際際滷

際際滷Share a Scribd company logo
Shale Oil Production from Oil Shale:
Where? How Soon? How Much? How Risky?




            Dr. Jeremy Boak, Director
    Center for Oil Shale Technology & Research
            Colorado School of Mines
              Energy Forum & Expo
        Grand Junction, February 22, 2013
Colorado School of Mines
                Colorado School of Mines is a
                uniquely focused public research
                university dedicated to preparing
                exceptional students to solve
                todays most pressing energy and
                environmental challenges.
                Founded in 1874, the institution
                was established to serve the needs
                of the local mining industry.
                Today, Mines has an international
                reputation for excellence in
                engineering education and the
                applied sciences with special
                expertise in the development and
                stewardship of the earths
                resources.


2
COSTAR and the Oil Shale Symposium
 Center for Oil Shale Technology
  and Research
     Membership - Total, ExxonMobil

     Rock mechanics, geology and
      stratigraphy, geochemistry, GIS
      database development

 33rd Oil Shale Symposium and
  Field Trip
     Symposium October 14-16, Mines
      Campus, Golden CO

     Field Trip October 17-18, Western
      CO & Eastern UT

     12-15 countries represented, most
      major players and many smaller
      companies



3
Taking on the worlds toughest
                    energy challenges




4   Sponsors
Outline
 What are oil shale and shale oil?
 Where is it and how much is there?
 Who is developing it here?
 How soon will it be produced here?
 How much is being produced?
 What are the risks?
 Conclusions




5
WHAT ARE OIL SHALE AND SHALE OIL?



6
What is Oil Shale?

 Organic rich sedimentary
  rock formed in lake or
  marine environments
     Commonly carbonate rich;
      some are not classical
      argillaceous mudstones
     Kerogen-rich, primarily algal
      and bacterial
     Immature precursor to oil & gas

 Produces oil upon heating




7
Oil Shale, Oil-Bearing Shale and Gas Shale




    Oil
    shale, Sh   Top of Oil Window
    ale oil


                              Base of Oil Window


                                Oil-bearing
                                shale, Shale-
                                hosted oil

                              Source - USGS, Petroleum Systems and         Gas
                              Geologic Assessment of Oil and Gas in the    shale, Shal
                              Uinta-Piceance Province, Utah and Colorado
                                                                           e gas
8
WHERE IS IT AND HOW MUCH IS THERE?



9
Global Oil Shale Resource Estimates
                                              11. Canada               13. Sweden                 10. Estonia
                                              15,241 million barrels   6,114 million barrels      16,286 million barrels       4. Russia
                                                                                                                               270,944 million barrels



                              1. Green River Formation
                              4,280,000 million barrels
                                                                                                                               15. Ukraine
                                                                                                                               4,193 million barrels


                                                                                                                               16. Kazakhstan
                                                                                                                               2,837 million barrels

                                                                                                                               3. China
                                                                                                                               328,000 million barrels



                                                                                                                               12. Thailand
            2. Other United States                                                                                             6,401 million barrels
            619,000 million barrels



                                                                                                                               9. Australia
                                                                                                                               24,000 million barrels
     8. Morocco
     37,800 million barrels


                                                                                                                                 Data Source: J. R. Dyni, Geology
     17. Turkey                                                                                                                  and Resources of Some World Oil-
     1,985 million barrels                                                                                                       Shale Deposits, (2006) U. S. Geo-
                                                                                                                                 logical Survey Scientific Investigation
                                                                                                                                 Report 2005-5294, U. S. Geological
     14. Egypt                          7. Brazil                       5. Israel                    6. Jordan                   Survey, Reston VA
     5,700 million barrels              80,000 million barrels          250,000 million barrels      102,000 million barrels     Updates from 26th through 31st Oil
                                                                                                                                 Shale Symposia, Colorado School of
                                                                                                                                 Mines




10
Green River Formation oil shale resources

                 4,500
                                     Total Resource: 4291      Greater Green River
                 4,000               billion barrels           Uinta
                 3,500                                         Piceance

                 3,000                                         US Total Resource (USGS)
Resource (BBO)




                                                               U. S. Reserves
                 2,500
                 2,000
                 1,500
                 1,000
                  500
                    0

                         0     5      10     15 Oil 20     25     30
                                                    Yield (gal/ton)       35    40        45

   11             Source: USGS Fact Sheet: 2012-3145
WHO IS DEVELOPING IT HERE?
     HOW SOON WILL IT BE PRODUCED?


12
Red Leaf Resources EcoShaleTM Process
 Oil shale mined and placed in an ex-
  cavation with an impermeable clay
  liner
 Expendable closed wall heating pipes
  placed horizontally throughout the
  capsule
 Liquid drain system in bottom of
  capsule; perforated pipes at top of
  capsule collect hydrocarbon vapour
 Clay liner completes containment
  structure on top, with overburden
  subsequently replaced to start
  immediate reclamation
 Natural gas burners produce hot
  exhaust gas that is circulated through
  the capsule
 Produces a high grade, light synthetic
  crude
 Target for production test start: 2013


13
Enefit280 Commercial Technology
    Currently producing oil in Estonia
    Utah startup targeted for 2019-2020




14           Photo Courtesy of Enefit
ShaleTech ParahoII Operating in Australia




15     Photo Courtesy QER
Shell In-Situ Conversion Process (ICP)

 Electric resistance heaters
     gradually heat shale in
     subsurface
 Applicable to oil shale and
     heavy oil/bitumen
 Accelerates natural
     maturation of kerogen by
     gradual heating in oil
     shale
 High recoveries & light
     hydrocarbon products
     yielding high quality
     transportation fuels


16
ExxonMobil Electrofrac Process
 Create electrically
  conductive fractures
  (vertical or horizontal)
 Planar heat source more
  effective than radial
  conduction from wellbore
 Typical simulation
    150 foot fracture height
    5-year heating converts
     325 feet of oil shale
    120-ft fracture spacing,
    74% heating efficiency




 17
AMSO Process

                     Minimal surface
                      footprint
                     Protection of
                      aquifers
                     Low water
                      usage
                     High energy
                      efficiency
                     Low gas
                      emissions
                     High-value jobs




18
IEPs Geothermic Fuel Cell Technology
 Solid oxide fuel cells (SOFCs) generate high temperature, heat rock in a borehole.
 As rock is heated, liquid & gaseous hydrocarbon released to collection wells.
 After warm up, GFC self-fuels from recovered gases created by its own waste heat.
 Self-fueling, steady-state operating system, produces oil, natural gas and
  electricity that can be sold to energy markets
 Green, reliable, baseload power that isnt subject to wind or sun.

