The Arvada enterprise., 1914-02-12
COLORADO OIL SAALES
SECRETARY LANE DECIDES NOT
TO WITHDRAW LANDS.
Geological Survey Makes Investigation
and Tests Showing ShaIes Contain
Great Reserve of Crude Oil.

| pools in various portions OF the United
| States about the time of the Civil War.
the extraction of oil from bituminous
shale was a considerable and growing
| industry. In 1860 there were more
than twenty shale-treating plants in
operation, but by 1865 the cost Of pro-
ducing petroleum was so much less
than that of producing the artificial
oil that the owners of shale plants
were either forced out of business or
| compelled to ally themselves with the
! petroleum industry, some of them be-
| coming .refiners of crude petroleum.
Interest is now revived in the matter
| by preliminary report of the United
States Geological Survey on the oil
| bearing qualities of the extensive de-
| posits of bituminous shale in north
western, Colorado and northwestern
Utah, and the fact that Secretary Lane
has had under consideration the ad-
visibility of Withdrawing from entry
large areas of public lands containing
these shale beds, which are Of un-
doubted ultimate economic value.
Notwithstanding the facts that the
worlds production of petroleum was
never so great as at present and that
last years production in the United
| States was a record breaker by an in
crease of 100000 barrels, yet the
| improved methods of handling oil
bearing shale by which not only oil
| but ammonia salts and other valuable
| by-products are extracted, have rem
dered the deposits of bituminous shale
| in Colorado and Utah well worthy of
consideration. Field and laboratory
| tests of these shales by the Geologi-
| cal Survey indicates an oil content OF
| ten to siXty-one gallons a ton, with a
probable average for the better grades
| of Shale of barrel to a ton, though
this average may not hold for extern
| sive deposits of the rock. No tonnage
estimate of the bituminous shales is
attempted in a forthcoming report of
the Survey, but observations have
been made of their occurrence in vari-
Gus localities in Colorado and Utah as
well as in Wyoming and Nevada dur
ing the last seven or eight years of
geologic field work in these states, and
it is known that their acreage is very
great, and in many places beds of gen
erous thickness have been found.
Great Latent Oil Resources.
With only incomplete data at hand
the Geological Survey considers the
present cost of producing crude oil
from these bituminous shales as prob
ably above the current price of .petro-
leum, even taking into consideration
the valuable nature of the by-products.
The great latent possibility of these
resources, however, is fully realized
In fact, in any European country other
than Russia or Roumania, which are
rich in petroleum lands, these large
areas of bituminous shale would
possess immediate utility. Further
more they would be regarded as Of
large Importance as a war resource
for naval use.
The American deposits are situated
inland, where operations would not re-
quire guarding in time of attack, and
they constitute resource which can
be estimated both as to quantity and
quality as accurately as Il coal Ded,
whereas their competitor, natural pc
troleum, is variable in both these re-
spects and its production is uncertain.
Lands Not to Be Withdrawn.
Secretary Lane has, however, after
careful consideration, decided not to
recommend to the President at this
time the Withdrawal of these lands,
hcause of his belief that such action
might possibly result in retarding or
prejudicing the development OF new
mining industry in these portions of
Colorado and Utah, especially at this
stage, when yriyate initiative needs
every inducement to test out the real
value of the resources. Although the
oil shales are undoubtedly valuable
reserve resource, being capable OF fur
nishing Il large and reliable supply
both of fuel and Of rcrtiliZing material
in the form of ammonia salts, there
would seem to be no urgent public
need for Withdrawing the land from
prospecting and acquisition under the
existing laws, which are believed to be
fairly adequate to meet the present
needs Of this prospective industry. In
. NtdlIHE WIN II Itabu'tt WHOSE present
value Is somewhat conjectural, both
AS to market and as to cost OF produc.
ton, it seems wise 10 avoid placing
any possible hindrance whatever in
the way Of private enterprise at the
initial stage of Development and to
favor utilization by offering to real
producers every premium that the
present law affords.
Further Study Of OH Shales to Be
Made.
II is probable, however, that the
Geological Survey will make more
detailed examination OF the Colorado
and Utah shales and possibly the Blu,
reau OF Mines may take up tcchnologic
studies related to their utilization. Al.
though. as stated, the oil.shalc indus.
try long since ceased in the United
States, 1t has persisted and apparent
ly ilourished In Great Britain and