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I would further point out, however, that in my opinion it is most desirable and most important, both for the Federal Government and for the communities or political subdivisions interested, that provision be made, as in section 5 of the pending bill, for time payments on the capital cost of the project, thus constituting in a way these communities or political subdivisions as partners with the Federal Government in the enterprise and greatly reducing the capital outlay required from the Federal Treasury. Mr. BARBOUR. Have you made any estimate of the time when the Government would be fully reimbursed by the sale of power?Professor DURAND. An annual charge of 2 1/2 per cent invested on a sinking fund basis at 5 per cent interest would provide for the retirement of the bonds in a period of about 23 years. Section 5 of the pending bill provides for distributed annual payments covering capital cost in 25 years. I believe that the territory interested in this project will be eager to take power from this source at figures which will insure the repayment of the capital expenditure in a period of 25 or 30 years, and including as well, all interest charges on the same. Regarding the matter of oil reserves I would like to mention one further point, and that is that there is in that section of the country, immediately tributary to the Colorado River, a consumption of oil annually of something like 13,000,000 barrels by the railroads. That is one item which apparently could be wiped off the slate of consumption, once we bring about the utilization of electrical power by the railroads which, of course, is contemplated as one of the definite features of the market for this power. In addition to that something like 4,000,000 barrels are being burned under boilers in miscellaneous ways, making at the present time an aggregate of 17,000,000 barrels that could be immediately saved. This figure of 23,000,000 barrels per year represents therefore a very definite and important item of saving, having in view our total California reserves of something like 2,000,000,000 barrels. Or again, looking beyond the Boulder Canyon project to the total power possibilities of the Colorado River, we should have a total fuel oil equivalent of some 10 times as much or 230,000,000 barrels per year, which is something more than one-tenth of the entire reserve of fuel oil in the California region at the present time. All these things drive home, it seems to me, the very great importance of realizing at the earliest practicable moment this vast undertaking of national conservation.There are many other points of which mention might be made, but I will not take up the time of the committee further. Mr. SWING. I will ask permission that the statement of the Geological Survey be made a part of the record. Mr. SINNOTT. Without objection, that may be inserted in the record. We are very much obliged to you, Professor, for your very interesting and instructive statement. (The statement of the Geological Survey is as follows:) THE OIL SUPPLY OP THE UNITED STATES-ESTIMATES MADE BY THE COUNTRY'S FOREMOST OIL GEOLOGISTS. A review of the producing, probable, and possible oil-bearing regions in the United States by a joint committee composed of members of the American Association of Petroleum Geologists and of the United States Geological Survey has resulted in an inventory estimate that 9,000,000,000 barrels of oil recoverable by methods now in use remained in the ground in this country January 1, 1922.Unlike our reserves of coal, iron, and copper, which are so large that apprehension of their early exhaustion is not justified, the oil reserves of the country, as the public has frequently been warned, appear adequate to supply the demand for only a limited number of years. The annual production of the country is now almost half a billion barrels, but the annual consumption, already well beyond the half billion mark, is still growing. For some years we have had to import oil, and with the growth in demand, our dependence on foreign oil has become steadily greater, in spite of our own increase in output. It is therefore evident that the people of the United States should be informed as fully as possible as to the reserves now left in this country, for without such information we can not appraise our probable dependence upon foreign supplies of oil, on the expanding use of which so much of modern civilization depends. Fortunately estimates of our oil reserves can be made with far greater completeness and accuracy than ever before. During the last eight years a large part of the territory in the United States that may possibly contain oil has been studied in great detail by oil geologists; wildcatting has spread through "prospective" into many regions of ''possible" and locally even into regions of "impossible" territory; old fields have

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