                 EXCESS GAS
       $                        GAS CLEAN-




                                               FUEL PRE-
                                                FORMER
            OIL OUT   GAS OUT       UP                     FUEL & AIR IN   ELECTRICITY OUT
       $                                                                                     $


                                             GAS FLOW

                                             OIL FLOW




19
HOW MUCH IS BEING PRODUCED?



20
Historic Oil Shale Production
                              50
                                   US
                              45              Figure courtesy of
                                   China
                                                Alan Burnham
Mined Shale, Million tonnes




                              40   Sweden
                              35   Brazil
                              30   Germany
                              25   Russia
                                   Scotland
                              20
                                   Estonia
                              15
                              10
                               5
                               0




      21
Projected Global Oil Shale Production

                              225
                                       Jordan
                              200
Mined shale, million tonnes




                                       United States
                              175
                                       China
                              150
                                       Brazil
                              125
                                       Russia
                              100
                                       Estonia
                              75
                              50
                              25
                               0
                                1970            1980   1990    2000   2010   2020
                                                              Year

22
WHAT ARE THE RISKS?



23
Four Political Concepts about Oil Shale
 Technology Development: There is no commercially
  available technology for production of shale oil from
  oil shale
 Access to the Resource: The preferred alternative in
  the PEIS for Oil Shale and Tar Sands represents a
  reasonable and cautious path forward for oil shale
  development
 Environmental Impact: The environmental impacts of
  oil shale development would be devastating to the
  region
 Environmental Impact: We do not know enough about
  water use to allow commercial leasing for shale oil
  production

24
TECHNOLOGY DEVELOPMENT:
     NO COMMERCIAL TECHNOLOGY?


25
Commercial Shale Oil Technology




26
ACCESS TO THE RESOURCE:
     A REASONABLE AND CAUTIOUS
     APPROACH?

27
PEIS preferred alternative discourages new
         Colorado oil shale leasing
       2008 preferred   Most preference        2012 preferred
                        right area in the
                        current RD&D                 Close to Sage
                        program would                Grouse habitat
                        not be available if
                        current efforts fail                   Tiny, scattered
                                                               parcels are not
                                                               suitable for
                                                               commercial
                                                               operations
                        Odd-shaped
                        parcels make
                        commercialization
                        more difficult
                        Lean shale below
                        Mahogany
                        zone, so only a
                        400,000 bbl/acre
                        resource 
                        1/5 the value in the
                        basin center




28
Danger of offering too much acreage?
 Concern #1: Development might go too fast
  Just because land is offered does not mean it will be leased
      It merely enables industry to select the most promising areas
      Projects will still need many permits
      Acreage with pristine wilderness or sage grouse unlikely to be offered
  Development likely to occur more cautiously than last time
      Not in a Federally driven panic
      Industry remembers last time
      Industry takes the technology risk, pays bonus and rental
 Concern #2: Industry will tie up land at fire-sale prices and do
  nothing
  BLM has authority and responsibility to:
      Make sure industry fairly compensates the public for leases on public lands
      Provide and enforce performance criteria on leases
  If you dont want oil shale development, what is so bad about
   companies paying a bonus payment to the government and then doing
   nothing to disturb the land?
29
Issues for RD&D and Commercial leasing
        are and should be different
 RD&D Lease Program an                       Commercial Leasing approp-
  opportunity to explore                       riate for a technology demon-
  innovative technology                        strated on private land OR on
  In-situ oil shale processes a               an RD&D lease
     greater step out from established         Most surface processes under con-
     industrial processes than ex-situ oil      sideration have operated at relati-
     shale processes, and by                    vely large scale
     definition, have to be tested in situ
                                               Requiring RD&D step for all com-
  Making investment case for a                 mercial leases makes no sense for
   commercial lease to a company or             processes demonstrated at large
   the government would have been               scale or operated commercially
   very difficult at the conceptual             elsewhere
   stage of a new process
                                               Industry asserted in 1980s that
  Developing and demonstrating                 5120 acres too small for viable
   some in-situ processes can only be           commercial operation; can a 640-
   done effectively on deep oil shale           acre commercial lease make sense?
   owned by the Federal Government
                                               Why has oil shale been singled out to
                                                require research before leasing?



30
ENVIRONMENTAL IMPACTS:
     WOULD THEY BE DEVASTATING?


31
Surface reclamation was demonstrated on
           the prototype leases
                          Before and after surface
BEFORE
                          reclamation of Rio
                          Blanco Corporations
                          Tract C-a




                                          AFTER




32
Air Emissions a Significant Issue
 Prevention of Significant Deterioration Program (PSD) of 1977
  Clean Air Act projected to limit shale oil production to ~400,000
  bbls/day
  Visibility reduction in Flat Tops Wilderness Area thought to drive the
   limit
 Colorado SO2 emission limit attainable by most processes
  95-99% cleanup of pyrolysis gas if burned for process heat
  Substantial removal of trace (non-H2S) sulfur species
 In publics best interest to ensure that PSD standards are
  scientifically sound
  Government must have resources necessary to deal sensibly with this
   issue in a time frame that allows industry to adjust




33
Carbon Management
 Industry estimate: 10-20% greater                                      700
  lifecycle emissions than
  conventional crude oil
                                                                         600
   EOR, flaring of stranded gas make
    some crude oil worse than shale oil
                                                                         500




                                            Annual CO2 ( million tons)
   85-90% from power plant

 CO2 emissions regulation                                               400
  approach should be universal
                                                                         300
  Dont single out oil shale for special
   treatment one way or the other
                                                                         200
  Dont let Government micromanage
   process design and development
                                                                         100
  Let industry respond in the most
   economic manner
                                                                          0
  Mitigation approaches may develop
   at the same pace as oil shale                                               0      10         20          30
                                                                                   Fischer Assay (gal/ton)

34
Socioeconomic Impacts: Easier to Manage
               This Time?
 Revenues lag impacts; government cant respond soon enough
  Solution: portion of bonus payments flow directly to local governments
 Oil shale development will be a smaller relative change this time
      Productivity increases mean fewer employees are needed
      Public infrastructure advanced, partly from Oil Shale Trust Fund
      Private investment has benefited the area (e.g. Battlement Mesa)
 What guarantee is there against another industry collapse?
  companies are more cautious this time (billions lost in the 1980s)
  1980s oil price high because of political not market forces; they were
   more susceptible to collapse
  Return to Federal policies of the 1970s would not be a good idea
 But who is responsible for managing these impacts?



35
What About Water Contamination?
 Some oil shale processes avoid water contamination
  AMSO operating in illitic oil shale below aquifers
  Other companies will operate in thick multi-mineral zone where
   nahcolite industry has demonstrated isolation from aquifers
 Resource in aquifer system protected by current law
  Oil shale production must prevent or cleanup contamination
 BLM, DRMS (and EPA in some circumstances) have
  authority and responsibility to protect these waters
  Stepwise development will avoid significant contamination
   through learning curve
  Can such development or learning happen without a commercial
   leasing program?



