage that's stain resistant. Easy soap and water clean-u- p, too. One Coat Plus interior . Reg. 4.50. The look of suede in sumptuous bath towels of cotton polyester terry. Luscious colors. Reg. Sale Hand towel ...3.00 2.40 Washcloth.... 9 pc. set Sale 59.99, Reg. 79.99. Premium polished aluminum set has SilverStone k interiors. phenolic handles, knobs. Includes 1 and 2 qt. covered saucepans, 5 qt. covered Dutch oven with meat rack, 7" and 10" open fry pan. Sale Reg. 8" saute pan 10.49 8.49 10" saute ....12.39 10.39 pan 12" saute 15.89 13.89 pan 13.39 11.39 11"griddle . Wear-Ev- shelving. ready-to-assem-ble le wood and glass modern shelving Herculex Sylvan oak finished shelves have smoked glass inlay. Solid wood posts are accented with chrome. Sets-u- p in minutes. 3 shelf etagere, Reg. 69.99 Sale 55.99 5 shelf etagere, Reg. 119.99 Sale 95.99 7 shelf etagere, Reg. 149.99 Sale 119.99 ng Sale 15.99 bonded to polyurethane foam. Reg. Sale 23.9919.19 Full 29.9923.99 Queen 32.9926.39 King (Portable power tool sale. Reg. 64.99. Sale 39.99 Triple action W reversible drill impacts, chisels and drills. Ball bearing construction Sale 3.74 y, Sale 7.49 le Reg. 4.99. The look of suede in washable Arnel triacetatenylon solids. 5860" wide. Prints, Reg. 6.99 Sale 5.24 yd. bouele of Arnel triacetatenylon. 5860" wide. tiful ) I and start J L L iJ MA k twj WA lyil wide. s wide. ' tfC$ triacetatenylon. 5860" triacetatenylon. 5354 saw has a motor with ball bearing long-lif- e construction. Features clutch, depth bevel adjustment. 2-- It f Reg. 8.49. Vibrant fashion colors in washable Arnel Chenille velour Reg. 7.29. Shimmery colors in washable Arnel 7" curcular Sale prices effective through Saturday, November 15th. Simplicity 8275 Sale 6.37 Sale 5.47 yd Reg. 59.99 Sale 39.99. Reg. 9.99. Soft, color drenched cottonpoly velour. Machine wash. 6062" wide. Stop taking making Itl Plush velour Reg. 4.79. Bright, beau- 7 Cotton velour Sale 2.99 Sale 3.59 Your choice 39.99. Save$20 fashion fabrics. Supersuede Bright bouele Save s25 soft-tou- ch Corduroy pin-wa- twin Reg. 19.99. Light Vellux blanket is nylon pile . Reg. 3.99. Classic look in cottonpolyester. 4445" wide. 1.40 Heat-resista- nt . Off 1.75 er non-stic- 10 amp Sale 3.60 bath Save$20 Reg. 14.99 gal. Sale 9.99 Rich-looki- Reg. $6. 25 off the JCPenney bath towel, 25x50" of hefty cotton poly terry in fashion colors. Reg. Sale Hand towel... 4.00 3.40 Washcloth ... 2.00 1.80 2.20 1.98 Fingertip Bath sheet . . . 13.00 11.70 Tub mat 7.00 6.30 Sale 31.50, Reg. 42.99. l purchased separately as open stock In our Fall Winter catalog would cost 63.46. 7 pc. stamped aluminum set with k SllverStone interiors, striped porcelainized exteriors. Heat resistant phenolic handles, knobs. Includes 1V4 and 2 qt. covered saucepans, 5 qt. covered Dutch oven, 10" open fry pan. Open stock: Reg. Sale 10W square 11.99 9.99 griddle 8" saute pan 8.79 6.79 10" saute 10.99 8.99 pan paint. Sale 8.99 Ready-to-assemb- Sale 4.49 Save 31.96 Coat Plus flat on Shell isn't the only company getting out heavy oil by steam injection. It is being done so widely that the UOP, Inc., subsidiary of Signal Cos., and other firms that produce equipment and technology for steam injection expect this to be a most lucrative business from now on. on this Club' Holiday o pc set. Sale 54.99 a gallon on One semi-glos- s, Shell estimates that it will have to build 78 jumbo steam generators to supplement the 40 already in use at the Belridge tract to get the heavy oil out. At least 1.800 new wells will be drilled and 2 200 old wells will be reconditioned, redrilled or abandoned. HomeS how and Sale, : sure steam, explosives or chemicals to get out oil that can't be recovered by ordinary pumping or such secondary methods such as water flooding. Sale 27.20 twin Reg. $34. Our automatic blanket has 11 settings. Acrylicpolyester. Reg. Sale $38 30.40 Full, single 48 38.40 Full, dual Queen, dual ... 58 46.40 t i vari-torq- ue Save $15 Save$15 Reg. 54.99 Sale 39.99. Belt sander has 2Vi"x16 I sanding surface, ballbearing construction, auxiliary front handle Weighs 4Vi lbs. Reg. 54.99 Sale 39.99. 7" disc sanderpolisher I 'I8B Sale 19.99 has 2 speeds, " threaded spindle, backing pad, 2 sanding discs and polishing bonnet. .... Of course you can charge JCPenney Reg. $25. Bundle Up of printed cottonpoly quilted to polyester; nylon tricot lining. Zips on, snaps at bottom; opens to a comforter. it Of course you can charge jQ9 Orem University Mall 1980. J. C. Pmwy Camptny. Inc. it 1M0, J. C Ptnnay Company, Ine JCPenney Orem University Mall Downtown Provo |