Figure 4. Map of U.S. continental margins, 

 showing land areas of petroleum productioru 

 Source: T. W. Nelson and C.A. Burk, "Petro- 

 leum Resources of the Continental Margins of 

 the United States, " in Exploiting the Ocean 

 (Washington, D.C. 20005: Marine Technology 

 Society, 1966). 



nomic incentives are reasonable and where the 

 governmental administrative framework is not 

 prohibitive. 



C. Possible Domestic 

 Energy 



Substitute Sources of 



There are several sources of energy in the 

 United States that have been considered as direct 

 substitutes for petroleum and natural gas, such as 

 the hydrocarbons that can be obtained from oil 

 shale, tar sands, and coal. Other energy sources, 

 such as nuclear and hydroelectric power, can 

 affect the energy consumption patterns, but gen- 

 erally not as direct substitutes for the various uses 

 of oil and gas. 



Large reserves of oil shale are known in the 

 United States, especially in the Piceance Basin area 

 of northwestern Colorado and adjacent states. The 

 grade, or organic content, of this shale varies 

 greatly, but a recent report estimates that 80 

 billion barrels of petroleum is recoverable from 

 shale with an oil-equivalent content of 30 gallons 

 per ton of rock.'" No shale oil is being produced 



C. Duncan and V. E. Swanson, Organic-Rich Shale of 

 the United States and World Land Areas (Geological 

 Survey Ciiculai, 1965). 



for a variety of reasons. The Federal goverrmient 

 owns approximately 80 per cent of the oil shale 

 reserves and these are encumbered by a series of 

 claims arising under a variety of laws, thus leaving 

 the title in dispute. In addition, while the techno- 

 logic capabiUties are reasonably perfected, the 

 economic factors of this technology under existing 

 circumstances present a formidable barrier to 

 production. 



PoUcies of the Federal government have never 

 been fuUy developed and until they are there is 

 little likelihood that an oil-shale industry will 

 emerge. Moreover, the very large capital require- 

 ments may necessitate the enactment of further 

 economic incentives, such as a higher depletion 

 allowance. It seems likely that shale oil will 

 eventually be economic enough to contribute to 

 the energy demands of the United States, but 

 probably not as a major factor in the energy mix 

 prior to the year 1990. The petroleum industry is 

 presently investing considerable money and effort 

 in studying these problems and in further develop- 

 ing shale-oil technology. 



The technology and economics of recovering 

 petroleum from tar sands are in some ways further 

 advanced than those for oil shales. A conunercial 

 mining and upgrading project is already underway 

 in western Canada, where it is estimated that 

 about 300 biUion barrels may eventually be 

 recoverable. Potential reserves from tar sands in 

 the United States are not large, although there are 

 large quantities of heavy oils that may be amena- 

 ble to technology similar to that for the tar sands. 



Coal can be treated by various processes to 

 yield hydrocarbons in the form of natural gas or 

 petroleum liquids. The overall technology and 

 economics are poorly known and somewhat specu- 

 lative. It seems likely that the Uquefication tech- 

 niques may yield an economic product earlier than 

 some of the proposed gasification techniques. In 

 certain special cases, one ton of coal could yield 

 three barrels of gasoline and fuel oil. Predicting the 

 extent to which coal treatment may substitute for 

 petroleum or natural gas in domestic energy 

 consumption is as difficult as for shale oU. Even 

 considering the large reserves of coal in the United 

 States, the early production of liquid hydro- 

 carbons and gas from coal would necessarily be in 

 carefully selected and uniquely advantageous de- 

 posits, and in even these instances satisfactory 

 technology is not now perfected. 



VII-202 



