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2 Unlocking Ten Trillion Barrels of Global Oil Shale Resources - The State of the Industry Khosrow Biglarbigi INTEK, Incorporated Society of Petroleum Engineers Distinguished Lecturer Program 2

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7 Demand For Liquid Hydrocarbon Worldwide Year Million Barrels Per Day Source: IEA % Increase

8 Global Liquid Hydrocarbon Supply Source: IEA, 2012 Million Barrels per Day Year NGL Oil – Existing Fields ? Future Discoveries Oil Sands CTLGTL EOR Shale Oil Oil Shale Heavy Oil Bio Fuels

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

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

11 Australia32 Billion MENA 153 Billion Europe 120 Billion Africa 100 Billion Americas6,100 Billion Known Resources (Barrels) Eurasia 270 Billion Asia 27 Billion Source: USGS, 2005 * Jordan NRA, 2009

12 America’s Oil Shale Most Concentrated Hydrocarbon Deposit 2 Trillion Barrels 6 Trillion Barrels Source: US DOE, 2004

13 Substantial Areal Density Source: Oil and Gas Journal, August Barrels Per Acre Oil Shale , ,000 1,250 1,500 Alaska N. Slope Oil Canada Oil Sands Wyoming USA Utah USA Colorado USA

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

15.24 Billion Barrels Ontario Manitoba Saskatchewan Nova Scotia 1.70 New Brunswick 0.29 Source: USGS SIR Canada’s Known Oil Shale Resources

Europe’s Known Oil Shale Resources 120 Billion Barrels Italy 73.0 Estonia 16.0 France 7.0 Belarus 7.0 Sweden 6.0 UK 3.5 Germany 2.0 Luxembourg 0.7 Others 4.5 Source: USGS SIR , USGS GSC 523, 1966, Cokorilo 2009, and Gulbay 2007.

Asia’s Known Oil Shale Resources 292 Billion Barrels Russian Federation 248 China 16 Uzbekistan 8.4 Turkmenistan 7.7 Thailand 6.4 Kazakhstan 2.8 Myanmar/Burma 2.0 Armenia 0.3 Mongolia 0.3 Source: USGS SIR , USGS GSC 523, 1966, Sawannathong 2007, and Nummedal 2009.

MENA’s Known Oil Shale Resources 155 Billion Barrels Jordan 90.0 Morocco 53.0 Eqypt 5.7 Israel 4.0 Turkey 2.0 Source: USGS SIR-5294, 2005 and Verson 2006.

Southern Africa’s Known Oil Shale Resources 100 Billion Barrels Congo 100 South Africa 0.1 Madagascar --- Sources: USGS SIR , Hunt 2007, and Catuneanu 2005

Australia’s Known Oil Shale Resources 32 Billion Barrels Australia 31.7 New Zealand --- Sources: USGS SIR , Uranium, Oil & Gas Limited 2008, and Resmex Plc 2005

South America’s Known Oil Shale Resources 82.4 Billion Barrels Brazil 82.0 Argentina 0.4 Chile --- Sources: USGS SIR

22 Oil Shale Production Processes Mining Retort Upgrading Resource Refinery Surface Process Drilling Heating Upgrading Resource Refinery In-Situ Process Source: US DOE, 2004 Choke Point

23 Shell In-Situ Conversion Process Source: US DOE, 2008 High Value Products Being Tested in Jordan Light Surface Processing HEATER PRODUCER OVERBURDEN

24 Ecoshale In-Capsule Technology Source: Redleaf Resources, 2008 HOT GAS COOL GAS Early Production System Test (Utah, USA)

25 Alberta Taciuk Processor (ATP) Preheat tubes Vapour tube Combustion zone Retort Preheat tubes Cooling zone Oil shale feed 750°C 500°C250°C Source: US DOE, 2006

26 Gas Combustion / Heating Retort (GCR) Brazil (4,000 Bbl/d) China (4,000 Bbl/d) Estonia (6,000 Bbl/d) Australia (Project Scale Up) Source: US DOE, 2007

27 Energy Return on Investment (EROI) Oil Shale (Surface) Oil Sands (Surface) Oil Shale (In-Situ, Non.Elec.) Oil Sands (In-Situ) Oil Shale (In-Situ) Source: US DOE, 2007 EROI = Energy out - Energy in Energy in EROI Oil Shale Oil Sands

28 “Oil shale is a local asset under global constraints.” Klaus Brendow, Senior Advisor World Energy Council June 9, 2009

29 Economic Price for Oil Shale Technology Hybrid Surface Mining Underground Mining 2007 Dollars Per Bbl $60 $62 $75 Rate of Return – 15% $0 $10 $20 $30 $40 $50 $60 $70 $50 Source: INTEK, Inc., 2014 $80 True In-Situ

30 Oil Shale Project Costs Item UnitRange** Capital Cost$/BPD O&M Cost$/Bbl K-65K * * Barrel of Daily Capacity Source: INTEK, Inc., 2009 ** Does not include Hybrid Technology

31 Oil Shale Environmental Impacts Air Quality Oil Shale Processing HC Gas CO 2 SO x NO x CO 2 Enhanced Oil Recovery Sequestration Other Industrial Uses Capture and Clean Existing Technology Process Plant Use Source: SPE #110590, 2007

32 Land Use Depends On The Process 1 MMBbl/D Production for 40 Years – Surface: 30 Square Miles – In-Situ: 15 Square Miles Example for 2.5 MMBbl/D Industry: – 52 Square Miles 2.5 MMBbl/d 52 Square Miles Green River (USA) 17,000 Square Miles Source: SPE #110590, 2007

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

34 Total Resource 6 Trillion Barrels High Quality Resource 2 Trillion Barrels Technical Recovery 1 Trillion Barrels Reserves 600 – 750 Billion Bbls The Prize (USA Example) $50 - $65 / Source: INTEK, Inc., 2008

35 Reserves Potential Worldwide ,000 1,200 1,400 $50 - $65$75 - $90$90 - $130 U.S. Worldwide Oil Price ($/Bbl) Billion Barrels 0

36 Summary Over 10 trillion barrels of in place resource Conversion technologies are advancing rapidly Estimated reserves of up to 1.3 trillion barrels worldwide Oil Price is a key driver for its development Requires concerted effort by the private sector, governments, and local communities

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