Marine Science Affairs 



Industry 



Industrial investments in ocean enterprises and resources considerably 

 exceed the approximately $500 million annually invested in the marine sci- 

 ences by the Federal Government. 



The value of oil and gas extracted off the United States coast now runs 

 over a billion dollars a year, and is increasing at a rate of around 20 percent 

 per year. Total new investment in offshore oil and gas leases has averaged 

 over $235 million a year since 1960, and in 1967 approached $600 million 

 on Federally administered land. Shipping, a traditional field of private 

 enterprise, generated one and one half billion dollars in revenues, and 

 profits totalling $150 million, for American flag shipping companies in 

 1966. 



Also involved are other industries with substantial investments and 

 revenues : 



— high technology industries concerned with precision instruments, 

 equipment and vehicles — primarily aerospace and electronic com- 

 panies ; 

 — industries producing economic wealth — other than shipping and 

 fossil fuel extraction — ship and boat building, fisheries, and fish 

 processing and marketing; magnesium and bromine extraction 

 from sea water; and extraction of sulfur and other minerals from 

 the seabed; 

 — construction and service industries such as those involved in shore- 

 line and harbor rebuilding and dredging ; 

 — companies that provide oceanographic services and conduct special- 

 ized oceanographic ship operations; 

 — coastal activities that include recreation and associated small busi- 

 nesses. 

 Industry is expected to increase its involvement substantially even as the 

 Federal Government accelerates its own efforts. In fact, this parallel growth 

 is one major difference between the marine sciences and outer space 

 activities. 



A substantial fraction of Federal funds for marine science and technology 

 is spent through contracts with industry. As opportunities arise, Federal 

 contracting for research and development helps build and maintain a base 

 of engineering competence that can be applied broadly to future ocean 

 developments. 



We adopt as a basic premise that those activities in the past traditionally 

 conducted in the private sector will be continued. Nevertheless, it is also 

 recognized that, in those cases where risks are high or profits long deferred, 

 the public interest may be served by Federal programs. At the same time, 

 Government support of marine science and technology may have industrial 



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