Shale Oil

The solution to today’s energy problem

What is oil shale?

• Rocks containing Kerogen

• Formed by Organic Matter Deposits in Aquatic Environs

History

• Used since at least 1300 AD

• USA and others countries havee experimented with production since mid-1800s

• American Booms: 1915-late 1920s

1973-early 1990s

Mining

• Underground (In-Situ)• Shale is fractured and heated underground to release oils• High potential but methods still experimental

• Surface (Open Pit)• Traditional mining from the earth’s surface• Transported to processing facility

In-Situ Research

• Electrical heating in Colorado • Lowers heating element into well which heats

kerogen over four years• Converts organic material into oils and gases

which are then pumped to the surface• Advantages: • Reduces footprint of extraction operations• Could potentially extract more oil from a given

area of land

Refining

• “The rock that burns.”

• Chemical Processing

• Petroleum Refining

The Refining Process

• Fractional Distillation

* Separation

* Removal of contaminants and impurities

* Further processing

How much is available?

Estimated Shale Oil Reserves (Millions of Tonnes)

Region Shale Reserves Kerogen Reserves Kerogen in Place

Africa 12,373 500 5,900

Asia 20,570 1,100 –

Australia 32,400 1,725 36,985

Europe 4,180 300 6,500

Middle East 35,360 4,600 24,600

North America 3,340,000 80,000 140,000

South America – 400 9,600

We have it: let’s apply it to our needs

• 1.56 Trillion potential barrels of recoverable oil worldwide

980 billion potential barrels in the US

• On a world scale, assuming China and India increase oil demand excessively, we have potentially 62 yrs of shale oil

• Domestically, if we don’t import or export, we

have potentially 157 years of shale oil

Where is ours?

Distribution: is it possible here?

Current natural gas pipeline system

Current Refined and Crude Oil Pipelines

Efficiency: We Can Only Get Better

• The Canadians did it, so can we

• High areal density

• With In-Situ recovery the EROEI is 3.5:1.– Crude oil’s EROEI is about 5:1.

• In-Situ uses less than 1/3 of a barrel of water– Could create drinking water

Competitive Costs

• Today oil shale is competitive when a barrel of oil costs $58.50 – Oil Tech $10-20– Shell $30– Open pit $40-50

Environmental costs?

• Problem: open-pit mining– Production uses

and pollutes water

– Exposed sulfides oxidize by air and rain, creating sulfuric acid.

In Estonia, EU environmental reforms threaten the end of self-sufficiency by open-pit shale oil

harvesting.

The answer to open-pit problems: shale oil of the future!

Technology: alleviating the environment

• Companies like Chattanooga Corp have further developed in-situ mining, resulting in:

* Dry processing.

* Reduction of greenhouse gas emissions.

* Simultaneous land reclamation.

* Minimized plant footprint.

* Removal of 99.8% of all sulfur.

• Shell claims they will be able to harvest about 65% of the oil in place, in both liquid and natural gas forms.

A solution to the foreign problem

• Self sufficiency: avoid Estonia’s mistakes– Use new technology for optimum efficiency

and minimal environmental impact.

• Additional shale available from “friendly countries”– Maintain and strengthen relations with those

countries who can help us with transition to shale oil.

The solution is under your feet