Shell Walks Away From Oil Shale

  • Shell says that even though it's no longer pursing water rights on the Yampa River right now, it's in no way backing off its larger ambitions for oil shale. (Photo courtesy of the US DOE)

Extracting oil from oil shale takes a lot of water. Most of the oil shale in the U.S. is in areas where there’s not a lot of water. Conrad Wilson reports, one big oil company seems to be walking away from oil shale for that reason. But not everyone thinks that’s the case.

Transcript

Extracting oil from oil shale takes a lot of water. Most of the oil shale in the U.S. is in areas where there’s not a lot of water. Conrad Wilson reports, one big oil company seems to be walking away from oil shale for that reason. But not everyone thinks that’s the case.

In the Western US, some energy companies are betting big on oil shale. That’s a process of basically heating up a shale rock into a liquid that’s eventually refined into oil. But the global recession and the threat of climate change might be giving those companies second thoughts. Add to that a increasingly limited water supply, and oil shale looks like a risky investment.

The process of creating oil shale is energy intensive and uses a lot of water. That’s a problem in the arid West. As the population grows, the value of water is increasing.

Royal Dutch Shell has the most invested in developing an oil shale technology that works. So earlier this year when the company announced it was pulling away from water rights, it sent shock waves through the industry.

“I read that decision as Shell’s acknowledgment that oil shale is a long way off and that this was a really controversial filing and that in a sense it’s not worth it.”

That’s Claire Bastable of the Western Energy Project. It’s an environmental group that keeps on eye on energy issues in the West. Shell had been pursuing water rights on the Yampa River, in the Northwest portion Colorado.

“Shell’s decision was a big deal. We’re talking about 15 billion gallons of water. … It would have basically taken the Yampa River, which is one of the the last free flowing rivers in the West and diverted a huge proportion of it to Shell for potential oil shale development.”

Bastable says the 15 billion gallons Shell was seeking is about three times the amount the city of Boulder, Colorado uses in a year.

But, Shell knows a lot of oil can be extracted from the oil shale. It’s estimated that there are 800 billion barrels of usable oil in the shale – in Wyoming, Colorado and Utah.

Dr. Jeremy Boak researches oil shale development at the Colorado School of Mines. He says Shell could be simply postponing extracting that oil. Boak believes oil shale has a future, but it’s still decades away.

“With all of the comments they’ve made about what the time scale for oil shale, Shell has been pretty comfortable that this is going to take time.”

Shell says that even though it’s no longer pursing water rights on the Yampa River right now, it’s in no way backing off its larger ambitions for oil shale.

The company wouldn’t provide someone to comment for this story, but in a statement the company said:

The “ultimate goal is to create a commercial oil shale recovery operation that is economically viable, environmentally responsible and socially sustainable.”

That statement adds timing depends on government regulation and the market. The company could be waiting to see what the government does about climate change and how that affects fossil fuel costs. Shell could also be waiting for oil prices go up before deciding whether oil shale worth the effort.

Eric Kuhn heads up water management for the Colorado River District. He monitors much of the state’s water West of the Continental Divide. Kuhn says there’s probably enough water for oil shale development right now, but it’s hard to say for how long.

“I don’t think they’re dropping the filing changes anything. I think those companies are dedicated to and still have a plan to develop the oil shale resource if they can find a technology that is economically productive or if they can produce the oil shale at a competitive price, I think they will do it.”

Environmentalists in the region hope they won’t. They say Shell’s decision not to pursue the water right now should be a signal to others… oil shale just might not be worth the effort.

For The Environment Report, I’m Conrad Wilson.

Related Links

Exploring a Great Lakes Salt Mine

  • Salt is an essential resource for all people, especially those who live in areas where the roads get icy. (Photo by Lucian Binder)

Ever wonder where road departments get the mountains of salt they use each winter? Here in the Midwest, the answer can be found deep under Lake Erie. The Great Lakes Radio Consortium’s Ann Murray has the
story:

Transcript

Ever wonder where road departments get the mountains of salt
they use each winter? Here in the Midwest, the
answer can be found deep under Lake Erie. The Great Lakes Radio
Consortium’s Ann Murray has the story:


Orvosh: “Step right in there.”


