139 



The technology of our company, I tliink, is at least equal to any- 

 body else's in the world, so we are approximately in the forefront of 

 what is going on. The deepest dredges today, by the way, working in 

 the sea, can only reach 100 meters, water and material, whatever that 

 may be. 



It is certainly possible to build ones that will go somewhat deeper 

 but you get into real engineering problems in short order. It has to do 

 with strength of materials, and bending stresses in beams, and hy- 

 draulics problems. It is all fundamental engineering. It is the question 

 of, "Can you design something within a budget that can stand?" 



Mr. Frelinghuysen. A quick question. 



How does exploration for oil compare with minerals ? It sounds to 

 me as if oil would be much easier to recover and be economically more 

 feasible than minerals. You wouldn't have to worry about depth if 

 you have already drilled holes 12,000 feet under the sea. It would be 

 relatively simple, I should think, to develop a floating island and bring 

 tankers to it. Are we active in this area ? 



Mr. Bascom. There is tremendous income already from the U.S. oil 

 industry. In fact, the U.S. undersea oil business sort of dominates all 

 undersea drilling around the world. They are largely American com- 

 panies with American know-how. It is unusual for them to drill in 

 water at depths greater than 300 feet. It is probably less than that. The 

 deepest ones that any of the real "pros" in the oil business talk about, 

 and I am not one, is 600 feet. Important people in that industry say 

 they really see no chance of going beyond 600 feet for a very long time. 



I am repeating someone else's views in tliis thing. I think they are 

 possibly right. The fact that you can do it doesn't mean you can com- 

 pete in the market price 



Mr. Frelinghuysen. You mean from an economic point of view? 



Mr. Bascom. Yes. 



Mr. Gross. You are speaking of 600 feet of water ? 



Mr. Bascom. Yes. You can ^-o much deeper, 5,000 to 15,000 feet be- 

 yond that. In the mineral business we are only talking about placer 

 deposits lying on the sea floor. 



Dr. James. The total value of the offshore production at the present 

 time off the United States is about $7 billion. We have actually re- 

 covered that value of material, largely oil and gas. 



This brings in large returns to the state and Federal treasuries. 

 There has been a return of about $4 billion to the state and Federal 

 treasuries as a result of this offshore work. At the present time the 

 oil industry is drilling offshore at the rate of $2 million a day. They 

 have already invested about $7 billion in offshore exploration. 



Mr. Gross. Beyond the 3-mile limit ? 



Dr. James. Both within and beyond. 



At the present time the value of the production from the outer 

 continental shelf beyond the state limit is about $4 billion, and the 

 total value from ofl'shore is about $7 billion. 



Mr. Gross. Is there an import duty on that oil ? 



Dr. James. No. 



Mr. Gross. Are they licensed? 



Dr. James. Yes, though there are things I Imow little about. 



Mr. Fascell. Mr. Bascom, I just want to get back to one thing that 

 we have touched on several times. I want to be absolutely clear on 



84-771—67 11 