36
ENVIRONMENTAL IMPACTS:
     WE DONT KNOW ENOUGH ABOUT
     WATER USAGE?

37
Site Water Use Estimates Declining
                                 16                                         If you dont know how much is
                                                        Original Model       too much, what good is know-
                                 14                                          ing exactly how much water an
Site Water Use (barrels/barrel oil




                                                        2011 Update          oil shale industry might use?
                                 12
                                                        2012 Update         Industry says 1-3 bbl
                                 10                                          water/bbl oil, without
                                                                             refining
                                     8
                                                                             Is 2 barrels of water per
                                     6                                        barrel of oil acceptable?
                                                                            At 2 bbl/bbl, 1million BOPD
                                     4
                                                                             industry requires ~100,000
                                     2                                       acre-ft/yr
                                                                             3.5% of Colorado consump-
                                     0                                        tive water allocation for the
                                                                              Colorado River Basin (<1% of
                                         0   0.25 0.5 0.75       1  1.25      Colorados total water usage in
                                             Reclamation Efficiency
                                                                              2005)
        38
Colorado Water Use with Oil Shale
5,003.1 billion gallons per year                   Public-supply
                                                          6.3%

         Irrigation                                       Industrial
          (crop)                                            1.0%
          89.9%
                                                          Thermo-
                                                           electric
                                                            0.9%

                                                  Irrigation (golf
                                                       course)

                            Oil                           0.3%

                        shale, 1MMBO                      Domestic
                            PD     Mining     Livestock     0.3%
                            0.9%       0.2%     0.2%

39
Water Use in Perspective
 Oil shale gives very attractive economic gains for water
  use:
  The shale oil generated is worth ~200 times the water used
  1MMBOPD uses 1% of Colorados water to produce 15% of its
   GDP
  Agriculture uses 80-90% of the water and produces 1-2% of the
   GDP
  Tourism/recreation use ~5% of the water and produce ~5% of
   the GDP
 Oil shale producers have water rights sufficient to
  produce 10% of the countrys liquid-fuel needs
      What compelling public need would one use to justify
       confiscating those property rights under eminent domain?

40
Water Use for Alternative Fuels




41   Source: King, C. W., and M. E. Webber, (2008) Water Intensity of Transportation,
     Environmental Science & Technology, vol. 42, no. 21, p. 7866-7872
Conclusions
 Oil shale development is not in its infancy
      There are exciting new technical activities in oil
       shale development happening today.
      Oil shale, like all alternative energy sources, has
       significant challenges to meet.
      Much is already known about potential
       impacts, but government is not yet doing its job.
 Potential Impact  Certain Catastrophe
 Impacts may constrain but should not prohibit
  development


42
Same Old Story?




43
Websites
    Oil Shale Symposium Information:
      26th-31st Proceedings: http://ceri-mines.org/oilshaleresearch.htm
      32nd Oil Shale Symposium program and abstracts: http://mines.conference-
       services.net/programme.asp?conferenceID=3190&language=en-uk
    Tell Ertl Oil Shale Repository (Arthur Lakes Library)
      http://inside.mines.edu/Tell_Ertl
    Center of the American West  What Every Westerner Should
     Know About Oil Shale
      http://centerwest.org/projects/energy/oil-shale/
    DOE documents
      http://www.fossil.energy.gov/programs/reserves/npr/publications/
    Center for Oil Shale Technology and Research (COSTAR)
      http://www.costar-mines.org/
      Email: jboak@mines.edu



44
BACKUP INFORMATION



45
Historic Oil and Gas Production
    10,000,000                 Coalbed Methane     CBM 1993-2009
                               Shale Gas           Bakken
                               Eagle Ford          Bakken 2004-2012
                               CBM Trend           Shale Gas Trend
             1,000,000
Production (BOEPD)




                                  5.4%/year

                     100,000
                                                            79.9%/year
                               18.5%/year
                      10,000
                                                                            193.1%/year


                       1,000

                           1980             1990        2000             2010        2020

    46
Historic and Projected Oil Production
           10,000,000



                    1,000,000
Production (BOPD)




                                                                              8.7 %/year
                                   9.8 %/year
                     100,000

                                                                     Tar Sand 1968-2007
                                                                     US Oil 1862-1919
                      10,000                                         Oil Shale
                                                                     Oil Shale 1999-2030
                                                14.3 %/year          Tar Sand Growth
                                                                     US Oil Growth
                       1,000                                         Oil Shale Trend

                            1980           2000               2020            2040
  47
U. S. Energy Production (to 2011)
                               30
                                                                          Coal

                               25                                         Gas
Energy Production (Quad BTU)




                                                                          Crude Oil
                               20
                                                                          Nuclear

                                                                          Biomass
                               15
                                                                          Hydroelectric

                               10                                         NGPL

                                                                          Wind
                               5
                                                                          Geothermal

                                                                          Solar/PV
                               0

                                1945 1955 1965 1975 1985 1995 2005 2015

 48                                 Data from USDOE EIA
Definitions
Kerogen: a mixture of organic chemical compounds that make up a
portion of the organic matter in sedimentary rocks. It is insoluble in
normal organic solvents because of the huge molecular weight
(upwards of 1,000 daltons) of its component compounds. The
soluble portion is known as bitumen. When heated to the right
temperatures in the Earth's crust, (oil window ca. 60160 属C, gas
window ca. 150200 属C, both depending on how quickly the source
rock is heated) some types of kerogen release crude oil or natural
gas, collectively known as hydrocarbons (fossil fuels). When such
kerogens are present in high concentration in rocks such as shale
they form possible source rocks. Shales rich in kerogens that have
not been heated to warm temperature to release their hydrocarbons
may form oil shale deposits.
The name "kerogen" was introduced by the Scottish organic chemist
Alexander Crum Brown in 1912.
      http://en.wikipedia.org/wiki/Kerogen

49
Definitions
 Oil shale: fine-grained immature organic-rich
  mudstone, marlstone and siltstone, commonly of lacustrine or
  marine origin
 Shale oil: the liquid hydrocarbon produced from oil shale by
  pyrolysis
  BEILBY, G. T. (1897) Thirty Years Development in the Shale Oil Industry. J. Soc. Chem. Ind., 18, 876886.
  IRVINE, R. (1894) Shale Oil Industry. J. Soc. Chem. Ind., 13, 1039-1044.
  TAYLOR, A. (1873) On Bitumen, Oil Shales and Oil Coals. Edinburgh Geol. Soc. Trans., 2, 187189.

