[4] The industry is proceeding cautiously, due to the losses incurred during the last major investment into oil shale in the early 1980s, when a subsequent collapse in the oil price left the projects uneconomic. Afterwards, it was used as a raw material for chemical intermediates, pure chemicals and industrial resins, and as a railroad wood preservative. Shale oil extraction methods are more flexible than traditional oil well drilling. [30][31] Generally, the oil is less fluid than crude oil, becoming pourable at temperatures between 24 and 27 °C (75 and 81 °F), while conventional crude oil is pourable at temperatures between −60 to 30 °C (−76 to 86 °F); this property affects shale oil's ability to be transported in existing pipelines. Internal energy (or self-energy) is energy released by the oil shale conversion process that is used to power that operation (e.g. After achieving the milestone of 1 billion barrels (160×10^6 m3), its costs would decline further to $30–40 per barrel ($190–250/m3). Due to the volatile prices and high capital costs few deposits can be exploited economically without subsidies. [4] In the 10th century, the Arabic physician Masawaih al-Mardini (Mesue the Younger) first described a method of extracting oil from "some kind of bituminous shale".

[19], A measure of the viability of oil shale as a fuel source is the ratio of the energy produced to the energy used converting it (Energy Returned on Energy Invested - EROEI). [39][40], Shale oil produced by some technologies, such as the Kiviter process, can be used without further upgrading as an oil constituent and as a source of phenolic compounds. [35], Although raw shale oil can be immediately burnt as a fuel oil, many of its applications require that it be upgraded. The analysis also discusses the expectation that processing costs would drop after the complex was established. [30] CBT Prices from 2001 to 2006 has had a range of $10,000 to $14,000 per share, or $14,000 to $20,000 per acre foot. [28] Royal Dutch Shell has been reported to be buying groundwater rights in Colorado as it prepares to drill for oil in the shale deposits there. Extracting the oil costs roughly $1 million for each well. Oil shale economics deals with the economic feasibility of oil shale extraction and processing. [6], The new 100,000 tonnes shale oil per year retort built by VKG cost EEK 1.1 billion (€70.3 million); however, it is located in the existing production site and uses the existing infrastructure. [33][34] Israel's AFSK Hom Tov co-pyrolyses oil shale with oil refinery residue (bitumen). [40], Before World War II, most shale oil was upgraded for use as transport fuels. Energy and the Environment-2nd ed. [20] There are different views as to if the internal energy should be added to the calculation as cost or not. The discovery of crude oil in the Middle East during mid-century brought most of these industries to a halt, although Estonia and Northeast China maintained their extraction industries into the early 21st century. [46] In March 2011, the United States Bureau of Land Management called into question proposals in the U.S. for commercial operations, stating that "(t)here are no economically viable ways yet known to extract and process oil shale for commercial purposes". Final Report", "Energy and the U.S. Economy: A Biophysical Perspective", "Chapter 4. [7] Shale oil was used to light the streets of Modena, Italy at the turn of the 18th century.

[15][18], In a 1972 publication by the journal Pétrole Informations (ISSN 0755-561X), shale oil production was unfavorably compared to the liquefaction of coal. Distillate oils from the Kiviter process can also be used as diluents for petroleum-originated heavy oils and as an adhesive-enhancing additive in bituminous materials such as asphalt. The value of the EROEI for oil shale is difficult to calculate for a number of reasons. [11] The oil was used as fuel, as a lubricant and lamp oil; the Industrial Revolution had created additional demand for lighting. [34] The World Health Organization classifies shale oil as Group 1 carcinogens to humans. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding hydrogen and removing impurities such as sulfur and nitrogen. "[10] Modern shale oil extraction industries were established in France during the 1830s and in Scotland during the 1840s. [17] Because of the losses in 1980s, companies were reluctant to make new invests in shale oil production. A report by EASAC to the Committee on Industry, Research and Energy of the European Parliament", "Jordan's Experience in Oil Shale Studies Employing Different Technologies", Oil Shale. It served as a substitute for the increasingly scarce and expensive whale oil. [11] However, instead of Alberta Taciuk Processor VKG proceeded with a Petroter retort which production price level is not disclosed. [14], The production of shale oil has been hindered because of technical difficulties and costs. It is estimated that the current capital costs are $3–10 billion at 2005 prices. Shale oil is extracted by pyrolysis, hydrogenation, or thermal dissolution of oil shale. At 50% utilization, the project was expected to be economic at a price of $18 per barrel, while at full capacity, it could be economic at a price of $13 per barrel. These numbers include water requirements for power generation for in-situ heating processes, retorting, refining, reclamation, dust control and on-site worker demands. Scientific Investigations Report 2005–5294", "Using neoteric solvents in oil shale studies", "Energy and the U.S. Economy: A Biophysical Perspective", "Oil Shale Test Project. Shale oil can also contain significant quantities of heteroatoms. However, in the early 21st century, USA, Canada and Jordan were planning or had started shale oil production test projects, and Australia was considering restarting oil shale production. 18–19 November, Tallinn", "Slow Radio-Frequency Processing of Large Oil Shale Volumes to Produce Petroleum-like Shale Oil", "Coaxing oil from huge U.S. shale deposits", "An Assessment of the Energy Return on Investment (EROI) of Oil Shale. Whether we are talking shale oil or oil shale, there is a common denominator: both cost more per barrel for extraction than more conventional oil … Depending on reaction conditions, the co-pyrolysis may lead to higher conversion ratios and thus lower production costs, and in some cases solves the problem of utilization of certain wastes. As a developing fuel source the production and processing costs for oil shale are high due to the small nature of the projects and the specialist technology involved. New York, NY: Wiley & Sons Inc., 2006. [37][38] Olefins form insoluble sediments and cause instability. [30][31][39][40] Phenols can be first be removed by water extraction. The initial drilling only accounts for 40% of the total cost. "[23][24], The amount of oil that can be recovered during retorting varies with the oil shale and the technology used. [7][25][26][27] For an oil shale industry producing 2.5 million barrels per day (400×10^3 m3/d), this equates to 105,000,000–315,000,000 US gallons per day (400,000–1,190,000 m3/d) of water. However, to reduce the risk of confusion of shale oil produced from oil shale with crude oil in oil-bearing shales, the term "tight oil" is preferred for the latter. Although usually oil shale economics is understood as shale oil extraction economics, the wider approach evaluates usage of oil shale as whole, including for the oil-shale-fired power generation and production of by-products during retorting or shale oil upgrading processes.[1]. [31][41][42] Additional cracking can create the lighter hydrocarbons used in gasoline. [44][45] Worldwide production of shale oil was estimated at 17,700 barrels per day (2,810 m3/d) in 2008.

