Contents

1. Executive Summary
1.1 The Oil Shale Market Overview 1.2 Drivers and Restraints in the Oil Shale Market 1.2.1 Drivers in the Oil Shale Market 1.2.2 Restraints in the Oil Shale Market 1.3 Highlights of the Report 1.4 Benefits of the Report 1.5 Methodology 1.6 The Global Oil Shale Market Forecast 2011-2021 1.7 The Leading National Oil Shale Markets Forecast 2011-2021

2. Introduction to the Oil Shale Market

2.1 History of the Oil Shale Industry 2.2 Oil Shale and Shale Oil 2.3 Oil Shale Extraction Methods 2.3.1 Mining and Above Ground Retorting Process 2.3.2 In-Situ Retorting Process 2.4 Oil Shale Resources 2.5 Oil Shale Production

3. The Global Oil Shale Market

3.1 The Global Oil Shale Market Forecast 2011-2021 3.2 Recent Developments in the Global Oil Shale Market 3.3 Global Oil Shale Market Drivers and Restraints 2011-2021 3.4 Global Oil Shale Market Drivers 3.4.1 Substantial Oil Shale Resources 3.4.2 Oil Price Forecasts 3.4.3 Technological Improvements 3.4.4 Desire for Energy Security

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3.5 Global Oil Shale Market Restraints 3.5.1 High Costs 3.5.2 Need for Further Testing 3.5.3 Global Warming Concerns 3.5.4 Other Environmental Concerns

4. Leading National Oil Shale Markets Forecast 2011-2021

4.1 The United States Oil Shale Market Forecast 2011-2021 4.1.1 United States Oil Shale Resources 4.1.2 History of the United States Oil Shale Industry 4.1.3 United States Oil Shale Development 4.1.4 United States Oil Consumption and Production 4.2 The Chinese Oil Shale Market Forecast 2011-2021 4.2.1 Chinese Oil Shale Resources 4.2.2 Chinese Oil Shale Projects 4.2.3 Chinese Oil Consumption and Production 4.3 The Jordanian Oil Shale Market Forecast 2011-2021 4.3.1 Jordanian Oil Shale Resources 4.3.2 Investments in the Jordanian Oil Shale Market 4.3.3 Partnerships with Other Countries 4.4 The Estonian Oil Shale Market Forecast 2011-2021 4.4.1 Estonian Oil Shale Resources 4.4.2 Estonian Oil Shale Projects 4.5 The Uzbek Oil Shale Market Forecast 2011-2021 4.5.1 Uzbek Oil Shale Resources 4.5.2 Uzbek Oil Shale Development 4.6 The Australian Oil Shale Market Forecast 2011-2021 4.6.1 Australian Oil Shale Resources 4.6.2 Australian Oil Shale Projects 4.6.3 Australian Oil Consumption and Production 4.7 The Israeli Oil Shale Market Forecast 2011-2021

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4.7.1 Israeli Oil Shale Resources 4.7.2 Israeli Oil Shale Development 4.8 The Moroccan Oil Shale Market Forecast 2011-2021 4.8.1 Moroccan Oil Shale Resources 4.8.2 Investments in the Moroccan Oil Shale Market 4.8.3 Partnerships with Other Countries 4.9 The Brazilian Oil Shale Market Forecast 2011-2021 4.9.1 Brazilian Oil Shale Resources 4.9.2 The Petrosix Process 4.9.3 Brazilian Oil Shale Investments 4.10 The Russian Oil Shale Market Forecast 2011-2021 4.10.1 Russian Oil Shale Resources 4.10.2 Russian Oil Shale Potential 4.10.3 Russian Oil Consumption and Production 4.11 The Canadian Oil Shale Market Forecast 2011-2021 4.11.1 Canadian Oil Shale Resources 4.11.2 Canadian Oil Shale Potential 4.12 The Egyptian Oil Shale Market Forecast 2011-2021 4.12.1 Egyptian Oil Shale Resources 4.12.2 Investments in the Egyptian Oil Shale Market 4.12.3 Partnerships with Other Countries 4.13 The Syrian Oil Shale Market Forecast 2011-2021 4.13.1 Syrian Oil Shale Resources 4.13.2 Syrian Oil Shale Development 4.13.3 Partnerships with Other Countries 4.14 The Indian Oil Shale Market Forecast 2011-2021 4.14.1 Indian Oil Shale Resources 4.14.2 Indian Oil Production and Consumption 4.15 The Rest of the World Oil Shale Market Forecast 2011-2021 4.15.1 The Argentinean Oil Shale Market 4.15.2 The Democratic Republic of the Congo Oil Shale Market 4.15.3 The German Oil Shale Market 4.15.4 The Italian Oil Shale Market

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4.15.5 The Kazakh Oil Shale Market 4.15.6 The Turkish Oil Shale Market 4.16 National Variations in Market Size and Growth

