Re: Comparison of ANWR with tar sands and oil shales

From: Steven M Smith <smsmith@usgs.gov>
Date: Sat Jul 03 2004 - 11:07:06 EDT
Don,
You wrote:
< Unocal was more persistent than any other company in trying to get oil from shale. They shut down their research on that only a few years ago. They must have had encouraging results to keep at it so long. Does anyone know details? >
 
This doesn't totally answer your question but you might want to check out the following newspaper article.
Colorado oil shale gets a second look http://www.hcn.org/servlets/hcn.PrintableArticle?article_id=11056
 
Partial quote from article ...

"Northwestern Colorado has been viewed for a century as a potential oil treasure. By some calculations, the Piceance (pee'-awnce) Basin alone contains 300 billion barrels of recoverable petroleum, equal to 48 percent of Middle Eastern reserves. Yet no one has been able to extract profitably the keragen, a waxy petroleum, from the shale."

"In 1974, the first Arab oil crisis sparked a boom here, as oil companies decided shale might finally pay. Workers streamed in. Shale would be mined and heated in large ovens, or retorts, to cook the keragen out, then condensed and refined. The process used enormous amounts of energy and water. New towns were drawn up to house thousands of expected workers. Plans were made to suck up vast quantities of water and to dump vaster quantities of waste rock."

"But in the early 1980s, several oil companies canceled their projects. The collapse culminated in Exxon's 1982 closure of the Colony Oil Shale project in Parachute, which threw 2,500 people out of work. Unocal was the last to fold, closing its plant in 1991, despite a federal contract to buy shale oil for $41.50 per barrel, about twice the market rate. No matter how high the price of crude oil went, shale oil always seemed to cost more."

Another report by the Denver Association of Petroleum Landmen (http://www.dapldenver.org/MembOnlyPages/Rockpile/0702oilShaleCO.cfm) states:
 
< Unocal, which operated a large scale retorting plant beginning in 1980, was the last to close. This facility had produced 4.5 million barrels of oil, averaging 34 gallons of oil per ton of rock before closing in 1991. >
 
 
It is relevant to note that there are still some small experimental facilities operating in the Green River oil shales.  Some companies, like Shell, are still spending some money on oil shale research.  It may be a gamble but the potential payout could be huge.
 
Steve
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 Steven M. Smith, Geologist, U.S. Geological Survey
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Received on Sat Jul 3 11:32:56 2004

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