OCEANOGRAPHY 1961 — PHASE 3 199 



need a word or two. I will restrict my remarks to tlie scientific and 

 engineering side of it. 



I might note that we are not in the contract research business as 

 such, except on our own account. That is to say, we do research in 

 geophysics and other fields of interest to the oil industry only for our 

 own company. We are not in the business of going out and seeking 

 research contracts. 



However, it is our policy, if it is in the national interest, to be 

 willing to take on projects in areas in which we feel we have a special 

 competence, where we feel that we do have a chance to make a real 

 contribution, provided that the proposed work is not so large as to 

 completely dismpt our own operations, and also provided that our 

 proprietary rights in our own research on our own account are not 

 endangered. 



At the present time, we do have two or three Government research 

 contracts. One is in the area of theoretical seismology for the VELA- 

 Uniform program. Another one of our laboratories has a contract 

 on fuel cells. They also work on jet fuels, radiation resistant grea-ses 

 for the AEC, and so on. 



However, it is our policy, if it is in tlie national interest, to be 

 percent of our annual research budget, wliich amounts to about $20 

 million. 



As you can see, we are not dependent on outside research contracts 

 for any significant amount of support. 



17ov/, in thin I am speaking primarily on behalf of my own com- 

 pany. I cannot really speak for others, otiier oil companies, but I 

 imagine that their attitude in this area would be somewhat similar. 

 And I certainly do not want to imply that the geophysical contrac- 

 tors and instrument makers should do research as w^e do on a cost- 

 plus-no-fee basis, because doing these surveys and providing their 

 instruments is their business. 



We do research contracts for the Government on the cost-plus-no- 

 fee, because doing research contracts is not our business. We do it 

 as a service. It is not our business. 



But doing surveys and providing instruments is their business. 

 It is a perfectly legitimate business. So I do not want you gentle- 

 men to get the impression that I feel that the geophysical instrument 

 industry should conduct surveys purely as a courtesy. 



It would be quite proper to ask for competitive bids. It is these 

 fellows' way of life. We surely ask for competitive bids. There is 

 no reason why the Government should not do the same in the area of 

 geophysical surveys. But this is their business, just as our business 

 is selling to the Government and to others jet fuels and things of that 

 sort. We do not supply you with jet fuels at no profit. It is sm^all 

 enough, but we do not supply it at no profit. The same for the geo- 

 physical industry. 



Thank you, Mr. Chairman. 



Mr. Miller. Thank you very much, Dr. Blake. 



I was very happy to hear what you had to say about Dr. Bates, 

 because I join you in my admiration for him and his ability and his 

 drive. And I Avas very much interested in, among other things, 

 your reference to the Moho. I think that this is a great breakthrough, 

 one that perhaps, had it taken place in other parts of the world, would 



