34 



cents per pound. Thus the gross value of one ton of manganese nodules 

 is $115 (at 1963 prices, Brooks estimated $83 per ton, with a range 

 between $45 and $100, depending on variation in composition) . 



The amount to be mined will have an immediate effect on the cur- 

 rent prices. Mero ^^ estimated that if an operation were designed to 

 mine an average grade of the nodules to produce 100 per cent of the 

 U.S. consumption of nickel, that operation would also produce about 

 300 per cent of its annual consumption of manganese, 200 per cent of 

 that of cobalt, 100 per cent of that of titanium, 300 per cent of that of 

 vanadium, and about 500 per cent of that of zirconium. This sort of 

 calculation has been repeated by Francis L. LeQue who assumed a 

 nodule composition of 30 per cent manganese, 1 per cent nickel, 0.75 

 per cent copper, and 0.25 per cent cobalt. If 100 per cent of the world's 

 copper needs were filled from such a source, there would also be pro- 

 duced 133 times the world consumption of cobalt and 15 times the 

 world consumption of nickel.^*' 



These calculations, however, did not take into consideration the 

 gross returns and the effects of massive mining on current prices. 

 Brooks, using his 35/2/2/.5 percentages again,'^^ estimated that 2,000 to 

 5,000 tons of nodules mined per day would drop manganese prices 

 from 90 cents to 50 cents per unit. At this price several of the large 

 African and South American producers could continue to operate, 

 but Indian mines and most smaller producers v/ould probably be 

 forced out of the market. The ton of rich ore that was valued at $83 

 drops below $64. There would follow an annual decrease in profits from 

 $26 million to $14 million (production rate 2,000 tons per day), and 

 from $65 million to $36 (at 5,000 tons per day) . 



Regardless of the arguments for or against mining submarine man- 

 ganese nodules, there is general agreement that these nodules are a 

 tremendous potential resource. Brooks concluded that : 



Though the claims for the returns from deep sea mining of manganese nodules 

 have been exaggerated, this by no means eliminates them as possible manganese 

 sources. To the contrary, it is my conclusion that they are the only alternative 

 source that is likely to be developed in the middle-term future.^ 



Conmnercial Recovery of Offshore Petroleum 



The origin and occurrence of petroleum and the reservoir para- 

 nieters requisite to its accumulation were described in an earlier sec- 

 tion. In the pursuit of oil and gas, the first step is to search for it. 

 Geological exploration is followed by exploratory drilling to see if 

 the structures discovered actually contain commercially producible 

 oil. If they do, the next stage is the development or exploitation. 



EXPLORATION 



In the search for oil, exploration techniques employ a variety 

 of sophisticated equipment necessary for geophysical investigations. 

 Modern echo-sounding and seismic equipment are capable of recording 

 the profile of the sea floor and the shapes of the underlying sedimen- 

 tary strata. These devices vary with the type of work to be performed 



^ Mero, Op. cit., page 279. 



P" Quoted by Ocean Science News (June 12, 1970) from a presentation by LeQue at the 

 Marine Technology Society meeting. Similar calculations were submitted by LeQue at the 

 Conference at Ditchley Park, September 26-29, 1969. (See: K. R. Simmonds. "The Re- 

 sources of the Ocean Bed," (1969), pages 15-17.) 



s^ Brooks, op. cit., page 106. 



K Ibid., pages 106-107. 