[4], A comparison of the proposed American oil shale industry to the Alberta oil-sands industry has been drawn (the latter enterprise generated over 1 million barrels per day (160×10^3 m3/d) of oil in late 2007), stating that "the first-generation facility is the hardest, both technically and economically". [26] VKG Oil claims to produce 250,000 tons of oil per year from 2 million tons of shale, a yield of 13%. (Ten US gal/ton is approximately 3.4 tons of oil per 100 tons of shale.) "[7][8][9] Later sold as Betton's British Oil, the distilled product was said to have been "tried by diverse persons in Aches and Pains with much benefit. 고도의 기술이 필요해 기존의 원유 채굴 방식보다 생산단가가 높다. [36], Shale oil's concentration of high-boiling point compounds is suited for the production of middle distillates such as kerosene, jet fuel and diesel fuel. Weird & Wacky, Copyright © 2020 HowStuffWorks, a division of InfoSpace Holdings, LLC, a System1 Company. These estimates assume a return rate of 15%. [29] In the Colorado Big-Thompson project, average prices per share (0.7 acre feet (860 m3)/share) increased from some $2,000 in 1990 to more than $12,000 in mid-2003 (constant 2001 dollars). [1][10], The project of a new Alberta Taciuk Processor which was planned by VKG Oil, was estimated to achieve break-even financial feasibility operating at 30% capacity, assuming a crude oil price of $21 per barrel or higher. In order for the operation to be profitable, the price of crude oil would need to remain above these levels. [4], According to a survey conducted by the RAND Corporation, the cost of producing a barrel of oil at a surface retorting complex in the United States (comprising a mine, retorting plant, upgrading plant, supporting utilities, and spent shale reclamation), would range between $70–95 ($440–600/m3, adjusted to 2005 values). [13][14] According to the United States Department of Energy, in 1980s the costs of a 100,000 barrels per day (16,000 m3/d) ex-situ processing complex ranged from $8–12 billion at 2005 prices.

Oil Shale Research and Development Project", United States Environmental Protection Agency, International Agency for Research on Cancer, "Agents Classified by the IARC Monographs, Volumes 1–102", "Selective Biodegradation of S and N Heterocycles by a Recombinant Rhodococcus erythropolis Strain Containing Carbazole Dioxygenase", "Process for treating hot shale oil effluent from a retort – US Patent # 4181596", "A brief overview of motor fuels from shale oil of kukersite", "Estonian Oil Shale Retorting Industry at a Crossroads", "Oil Shale: History, Incentives and Policy", "NPR's National Strategic Unconventional Resource Model", "Notice of Intent To Prepare a Programmatic Environmental Impact Statement (EIS) and Possible Land Use Plan Amendments for Allocation of Oil Shale and Tar Sands Resources on Lands Administered by the Bureau of Land Management in Colorado, Utah and Wyoming", https://en.wikipedia.org/w/index.php?title=Shale_oil&oldid=972906484, Pages containing links to subscription-only content, Articles with dead external links from November 2019, Articles with permanently dead external links, Creative Commons Attribution-ShareAlike License, This page was last edited on 14 August 2020, at 11:29.

Municipal and other water requirements related to population growth associated with industry development will require an additional 58 million US gallons (220,000 m3) per day.