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11101111=100M1miammon 2.0 =.11 2.5. IMMINNIN=1.111IMEIMInam 2.2 IMMENIMINIMENMENNEMEN. 11101111=100m1miammon 2.0 =.11, 1.4 1.6 DOCUMENT RESUME ED 056 854 SE 010 425 TITLE Industry and Technology: Keysto Oceanic Development, Volume 2, Panel Reports of theCommission on Marine Science, Engineering and Resources. Engineering and INSTITUTION commission on Marine Science, Resources, Wash., D.C. PUB DATE 69 MOTE 319p. AVAILABLE FROMSuperintendent of Documents, U.S.Government Printing Office, Washington, D.C. 20402 ¶CatNo. PR 36.8:M 33/Pv.1-3, $10.25, Sold in setsof 3 volumes only) EDRS PRICE MF-$0.65 9C-$13.16 DESCRIPTORS Development; Earth Science;*Economic Development; Environment; *Industry; *NaturalResources; *Ocean Engineering; *Oceanology; ResourceMaterials; Technology ABSTRACT This document is the secondof a three-volume series of panel reports compiledby the Commission on MarineScience, Engineering and Resources.Contained in this volume are part V, Report of the Panel onIndustry and Private Investment,and part VI, Report of the Panel onMarine Engineering and Technology.Major recommendations presented in part Vrelate to consolidation of federal functions, multipurposetechnology, and attracting entrepreneurial investment. Thefour chapters following the recommendations in part V reviewthe present status ofindustrial activities and investments,policies to accelerate industrial development of marine resources,and the various oceanindustries. Part VI assesses thepresent national effort inmarine engineering and tehnology andincludes broad guidance for theeconomic and tational development of the U.S. capability in t marine environment. (PR) r,fc' U S. DEPARTMENT OF HEALTH. : EDUCATION & WELFARE OFFICE OF EDUCATION rms DOCUMENT HAS BEEN REPRO C- (:ED EXACTLY AS RECEIVED FROM TILE PERSON OR ORGANIZXOION OHIO [NATINC;IT POINTS OF VIEW OR OPIN . 7. IONS STATED DO NOT NECESSARILY tO. REPRESENT OFT ICIAL OFFICE OF ECU CATION POSITION OR POLICY , ceanic velopment 1/4 i,.14.1.11.? :kt_likr.:, .... i::44%...'*,`:*.- ......,,t:,,p' trat,...., . ..,. - . ._ r.,...,:::.. ,....,,,,,_,,z-,.&-_ ''''..,"" o., t.l..".., , - es,W ipsb, * :-.... 4 "'' ,..,...._ /414,0416-- A. 40, v. 1114suka,141'-"'',46. * 4' 4 VT1 k. Af5e.4,03 7 e .`0 Volume 2 P,aie-1 Reports U. cOle Comrnissidn e,t,17- on Marine Cience, Engineering and Resources ;Or - 4111Warillli 2 For sale by the Superintendent of Documents,U.S. Government Printing Office Washington, D.C. 20402 - Sold in sets of 3volumes only Contents Volume 1Science and Environment Foreword Members of the Commission Panels of the Commission Staff Introduction PartI Report of the Panel on Basic Science PartII Report of the Panel on Environmental Monitoring PartIII Report of the Panel on Management and Development of the Coastal Zone Part IV Report of the Panel on Education, Manpower, and Training Volume 2 Industry and Technology: Keys to Oct:anic Development Part V Report of the Panel on Industry and Private Investment Part VI Report of the Panel on Marine Engineer- ing and Technology Volume 3 Marine Resources and Legal-Political Arrangements for Their Development PartVIIReport of the Panel on Marine e- Part VIII RepotL (tie Intnational Panel Index Part V Report of the Panel on Industry and Private Investment 4 Contents B. Programs in Multipurpose Preface V-1 Technology V-10 C.ature and Extent of Government V-1 Major Recommendations Sponsor ship V-i D. Technology Transfer V-1I Need for Advisory Committee I. II. Supporting Services V-13 II. Need for Consolidation of III.Jurisdiction and Leasing Policies . V-14 Federal Functions V-2 A. Definition of State Boundaries V-3 III.Multipurpose Technology and Baselines V-14 IV.Availability of Capital V-3 B. Definition of National Jurk-dictionV-15 V. SeasteadingA Means To Attract C. Exploration and Lease Terms . V-15 . V-3 Entrepreneurial Investment D. Seasteading V-16 IV.Joint Ventures V-17 Chaptar1 Introduction V-4V. Insurance V-17 A. Offshore Installations . V-17 I. Panel Objectives V-4 B. Personal Injury to Workers II. Potential for Industrial Growth . V-4 Offshore V-17 III.National Interest in the Ocean . V-5VI.Collaboration in Development IV.Government and Industry Roles . V-5 Planning V-18 A. Consolidation of Federal Fu- Chapter 2 PresentStatus V-7 B. Government-Industry Planr Mechanism v -I S 1. Profile of Present Indus, ial Activities V-7 V-21 II. Value of Ocean Activity V-8Chapter 4 Ocean Industries HI. Industry Attitudes Toward Ocean Investments V-8I. Introduction V-21 V-22 IV. Capital Sources and Requirements. V-9 Petroleum III.Natural Gas V-27 V-29 Chapter 3Policies To Accelerate IV.Ocean Mining V-34 Industyial Development of V. Fishing V-42 Marine Resources V-10VI Aquaculture VII. Sea Transportation V-44 V-46 I. Government Sponsored Research VIII. Instruments V-I 