The Colorado statesman., 1914-02-14
COLORADO OIL SAALES
SECRETARY LANE DECIDES NOT
TO WITHDRAW LANDS.
Geological Survey Makes Investigation
and Tests Showing ShaIes Contain
Great Reserve of Crude Oil.

western Newspaper Union news service.
Washington.-Before the discovery
of the great subterranean petroleum
pools in various portions of the United
States about the time of the Civil War,
the extraction of oil from bituminous
shale was 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 ton, with
probable average for the better grades
of shale of a 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 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
quality as accurately as coal bed,
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,
bcause 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 yrivate 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 a large and reliable supply
both of fuel and of fertilizing 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
dealing with a resource whose present |
value is somewhat conjectural, both |
as to market and as to cost of produc-
tion, it seems wise to 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 Oil Shales to Be
Made.
1t is probable, however, that the |
Geological Survey will make a more |
detailed examination of the Colorado |