 Oil-bearing shale: fine-grained mature organic-rich
  mudstone, marlstone and siltstone that contain liquid
  hydrocarbons
 Shale-hosted oil: oil produced from oil-bearing shale, generally
  through hydraulically fractured wells
 Gas shale: fine-grained mature to overmature organic-rich
  mudstone, marlstone and siltstone that contain natural gas
 Shale gas: gas produced from gas shale, generally through
  hydraulically fractured wells
50
Oil Shale Water Use
                                                              Percen
                         Million gal./day Billion gal./year        t

100,000 BOPD; 1 BWBO                 4.2               1.5    0.03%


100,000 BOPD; 3 BWBO                12.6               4.6     0.1%


1,000,000 BOPD; 1 BWBO              42.0              15.3     0.3%


1,000,000 BOPD; 3 BWBO             126.0              46.0     0.9%


2012 Oil & Gas (COGA)               17.8               6.5     0.1%


Total CO withdrawals           13,581.2            4957.1 100.0%

51
Colorado Water Use
                            Million gal./day     Billion gal./year     Percent

        Irrigation (crop)         12,321.85                4497.5        90.7%

          Public-supply               864.17                 315.4           6.4%

               Industrial             142.44                  52.0           1.0%

       Thermo-electric                123.21                  45.0           0.9%

Irrigation (golf course)                40.64                 14.8           0.3%

               Domestic                 34.43                 12.6           0.3%

               Livestock                33.06                 12.0           0.2%

                  Mining                21.42                   7.8          0.2%

 Total CO withdrawals             13,581.22                4957.1       100.0%

Source: USGS 2005 Estimated Withdrawals and Use of Water in Colorado, 2005

52
Comparative Water Use

Oil Shale Plant   50,000 bbl/day   7,000 acft/yr


Ethanol Project   39,000 bbl/day   7,000 acft/yr


Electric Power    800 MW           7,000 acft/yr


Agriculture       4,000 acres      7,000 acft/yr


Domestic          25,000 people    7,000 acft/yr



53
Water Requirements for Energy Production
Source                                              Minimum        Maximum
                                                    (L/MWH)        (L/MWH)
Petroleum extraction                                          10          40
Oil refining                                                  80         150
Oil shale surface retorting                               170            681
NGCC power plant, closed loop cooling                     230         30,300
Coal integrated gasification combined-cycle              ~900
Nuclear power plant, closed loop cooling                 ~950
Geothermal power plant, closed loop tower                1900           4200
Enhanced oil recovery                                   ~7600
NGCC, open loop cooling                                28,400         75,700
Nuclear power plant, open loop cooling                 94,600        227,100
Corn ethanol irrigated                               2,270,000      8,670,000
Soybean biodiesel irrigated                         13,900,000 27,900,000

54 Source: R. Service (2009) Science 326, 517-518
Relative Water Usage




1-3 barrels water per barrel of oil from oil shale                   4-8 barrels water per 2-liter bottle of sweetened cola
Source: AMEC. Energy Development Water Needs                             Source: Ercin et al., (2011) Water Resources Management 25:721741
Assessment, Phase II Final Report. Prepared for the Colorado River
Basin Roundtable and the Yampa/White River Roundtable. January
2012.

55
AMSO 2011 Pilot Test
     and Features of the Process
                              Minimal surface
                               footprint
                              Protection of
                               aquifers
                              Low water usage
                              High energy
                               efficiency
                              Low gas
                               emissions
                              High-value jobs




56
AMSO CCRTM Process

 AMSOs patent-pending CCRTM*
  process uses convection to
  accelerate heat transfer
  throughout the retort
 Faster heat transfer in the
  process enables fewer wells,
  hence less surface impact, to
  extract the shale oil
     * Conduction, Convection and Reflux




57
Better Feedstock for Upgrading

                                          45 API                           19 API
     Shell In Situ                        Gravity                          Gravity
       Pyrolysis

                                                                                     Surface Retort
                                                                                     Pyrolysis
            12
                      350 C
                      In Situ                                 SHALE OIL EXAMPLE
            10
                                                                         Naphtha - 30%
 Weight %




                     NAPHTHA JET DIESEL             RESID
            8                                                            Diesel - 30%
                                                                         Jet - 30%
            6                                                            Resid - 10%
                                                               800 C
                                                              Surface
            4                                                  Retort
            2                                                              Tar Like Solid

            0
                 0      5       10   15      20     25   30    35   40    45   50 100          120
                      Carbon Number



58
Bakken  Green River Comparison

                                TOC (wt %)
                            0   10   20       30        40

                        0
                                          Green River
                      500                 Bakken

                     1000

                     1500

                     2000

                     2500

                     3000

                     3500

59
Shale and Mudstone Mineralogy
                              Carbonate                           Average Shale (1975)
                                                                  Bakken
                calcareous/                                       Barnett
                 dolomitic                                        L. Green River
                 mudstone                                         Chinese Oil Shale
                                                                  Polish Gas Shale
                                           siliceous/             Duvernay
                                          feldspathic             Muskwa
        argillaceous                       marlstone
        marlstone                                                 Thailand oil shale
                                                                  L. Green River Basinal
                                                                  U. Green River Basinal
                                                                  Green River DP
argillaceous                                                      Q+F=Clay
mudstone                                                          Carbonate/Clastic


                                                           siliceous/feldspathic
                                                                      mudstone

Clay Minerals                                           Quartz + Feldspar

60
Some GRF Mudstone is Unusual
               Clay Minerals                             Average Shale (1975)
                                                         Bakken
                                                         Barnett
                           argillaceous
                          mudstone/m                     U. Green River
                               arlstone                  L. Green River
                                                         Chinese Oil Shale
                                                         Polish Gas Shale
                                                         Duvernay
                                                         Muskwa
   siliceous                          feldspathic
                                     mudstone/m          Thailand Oil Shale
 mudstone/ma
    rlstone                              arlstone        L. Green River Basinal
                                                         Green River DP
                                                         Parachute Ck Savage
                                                         Clay=Qtz+Fsp
                                                         Fsp/Qtz+Fsp = 0.25



Quartz                                        Feldspar

61
Unemployment rate comparison




        U.S. BLS Local Area Unemployment Archive



62
Foreclosure rates in Garfield County




63    Source: Garfield Co. website - Foreclosures historical data
Summary and Conclusions
 There were negative aspects from the boom
  and bust in the energy sector 30-years ago
 Most resulted from U.S. policies in the 1970s
  to incentivize industry and seek unrealistic
  shale oil production goals
 There were positive benefits that are seldom
  discussed but are still being enjoyed today
   e.g. Battlement Mesa and community infrastructure
 History has shown that there are lessons to be
  learned from that earlier era
Oil Shale Resources of Green River
                    Formation



Greater Green
 River Basin
 1.44 trillion
   barrels




                                         Piceance
     Uinta                                 Basin
     Basin
 1.32 trillion                          1.52 trillion
   barrels                                barrels


65
USGS Richness Map for Tipton Member




66
BLM Land Map Superimposed




67
Quality as Important as Quantity
       State           Colorado             Utah               Wyoming           Total

      Basin          Piceance Creek        Uinta           Greater Green River

Alternative 1: No Action Alternative

Acreage                    346,609             670,558              992,824       2,009,991

BBO >15 GPT                  643.88             102.99                 47.18        794.05

% Basin Resource             42.1%                 7.8%                 3.3%             19%

Thousand BBL/Acre             1,858                 154                   48              395

Alternative 2: Administration Preferred Alternative (Draft)

Acreage                      35,308            252,181              174,476        461,965

BBO >15 GPT                   64.74                23.67               11.47             99.88

% Basin Resource               4.2%                1.8%                 0.8%             2.3%

Thousand BBL/Acre             1,833                  94                   66              216

68
Site Water Use Estimates Declining

                                     16
                                                 Reclamation Efficiency =           Original Model
                                     14           Recycle Efficiency/Pore
Site Water Use (barrels/barrel oil




