Future Shock - Oil Shale

Colorado Oil Shale Leases - Green River Formation

Map of the Oil Shale Basins in Colorado, Wyoming and Utah.The Bureau of Land Management issued leases for five oil shale research projects. These are the first federal oil shale leases issued in over thirty years. Increasing demand for energy and increasing oil prices have spurred a renewal of interest in oil shale. Oil shale is a rock that is rich in an organic material known as kerogen. If it is heated in the absence of air the kerogen will yield liquid oil. The Green River Formation, which underlies large portions of Wyoming, Utah and Colorado contains the world’s largest oil shale resource. According to BLM this deposit could contain over 800 billion barrels of recoverable oil - more equivalent oil than the Middle East. However, this resource has not been developed because the cost of extracting oil from the shale has historically been too high.

Recent increases in oil prices and demand have spurred a renewed interest in oil shale research. These new BLM leases grant rights to develop the oil shale on 160-acre tracts for a period of ten years. The leases can be extended in time and expanded to up to 5000 acres if specific commercial production levels have been met.There are two different approaches to extracting oil from the shale. One process involves mining the shale, crushing it and running it through a heat treatment process. The other heats the shale while it is still in the ground and produces the oil through wells. This in-situ conversion is currently favored by many industry experts. Challenges which accompany the development of an oil shale resource include: greenhouse gas emissions, mined land reclamation, disposal of spent shale, and water use.