Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-08
sHALE OIL.

Il Have you been invited to make a little invest
''ssment in shale oil stockl Perhaps that pleasure is
yet to come, Many people have been so favored.
/. y. Sooner or later the known stores Of petroleum
will be exhausted. New sources of supply must be
iscovered, substitutes must be provided, or we
shall be at the end of our supply Of fuel and lubri-
eating oils, with results which, as everyone knows,
will be very grave. s
We need not depend on oil wells. Oil exists in
fabulous quantities in another form. Certain shale
rocks are impregnated with it, and from these rocks
oils OF various grades, gasoline, and many of the
usual by products can be obtained. Our mountains
contain billions Of tons of this rock, right at or near
the surface, and where this rock exists all that is
necessary is to mine and treat 1t, eliminating entirely
the element Of uncertainty which attends prospect
ing for oil wells. This element Of simplicity and
certainty is set forth in very attractive form by GER
tain shale oil companies which are offering their
stock to the public.
Before investing in this stock it may be well
for the prospector to obtain the views Of the United
States Bureau of Mines, which knows something
about oil. In a bulletin just published the bureau
says that while more than $50 companies have been
organized for the purpose Of developing Of selling
stock on oil shale enterprises, no sha1e oil has yet
been produced commercially in this country, nor
have sufficient data been collected to make possible
any close estimate of the cost Of production. No
dividends from this enterprise have ever been eart-
ed, nor are any likely for some time. y The following
summary Of the conditions is given:
It must be realized that the production Of oil
from oil shale is a large scale manufacturing enter
prise that involves the handling Of large amounts Of
low-gIade material. It is comparable in many re-
spects to the extraction Of gold or copper from low
grade ores: The original investment for equipment
IS heavy, the operating expenses high, the profit per
ton probably small, and a large daily capacity and
good management are essential for profits.
lnathis country the oil-shale industry can not be
developed overnight and probably can not attain
success until large sums Of money have been spent
IN pe%rfectihg mining, retorting and refining meth
DDS. a company to be successful, whenever oil
shale operations become commercially feasible, must
be able to employ the best technical, business and
engineering skill available, be prepared to operate
on a large scale, and be financially strong enough to
wait several years for any large return on the money
invested. Alarge amount Of credit will naturally be
due those pioneering companies that will carry de-
.,vellopment work so far that whenever the petroleum
industry fails to meet the demands for its products
the oll-shale industry will be in a position to make
up the deficit. It is unfortunate. that a large mum
per Of the many companies organized to deal with
OIL shale are devoting their efforts to stock-se1ling
rather than assisting in building . firm basis for the
industry