                                                         Volumes                    2011 Update
                                     12
                                                                                    2012 Update
                                     10

                                     8

                                     6

                                     4

                                     2

                                     0

                                          0    0.2       0.4       0.6        0.8        1           1.2
                                                          Reclamation Efficiency

        69
How Much Water is Too Much?
 Industry says it needs 1-3 bbl water/bbl oil, without refining
      Is 2 barrels of water per barrel of oil acceptable?
      If you dont know how much is too much, what good is knowing exactly
       how much water an oil shale industry might use?
      Evaluation of too much should be based on a cost-benefit analysis
 Large uncertainty about water usage?
      primarily from outdated documents
  1-3 bbl/bbl - similar to but a little lower than studies in the 1980s
  Technology available to reduce water usage even more
 At 2 bbl/bbl, 1million BOPD industry requires ~100,000 acre-ft/yr
      3.5% of Colorado consumptive water allocation for the Colorado River
       Basin (<1% of Colorados total water usage in 2005)

 Who has the stewardship responsibility for basin-wide evaluation?

70

More Related Content

Energy forum022213

  • 1. Shale Oil Production from Oil Shale: Where? How Soon? How Much? How Risky? Dr. Jeremy Boak, Director Center for Oil Shale Technology & Research Colorado School of Mines Energy Forum & Expo Grand Junction, February 22, 2013
  • 2. Colorado School of Mines Colorado School of Mines is a uniquely focused public research university dedicated to preparing exceptional students to solve todays most pressing energy and environmental challenges. Founded in 1874, the institution was established to serve the needs of the local mining industry. Today, Mines has an international reputation for excellence in engineering education and the applied sciences with special expertise in the development and stewardship of the earths resources. 2
  • 3. COSTAR and the Oil Shale Symposium Center for Oil Shale Technology and Research Membership - Total, ExxonMobil Rock mechanics, geology and stratigraphy, geochemistry, GIS database development 33rd Oil Shale Symposium and Field Trip Symposium October 14-16, Mines Campus, Golden CO Field Trip October 17-18, Western CO & Eastern UT 12-15 countries represented, most major players and many smaller companies 3
  • 4. Taking on the worlds toughest energy challenges 4 Sponsors
  • 5. Outline What are oil shale and shale oil? Where is it and how much is there? Who is developing it here? How soon will it be produced here? How much is being produced? What are the risks? Conclusions 5
  • 6. WHAT ARE OIL SHALE AND SHALE OIL? 6
  • 7. What is Oil Shale? Organic rich sedimentary rock formed in lake or marine environments Commonly carbonate rich; some are not classical argillaceous mudstones Kerogen-rich, primarily algal and bacterial Immature precursor to oil & gas Produces oil upon heating 7
  • 8. Oil Shale, Oil-Bearing Shale and Gas Shale Oil shale, Sh Top of Oil Window ale oil Base of Oil Window Oil-bearing shale, Shale- hosted oil Source - USGS, Petroleum Systems and Gas Geologic Assessment of Oil and Gas in the shale, Shal Uinta-Piceance Province, Utah and Colorado e gas 8
  • 9. WHERE IS IT AND HOW MUCH IS THERE? 9
  • 10. Global Oil Shale Resource Estimates 11. Canada 13. Sweden 10. Estonia 15,241 million barrels 6,114 million barrels 16,286 million barrels 4. Russia 270,944 million barrels 1. Green River Formation 4,280,000 million barrels 15. Ukraine 4,193 million barrels 16. Kazakhstan 2,837 million barrels 3. China 328,000 million barrels 12. Thailand 2. Other United States 6,401 million barrels 619,000 million barrels 9. Australia 24,000 million barrels 8. Morocco 37,800 million barrels Data Source: J. R. Dyni, Geology 17. Turkey and Resources of Some World Oil- 1,985 million barrels Shale Deposits, (2006) U. S. Geo- logical Survey Scientific Investigation Report 2005-5294, U. S. Geological 14. Egypt 7. Brazil 5. Israel 6. Jordan Survey, Reston VA 5,700 million barrels 80,000 million barrels 250,000 million barrels 102,000 million barrels Updates from 26th through 31st Oil Shale Symposia, Colorado School of Mines 10
  • 11. Green River Formation oil shale resources 4,500 Total Resource: 4291 Greater Green River 4,000 billion barrels Uinta 3,500 Piceance 3,000 US Total Resource (USGS) Resource (BBO) U. S. Reserves 2,500 2,000 1,500 1,000 500 0 0 5 10 15 Oil 20 25 30 Yield (gal/ton) 35 40 45 11 Source: USGS Fact Sheet: 2012-3145
  • 12. WHO IS DEVELOPING IT HERE? HOW SOON WILL IT BE PRODUCED? 12
  • 13. Red Leaf Resources EcoShaleTM Process Oil shale mined and placed in an ex- cavation with an impermeable clay liner Expendable closed wall heating pipes placed horizontally throughout the capsule Liquid drain system in bottom of capsule; perforated pipes at top of capsule collect hydrocarbon vapour Clay liner completes containment structure on top, with overburden subsequently replaced to start immediate reclamation Natural gas burners produce hot exhaust gas that is circulated through the capsule Produces a high grade, light synthetic crude Target for production test start: 2013 13
  • 14. Enefit280 Commercial Technology Currently producing oil in Estonia Utah startup targeted for 2019-2020 14 Photo Courtesy of Enefit
  • 15. ShaleTech ParahoII Operating in Australia 15 Photo Courtesy QER
  • 16. Shell In-Situ Conversion Process (ICP) Electric resistance heaters gradually heat shale in subsurface Applicable to oil shale and heavy oil/bitumen Accelerates natural maturation of kerogen by gradual heating in oil shale High recoveries & light hydrocarbon products yielding high quality transportation fuels 16
  • 17. ExxonMobil Electrofrac Process Create electrically conductive fractures (vertical or horizontal) Planar heat source more effective than radial conduction from wellbore Typical simulation 150 foot fracture height 5-year heating converts 325 feet of oil shale 120-ft fracture spacing, 74% heating efficiency 17
  • 18. AMSO Process Minimal surface footprint Protection of aquifers Low water usage High energy efficiency Low gas emissions High-value jobs 18
  • 19. IEPs Geothermic Fuel Cell Technology Solid oxide fuel cells (SOFCs) generate high temperature, heat rock in a borehole. As rock is heated, liquid & gaseous hydrocarbon released to collection wells. After warm up, GFC self-fuels from recovered gases created by its own waste heat. Self-fueling, steady-state operating system, produces oil, natural gas and electricity that can be sold to energy markets Green, reliable, baseload power that isnt subject to wind or sun. EXCESS GAS $ GAS CLEAN- FUEL PRE- FORMER OIL OUT GAS OUT UP FUEL & AIR IN ELECTRICITY OUT $ $ GAS FLOW OIL FLOW 19
  • 20. HOW MUCH IS BEING PRODUCED? 20
  • 21. Historic Oil Shale Production 50 US 45 Figure courtesy of China Alan Burnham Mined Shale, Million tonnes 40 Sweden 35 Brazil 30 Germany 25 Russia Scotland 20 Estonia 15 10 5 0 21
  • 22. Projected Global Oil Shale Production 225 Jordan 200 Mined shale, million tonnes United States 175 China 150 Brazil 125 Russia 100 Estonia 75 50 25 0 1970 1980 1990 2000 2010 2020 Year 22
  • 23. WHAT ARE THE RISKS? 23
  • 24. Four Political Concepts about Oil Shale Technology Development: There is no commercially available technology for production of shale oil from oil shale Access to the Resource: The preferred alternative in the PEIS for Oil Shale and Tar Sands represents a reasonable and cautious path forward for oil shale development Environmental Impact: The environmental impacts of oil shale development would be devastating to the region Environmental Impact: We do not know enough about water use to allow commercial leasing for shale oil production 24
  • 25. TECHNOLOGY DEVELOPMENT: NO COMMERCIAL TECHNOLOGY? 25
  • 26. Commercial Shale Oil Technology 26
  • 27. ACCESS TO THE RESOURCE: A REASONABLE AND CAUTIOUS APPROACH? 27
