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Shale Country V. July, 1975

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Shale Country V. July, 1975 Mule deer stroll through shale country. SHALE COUNTRY is provided as a public service by the leaders of the oil-shale industry. Published monthly as a source of information for those interested in industry developments, SHALE COUNTRY is made available to shale-area residents without charge through various community outlets. However, should a reader wish to receive SHALE COUNTRY each month for 12 months through the mail, please send your request to Mountain Empire Publishing, Inc., 231 Detroit St., Denver, Colo. 80206, along with a check for $4.00 to cover costs of postage and handling. SHaLe counTRY Volume 1, Number 7 July 1975 CONTENTS 2 Guest Editorial The Many-Options Dilemma 3 Looking Ahead Examining Shale Country's Health-Care Facil ities-Utah 4 A Look At Utah: From Sego lilies to Shale 7 Situation Report U.S.A. Oil Shale: Asset or liability? 9 Potpourri Shale-country interests are expressed by readers (p. 20), and Utah's Shale-Down Under Gov. Rampton (p. 18-19), while SHALE COUNTRY takes a look at Utah 10 Community Profile (p. 4-£), and shale development assets and liabilities (p. 7-8). Rangely: Still Swimming in Oil 12 Guest Column Air Quality and Meteorology in the Prototype Oil-Shale Program 14 Environment Putting Wildlife on the Map 15 Real Estate Corner A Room at the Top (of Shale Country) 16 Newcomers Johnny Van: Colorado's Henry K? 17 Vignette Burman Lorenson: Coordinating over Coffee 18 Voice of the People Utah's Gov. Rampton: 'Door still open to shale development' 20 Readers Speak Out Edward S. Safford, Publisher and President Gregory A. Williams, Executive Vice President Alys Novak, Vice President and Editorial Director A PUBLICATION OF Richard L. Ronald, Vice President-Sales t!:\ ~ MOUNTAINEMPmEPuBLISHING,INC. Jonijane Paxton, Managing Editor Evelyn DiSante, Associate Editor Photo Credits Kathy Carlton, Assistant Editor Front Co"er, Dennis Van Horn, Ecology Consultants, Inc.; p. 2, AReO; p. 3, Design West; p. 4-6, Cameron Engineers, Skyline Oil, Carol Edmonds; p. 7--8, Club 20; p. 9, Doug Nelson; p. 10-11, Carol Edmonds; p. 12-13, Roger Tucker, Jim Gigoux, Contributing Editors Diagram, Rio Blanco Oil Shale Project, Photo, Roger Tucker, Area Oil Shale Office; p. 14, Ecology Consultants, Inc.; p. 15, Colorado Tra... el Development Section; p. 16, Carol Edmonds; p. 17, Tom Byers; p. 18-19, Governor's Office, Ray Lewis, Art Director Carol Edmonds; p. 20, Ray Lewis; Inside Back Co"er, Roger Tucker, Area Oil Shale Office. Brian Novak, Production Consultant SHALE COUNTRY © 1975 by Mountain Empire Publishing, Inc. All rights reserved. Material from this magazine Catherine Kilker, Circulation Director may be reprinted, with credit line to SHALE COUNTRY, Mountain Empire Publishing, Inc. Published monthly. Executive and Editorial offices, 231 Detroit St., Denver, Colo. 80206 (303) 388-5931. SHALE Carol Edmonds, Regional Editor COUNTRY is supplied to residents of Western Colorado and Northeastern Utah and to others..outside the shale area with a special interest in the industry. Third Class Bulk Postage paid at Den"er, Colorado. SHALE COUNTRY is sponsored by Ashland Oil, Inc., Atlantic Richfield Co., Gulf Oil Corp., Shell Oil Co., Standard Oil of Indiana, Sohio The Regional Editor can be reached at: Petroleum Co., Sun Oil Co., The Oil Shale Corp. The opinions expressed in this publication are those of specific individuals and do not necessarily reflect the viewpoints of the publication's sponsors or lhe oil-shale industry as a 105 Lilac Lane whole. Grand Junction, Colo. 81501 Postmaster: Please send all mail, address changes, (with old address, new address and zip code), subscription orden, undeliverable copies and Fonn 3579 to SHALE COUNTRY, 231 Detroit St., Denver, Colo. 80206. (303)242-3905 Shale Country July 1975 1 Guest Editorial The Many-Options energy-resource utilization. The invest­ and ability to satisfy the new source ment options include oil and gas (both performance standard for sulfur dioxide Dilemma onshore and offshore), coal, tar sands, emissions. We would like to start pro­ oil shale, nuclear and petrochemicals. duction at the properties we hold, in­ Thus, there are limited capital dollars cluding one near Gillette, Wyo. This By H. E. Bond, Vice President available and a number of energy­ property could be producing 10 million Atlantic Richfield Co. resource options available. tons per year by 1978 and double that The capital problem is particularly amount by 1985-if pending environ­ The energy issue that has been con­ acute for those projects that are highly mental litigation could be resolved. fronting the nation for the past 18 capital intensive. Because of the wildly We see no prohibitive economic con­ months is comprised of a myriad of inflating costs of 1974, we have already straints in continuing to enlarge our complexities; however, the solutions been forced to withdraw from