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?