  • 28. PEIS preferred alternative discourages new Colorado oil shale leasing 2008 preferred Most preference 2012 preferred right area in the current RD&D Close to Sage program would Grouse habitat not be available if current efforts fail Tiny, scattered parcels are not suitable for commercial operations Odd-shaped parcels make commercialization more difficult Lean shale below Mahogany zone, so only a 400,000 bbl/acre resource 1/5 the value in the basin center 28
  • 29. Danger of offering too much acreage? Concern #1: Development might go too fast Just because land is offered does not mean it will be leased It merely enables industry to select the most promising areas Projects will still need many permits Acreage with pristine wilderness or sage grouse unlikely to be offered Development likely to occur more cautiously than last time Not in a Federally driven panic Industry remembers last time Industry takes the technology risk, pays bonus and rental Concern #2: Industry will tie up land at fire-sale prices and do nothing BLM has authority and responsibility to: Make sure industry fairly compensates the public for leases on public lands Provide and enforce performance criteria on leases If you dont want oil shale development, what is so bad about companies paying a bonus payment to the government and then doing nothing to disturb the land? 29
  • 30. Issues for RD&D and Commercial leasing are and should be different RD&D Lease Program an Commercial Leasing approp- opportunity to explore riate for a technology demon- innovative technology strated on private land OR on In-situ oil shale processes a an RD&D lease greater step out from established Most surface processes under con- industrial processes than ex-situ oil sideration have operated at relati- shale processes, and by vely large scale definition, have to be tested in situ Requiring RD&D step for all com- Making investment case for a mercial leases makes no sense for commercial lease to a company or processes demonstrated at large the government would have been scale or operated commercially very difficult at the conceptual elsewhere stage of a new process Industry asserted in 1980s that Developing and demonstrating 5120 acres too small for viable some in-situ processes can only be commercial operation; can a 640- done effectively on deep oil shale acre commercial lease make sense? owned by the Federal Government Why has oil shale been singled out to require research before leasing? 30
  • 31. ENVIRONMENTAL IMPACTS: WOULD THEY BE DEVASTATING? 31
  • 32. Surface reclamation was demonstrated on the prototype leases Before and after surface BEFORE reclamation of Rio Blanco Corporations Tract C-a AFTER 32
  • 33. Air Emissions a Significant Issue Prevention of Significant Deterioration Program (PSD) of 1977 Clean Air Act projected to limit shale oil production to ~400,000 bbls/day Visibility reduction in Flat Tops Wilderness Area thought to drive the limit Colorado SO2 emission limit attainable by most processes 95-99% cleanup of pyrolysis gas if burned for process heat Substantial removal of trace (non-H2S) sulfur species In publics best interest to ensure that PSD standards are scientifically sound Government must have resources necessary to deal sensibly with this issue in a time frame that allows industry to adjust 33
  • 34. Carbon Management Industry estimate: 10-20% greater 700 lifecycle emissions than conventional crude oil 600 EOR, flaring of stranded gas make some crude oil worse than shale oil 500 Annual CO2 ( million tons) 85-90% from power plant CO2 emissions regulation 400 approach should be universal 300 Dont single out oil shale for special treatment one way or the other 200 Dont let Government micromanage process design and development 100 Let industry respond in the most economic manner 0 Mitigation approaches may develop at the same pace as oil shale 0 10 20 30 Fischer Assay (gal/ton) 34
  • 35. Socioeconomic Impacts: Easier to Manage This Time? Revenues lag impacts; government cant respond soon enough Solution: portion of bonus payments flow directly to local governments Oil shale development will be a smaller relative change this time Productivity increases mean fewer employees are needed Public infrastructure advanced, partly from Oil Shale Trust Fund Private investment has benefited the area (e.g. Battlement Mesa) What guarantee is there against another industry collapse? companies are more cautious this time (billions lost in the 1980s) 1980s oil price high because of political not market forces; they were more susceptible to collapse Return to Federal policies of the 1970s would not be a good idea But who is responsible for managing these impacts? 35
  • 36. What About Water Contamination? Some oil shale processes avoid water contamination AMSO operating in illitic oil shale below aquifers Other companies will operate in thick multi-mineral zone where nahcolite industry has demonstrated isolation from aquifers Resource in aquifer system protected by current law Oil shale production must prevent or cleanup contamination BLM, DRMS (and EPA in some circumstances) have authority and responsibility to protect these waters Stepwise development will avoid significant contamination through learning curve Can such development or learning happen without a commercial leasing program? 36
  • 37. ENVIRONMENTAL IMPACTS: WE DONT KNOW ENOUGH ABOUT WATER USAGE? 37
  • 38. Site Water Use Estimates Declining 16 If you dont know how much is Original Model too much, what good is know- 14 ing exactly how much water an Site Water Use (barrels/barrel oil 2011 Update oil shale industry might use? 12 2012 Update Industry says 1-3 bbl 10 water/bbl oil, without refining 8 Is 2 barrels of water per 6 barrel of oil acceptable? At 2 bbl/bbl, 1million BOPD 4 industry requires ~100,000 2 acre-ft/yr 3.5% of Colorado consump- 0 tive water allocation for the Colorado River Basin (<1% of 0 0.25 0.5 0.75 1 1.25 Colorados total water usage in Reclamation Efficiency 2005) 38
  • 39. Colorado Water Use with Oil Shale 5,003.1 billion gallons per year Public-supply 6.3% Irrigation Industrial (crop) 1.0% 89.9% Thermo- electric 0.9% Irrigation (golf course) Oil 0.3% shale, 1MMBO Domestic PD Mining Livestock 0.3% 0.9% 0.2% 0.2% 39
  • 40. Water Use in Perspective Oil shale gives very attractive economic gains for water use: The shale oil generated is worth ~200 times the water used 1MMBOPD uses 1% of Colorados water to produce 15% of its GDP Agriculture uses 80-90% of the water and produces 1-2% of the GDP Tourism/recreation use ~5% of the water and produce ~5% of the GDP Oil shale producers have water rights sufficient to produce 10% of the countrys liquid-fuel needs What compelling public need would one use to justify confiscating those property rights under eminent domain? 40
  • 41. Water Use for Alternative Fuels 41 Source: King, C. W., and M. E. Webber, (2008) Water Intensity of Transportation, Environmental Science & Technology, vol. 42, no. 21, p. 7866-7872
  • 42. Conclusions Oil shale development is not in its infancy There are exciting new technical activities in oil shale development happening today. Oil shale, like all alternative energy sources, has significant challenges to meet. Much is already known about potential impacts, but government is not yet doing its job. Potential Impact Certain Catastrophe Impacts may constrain but should not prohibit development 42
  • 44. Websites Oil Shale Symposium Information: 26th-31st Proceedings: http://ceri-mines.org/oilshaleresearch.htm 32nd Oil Shale Symposium program and abstracts: http://mines.conference- services.net/programme.asp?conferenceID=3190&language=en-uk Tell Ertl Oil Shale Repository (Arthur Lakes Library) http://inside.mines.edu/Tell_Ertl Center of the American West What Every Westerner Should Know About Oil Shale http://centerwest.org/projects/energy/oil-shale/ DOE documents http://www.fossil.energy.gov/programs/reserves/npr/publications/ Center for Oil Shale Technology and Research (COSTAR) http://www.costar-mines.org/ Email: jboak@mines.edu 44
  • 46. Historic Oil and Gas Production 10,000,000 Coalbed Methane CBM 1993-2009 Shale Gas Bakken Eagle Ford Bakken 2004-2012 CBM Trend Shale Gas Trend 1,000,000 Production (BOEPD) 5.4%/year 100,000 79.9%/year 18.5%/year 10,000 193.1%/year 1,000 1980 1990 2000 2010 2020 46
  • 47. Historic and Projected Oil Production 10,000,000 1,000,000 Production (BOPD) 8.7 %/year 9.8 %/year 100,000 Tar Sand 1968-2007 US Oil 1862-1919 10,000 Oil Shale Oil Shale 1999-2030 14.3 %/year Tar Sand Growth US Oil Growth 1,000 Oil Shale Trend 1980 2000 2020 2040 47
