Chapter 1 Introduction 
|. PANEL OBJECTIVES 
Two objectives of the Marine Resources and 
Engineering Development Act are to accelerate 
development of marine environment resources and 
to encourage private investment enterprise in ex- 
ploration, technological development, marine com- 
merce, and economic utilization of such resources. 
These statutory objectives have established the 
framework for the work of the Panel on Industry 
and Private Investment. Thus the panel has pro- 
ceeded from the premise that an increase in 
commercial marine activity is in the National 
interest and should be supported by both the 
public and private sector. The panel’s principal 
mission has been to determine what specific 
actions are both necessary and appropriate and 
what mutual roles are to be played by the public 
and private sectors. 
The panel particularly wishes to emphasize the 
key importance of industry’s participation in 
advancing the Nation’s use of the seas. It is 
industry which under its own initiative has devel- 
oped much of the technology now used in ocean 
operations. The know-how of industrial personnel 
will be crucial to technological extension. Certain 
sectors of private industry also command capital 
resources substantially exceeding those govern- 
ment is likely to be able to assign to civil ocean 
projects. 
The larger companies, at least, are capable of 
assigning resources to a steady and programmed 
effort that can be sustained over the years with 
greater confidence than a project subject to the 
uncertainties of annual Congressional appropria- 
tions. Industry can often sponsor programs in the 
ocean without fear of political criticism. Moreover, 
private companies can operate in foreign areas and 
reach agreements with foreign governments (such 
as those of the oil industry in the Near East or of 
mining companies off South Africa, England, and 
Malaysia) that would be more difficult to achieve 
at a government-to-government level. 
The panel’s work has been directed to the 
following major subjects: 
—What are the implications of the statutory intent 
that marine resource development be accelerated 
vV-4 
in terms of regulatory policies, incentives, and 
services to industry? 
—What impact would a strengthened Government 
program in marine science and engineering have 
upon private and industrial activity in the oceans 
and upon the economy as a whole? 
—What will be the private sector’s requirements 
for capital in order to realize the potential for 
ocean development? 
—How can industry collaborate effectively with 
government and the academic community in the 
planning and execution of a truly National marine 
program? 
These questions identify major problems to 
which the panel’s efforts have been directed. From 
several alternative means to stimulate investment 
in marine industry, the panel has selected the most 
promising, attempting to weigh their benefits 
against possible detrimental effects. 
This report should be read in conjunction with 
the Commission report and the other panel re- 
ports. For instance, the Panel on Marine Resources 
has reviewed in detail the potential of marine 
resources; the Marine Engineering and Technology 
Panel has proposed a fundamental technology 
development program intended to advance the 
Nation’s capability to utilize such resources. 
11. POTENTIAL FOR INDUSTRIAL GROWTH 
The potential for greatly expanded industrial 
activity in the oceans clearly is present. Within the 
next 20 years, the world population is expected to 
increase by some SO per cent.’ About three-to- 
four times more gas and oil will be required 
annually.* It has been estimated that offshore 
sources will provide in a decade about one-third of 
the world’s petroleum.’ It also has been estimated 
1 United Nations, “World Population Prospects,” Pop- 
ulation Studies No. 41, 1966, Table A3.2. 
2 Weeks, L. G., “The Gas, Oil, and Sulfur Potentials of 
the Sea,” Ocean Industry, June 1968, p. 43. 
31bid., p. 48. 
