Oil Shale Technology

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Oil Shale Technology

• By Justin Borchardt

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What is oil shale?

• Oil shale does not contain oil or made of shale
• Instead, it is deposits of kerogen within
  sedimentary rock
• Kerogen is the product of the first stage of
  organic matters transformation to petroleum

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U.S. Reserves

• 75 of Worlds recoverable oil shale resources
• Green River Basin alone contains an estimated 1.8
  trillion bbls of recoverable oil
• 5-50 gals of oil per ton of shale

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Oil Shale History

• Bust
• 1920s West Texas oil fields discovered
• 1940s and 50s Middle East oil discoveries
• 1980s OPEC dropped prices
• ?

• Boom
• 1915 Rumors of petroleum sources running dry
• 1940s Increase of petroleum demand from WWII
• 1970s Energy Crisis
• 2000s Increase in oil prices

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Shell In-Situ Retorting
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• Holes Drilled
• Water Removed
• Shale is heated and Oil and Gas recovered
• Water is replaced

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Crude Shale Oil to Synthetic Crude

• Sulfur and Nitrogen must be removed
• Hydrotreating, hydrocracking, and delayed coking

  Crude Shale Oil Crude Petroleum
C/H Ratio 1.6 1.25
Nitrogen 2 lt.5
Sulfur 10 1-3
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Improved In-Situ Technologies Shell

• Holes Drilled around perimeter
• Coolant Pumped and Freeze Wall created
• Prevents Leaching
• Increased Costs?

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Improved In-Situ Technologies EGL Resources

• Horizontal Drilling beneath the shale
• Super-Heated Steam or High Temperature Heat
  Transfer Liquid
• Coiled Tubing increases recovery to 2/3 to 3/4 oil

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Environmental Concerns

• Heavy Energy use and production of more
  greenhouse gases
• Groundwater Contamination
• Production of SOx and NOx
• Socioeconomic Strains

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Economics

• Heating Costs 12-15/bbl
• Upgrading Costs 6-15/bbl
• Competitive with oil at prices of 30-40/bbl

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Outlook

• Relatively underdeveloped technology
• Current Pilot Plants are being run
• Full production is still 15-20 years away
• Oil Prices must remain higher than 40/bbl

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References

1. E.G.L. Resources, Inc Oil Shale Division. 11
   Nov. 2006 lthttp//www.eoilshale.com/gt.
2. Freeze Wall Test. Shell Mahogany Research
   Project. Feb. 2006. 11 Nov. 2006
   lthttp//www.shell.com/?static/?us-en/?downloads/?s
   hell_for_businesses/?exploration_production/?FWT_H
   andout_4.3.06.pdfgt.
3. Bartis, James T, et al. Oil Shale Development in
   the United States. RAND. 11 Nov. 2006
   lthttp//www.rand.org/?pubs/?monographs/?2005/?RAND
   _MG414.pdfgt.

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Questions?