capital investment, the unknowns, and the lack of experience in the 

 marine environment will deter the small entrepreneur from ventur- 

 ing into the deep-sea operations. 



Another deterrent stems from a source totally non-technical and 

 non-economic; that is the legal uncertainties. Most essential and 

 fundamental to efficient mining practice is the exclusive right of the 

 discoverer to exploit the minerals discovered and the security of 

 tenure wliile he does so. The deep-sea operations of the future are in 

 off-shore areas undefined and undecided in proprietary and jurisdic- 

 tional terms. Who owns the ore body that has been found far out in 

 the middle of the ocean? Many companies have suffered from legal 

 problems on land, and the failure of the world community to agree 

 to an ocean i-egime is a serious deterrent to ocean mining ventures. 



In the final analysis, it is the consensus that deep-sea mineral de- 

 posits are substantial and that they form a great potential resource. 

 Once a substantially rich deposit is found, the technology to exploit 

 it is likely to be developed promptly — ^much sooner than anticipated. 

 A rich deposit and successful and profitable operation are enough to 

 dissipate tlie doubts and overcome the deterrents now gripping the 

 industry. Tlie outlook is one of cautious optimism, but a legal regime 

 must be established and international agreements effected before the 

 mining industry ventures into the ocean deeps. 



Policy for Offshore Petroleum 



All considerations of present and future technological develop- 

 ments indicate that penetration into the deep-sea basins is only a 

 matter of time. The capabilities that are not available today are cer- 

 tainly a short distance away. The question that is asked then is: 

 Does technology justify expansion? In other words, just because the 

 industry has tlie capability to do something, must it do it ? 



Certain inescapable and uncontestable facts cannot be ignored: 

 (1) Petroleum is the basis of numerous activities, products, and needs 

 throusrhout the world. (2) An increasing demand for petroleum prod- 

 uicts follows the increase in population, trends toward urbanization, 

 and the rapid industrialization of developing nations. (3) The nu- 

 merous organizations engaged in petroleum activities and their an- 

 cillary services are organizations that, in the process of making profit, 

 invest, generate, and circulate vast amounts of money which may 

 shane the economies and politics of communities and even nations. 



Regardless of the policies and arguments for or against the rapid 

 expansion into the seabed, a few facts are clear: (1) Offshore opera- 

 tions are likely to continue at an ever-increasing pace. (2) Hazards of 

 offshore operations are inevitable but not unavoidable, and damage 

 to the environment may be long-lasting or irreversible. (3) Present 

 and future technology is capable of providing the needed petroleum 

 and at the same time, preserving the environment. (4) Numerous other 

 enterprises besides the oil industry are engaged in activities using 

 coastal waters. 



On the international scene, many countries are plunging head- 

 long into offshore exploitation with inadequate understanding of 

 the disastrous hazards to their waters and shores, and often 

 disregarding principles of safety and pollution abatement. Most of 

 these nations have only one aim : The immediate returns and revenues 



