HISTORYA 110-year supply of oil is contained in land owned by the U.S. government in the Green River Formation in Colorado, Utah and Wyoming. It is in the form of oil shale. Oil shale is a sedimentary rock that is heated to release kerogen, which is processed to form a synthetic fuel oil.
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Oil shale has been recognized as a potentially valuable U.S. energy resource since as early as 1859. Between 1910 and 1927 federal oil-bearing lands were set aside as sources of fuel for the Navy. In 1944 $30 million was authorized to demonstrate and $87.6 million to produce synthetic fuels to aid in the war effort (WWII). And extended in a1950 Act to maintain military and economic strength during the Korean war. A 1980 Act established a Synthetic Fuels Corporation (SFC) "to improve the Nation's balance of payments, reduce the threat of economic disruption from oil supply interruptions, and increase the Nation's security by reducing its dependence on foreign oil" with a $19 billion fund to stimulate alternative fuel production. The SFC was terminated during the Reagan presidency in 1985 as a part of a cost cutting measure. In 1998 the Elk Hills portion of the reserve was sold to Occidental Petroleum. In 2000 deed to reserve no.2 in Utah was transferred to the Ute Indian Tribe.
A 2005 Act "declares the strategic importance of domestic oil shale resources and their development." It "directs the Secretary of Defense to develop a strategy to use fuel produced from oil shale to help meet the fuel requirements of the Department of Defense when the Secretary determines that doing so is in the national interest." The Bureau of Land Management (BLM), which now manages federal land in the Green River Formation of Utah, Wyoming and Colorado, awarded six development & demonstration leases in 2007. Each lease is for 10 years with a 5 year extension on 160 acres. If requirements are met, the lease can be extended to a total of 5120 acres (8 square miles) for a 20-year commercial production lease. Five of the leases are in Colorado, one in Utah. There seems to be a number of different versions of the history of oil shale in the USA. See additional historical references here & here.
NEW DEVELOPMENTS
As crude oil prices go up, interest in oil shale goes up! In the past oil shale was mined and then heated to separate the oil, but this process is expensive and is often environmentally unfriendly. Today several companies are experimenting with in site heating, then pumping the resulting liquid to the surface. It is believed this will lower the overall cost of the synthetic fuel oil to less than $35 per barrel and greatly lower the environmental impact.
Oil shale has a lot of potential, but, as with any technology, there are a number of detractors who want to stop development in its tracks. In late 2007 some congressmen tried unsuccessfully to delay progress. Overall there seems to be an overriding intention to "Go Slow" on oil shale development. At least partly because of the on-again and off-again history of oil shale development.
It seems that significant commercial production of oil from oil shale may not happen until 2017 at the earliest. At that time there is a possibility that oil prices will have fallen again to the point where oil shale production is no longer profitable. That maybe one of the reasons for a lack of enthusiasm for quick development of this abundant resource.
Note: The BLM (Bureau of Land
Management) is asking you to comment on developing this abundant resource, by
filling out the online form at:
http://ostseis.anl.gov/involve/comments/index.cfm Comments will be accepted
until Sunday, April 20, 2008. See this article online, with
hyperlinked references, at: http://www.friendlyinnovators.com/mn/20080320.htm
Next time:
Solar Energy
Al Leedahl
Engineering Design Concepts
www.leedahl.com/engineering/design/concepts.htm