For 11 years, under authorization of the Synthetic Liquid Fuels Act of April 5, 1944 (30 U.S.C. 321-325), and amendments, the Bureau of Mines has carried on an extensive research and development program to establish methods for producing oil from coal and from oil shale. This act was passed by the 78th Congress primarily because of the stress of wartime demands for liquid fuels to supply our armed forces during World War II. The act was progressively extended by the 80th and 81st Congresses, as later peacetime demand for oil and oil products continued to increase. When this program 'vas begun, domestic production of petroleum Has ahead of demand, and net exports were about 7 percent of the production. In the years since, although domestic demand has increased about 70 percent, production has not increased at the same rate. Imports of oil have increased since 1948, until net imports are about 10 percent of domestic production. Looking ahead, it is believed that the gap between demand and domestic production of petroleum will widen. Therefore, increased reliance must be placed on importation over long sea lanes, or liquid fuels must be supplied from such substances as coal and oil shale. New reserves of petroleum in the ground are being discovered only with increasing effort and expense. The present price differential in favor of natural products as compared with synthetic products is expected to become less as a result of the relatively diminishing natural supply and of continuing research that will increase efficiency in production and lower the final cost of synthetic fuels. The Congress authorized a total of $87,600,000 for this research program on synthetic liquid fuels between 1944 and 1955. During the 11-year period the Bureau of Mines obtained basic-research, engineering, and cost data in preparing for the time when such information will be needed by a synthetic-liquid-fuels industry. To carryon the research and development, the Bureau built and operated 3 laboratories and 2 engineering plants. Of the 3 Bureau laboratories, that at Laramie, Wyo., deals with oil-shale problems; the one at Bruceton, Fa., is studying coal-to-oil processing; and the third laboratory, at Morgantown, W. Va., is concerned with the conversion of coal to gas. In addition, gasification of coal underground is being studied in a cooperative project at Gorgas, Ala., on the property of the Alabama Power Co.