An Oil Shale Perspective - Special Issue: The Emerging Reality of

Interest in the western oil shales of the US began in about 1908, with the first retort in Colorado constructed in 1917. The most successful early developments were near Elko, NV, where the Catlin Shale Products Co. produced more than 1.9 dam3 (12 000 bbl) of shale oil during 1920-1924 and at Rulison, CO, where a US government operation produced about 570 in 3 (3 600 bbl) of shale oil during 1926-1929. Plentiful low-cost crude oil was developed about this time and shale oil was of little or no interest until after World War II. From 1944 to about 1972, several companies, and the US government, operated shale oil mines and recovery plants in Colorado. While technical successes were achieved and an estimated 40-56 clam' (250 000-350 000 bbl) of shale oil were produced, economics were not favorable and commercial production was not achieved. In recent years domestic production of crude oil supplies has not kept pace with US consumption. The growing shortfall has been met with imports. The cost of imported oil has continued to escalate and increased US dependence on petroleum imports are national concerns, because of the negative impact on US balance of payments and an increasing dependence on other nations for US energy needs. In 1978, petroleum imports equaled about 44% of demand, up from 23% in 1970, but down from 48% in 1977 because of availability of Alaskan North Slope crude oil. Reduced domestic consumption and other factors have reduced current imports to about 40-45% of de¬wand-but at ever increasing cost. The growing shortage of crude petroleum and its increasing cost have resulted in renewed worldwide interest in oil shales. In the past, the main obstacle to oil shale development (progress toward commercial production) has been economics-shale oil cost too much to develop and thus could not compete with conventional petroleum crudes. Even with today's inflated energy prices, some experts say the production of synthetic crude oil from oil shale is, at best, marginally economic. The 1973-74 Arab oil embargo and increased crude oil costs-along with the federal government's offer to lease oil shale lands-resulted in renewed