Murray: “Ok, thanks.”


For Don Orvosh, an elevator ride nearly 2000 feet underground is just part of the daily grind.


(sound of clanking)


“It’s about a four and a half minute ride to the bottom. 1800… about 1800 feet.”


Orvosh supervises the Cleveland salt mine owned by Cargill Corporation. It’s one of only eleven active salt mines in the country. The mine lies beneath the northern edge of Cleveland and extends about four miles under Lake Erie.


Orvosh: “Most people in the city don’t even realize there’s a mine right here.”


Murray: “Are you all the way down?”


Orvosh: “We’re at the bottom right now. This is it.”


(sound of opening air-lock door)


A few feet from the elevator, Orvosh walks through a series of air-locked metal doors. They rotate to reveal a subterranean repair shop. Massive dump trucks and cranes are fixed here. The cavernous room is also the starting point for hundreds of miles of tunnels. These tunnels connect a honeycomb of old and active areas in the mine. Everyday, 150 workers travel this salt encrusted labyrinth by truck or tram.


“We’re going to get in this little buggy here now and in a couple minutes we’ll be under the lake.”


Lake Erie is a geological newcomer compared to the salt buried below it. This bed – extending from upper New York to Michigan – was formed 410 million years ago. That’s when an ancient sea retreated and left behind its brine. Oil drillers accidentally discovered the deposit in the 1860’s. As Orvosh drives north through the dark passageways, he says salt wasn’t extracted here until many years later.


“This shaft was sunk in the late fifties and the actual mining of salt occurred, started in the early sixties so it’s been here 40 plus years.”


In the last four decades, the mining process has stayed pretty much the same. Orvosh compares it to the room and pillar method used in underground coal extraction. He points up ahead to a brightly lit chamber. Machine generated light bounces off the room’s briny, white walls. Its 20 foot high ceiling is bolstered by pillars of salt the size of double-wide trailers.


Orvosh: “This is an active production section. This is where we are mining salt.”


Murray: “What’s happening here?”


Orvosh: “He’s drilling the face here.”


A miner sits atop a machine with a large needle nosed drill. It bores six holes into the seam. Later in the day, workers will load explosives in the holes and blow out big chunks of salt. Farther into the mine, the loose salt from last night’s blasting is being scooped up by front-end loaders and dumped into a crusher. All of the big chunks are broken into small pieces. Then the salt is loaded on conveyor belts and sent to the mine’s three-story-high underground mill. Salt is crushed, sized, screened and sent to the surface by elevator.


All told, the crews at the Cleveland mine produce two million tons of salt a year. A sizable chunk of the 15 million tons of salt used on icy US roads each winter. Demand for road salt has skyrocketed since it was introduced as a de-icer in the early 1950s. But Robert Springer, a 27- year veteran at this operation, says each mine fights for a market share.


Springer: “It is a competitive market. There’s another salt mine just in the Cleveland area, out there in Morton, Morton Salt.”


Murray: “We needed you today. The roads were really icy. Do you look forward to icy days to keep production up?”


Springer: “I guess you could say we look forward to bad weather. We enjoy the bad weather because we know there’s going to be salt used.”


(sound of radio and weather report)


Back on the surface, Bob Springer has gotten his wish… Cleveland has just been hit with a winter storm. At least a dozen trucks swing through the mine’s loading dock to pick up tons of salt. Later in the day, salt will be dumped onto barges and transported across the Great Lakes to places like Chicago and Toronto. This is high season for road salt. The crews here know that come March, they’ll start rousing salt from its ancient bed for the winter of 2006.


For the Great Lakes Radio Consortium, this is Ann Murray.