participa­ company's stake in the chemicals indus­ that are needed are not complicated. tion in a major tar-sand project and to try. Toward that general objective, we First, we must conserve energy; second, postpone a large shale-oil project. Tar are planning to invest in the neighbor­ we must expand the rate of development sands and oil shale are of great impor­ hood of a billion dollars in this area of of domestic energy supplies to reduce tance, and will be developed eventually. our business over the next 5 years with our dependence on imported oil to a But for the moment, without some form construction going forward on four new tolerable level; third, we must look to of government assistance, the econom­ plants at our Channelview, Texas, site, as the federal government to provide re­ ics do not provide adequate incentive to well as a substantial expansion of our search funds for high-cost new technol­ investment. Houston refinery, to provide the feed­ ogy areas, such as solar and fusion, that Coal is certainly our most abundant stock. could provide the nucleus of our energy energy source with recoverable deposits The question that naturally arises con­ supplies in the post-hydrocarbon era. in the U.S. in the neighborhood of 200 cerning an adventure in chemicals ofthis A key to the near-term problem of billion tons. Western coal, such as that kind by our company or any other oil developing our domestic energy re­ found in the Powder River Basin of Mon­ company is: where are we headed? Do sources lies in the energy industry's abil­ tana and Wyoming, is most valuable be­ we see our long-range stance as an oil ity to raise much needed capital. If prof­ cause of its low effective sulfur content company, energy company, chemical its continue to erode as expected over company, or a hybrid of all three. the balance of this year because of infla­ Probably the last, I would say. We are tion, punitive tax legislation, and a gen­ in the petrochemical business for the eral deterioration of overseas earnings, rather obvious reason that, whatever the industry is going to have to reduce temporary fluctuations in the market, we its earlier investment plans. The im­ foresee a long, sustained period of mense volume of domestic investment growth in petroleum-based chemical necessary over the next 10 years, proba­ products, especially considering the lim­ bly between $400 and $500 billion, can itations that are more evident every day be generated by allowing the market­ in the availability of natural gas for use as place to do its job in pricing energy on a feedstock. Our best guess at the mo­ supply-demand basis. The potential ment is that the share of domestic oil squeeze on available capital places the devoted to chemical feedstocks will industry in a precarious position at a probably double by 1990. time when it is being called upon to In summary, we must maintain the respond with a yeoman-like effort to ability to remain flexible in selecting increase domestic energy supplies. among capital-intensive options. The Since Atlantic Richfield's capital pro­ world energy situation with its interrelat­ gram is more than $2 billion this year ed financial and energy supply impacts alone, compared to a capital base of requires a flexible posture if we, as a about $5 billion, and the competition for company, are to adapt successfully in a available capital keen, the company continually changing environment. This must carefully analyze all capital­ is particularly true today if we recognize intensive alternatives to determine that oil is too valuable to burn if the where to channel its dollars to get the energy it provides can be obtained in best investment return and the best some other way. 2 Shale Country July 1975 Loo~ng Ahead "The second alternative is not really a health-care training center. If this goes Examining Shale good choice either, since the present through, we will have three faculty Country's Health-Care hospital site is limited and it would not members, three residents, and three be possible to expand the facility beyond medical students here at all times, in Facilities-Utah 50 beds." addition to other personnel in training." That leaves the third choice: a new Arnold points out that although some of hospital on a new site. Arnold says a new these personnel would be in the hospital 48-bed hospital could be built for only temporarily, others would be there "under $5 million," but to do this, a full-time as faculty. hospital district must be established. Ar­ On a long-term basis, Arnold says, Health-care facilities in shale country nold explains that "The establishment of "We want to move from being a rural are of concern both in Colorado and in a district would change the governing general practice hospital to being a more Utah-although there are pronounced authority of the hospital, and would en­ complex specialty-intense medical-care differences in the situation between the hance the ability of the authority to tax.
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