The Fallon standard. (Fallon, Nev.) 1920-1958, 1921-07-27
SCIENTISTS SEE
POSSIBILITY OF GREAT IN
DUSTRY IN FUTURE

petroleum products, particularly in
the Rocky Mountain district, accord
ing to the u. S. Bureau of Mines.
There is strong probability that in
years to come the production of pet
roleum may so decrease and the de-
mand SO increase that the oil shalas
may be largely needed to supply the
deficit of crude petroleum as a
source of refined products
The oil shales of this country coA-
tain enormous quantities of oil. but
large amounts of money will have to
be invested before the oil-shale In
dustry becomes of commercial I'M
portance. Estimates of the cost of
a complete retorting plant. handbag
1000 tons of shale a day, are be-
tween s1,000,000 and $4,000 600.
and If the average shale treated
yielded AZ gallons of oil a ton ii
would probably require at least 1900
such plants operating 365 days a
year to supply the volume of crude
oil that was consumed in this coun-
try In 1920, and the shale mined
daily would amount to just about
one-half the coal mined daily in this
country. However, Ii is hardly to he
expected that shale oil will be called
upon to replace petroleum complete
ly, for great many years. Although
the Scotch industry has been exist
ent for more than so years, the
q fsan IF ha1 oil IL,
Scotland during 1920 was less than
two days average production of
crude oil in the United States DUR
ing the same year.
The oil-shale industry is not strict
ly comparable to the petroleum in
dustry. 1t is completely new in
dustry for this country and calls for
new training and experience. After
the oil has been removed from the
shale the problems connected With
its refining are much more complex
than are those of refining petroleum.
Obtaining oil from shale is not COM
parable to obtaining crude oil by
drilling In drilling an oil we'll the
element of chance has TO be taken
into consideration, but there is al
ways the possibility of large i'm
mediate reward on a relatively small
investment After oil has been
struck the cost of transporting 1t 10
the refinery is in most cases rela-
lively small. as there are systems of
pipe lines throughout the oil fields.
In producing oil from shale the
original cost of the shale in place Is
practically nothing at present Eeti-
mating the supply of oil recoverable
from a given tract involves little diff
ficulty, for few test holes and an
alysis can establish the thickness and
the richness of the bed in a similar
manner as the value and extent of
a coal deposit is estimated.
1t must be realized that the pro-
duction of oil from oil-shale is
large scale manufacturing enterprise
that involves the handling of large
amounts of low grade material. 1t
Is comparable in many respects to
the extraction of gold or copper from
tCN 6AaaC Oitos AC NtSl-
ment for equipment is heavy, the
operating expenses high, the profit
per ton probably small, and large
daily capacity and good management
are essential for profits.
In this country the oil-shale indus
try can not be developed over night
and probably cannot attain success
until large sums of money Gave been
spent In perfecting mining, retorting
and refining methods. A company to
be successful, whenever oil-shale OPP
erations become commercially feas-
ible, must be able to employ the best
technical, business and engineering
skill available, be prepared to oper-
ate on a large scale, and be finan-
cially strong enough to wait several
years for any large return on the
money invested. A large amount of
credit will naturally be due those
pioneering companies that will carry
development work so far that When
ever the petroleum industry fails to
meet the demands for its products
the oil-shale industry viii. be in
position to make up the deficit. 1t
is unfortunate that a large number
of the many companies organized
to deal with oil shale are devoting
their efforts to stock-selling rather
than assisting in building firm
basis for the industry
Up to the present tine mora ;h1n
$50 companies have been organized
In this country for the purpose of de-
veloping or selling stock in oil-shale
enterprises. At present shara are no
shale-oil operations that ave
reached commercial production. at-
though there is a great deal lf activ-
ity in Colorado, Utah, Montana. Ne
vada and California. where t'.ets are
large and easily accesslble deposits
of rich shais and SONS shale Gil has
been and is being produced Other
parts of the country also contain
large deposits of bitumirous shale
Several small plants have been COM
pleted and are operating frem' time
TO time, and others are unde~ con-
struction near DeBeque. Colo, one
plant is under construction and one
operating near Watson, Utah. be-
sides two plants near Elko. New,
one near Dillon, Mont and one
In California Several experimental
and demonstration plants have been
a