5. SWOT Analysis of the Oil Shale Market 2011-2021

5.1 Strengths 5.1.1 Increasing Demand for Oil 5.1.2 Substantial Oil Shale Resources 5.1.3 High Oil Prices 5.1.4 Desire for Energy Security 5.2 Weaknesses 5.2.1 High Extraction Costs 5.2.2 Global Warming Concerns 5.2.3 Unproven Nature of the Technologies 5.2.4 Water Quality and Use Issues 5.2.5 Land Use Issues 5.3 Opportunities 5.3.1 Technological Improvements 5.4 Threats 5.4.1 Opposition to Oil Shale Projects 5.4.2 Dependency upon Government Strategies 5.4.3 Regulatory Uncertainty 5.4.4 Continuing Weak Global Economy

6. Oil Shale Technologies

6.1 Mining and Above Ground Retorting Process 6.2 In-Situ Retorting Process 6.3 Individual Oil Shale Processes 6.3.1 The In-Situ Conversion Process (ICP) 6.3.2 The CRUSH Process 6.3.3 The Electrofrac Process

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6.3.4 The Conduction, Convection, Reflux (CCR) Process 6.3.5 The Kiviter Process 6.3.6 The Galoter Process 6.3.7 The Petrosix Process 6.3.8 The Fushun Process 6.3.9 Geothermic Fuel Cell (GFC) Technology 6.3.10 The Paraho Process 6.3.11 The Petro Probe Process 6.3.12 The Alberta Taciuk Process (ATP)

7. Expert Opinion
7.1 Independent Energy Partners (IEP) 7.1.1 Confusion in the US Oil Shale Market 7.1.2 Advantages of the Geothermic Fuel Cell (GFC) Technology 7.1.3 GFC Technology Commercialisation Plans 7.1.4 Opportunities in the Canadian Oil Shale Market 7.1.5 Opportunities in the Chinese Oil Shale Market 7.2 EnShale Energy 7.2.1 Confusion in the US Oil Shale Market 7.2.2 US Oil Shale Market Potential 7.2.3 EnShales Technological Advantages 7.2.4 EnShales Plans for Commercial Development 7.2.5 The Importance of the Federal Government 7.2.6 Oil Shale Opportunities Outside the US

8. Leading Companies in the Oil Shale Market

8.1 A.F.S.K Hom Tov 8.2 Alstom 8.3 Ambre Energy North America 8.4 American Shale Oil, LLC (AMSO) 8.5 AuraSource Inc.

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8.6 Baraka Energy & Resources 8.7 Chattanooga Corporation 8.8 Chevron Corporation 8.9 China National Petroleum Company (CNPC) 8.10 Eesti Energia 8.11 Enefit American Oil 8.12 EnShale Energy 8.13 ExxonMobil 8.14 Fushun Mining Group 8.15 General Synfuels International 8.16 Global Resource Corporation 8.17 Independent Energy Partners (IEP) 8.18 Inter RAO 8.19 Israel Energy Initiatives (IEI) 8.20 Jordan Energy and Mining Limited 8.21 Lukoil 8.22 Mountain West Energy (MWE) 8.23 Petrobras 8.24 Queensland Energy Resources (QER) 8.25 Red Leaf Resources 8.26 Royal Dutch Shell 8.27 San Leon Energy 8.28 Schlumberger 8.29 Shale Technologies, LLC 8.30 Uzbekneftegaz 8.31 Viru Keemia Grupp (VKG) 8.32 Xtract Energy 8.33 Yacimientos Petrolferos Fiscales (YPF)

9. Conclusions
9.1 Outlook for the Global Oil Shale Market 2011-2021 9.2 Outstanding Growth Nations in the Oil Shale Market 9.3 High Growth Nations in the Oil Shale Market

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9.4 Moderate Growth Nations in the Oil Shale Market 9.5 Low Growth Nations in the Oil Shale Market 9.6 Global Oil Shale Market Summary

10. Glossary

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List of Tables
Table 2.1 Top 10 National In-Place Oil Shale Resources (Million Barrels, %) Table 3.1 Global Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 3.2 Global Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 3.3 Global Oil Shale Market Drivers and Restraints 2011-2021 Table 4.1 Leading National Oil Shale Markets Forecast 2011-2021 ($m, AGR %) Table 4.2 Leading National Oil Shale Markets Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.3 United States Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.4 United States Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.5 Drivers and Restraints in the United States Oil Shale Market Table 4.6 Chinese Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.7 Chinese Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.8 Drivers and Restraints in the Chinese Oil Shale Market Table 4.9 Jordanian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.10 Jordanian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.11 Drivers and Restraints in the Jordanian Oil Shale Market Table 4.12 Estonian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.13 Estonian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.14 Drivers and Restraints in the Estonian Oil Shale Market Table 4.15 Uzbek Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.16 Uzbek Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.17 Drivers and Restraints in the Uzbek Oil Shale Market Table 4.18 Australian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.19 Australian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.20 Drivers and Restraints in the Australian Oil Shale Market Table 4.21 Israeli Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.22 Israeli Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.23 Drivers and Restraints in the Israeli Oil Shale Market Table 4.24 Moroccan Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.25 Moroccan Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.26 Drivers and Restraints in the Moroccan Oil Shale Market

