1. Shale Oil The solution to today’s energy problem

2. What is oil shale? Rocks containing Kerogen Formed by Organic Matter Deposits in Aquatic Environs

3. 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

5. 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

6. 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

7. Refining “The rock that burns.” Chemical Processing Petroleum Refining

8. The Refining Process Fractional Distillation * Separation * Removal of contaminants and impurities * Further processing

9. How much is available? Estimated Shale Oil Reserves (Millions of Tonnes) RegionShale ReservesKerogen ReservesKerogen in Place Africa12,3735005,900 Asia20,5701,100– Australia32,4001,72536,985 Europe4,1803006,500 Middle East35,3604,60024,600 North America3,340,00080,000140,000 South America–4009,600

10. 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

11. Where is ours?

12. Distribution: is it possible here? Current natural gas pipeline system Current Refined and Crude Oil Pipelines

13. 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

14. 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

15. 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.

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

17. 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.

18. 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.

19. The solution is under your feet