RI 2466 An Economic Study Of The New Albany Shale. ? Introduction

The development of an new industry, which must prepare its marketable products at or near the source of the raw material, and ship them to a market which may cover half a nation, is more or less influenced by a number of natural and cultural conditions such as (1) location of plants with respect to a large market, (2) climatic conditions, (3) transportation facilities, (4) labor supply, and (5) water supply. An effort is made in this pager to give in detail a number of the more important of these conditions as they affect, either favorably or unfavorably, the development of the oil-shale resources of southeastern Indiana. The utilization of the New Albany formation for the production of oil will be similar to a large scale low-grade ore proposition in which the raw material can be obtained in very large quantities at a relatively low cost. It appears, therefore, in considering the value of this shale or its economic position in relation to other oil shales, tie cost of mining and preparation for the retort are of prime importance.