Oil Shale May Almost Be Commercial, or Not

Published
American Association of Petroleum Geologists (AAPG)

Not oil, not shale, but a huge resource!

Industry interest in developing oil shale production technology rises and falls with oil prices and the availability of cheaper options. Shale oil in formations like the Bakken is currently more economically attractive and less risky. Chevron, Shell and Exxon-Mobil have ended their oil shale projects in the past year, but Red Leaf Resources is moving ahead.

Utah has has recently granted a groundwater permit, the last major regulatory hurdle, to Red Leaf Resources for a proposed shale mine and below-grade ovens on Utah state land. Mining operations are expected to begin in the spring. The small-scale demonstration project could produce 300,000 barrels of oil.

The kerogen-rich, lacustrine, silty marls in the Piceance, Uinta and Greater Green River basins of Colorado, Utah and Wyoming are estimated to have 4.285 trillion barrels of oil in place (recoverable volumes would be much less). However, an economic production technique has not been demonstrated at commercial scale.

The difficulty is that kerogen is an immature source rock. It will yield oil and gas only when heated, which requires large amounts of energy. Production is more complex than drilling wells into more-conventional oil reservoirs. Oil production involves either mining (surface or underground) and surface retorting, or in-situ retorting.

There are also serious environmental concerns: Mining and retorting require water, which is in short supply in the arid basins containing oil shales. There is also the potential risk of air emissions or pollution of groundwater resources during shale retorting.

Highlights of research and development activities:

  • The federal government and several companies launched research and pilot demonstration projects in the 1970s, but low oil prices in the 1980s ended most of that work.
  • The 2005 Energy Policy Act directed the U.S. Bureau of Land Management to offer federal tracks for research, development and demonstration (RD&D) and to develop regulations and procedures for commercial leasing. Several companies obtained federal RD&D leases to test novel production techniques.
  • By 2013, the three major oil companies involved in oil shale projects stopped their work. Smaller companies continue their involvement. China, Estonia and Brazil commercially use oil shale.
  • Some oil shales occur in the eastern U.S., but are not being commercially pursued.

What Can I Do?

Add Item

Enter Notes:
 
* You must be logged in to name and customize your collection.
Recommend Recommend
Printable Version Printable Version Email to a friend Email to a friend

See Also: ACE-Activity

ACE Activity George R. Brown Convention Center, Level 3 outside of Room 360 Pioneering Women in Petroleum Geology: 100 Years - Celebration Wall Pioneering Women in Petroleum Geology: 100 Years - Celebration Wall Desktop /Portals/0/PackFlashItemImages/WebReady/ace17-PROWESS-activity-hero.jpg?width=100&h=100&mode=crop&anchor=middlecenter&quality=75amp;encoder=freeimage&progressive=true 36629

See Also: Workshop

Workshop URTeC Workshop - Understanding Parent-Child Well Dynamics URTeC Workshop - Understanding Parent-Child Well Dynamics Desktop /Portals/0/PackFlashItemImages/WebReady/URTeC-Workshop-Midland-hero.jpg?width=100&h=100&mode=crop&anchor=middlecenter&quality=75amp;encoder=freeimage&progressive=true 50605

See Also: Explorer Division Column DPA

Explorer Division Column DPA Divison Report: DPA DPA Offers Renewal, Engagement and Opportunity DPA Offers Renewal, Engagement and Opportunity Desktop /Portals/0/PackFlashItemImages/WebReady/reynolds-andrea-large.jpg?width=100&h=100&mode=crop&anchor=middlecenter&quality=75amp;encoder=freeimage&progressive=true 64081

See Also: Explorer Foundation Update

Explorer Foundation Update Foundation Announces New Grant Named for Legendary Geologist Paul Potter Foundation Announces New Grant Named for Legendary Geologist Paul Potter Desktop /Portals/0/PackFlashItemImages/WebReady/potter-paul-large.jpg?width=100&h=100&mode=crop&anchor=middlecenter&quality=75amp;encoder=freeimage&progressive=true 64079

See Also: Explorer Geophysical Corner

Explorer Geophysical Corner Characterizing a Deepwater Turbidite Channel in Taranaki Basin Characterizing a Deepwater Turbidite Channel in Taranaki Basin Desktop /Portals/0/PackFlashItemImages/WebReady/characterizing-a-deepwater-turbidite-hero.jpg?width=100&h=100&mode=crop&anchor=middlecenter&quality=75amp;encoder=freeimage&progressive=true 64074

Energy Policy Office