  • 48. U. S. Energy Production (to 2011) 30 Coal 25 Gas Energy Production (Quad BTU) Crude Oil 20 Nuclear Biomass 15 Hydroelectric 10 NGPL Wind 5 Geothermal Solar/PV 0 1945 1955 1965 1975 1985 1995 2005 2015 48 Data from USDOE EIA
  • 49. Definitions Kerogen: a mixture of organic chemical compounds that make up a portion of the organic matter in sedimentary rocks. It is insoluble in normal organic solvents because of the huge molecular weight (upwards of 1,000 daltons) of its component compounds. The soluble portion is known as bitumen. When heated to the right temperatures in the Earth's crust, (oil window ca. 60160 属C, gas window ca. 150200 属C, both depending on how quickly the source rock is heated) some types of kerogen release crude oil or natural gas, collectively known as hydrocarbons (fossil fuels). When such kerogens are present in high concentration in rocks such as shale they form possible source rocks. Shales rich in kerogens that have not been heated to warm temperature to release their hydrocarbons may form oil shale deposits. The name "kerogen" was introduced by the Scottish organic chemist Alexander Crum Brown in 1912. http://en.wikipedia.org/wiki/Kerogen 49
  • 50. Definitions Oil shale: fine-grained immature organic-rich mudstone, marlstone and siltstone, commonly of lacustrine or marine origin Shale oil: the liquid hydrocarbon produced from oil shale by pyrolysis BEILBY, G. T. (1897) Thirty Years Development in the Shale Oil Industry. J. Soc. Chem. Ind., 18, 876886. IRVINE, R. (1894) Shale Oil Industry. J. Soc. Chem. Ind., 13, 1039-1044. TAYLOR, A. (1873) On Bitumen, Oil Shales and Oil Coals. Edinburgh Geol. Soc. Trans., 2, 187189. Oil-bearing shale: fine-grained mature organic-rich mudstone, marlstone and siltstone that contain liquid hydrocarbons Shale-hosted oil: oil produced from oil-bearing shale, generally through hydraulically fractured wells Gas shale: fine-grained mature to overmature organic-rich mudstone, marlstone and siltstone that contain natural gas Shale gas: gas produced from gas shale, generally through hydraulically fractured wells 50
  • 51. Oil Shale Water Use Percen Million gal./day Billion gal./year t 100,000 BOPD; 1 BWBO 4.2 1.5 0.03% 100,000 BOPD; 3 BWBO 12.6 4.6 0.1% 1,000,000 BOPD; 1 BWBO 42.0 15.3 0.3% 1,000,000 BOPD; 3 BWBO 126.0 46.0 0.9% 2012 Oil & Gas (COGA) 17.8 6.5 0.1% Total CO withdrawals 13,581.2 4957.1 100.0% 51
  • 52. Colorado Water Use Million gal./day Billion gal./year Percent Irrigation (crop) 12,321.85 4497.5 90.7% Public-supply 864.17 315.4 6.4% Industrial 142.44 52.0 1.0% Thermo-electric 123.21 45.0 0.9% Irrigation (golf course) 40.64 14.8 0.3% Domestic 34.43 12.6 0.3% Livestock 33.06 12.0 0.2% Mining 21.42 7.8 0.2% Total CO withdrawals 13,581.22 4957.1 100.0% Source: USGS 2005 Estimated Withdrawals and Use of Water in Colorado, 2005 52
  • 53. Comparative Water Use Oil Shale Plant 50,000 bbl/day 7,000 acft/yr Ethanol Project 39,000 bbl/day 7,000 acft/yr Electric Power 800 MW 7,000 acft/yr Agriculture 4,000 acres 7,000 acft/yr Domestic 25,000 people 7,000 acft/yr 53
  • 54. Water Requirements for Energy Production Source Minimum Maximum (L/MWH) (L/MWH) Petroleum extraction 10 40 Oil refining 80 150 Oil shale surface retorting 170 681 NGCC power plant, closed loop cooling 230 30,300 Coal integrated gasification combined-cycle ~900 Nuclear power plant, closed loop cooling ~950 Geothermal power plant, closed loop tower 1900 4200 Enhanced oil recovery ~7600 NGCC, open loop cooling 28,400 75,700 Nuclear power plant, open loop cooling 94,600 227,100 Corn ethanol irrigated 2,270,000 8,670,000 Soybean biodiesel irrigated 13,900,000 27,900,000 54 Source: R. Service (2009) Science 326, 517-518
  • 55. Relative Water Usage 1-3 barrels water per barrel of oil from oil shale 4-8 barrels water per 2-liter bottle of sweetened cola Source: AMEC. Energy Development Water Needs Source: Ercin et al., (2011) Water Resources Management 25:721741 Assessment, Phase II Final Report. Prepared for the Colorado River Basin Roundtable and the Yampa/White River Roundtable. January 2012. 55
  • 56. AMSO 2011 Pilot Test and Features of the Process Minimal surface footprint Protection of aquifers Low water usage High energy efficiency Low gas emissions High-value jobs 56
  • 57. AMSO CCRTM Process AMSOs patent-pending CCRTM* process uses convection to accelerate heat transfer throughout the retort Faster heat transfer in the process enables fewer wells, hence less surface impact, to extract the shale oil * Conduction, Convection and Reflux 57
  • 58. Better Feedstock for Upgrading 45 API 19 API Shell In Situ Gravity Gravity Pyrolysis Surface Retort Pyrolysis 12 350 C In Situ SHALE OIL EXAMPLE 10 Naphtha - 30% Weight % NAPHTHA JET DIESEL RESID 8 Diesel - 30% Jet - 30% 6 Resid - 10% 800 C Surface 4 Retort 2 Tar Like Solid 0 0 5 10 15 20 25 30 35 40 45 50 100 120 Carbon Number 58
  • 59. Bakken Green River Comparison TOC (wt %) 0 10 20 30 40 0 Green River 500 Bakken 1000 1500 2000 2500 3000 3500 59
  • 60. Shale and Mudstone Mineralogy Carbonate Average Shale (1975) Bakken calcareous/ Barnett dolomitic L. Green River mudstone Chinese Oil Shale Polish Gas Shale siliceous/ Duvernay feldspathic Muskwa argillaceous marlstone marlstone Thailand oil shale L. Green River Basinal U. Green River Basinal Green River DP argillaceous Q+F=Clay mudstone Carbonate/Clastic siliceous/feldspathic mudstone Clay Minerals Quartz + Feldspar 60
  • 61. Some GRF Mudstone is Unusual Clay Minerals Average Shale (1975) Bakken Barnett argillaceous mudstone/m U. Green River arlstone L. Green River Chinese Oil Shale Polish Gas Shale Duvernay Muskwa siliceous feldspathic mudstone/m Thailand Oil Shale mudstone/ma rlstone arlstone L. Green River Basinal Green River DP Parachute Ck Savage Clay=Qtz+Fsp Fsp/Qtz+Fsp = 0.25 Quartz Feldspar 61
  • 62. Unemployment rate comparison U.S. BLS Local Area Unemployment Archive 62
  • 63. Foreclosure rates in Garfield County 63 Source: Garfield Co. website - Foreclosures historical data
  • 64. Summary and Conclusions There were negative aspects from the boom and bust in the energy sector 30-years ago Most resulted from U.S. policies in the 1970s to incentivize industry and seek unrealistic shale oil production goals There were positive benefits that are seldom discussed but are still being enjoyed today e.g. Battlement Mesa and community infrastructure History has shown that there are lessons to be learned from that earlier era
  • 65. Oil Shale Resources of Green River Formation Greater Green River Basin 1.44 trillion barrels Piceance Uinta Basin Basin 1.32 trillion 1.52 trillion barrels barrels 65
  • 66. USGS Richness Map for Tipton Member 66
  • 67. BLM Land Map Superimposed 67
  • 68. Quality as Important as Quantity State Colorado Utah Wyoming Total Basin Piceance Creek Uinta Greater Green River Alternative 1: No Action Alternative Acreage 346,609 670,558 992,824 2,009,991 BBO >15 GPT 643.88 102.99 47.18 794.05 % Basin Resource 42.1% 7.8% 3.3% 19% Thousand BBL/Acre 1,858 154 48 395 Alternative 2: Administration Preferred Alternative (Draft) Acreage 35,308 252,181 174,476 461,965 BBO >15 GPT 64.74 23.67 11.47 99.88 % Basin Resource 4.2% 1.8% 0.8% 2.3% Thousand BBL/Acre 1,833 94 66 216 68
  • 69. Site Water Use Estimates Declining 16 Reclamation Efficiency = Original Model 14 Recycle Efficiency/Pore Site Water Use (barrels/barrel oil Volumes 2011 Update 12 2012 Update 10 8 6 4 2 0 0 0.2 0.4 0.6 0.8 1 1.2 Reclamation Efficiency 69
  • 70. How Much Water is Too Much? Industry says it needs 1-3 bbl water/bbl oil, without refining Is 2 barrels of water per barrel of oil acceptable? If you dont know how much is too much, what good is knowing exactly how much water an oil shale industry might use? Evaluation of too much should be based on a cost-benefit analysis Large uncertainty about water usage? primarily from outdated documents 1-3 bbl/bbl - similar to but a little lower than studies in the 1980s Technology available to reduce water usage even more At 2 bbl/bbl, 1million BOPD industry requires ~100,000 acre-ft/yr 3.5% of Colorado consumptive water allocation for the Colorado River Basin (<1% of Colorados total water usage in 2005) Who has the stewardship responsibility for basin-wide evaluation? 70

