Environmental Considerations Related to Oil Shale

Development

INTEK

September 23, 2008SPE #116599

Emily Knaus, INTEK Inc.Anton Dammer, U.S. Department of Energy

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1998 2000 2002 2004 2006 2008

$/B

arr

el

147 147 $/Bbl $/Bbl

Economic Setting Economic Setting

U.S. domestic oil shale resource offers a U.S. domestic oil shale resource offers a large prize; particularly with high priceslarge prize; particularly with high prices

Price of crude oil has risen dramatically in the Price of crude oil has risen dramatically in the past decade (graph represents USD per barrel)past decade (graph represents USD per barrel)

Domestic Oil Shale RegionDomestic Oil Shale Region2 Trillion Barrels

6 Trillion Barrels

Domestic Oil Shale Resource PotentialDomestic Oil Shale Resource Potential

Total Resource6 Trillion Barrels

High Quality Resource2 Trillion Barrels

Technical Recovery

1.2 Trillion Barrels

EstimatedReserves

600 – 800

Billion Bbls

Source: INTEK, Inc.

Technology ConsiderationsTechnology Considerations

Step 1Create Void by Mining

Step 2Rublize shale by explosions

Step 3Initiate combustion

Virgin

Shale

Free oil movement

Combustion Front

Retorted Shale

Mined Shale

Mined Shale to surface retorts

Shale oil to refinery

Step 1Create Void by Mining

Step 2Rublize shale by explosions

Step 3Initiate combustion

Virgin

Shale

Free oil movement

Combustion Front

Retorted Shale

Mined Shale

Mined Shale to surface retorts

Shale oil to refinery

Modified In-Situ

1 2

Conveyer Retort Plant

Mining

Partial Upgrading

To Market

Conveyer Crusher

Waste Disposal

Shovel Trucks

Oil Shale

Overburden

Oil Shale

Overburden

Surface Mining / Surface RetortCrusher Conveyer Retort Plant

Mining

Partial Upgrading

To Market

ConveyerSlope Mine Crusher

Oil ShaleOil ShaleOil ShaleOil Shale

Waste Disposal

Underground Mining / Surface Retort

True In-Situ

• Air QualityAir Quality

• Water Use and QualityWater Use and Quality

• Land DisturbanceLand Disturbance

• Wildlife ImpactsWildlife Impacts

Environmental Impacts OverviewEnvironmental Impacts Overview

Air Quality - Potential EmissionsAir Quality - Potential Emissions

HC

Gas

CO

2

SO

2

NO

x

Oil Shale Processing

• Carbon Carbon dioxide dioxide emissionsemissions

• Criteria Criteria pollutantspollutants

Air Quality – Mitigation StrategiesAir Quality – Mitigation Strategies

Capture and Clean using Existing Technology

Capture for:CO2 Enhanced Oil RecoverySequestrationOther Industrial Uses

Capture for Process Plant Use

HC

Gas

CO

2

SO

2

NO

x

Oil Shale Processing

• Current Current technologiestechnologies

• Emerging Emerging technologiestechnologies

Water Use and Quality ConsiderationsWater Use and Quality Considerations

• Water consumption Water consumption

• Produced water runoff Produced water runoff

• Surface water protectionSurface water protection

• Ground water protectionGround water protection

Water ConsumptionWater ConsumptionOil Shale Oil Shale

Production Production Rate Rate

(MBbls/D)(MBbls/D)

Oil Shale Oil Shale Industry Industry Water Water

Demand Demand (MMG/D)(MMG/D)

Projected Projected Population Population

Growth Growth (People)(People)

Additional Additional Water to Water to Support Support

Population Population (MMG/D)(MMG/D)

Total Total New New Water Water

Demand Demand (MMG/D)(MMG/D)

Total New Total New Water Water

Demand Demand (MM acre-(MM acre-

ft/yr)ft/yr)

Source: Wood, Thomas., “Water Resources for Oil Shale”., Battelle., (2006).

21 to 6321 to 63 96,00096,000 1313 34 to 7634 to 76 0.04 to 0.090.04 to 0.09

42 to 12642 to 126 177,000177,000 2424 86 to 15086 to 150 0.10 to 0.170.10 to 0.17

105 to 315105 to 315 433,000433,000 5858 163 to 163 to 373373

0.18 to 0.420.18 to 0.422,500

500

1,000

Produced WaterProduced Water

• Water is a by-Water is a by-product of oil product of oil shale retortingshale retorting

• ~2-5 gal/ton~2-5 gal/ton

• Produced water Produced water will contain a will contain a variety of variety of substancessubstances

Surface Water ProtectionSurface Water Protection

• Mining and Mining and retorting retorting operationsoperations

• Treatment Treatment facilities for facilities for productsproducts

• Other Other wastewaterswastewaters

• Spent shale Spent shale

Ground Water ProtectionGround Water Protection

Ground WaterGround Water

SoilSoil

Ground CoverGround Cover

Oil Shale Oil Shale ZoneZone

Oil ShaleOil Shale

Source: INTEK, Inc.

Impermeable Barrier

Shell’s Freeze Wall TestShell’s Freeze Wall Test

Source: DOE, Secure Fuels Report, 2008

Land Disturbance - MagnitudeLand Disturbance - Magnitude

BLM PEIS 1.9 MM Acres

20%

1 MMBbl/D Oil Shale Industry =

0.08 MM Acres1%

Green River Formation = 11

MM Acres

Undisturbed Area

~9 MM Acres

Land Disturbance - ImpactsLand Disturbance - Impacts

• Mining disrupts Mining disrupts the surfacethe surface

• Increase in Increase in spent shalespent shale

• Reclamation Reclamation will help to will help to mitigate the mitigate the long-term long-term impactsimpacts

Wildlife Impacts - Aquatic SpeciesWildlife Impacts - Aquatic Species

• Four endangered species Four endangered species

• Colorado River Basin is critical habitatColorado River Basin is critical habitat

• Site-specific data and analyses necessarySite-specific data and analyses necessary

Source: U.S. DOI/BLM PEIS (December 2007)

Wildlife Impacts - Terrestrial SpeciesWildlife Impacts - Terrestrial Species

• One mammal is One mammal is endangeredendangered

• Two are Two are threatenedthreatened

• Water supplyWater supply

• Fragmentation Fragmentation of habitat of habitat

Source: U.S. DOI/BLM PEIS (December 2007)

Wildlife Impacts - Avian SpeciesWildlife Impacts - Avian Species• Two endangered Two endangered

speciesspecies

• Migratory and Migratory and permanent bird permanent bird residentsresidents

• Habitat Habitat preservationpreservation

• Water quality Water quality supplysupply

Source: U.S. DOI/BLM PEIS (December 2007)

Wildlife Impacts - Plant SpeciesWildlife Impacts - Plant Species

• Six endangered Six endangered speciesspecies

• Ten threatened Ten threatened species species

• 41 sensitive 41 sensitive speciesspecies

• Land Land disturbancedisturbance

Source: U.S. DOI/BLM PEIS (December 2007)

ConclusionsConclusions

• Unmitigated, oil shale development Unmitigated, oil shale development can potentially have impacts on:can potentially have impacts on:– Air qualityAir quality

– Water quality and consumptionWater quality and consumption

– Land disturbanceLand disturbance

– Associated ecological and wildlife Associated ecological and wildlife systemssystems

• Mitigation practices can Mitigation practices can significantly reduce impactssignificantly reduce impacts