WSP08909 - Laserfiche WebLink

Home Browse Search

. APPENDIX C: OIL SHALE RESOURCES N .... -.J '-it Hany rocks contain hydrocarbons as a result of their formation and deposition. Among the most important of these are the so-called "oil shales" of the Upper Colorado River Basin. Oil shale is not a true shale and it does not contain oil as such. The organic material called k~rcgent when retorted, provides a crude oil rich in nitrogen and deficient in hydrogen. The kerogen is derived from the aquatic organisms--algae--and from waxy spores and pollen grains (Oil and Gas Journal, 1964). Several researchers have studied the palynomorphology of the oil shale basins to determine the depositional history and nature of the resource (Newman, 1974). . The nature of deposition, amount of the resource and reserves, and distribution of oil shale is not well known to the public, though geologists and engineers have been studying the resource for years. liThe rock that burns" has long been regarded as a significant poten- tial source of energy in this country. In the eastern United States, channel shale (or black shale) was being mined to produce small amounts of oil and illuminating gas prior to the discovery of major petroleum resources in 1859 (Duncan and Swanson, 1965). From time to time in the past) commercial experiments have been conducted to produce. shale oil in the United States, b~t these ~fforts have been overshadowed on each occasion by discovery of additional liquid petroleum resources in California. Texas, and, most recently, Alaska. On a world basis, organic-rich shale has been used both as a solid fuel and as a source of oil and gas. The Scots have pioneered in re- torting methods for extracting oil from shale, and some of their experi- ence has been applied in the early efforts to develop western oil shale resources (Savage, 1967). Commercial production of oil from shale be- gan in France in 1838 (Schraom, 1970), and many other countries around th~ world, from Europe to Australia, have developed viable shale oil industries. Two countries currently have oil shale industries: the U.S.S.R., with operations in Estonia; and China, with operations in Manchuria. Wnile little is known about the Chinese industry, it is known that in the U.S.S.R. fuel gas is being produced for pipelines and that some of the shale is burned as a solid fuel (Schramm; 1970). Research and de- velopment efforts are going on in Brazil and other countries in anti- cipation of future industrial operations (Jaffe, 1962). . Shale oil industries in other countries have generally teceived govern~ent assistance and protection in the form of subsidies, tax ex~mptiop.s, duties on imported petroleum, and other economic incentives (Schra=, 1970). Even with assistance such as this, shale oil has not been econo~ically competitive with petroleum fuels. NO\~9 with world C-l