Related Links

Mining vs. Old-Growth Forest

  • Dysart Woods in southeast Ohio is an old-growth forest. Many of the trees are more than 300 years old. (Photo courtesy of dysartwoods.org)

The need for cheap energy is coming into conflict
with efforts to preserve a forest. Coal mining companies are using a technique that causes the land to subside and sometimes changes natural underground water systems. Environmentalists say mining underneath a forest preserve could destroy the ecosystem. The Great Lakes Radio Consortium’s Lisa Ann Pinkerton reports on environmental activists who are defending the
forest:

Transcript

The need for cheap energy is coming into conflict with efforts to preserve a forest.
Coal mining companies are using a technique that causes the land to subside and sometimes
change natural underground water systems. Environmentalists say mining underneath a forest
preserve could destroy the ecosystem. The Great Lakes Radio Consortium’s Lisa Ann Pinkerton
reports on environmental activists who are defending the forest:


For decades, the coal mining industry has been using a technique of extraction called
long wall mining. Industry officials say it’s the most effective way to get the bituminous
coal out of the ground. In traditional room and pillar mining, the land above is not disturbed.
But the long wall machine leaves no support for the 1000-foot tunnel created in its wake. After
the coal is extracted, the ground caves in, causing the land to sink.


Dysart Woods, in southeastern Ohio, is slated for such a fate. The conservation group,
Buckeye Forest Council, wants to block the woods from mining. Its members believe long
wall mining will destroy the old-growth forest. The four hundred and fifty acres, fifty-five
acres of the trees are more than 300 years old. Fred Gittis is an attorney who has volunteered
his services to protect the woods.


“And these woods are precious, and they are among the last old-growth forest areas remaining,
not only in Ohio, but in this part of the country. Recently a documentary was filmed in Dysart Woods, because it has some of the conditions that would have existed at the time of George
Washington’s life.”


Gittis argues state should repeal the mining permit granted for Dysart Woods. Ohio Valley
Coal was granted the permit in 2001. As steward of the woods, Ohio University disputed the
permit for three years. But last November, it agreed to drop its appeal, in exchange for $10,000 from the state to study the forest’s water, as it is undermined. Ohio Valley
Coal Company would drill the wells needed. But the Buckeye Forest Council says a study doesn’t
solve the problem.


“First of all it is just a water monitoring project. It offers no protection to the woods.
Second of all, they don’t have the base line data right now to compare to what it normal.”


That’s Susan Heikler, Executive Director of the Buckeye Forest Council. When Ohio University
accepted the mining permit, her organization took up the fight. The group worked with lawyer
Fred Gittis and nationally known experts to review the science of the Coal Company’s mining
plan. Gittis says the Council’s experts were not impressed.


And, both hydrogeologists and mining experts have indicated that the basic science related
to this mining permit is, not to be insulting but, junk.”


The plan calls for long wall mining within 300 feet of the old-growth forest. However,
experts from the Buckeye Forest Council say a 1500 foot buffer around the woods
is the only way to insure the protection of the hydrology – the natural water system that
sustains the forest.


In a major concession two years ago, the Coal Company agreed not to long wall mine directly
under Dysart Woods. Instead, room and pillar mining is planned. The Company says that will
delay subsidence for centuries to come. Attorney Fred Gittis says without core samples from
directly under the woods, the company doesn’t have the data to back up this claim.


“If you don’t know what that rock is, if it’s soft like claystone or shale, it can collapse.
And so its pretty basic stuff.”


Attorneys for the company declined to be interviewed for this story. In statements, the
Company defends its lack of data by pointing to exemptions they were granted by the Department
of Mineral Resources. The Company stands by its assertion that, quote, “trees and other surface
vegetation will absolutely not be affected by mining.” But in September, the story changed. In
court, a mining consultant for the company, Hanjie Chen, testified that the forest floor would
sink 5 inches. Attorneys for Ohio Valley Coal abruptly stopped his testimony after this
statement. But Gittis says the damage to the coal company’s case is already done.


Although Buckeye Forest Council rested its case in July, the defendant, Ohio Valley Coal is
still adding witnesses and dragging out the case. Fred Gittis says the Company is trying to
exhaust the Buckeye Forest Council’s legal funding. He adds that this is why he volunteers his
expertise.


For the time being, mining under the old growth forest has been pushed back until the hearings
conclude in November.


For the Great Lakes Radio Consortium, this is Lisa Ann Pinkerton.

Related Links