Lethbridge Herald, The (Newspaper) - January 24, 1973, Lethbridge, Alberta
Wednesday, January 34, 1973 THE LETHBRIDCE HERALD 37 Growing energy needs 6will spur' financing of oil searches By JOE WILL CALGARY (CP> A cur- rent line of thought maintains mat the chief difficulty in averting the impending en- ergy crisis will be finding the money to develop fuel sources. That approach does ro'. find much f.ipport financial vice-presicien; Harry Van ReissclEer of Valley In- dustries Lid. sa> s acquir- ing the capital is 'T.ot a major problem at ill." won't have trouble at- tracting the finances because c' the greet energy need.'1 Ho'.vever, JmagEEtion and previously untapped sources or nrk investment have 10 be employed. ''Vi'e have to open up our minds to new approaches." Mr. Van Rensselaer. who rerved his economic appren- ticeship with banking and i'ock exchange interest in New York, argues basically Hist demand for energy and funds to develop it are inter- dependent. "The economy of the world i; not static; we're gouig to get groivth ar.d large expan- sion. These industries will generate more funds for in- vestment. "If the G.VP is no! there to provide the funds, then the en- ergy demand won't be there." WILL SPEND MORE Mr. Van Hensselaer pre- dicted in an lEtcnleTr that as demand grows it will send petroleum representatives to 5 widening number of capital sources to get their funds. He estimated that in Can- ada from now Ufiti] 1930, the petroleum industry will spend S30 billion la keep up de- mand, compared with 58 bil- lion in the preceding 10 yean. World petroleum capital needs from 1971 to 1985 would be about F750 billion One of the money sources will be the multi-national companies, which as large consumers of energy will have to begin providing financing for the energy they hope to use some day. he said. Sharing of risk by sharing as ui the 5750 million borroived from several banks by companies operating in the North Spa- would be expanded. Almost ironically, among (he best potential sources of are ihe Middle East countries which now are the world's chief exporters of crude oil and which are consi- de-ed to tw in need them- selves of industrial develop- ment flinch. FEES HIGHER PRICES By 1980. those countries will be getting S60 billion a year in oil revenue and it is unlikely it will all be spent at home, Mr. Van Rensselaer said. "This region is going to be- come one oi the biggest inves- tors in the world and they'll become owners of some of the largest multi-national corpo- rations." With the rising demand for crude oil, higher prices are s Lire to come with the Middle East coaitrJBS leading the way. he said. But the "pffec- tii'e limit'' on what they can charge will be set by develop- ment of either the Athabasca oil sands or the Colorado oil As the price of oil rises, the fLnds and shales will become more accessible economically. The Athabasca sands have P5tirri5ted reserves of t25 bii- iion barrels of oil. about 370 billion barrels of which are considered recoverable. "I believe, myself, that Al- berta because of the Atha- basca sands has the prospect of becoming one of the rich- i? not the riches, redoes in the world." The stumbling block Mr. Van Rensselaer sees to devel- opment of the oil sands may be the reluctance of Canadi- ans to allow foreign capital into projects for fear of n o m i c engulfment by the United States." "I don't believe thai eco- nomic investment means po- litical involvement. We don't have to surrender po'j'jcal F-overeigcty just because we are economically closer." In considering bos' Cana- dian capital which is available should be invested, emotional- ism should not be allowed to enter into the picrure. Mr. said orjy r i, ecraonic Erounds should be used in de- ciding where to place the money available and he chose as an example the govern- ment suggestion the .MacirenzJe Hiver pipeline be 51 per cent Canadian owned. There was no need for Ca- nadians to have ownership control of the line because the National Energy Board had the power to say what goes through the line, at price and in what amounts. Bo- '.'alley, through subsid- iaries and Hrms. is engaged i.n p-jtrole'jjn and mineral exploration QP- tloz-ment. drilling, oilfield and ptpelhe real cstste control and nf specialized c-c-ipneat for the lumber TULIP ROLLS Skylark Fresh pkg. of 12.. for ORANGE JUICE Minute Maid Frozen Concentrate 12 oz. tin........... CHEESE Lucerne Process Canadian, Pimento, Swiss or Nippy 8-oz. net wt. pkg. For Quality and Flavour... Safeicav Brands of Tea and Coffee! 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