Most shale-oil production cost estimates are between $1.25 and $2.10 per bbl. of pipeline crude produced from oil-shale deposits in northwest Colorado. Two companies have not released cost figures, but Union states that a 27½% depletion allowance is necessary before shale can be developed commercially. Other companies and organizations have conducted or are conducting shale-research projects, but none has published firm shale-oil cost estimates.

M. A. Lekas of the Atomic Energy Commission has speculated that costs of producing shale oil may be as low as $0.29/bbl. He maintains that these costs can be achieved by using nuclear blasts to create permeable, underground, in situ retorting chambers. The A.E.C. hopes to detonate such a test soon in oil shale.

The recent discoveries of valuable sodium minerals commingled with oil shale in the center of the basin may change significantly the economics of production.

The problems confronting this unborn industry are well known. The decision to start the industry should be based on the optimum combination of land, reserves, technology, operators, market, legal status, political, and governmental support. The decision can not be made unless these factors can be combined reasonably and with the knowledge that the conditions governing them are relatively stable.

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