The Potential of Oil Shale

Stephen Mut, CEOShell Unconventional Resources Energy

ASPO’s Denver World Oil ConferenceBeyond Oil: Intelligent Response to Peak Oil Impacts

November 10-11, 2005Denver, Colorado

World Petroleum Resources

• Light Crude Oil 300 – 500

• Heavy Crude Oil 500 – 700

• Tar Sand Bitumen – Primarily 2000 - 6000Located in Venezuela and Canada

• Oil Shale – Located in the USA, 2000 – 4000Russia, China, Estonia, Australia,Brazil and About 20 Other Countries

Oldest

Youngest

Geologic Age Billion Barrels

Major World Oil Shale Resources

Major Oil Shale Technologies

• Mining and Surface Retorting

• In-Situ Retorting

• In-Situ Conversion

In-Situ Conversion Process (ICP) What is it? • Enhancement of natural maturation of kerogen by slow heating• Results in:

• thermal cracking • in-situ hydrogenation• high sweep vapor phase production • high API oil

• Temperature limited to boiling point of diesel, i.e. essentially no bottoms

Current target resources:• Oil Shale • Heavy Oil / Tar Sands

How is it done?• Electric resistance•Conductive heat transport

Perspec

tive V

iew

¢

Producer

HeaterHeaterOverburden

• NaphthaNaphtha• JetJet• DieselDiesel• Nat. GasNat. Gas• HydrogenHydrogen• Chem. FeedChem. Feed• HeatHeat

High Value Products Light Surface Processing

Better Feedstock For Upgrading

Tar Like Solid

Carbon Number

Wei

ght

%

0 5 10

12

10

8

6

4

2

015 20 25 30 35 40 45 50 100 120

In Situ

800°CSurfaceRetort

SHALE OIL EXAMPLENaphtha - 30%Diesel - 30%Jet - 30%Resid - 10%

NAPHTHA JET DIESEL RESID

Water &TemperatureMonitor Wells

FreezeWells

Heater &Producer

Wells

FracturedShaleWaterBearingZonew

SolidShale

Containment and Isolation

G

ICP Can Also Work in Oil Sands

Conclusions

• Oil Shale is a Strategic Resource for the U.S.• Oil Shale Technology Has Advanced• Further Testing Is Necessary• End of Decade Commerciality Target