Roadblocks To Commercialization Of Western Oil Shale ? Introduction

The United States on a daily basis no consumes about 15MM barrels (2.38 x 106m3) of oil; 5MM (0.79 x 106 m3) of this is imported. This compares tai a daily consumption of 18MM (2.86 x 106 m3) in 1980 when we imported 8MM (1.27 x 106 m3). We are producing the 10MM barrels (1.59 x 106 m3 ) of conventional oil at home from what amounts to just 2% of our domestic energy reserves. Nearly 90% of our total domestic energy reserves occurs in solid forms such as coal, oil shale, and tar sands; this is more than enough to meet our needs for the next 100 years. Worldwide, oil shale is second only to coal as a potential source of energy and the U.S. has approximately one-half of the world oil shale reserves which average over 25 gallons per ton (10.43 x 10-2 L/kg). Since the United States has immense oil shale resources, including some of the richest in the world, and since oil shale produces a superior transportation fuel, it would seem logical that the U.S. would be prudently developing this domestic resource. Unfortunately, despite over 50 years of research and a number of false starts, there is not a commercial shale oil industry in place today. There are a number of recurring roadblocks which have hindered private industry's efforts to develop oil shale and we will look at some of these.