Editor's Notes

  1. Contours of Ro (vitrinite reflectance) are a measure of the maturity of oil source rocks, with values of 0.6 and 1.35% correlating to, respectively 1) the onset of oil generation and 2) the point where most oil is broken down to natural gas in most oil source rocks. The red outline shows an area where the formation is pressurized by the generation of hydrocarbons in very impermeable (tight) rocks, generally considered as favorable for shale-hosted oil plays. The cross section lies in the Uinta Basin of Utah and shows where the Green River Formation contains oil shale and where that oil shale has been heated to the point where it has generated oil. About half of Utahs oil production comes from the Green River Formation.
  2. Richness is key to the ability to produce the shale oil from oil shale. This recent USGS plot of resource vs oil yield makes it clear that 1) most of the resource is in rocks that are probably too lean (&lt;15 gal/ton) to be producible using current or near-term future technology, 2) the lions share of the most producible resource (&gt;15 gal/ton) lies in Colorado, although significant (billion barrel amounts) are present in each state.In-place oil shale resources examined by grade in the major basins of the Green River Formation, Colorado, Utah, and Wyoming2013, Birdwell, Justin E.; Mercier, Tracey J.; Johnson, Ronald C.; Brownfield, Michael E. USGS Fact Sheet: 2012-3145
  3. (0.3 lbs/bbl raw shale oil)
  4. Division of Reclamation and Mines Safety
  5. (20) Energy Demands on Water Resources; Report to Congress on the Interdependency of Energy and Water; U.S. Department of Energy: Washington, DC, 2006; p 80.
  6. Production of sweetened cola requires very large amounts of water to produce sugar crops. The U. S. consumes about 1 million barrels per day of carbonated soft drinks, although it is unclear 1) what percentage are sweetened naturally, 2) what the water footprint of diet soft drinks would be.
  7. Comparison of the organic richness of the Green River oil shale and the Bakken shale-hosted oil plays indicating why companies are investing in the challenging effort to produce oil from the immature organic material of the Green River Formation.
  8. Need basis for GDP estimates