1. Potential for Oil Shale Development in the United States
INTEK
Potential for Oil Shale Development in the United States
Khosrow Biglarbigi
Hitesh Mohan
Marshall Carolus
July 15, 2009
Calgary, Canada

2. America’s Oil Shale Resource Technology Economics Environmental
Path Forward

3. What is Oil Shale? 700 - 800 °F Upgrade Kerogen Pyrolysis Syn- Crude
Naphtha
Jet Fuel
Diesel
Nat. Gas
Hydrogen
Rock
Kerogen °F
Pyrolysis

4. 10 Trillion Barrels of Shale Oil Worldwide
Russia
Canada
Estonia
France
Italy
United States
Israel
China
Morocco
Jordan
Egypt
Zaire
Brazil
Australia
Countries With Oil Shale Deposits

5. Most Concentrated Hydrocarbon Deposit
2 Trillion Barrels
6 Trillion Barrels
Source: US DOE, 2004

6. The Mahogany Zone The Most Prolific Up to 1000 Ft Thick
Up to 75 Gal/Ton
Source: Redleaf Resources, 2008

7. Oil Shale Production Approaches
Surface Process
Choke Point
Resource
Mining
Retort
Upgrading
Refinery
In Situ Process
Resource
Drilling
Heating
Upgrading
Refinery
Source: US DOE, 2004

8. Shell In-Situ Conversion Process
High Value Products
Pilot Test (Colorado)
Light Surface Processing
PRODUCER
HEATER
OVERBURDEN
Source: US DOE, 2008

9. Other Examples of In-Situ
Pilot Tests (Colorado)
Chevron Process
Fractures
Injector
Producer
IDT–EGL Resources Process
Source: US DOE, 2004

10. Ecoshale In-Capsule Technology
Pilot Test (Utah)
COOL GAS
HOT GAS
Source: Redleaf Resources, 2008

11. Alberta Taciuk Processor (ATP)
Pilot Test (Utah)
Preheat
tubes
Vapour
tube
Combustion
zone
Retort
Cooling
Oil shale
feed
750°C
500°C
250°C
Source: US DOE, 2006

12. Gas Combustion Retort (GCR)
Raw Shale
Raw Shale
Oil Mist
Australia (Project Scale Up)
Brazil (In Production)
China (In Production)
Estonia (In Production)
USA (In Pilot)
Extractors
PREHEATING
PREHEATING
PREHEATING
MIST FORMATION
PYROLYSIS
PYROLYSIS
PYROLYSIS
STRIPPING
STRIPPING
STRIPPING
COMBUSTION
COMBUSTION
COMBUSTION
RESIDUE
RESIDUE
RESIDUE
COOLING
COOLING
COOLING
Spent Shale
Spent Shale
Source: US DOE, 2007

13. First Generation Project Costs
Item
Unit
Range
Capital Cost
$/BPD *
40K -
55K
O&M Cost
$/Bbl 12 - 20
* Barrel of Daily Capacity
Source: INTEK, Inc., 2006

14. Economic Price for Oil Shale Technology
$70
Rate of Return – 15%
$57
$60
$47
$50
$38
2007 Dollars Per Bbl
$40
$35
$30
$20
$10 $0
True
In-Situ
Surface
Mining
Underground
Mining
In-Capsule
Source: INTEK, Inc., 2008

15. Breakdown of Economic Price for Generic Surface Mining
Taxes 19%
Transfer Payments
14%
Risk Premium 9%
$47/Bbl
Operating Costs
38%
Cost of Capital
19%
Source: INTEK, Inc., 2008

16. Oil Shale Environmental Impacts
Air Quality
Oil Shale Processing HC
Gas
CO2
SOx
NOx
CO2 Enhanced Oil Recovery
Sequestration
Other Industrial Uses
Capture and Clean
Existing Technology
Process Plant
Use
Source: SPE #110590, 2007

17. Land Use 1 MMBbl/D Production for 40 Years
Surface: 31 Square Miles
In-Situ: Square Miles
A Small Footprint for a 2.5 MMBbl/D Industry:
Source: SPE #110590, 2007

18. Water Requirements 1-3 Barrels of Water per Barrel of Shale Oil
Challenges:
Water rights
Ground water protection
Water runoff
Source: US DOE, 2007

19. Development Hurdles Access to Land RD & D Environmental Permitting
70% on Federal Land
RD & D
Environmental Permitting
Fiscal Regime

20. The Prize @ Total Resource Reserves High Quality Resource
6 Trillion Barrels
High Quality Resource
2 Trillion Barrels
Technical Recovery
1 Trillion Barrels
Reserves
600 – 750
Billion Bbls @
$50 - $65 / Bbl
Source: INTEK, Inc., 2008

21. Production Potential (Shale Oil in the U.S.)
2,500
Accelerated Scenario
2,000
RD&D
Measured Scenario
1,500
Thousand Bbl/D
Business as Usual
1,000
Tax Incentives
500
Base
2005
2010
2015
2020
2025
2030
2035
Year
Source: US DOE, 2007

22. Summary Over 6 trillion barrels of in place resource
The most concentrated hydrocarbon deposits on Earth
Conversion technologies are advancing rapidly
Sustained production potential of up to 2.5 MMBbl/Day
Substantial economic benefits
Requires concerted effort by the private sector, governments, and local communities