The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1917-12-29
SHALF OIL PLANT
TO COST 100000

~ OVOI WIVU,UUU
The first tangible proof that the
Elko oil shale beds are coming into
their own is the announcement in an
ogden newspaper OF the aims of the
standard Oil Shale Company, with
| headquarters at Salt Lake City, which
announcement states that a 100-ton
distillation plant will be erected at
Elko, to be in operation as soon as
possible. The company has control of
several thousand acres of shale land
in Elko county, and recently purchased a
from Oscar Streeter and associates a
claim lying south of town, adjoining
the Catlin claim, just across the river.
1t is on this claim the plant will be
erected J. ]. Van Allen, Elko repre-
sentative of the new company stated
that in few days Otto Stalmann will
be out from Salt Lake City to take
charge and supervise the erection of
the plant:
The announcement of this company
VIII De interesting reading:
THE world today faces an oil fam
. ine-and this in spite of all the new
petroleum beds which are being de-
yeloped. Although America produces
two-thirds of the petroleum used
more than 100000, 900 barrels annually
there is now on hand less than six
months supply. Oil consumption is
increasing now faster than at any time
in the history of the world. With the
present rate of production it will be
possible to provide petroleum for per-
haps two years, but not longer. After
that the production must decline.
In the present crisis the big oil
interests of America are looking to
the production of oil from shales to
make up for the declining supply
Realizing these facts, a number of
Utah and Nevada business men and
capitalists. incorporated as the Stand
ard OIL Shale Company have secured
4,260 acres of exceptionally rich lands
adjoining the town of Elko, Nevada
This shale extends from the surface
to known depth of more than 100
feet Exhaustive and highly satisfac-
tory reports on the property have
been secured from DR.. David T. Day
of the United States Geological Sur
vey. who is one of the worlds most
eminent oil authorities, in which he
declares that the Elko shale can be
mined with steam shovels for less
than fifty cents ton.
"Dr. Day further states that the
cost of extracting crude oil from the
shale will not exceed 81 a ton, from
which As to 100 gallons of oil can be
distilled The report gives the analy-
sis of this oil as containing so per
cent gasoline and 20 per cent high
grade axle-grease. This is in addi-
tion to the gas, sulphate of ammonia
and other valuable bi-products which
are contained in the shale. Follow
ing DR.. Days reports, the services of
Otto Stalmann, prominent chemist,
have been secured to act as consult
ing engineer for the company.
~ lully ueuOuStIdtS the IlCu pOS-
sibilities of the Elko shales on COM
basis. an experimental plant,
with a daily capacity of 400 pounds of
shale, designed after the well-known
shale distilling plants of Scotland and
France. was built at the University of
Utah. Fran numerous tests made at
this plant. all of the reports made by
Dr. Day have been fully verified, In
fact. the Elko shales have produced
an even greater amount of oil, gas,
etc. than the first reports indicated as
probable. To put the entire industry
on a paying commercial basis, this
company has decided to construct at
once a 100-ton distillation plant at
Elko. at cost of 100000.
From conservative estimates. the
net profits on each ton of shale ham
died will be from IS to $40. or total
profit for the entire plant of $500 to
$1,000 a day. These figures are based
on day of eight hours, whereas the
completed plant viii actually operate
twenty-four hours day. From the
gas extracted from the shale the COM
pany will produce its own fuel and
have an abundance to SELL"
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