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<br />80377 i <br /> <br />RUED! DAM AND RESERVOIR, COLO. <br /> <br />ecop_omically transported to market. in California .by ~n.y. of COlUleC- <br />tiol1S to all existing pipeline (7). Othe.r crude OlIYlpehne sy~tel~lS <br />in t.he area. also could be llsed to transport shale 011 to refinerIes 111 <br />Colorado Utah and 'Vvoming. These existing pipelines now con- <br />vey tlbout. ID;\OOO harrels per (by of pe.trolellm tUlCI at mnximmll en.- <br />pacity can moye 30010(\0 'b:ll"re]s pel' day. It seems reasonn.hle that <br />at le,;st. 25,000 barrels pel' day of cmTying capacity can be allocated <br />to sha.Ie oil when the time a.rrives. <br />It. is thouO'ht that the phase. II pl:tnt(s) ",ill not include shale oil <br />refinin,O" faeUit.ies except for a IHerUlS of reducing t.he pour point and <br />viscosity of t.he crude oil to meet pipeline specificntions. The proc. <br />~~s b)' which shale oil will be l'efinec1 a..lready :H'e in eonHnel'~inl use, <br />and need nO demonstratiun such as is the case for mining and retort- <br />ing. Furthermore, the invest,ment, for refining' facilitIes is la,rge, <br />about e~unl to that. for oil productiou. It is probable. that. the ulti- <br />rnate refining' of t,he product. uf phase II ,vill be a.t existing" refineries <br />in t,he n 1 a rket. :1 rea. <br />Other supporting facilities of the p;'olotype plant(s) also "ill be <br />kept to n minimum. Electric power gellemtion using byproduct gnses <br />"jJJ not be a part. of the first plant. 01' plants. Instead, elect.l'icity "ill <br />be purchased fl'mn pnulie utilit.ies se.l'villg the. area. <br />The existing lOCid lahor supply will be utilized to the maximum ex- <br />tent.. It is estimated that. ~ualifie.d pe.rsonnel to the extent of about. <br />one.-half of the staff can he employerllocally. Supervisory personnel, <br />techTlicinn~, and certain sJi:iIlell uperators ftncl craftsmen will need to be <br />brought in, uut essent ially an elm he housed in the towns and com- <br />mllnities between Glenwood Springs and Grantl .Junction. <br />In SlIII1J11:\ry, phase II~ tIle prototype plant(s), located in the Grand <br />Valley-Dc Be~ue al'e,l of "estel'll Colorado, "ill produce alJOut, 25,000 <br />barrels pe.1' day of ,,,'ude shale. oil. 'Ve. e.xpe.ct this de\'e.lopment to <br />oecur between ]060 and 1!)(H). The crude oil will be moyed throllgh <br />existing pipeline systems to refineries in logical m.J1rket ftreas. Local <br />labor snpply can be used for a large percentage of the staff. Existing <br />cOlllnlUnities and supporting facilities will meet the needs of the pro- <br />totype phase. <br /> <br />Plw.'wlll. PriTl/.fll'ye;cpa-ns'ion <br />After sufficient operat.ion of the prototype mining and retorting <br />units to establish the soundness of the methods and to brin,g about the <br />imprm.emellts which are certH.in to result, shale oil production can be <br />expanrlecl with eonfidence fLnd at. minimum cost. Again transporta.- <br />tion of the oil to market will be the controlJing factor. The size of the <br />prima.ry expnnsion of the industr}' is likely to he the capneit.y of <br />snul.llest econom.ic shale oil pipeline to the Pacific Coast, which we <br />estimate will he ahont. 150,000 barre.ls per day. Although larger quan- <br />tities uf oil may be pipelined at. fL lower cost per barrel, ,it is unlikely <br />that a larger line would be laid nt this stage of development. <br />Several mines. retorting pln,Jlts~ and one or more, refineries will be <br />re~u:lrecl for phase III'. The principal product will he a high-quality, <br />partwll,y refined shale nil, needing minimum additioIlal refining. The <br />availahility ~f low~c(Jst bypl'orlllct fuel gas from retort,ing makes it <br />more economlc~l to reline the shale oil at the site of production rather <br />than a.t ex ist.ing l'etlneries in t he rn~uket. area. <br /> <br />-I <br />