oil shale technology by: justin borchardt. what is oil shale? oil shale does not contain oil or...
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Oil Shale TechnologyOil Shale Technology
By: Justin BorchardtBy: Justin Borchardt
What is oil shale?What is oil shale?
Oil shale does not contain oil or Oil shale does not contain oil or made of shalemade of shale
Instead, it is deposits of kerogen Instead, it is deposits of kerogen within sedimentary rock within sedimentary rock
Kerogen is the product of the first Kerogen is the product of the first stage of organic matter’s stage of organic matter’s transformation to petroleumtransformation to petroleum
U.S. ReservesU.S. Reserves
~75% of World’s ~75% of World’s recoverable oil shale recoverable oil shale resourcesresources
Green River Basin Green River Basin alone contains an alone contains an estimated 1.8 trillion estimated 1.8 trillion bbls of recoverable oilbbls of recoverable oil
5-50 gals of oil per ton 5-50 gals of oil per ton of shaleof shale
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Oil Shale HistoryOil Shale History
BoomBoom 1915 – Rumors of 1915 – Rumors of
petroleum sources petroleum sources running dryrunning dry
1940s – Increase of 1940s – Increase of petroleum demand petroleum demand from WWIIfrom WWII
1970s – Energy Crisis’1970s – Energy Crisis’
2000s – Increase in oil 2000s – Increase in oil pricesprices
BustBust 1920s – West Texas oil 1920s – West Texas oil
fields discoveredfields discovered
1940s and 50s – 1940s and 50s – Middle East oil Middle East oil discoveriesdiscoveries
1980s – OPEC dropped 1980s – OPEC dropped pricesprices
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Shell In-Situ RetortingShell In-Situ Retorting
Holes DrilledHoles Drilled Water RemovedWater Removed Shale is heated and Oil and Gas recoveredShale is heated and Oil and Gas recovered Water is replacedWater is replaced
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Crude Shale Oil to Synthetic CrudeCrude Shale Oil to Synthetic Crude
Sulfur and Sulfur and Nitrogen must be Nitrogen must be removedremoved
Hydrotreating, Hydrotreating, hydrocracking, hydrocracking, and delayed and delayed cokingcoking
Crude Shale
Oil
Crude Petroleum
C/H Ratio
1.6 ~1.25
Nitrogen 2% <.5%
Sulfur 10% 1-3%
Improved In-Situ Technologies: Improved In-Situ Technologies: ShellShell
Holes Drilled Holes Drilled around perimeteraround perimeter
Coolant Pumped Coolant Pumped and “Freeze Wall” and “Freeze Wall” createdcreated
Prevents LeachingPrevents Leaching Increased Costs?Increased Costs?
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Improved In-Situ Technologies: Improved In-Situ Technologies: EGL ResourcesEGL Resources
Horizontal Drilling Horizontal Drilling beneath the shalebeneath the shale
Super-Heated Steam Super-Heated Steam or High Temperature or High Temperature Heat Transfer LiquidHeat Transfer Liquid
Coiled Tubing Coiled Tubing increases recovery to increases recovery to 2/3 to 3/4 oil2/3 to 3/4 oil
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Environmental ConcernsEnvironmental Concerns
Heavy Energy use and production of Heavy Energy use and production of more greenhouse gasesmore greenhouse gases
Groundwater ContaminationGroundwater Contamination
Production of SOx and NOxProduction of SOx and NOx
Socioeconomic StrainsSocioeconomic Strains
EconomicsEconomics
Heating Costs: $12-$15/bblHeating Costs: $12-$15/bbl
Upgrading Costs: $6-$15/bblUpgrading Costs: $6-$15/bbl
Competitive with oil at prices of $30-Competitive with oil at prices of $30-$40/bbl$40/bbl
OutlookOutlook
Relatively underdeveloped technologyRelatively underdeveloped technology
Current Pilot Plants are being runCurrent Pilot Plants are being run
Full production is still 15-20 years awayFull production is still 15-20 years away
Oil Prices must remain higher than $40/bblOil Prices must remain higher than $40/bbl
ReferencesReferences
1.1. E.G.L. Resources, Inc: Oil Shale DivisionE.G.L. Resources, Inc: Oil Shale Division. 11 Nov. . 11 Nov. 2006 <http://www.eoilshale.com/>.2006 <http://www.eoilshale.com/>.
2.2. ““Freeze Wall Test.” Freeze Wall Test.” Shell Mahogany Research Shell Mahogany Research ProjectProject. Feb. 2006. 11 Nov. 2006 . Feb. 2006. 11 Nov. 2006 <http://www.shell.com/ static/ us-en/ downloads/ <http://www.shell.com/ static/ us-en/ downloads/ shell_for_businesses/ exploration_production/ shell_for_businesses/ exploration_production/ FWT_Handout_4.3.06.pdf>.FWT_Handout_4.3.06.pdf>.
3.3. Bartis, James T, et al. Bartis, James T, et al. Oil Shale Development in Oil Shale Development in the United Statesthe United States. RAND. 11 Nov. 2006 . RAND. 11 Nov. 2006 <http://www.rand.org/ pubs/ monographs/ 2005/ <http://www.rand.org/ pubs/ monographs/ 2005/ RAND_MG414.pdf>.RAND_MG414.pdf>.
Questions?Questions?