OFR-122(4)-78 Advancing Oil Shale Mining Technology: Program Evaluation - Benefit-Cost Analysis

The analysis described herein evaluates the Bureau of Mines Program for Advancing Mining Technology - Oil Shale in terms of the economic benefits which may be derived for the Nation as a result of its successful research and development efforts. On the basis of postulated oil shale production scenarios, benefit-cost ratio indicators are computed for the program elements as they apply to surface, underground, and modified in situ oil shale mining systems. Eight value indicators are used to measure the Program's beneficial impact on the future oil shale industry in relation to planned research and development costs. These are: capital cost savings, operating cost savings, labor savings environmental quality maintenance cost reduction, reduction in production costs, byproduct production benefits, total production benefits, and additions to recoverable reserves. Program costs are aggregated from 1974 through 1987 and major benefits are accrued from 1982 through 2040. Both cost and benefit streams are discounted to mid-1975 present value.