1. Oil Shale Technology By: Justin Borchardt

2. 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 matter’s transformation to petroleum

3. U.S. Reserves  ~75% of World’s 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 3

4. Oil Shale History Boom  1915 – Rumors of petroleum sources running dry  1940s – Increase of petroleum demand from WWII  1970s – Energy Crisis’  2000s – Increase in oil prices Bust  1920s – West Texas oil fields discovered  1940s and 50s – Middle East oil discoveries  1980s – OPEC dropped prices  ?

5. Shell In-Situ Retorting  Holes Drilled  Water Removed  Shale is heated and Oil and Gas recovered  Water is replaced 3

6. 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 Nitrogen2%<.5% Sulfur10%1-3%

7. Improved In-Situ Technologies: Shell  Holes Drilled around perimeter  Coolant Pumped and “Freeze Wall” created  Prevents Leaching  Increased Costs? 2

8. 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 1

9. Environmental Concerns  Heavy Energy use and production of more greenhouse gases  Groundwater Contamination  Production of SOx and NOx  Socioeconomic Strains

10. Economics  Heating Costs: $12-$15/bbl  Upgrading Costs: $6-$15/bbl  Competitive with oil at prices of $30- $40/bbl

11. 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

12. References 1. E.G.L. Resources, Inc: Oil Shale Division. 11 Nov. 2006. 2. “Freeze Wall Test.” Shell Mahogany Research Project. Feb. 2006. 11 Nov. 2006. 3. Bartis, James T, et al. Oil Shale Development in the United States. RAND. 11 Nov. 2006.

13. Questions?