0 and Development V-50 A. Survey Programs V-10Acknowledgments Preface Early in its history, the Commission organizedwhich this report was b.eing prepared. In addition, seven panels. Each dealt with a major area ofthe panel participated in formal hearings with interest pertinent to the responsibilities assigned torepresentatives from Federal and State government the Commission by the" Marine Resources and agencies,industry,universities, and non-profit EngineerimDevelopmentActof 1966, P.L.institutioo.s. Finally, the help of Charles C. Conyers 89-454. Thus, a means was provided to focus onand J. Stan Stephan was enlisted for particular the basic problems and to recommend solutions inportions of the text. critical areas. This report is the work of the Panel The report has been carefully reviewed by on Industry and Private Investment. consultants and various experts throughout gov- The panel gathered information from manyernment and industry, to whom the panel is people,'including approximately 150 personalindebted. interviews with key figures. A series of conferences Kenneth Drummond, of Texas instruments, was sponsored by the Ocean Science and Tech- servedas Panel Executive Secretary. Of major nology Advisory Committee (OSTAC) of theassistance to the panel in writing the report were National Security Industrial Association (NSIA) tothe following staff members: Timothy J. Coleman, assist the panel. The panel utilized detailed state- Union Carbide Corp.; James W. Drewry, University ments and reports provided by: OSTAC; the of Virginia; Amor L. Lane, American Machine & National Chamber of Commerce; the Oceano-Foundry Co.; and R. Lawrence Snideman II, The graphic Committee of the National Association ofOceanic Foundation. The panel greatly appreciates Manufacturers; the National Academy of Engi-the contributions of these individuals and the time neering, Committee on Ocean Engineering; the made available by their organizations. National Oceanography Association; and various organizations under contract to the Commission Respectfully submitted, and the National Council on Marine Resources and Richard A. Geyer, Chairman Engineering Development. Much information was Charles F. Baird derived fiom symposia sponsored by various tech- Taylor A. Pryor nical societies and universities during the period in George H. Sullivan 1Individuals making primary contributions axe listed in Appendix A. 6 v-i Major Recommen datim ts This chapter includes summaries of highlightRecommendation: recommendations which are applicabletotheAn advisory committee composed of representa- broad sector of ocean industries. tives appointed by the President from private industry, States and regions, and the academic community sholld be statutorily created. This I. NEED FOR ADVISORY COMMITTEE committee would participate in the establishment and longhave of Natiwal marine goals and objectives TheGovernment andindustry provide continuing guidance to thz FederalGov- worked together at all levels in marine-oriented activities. To aid in the design and implementationernment. of a meaningful National program future Govern- ment planning should continue to encourageand II. NEED FOR CONSOLIDATION OFFED- anticipate information and advice from industry. The Government also should solicitinformation ERAL FUNCTIONS and guidance from the States and the academic Many Federal agencies have responsibilities in community. This need will iwzrease as ocean re-the ocean, but to date no strong focus and in some source development accelerates with an accom-instances no clear delineation ofresponsibility panying inclease in multiple use conflicts. exist. The present need for closer cooperation has Federal programs andfunctions should be intensified for several reasons: consolidated to: Development of ocean resources is accelerating.Enable improved planning and direction of This rapid development, accompanied by in-marine programs. creased awareness of the ocean's vast potential andProvide more efficient and meaningful services concern with pollution and conservation,requiresthrough better utilization of Government man- the most efficient mobilization of the Nation'spower, funds, and facilities. capability. Much of this capability already exists both without and within the Government, includ-Permit more efficient conduct of non-military ing extensivefacilities, trained manpower, andresearch znd development req,Lred for expanded experience in the development and use of marinemarine activities. resources. Provide a means for handling special problems The accelerated development of marine resources relatedtosmall,ocean-oriented businesses of has revealed thatitisimperative to achieve critical importance. understanding between multiple users in order toProvide a focus for information and technology
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