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Table 4.27 Brazilian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.28 Brazilian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.29 Drivers and Restraints in the Brazilian Oil Shale Market Table 4.30 Russian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.31 Russian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.32 Drivers and Restraints in the Russian Oil Shale Market Table 4.33 Canadian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.34 Canadian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.35 Drivers and Restraints in the Canadian Oil Shale Market Table 4.36 Egyptian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.37 Egyptian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.38 Drivers and Restraints in the Egyptian Oil Shale Market Table 4.39 Syrian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.40 Syrian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.41 Drivers and Restraints in the Syrian Oil Shale Market Table 4.42 Indian Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.43 Indian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.44 Drivers and Restraints in the Indian Oil Shale Market Table 4.45 RoW Oil Shale Market Forecast 2011-2021 ($m, AGR %) Table 4.46 RoW Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, 2016-2021 Table 4.47 Leading National Oil Shale Market Share Forecast 2011, 2016 and 2021 ($m, %) Table 5.1 SWOT Analysis of the Oil Shale Market 2011-2021 Table 9.1 Leading National Oil Shale Markets Sizes 2011 and 2021 ($m), and 2011-2021 CAGRs (%)

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List of Figures
Figure 2.1 In-Situ and Conventional Oil Shale Extraction Methods Figure 2.2 Top 10 National In-Place Oil Shale Resources (Million Barrels) Figure 2.3 Top 10 National In-Place Oil Shale Resources (% of World Total) Figure 2.4 Leading Oil Shale Producing Countries in 2008 (Thousand Barrels per Day) Figure 3.1 Global Oil Shale Market Forecast 2011-2021 ($m) Figure 3.2 Global Oil Shale Market Annual Growth Rate (AGR %) Forecast 2011-2021 Figure 4.1 Leading National Oil Shale Markets Forecast 2011-2021 ($m) Figure 4.2 Breakdown of Leading 8 National Oil Shale Markets Forecast 2011-2021 ($m) Figure 4.3 Breakdown of Leading 9-14 National Oil Shale Markets Forecast 2011-2021 ($m) Figure 4.4 United States Oil Shale Market Forecast 2011-2021 ($m) Figure 4.5 United States Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.6 EIA Forecasted United States Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.7 Chinese Oil Shale Market Forecast 2011-2021 ($m) Figure 4.8 Chinese Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.9 EIA Forecasted Chinese Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.10 Jordanian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.11 Jordanian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.12 Estonian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.13 Estonian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.14 Uzbek Oil Shale Market Forecast 2011-2021 ($m) Figure 4.15 Uzbek Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.16 Australian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.17 Australian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.18 EIA Forecasted Australian and New Zealand Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.19 Israeli Oil Shale Market Forecast 2011-2021 ($m) Figure 4.20 Israeli Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.21 Moroccan Oil Shale Market Forecast 2011-2021 ($m)

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Figure 4.22 Moroccan Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.23 Brazilian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.24 Brazilian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.25 EIA Forecasted Brazilian Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.26 Russian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.27 Russian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.28 EIA Forecasted Russian Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.29 Canadian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.30 Canadian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.31 EIA Forecasted Canadian Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.32 Egyptian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.33 Egyptian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.34 Syrian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.35 Syrian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.36 Indian Oil Shale Market Forecast 2011-2021 ($m) Figure 4.37 Indian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.38 EIA Forecasted Indian Liquid Production and Consumption, 2006-2035, Reference Case (Million Barrels/Day) Figure 4.39 RoW Oil Shale Market Forecast 2011-2021 ($m) Figure 4.40 RoW Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Figure 4.41 Leading National Oil Shale Markets CAGRs (%) 2011-2021 Figure 4.42 Leading National Oil Shale Markets CAGRs (%) 2011-2016 and 2016-2021 Figure 4.43 Leading National Oil Shale Market Share Forecast 2011 (%) Figure 4.44 Leading National Oil Shale Market Share Forecast 2016 (%) Figure 4.45 Leading National Oil Shale Market Share Forecast 2021 (%) Figure 4.46 Leading National Oil Shale Markets Share Change (%) 2011-2021 Figure 5.1 Regional Demands for Oil 2007 and 2035 (Million Barrels/Day) Figure 5.2 Average Yearly WTI Spot Price 1990-2010 ($/Barrel) Figure 5.3 EIA Projected Oil Prices (WTI) 2011-2021: Reference, High Price, Low Price Scenarios ($/Barrel) Figure 9.1 Global Oil Shale Market Size Forecast 2011-2021 ($m)

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Companies Mentioned in This Report
A.F.S.K Hom Tov A.F.S.K Industries Group Alstom Altius Ambre Energy Limited Ambre Energy North America American Shale Oil, LLC (AMSO) Apache Corporation Atomenergoproekt AuraSource Baraka Energy & Resources Blue Ensign Technologies Limited BP Bullion Monach Mining Central Pacific Minerals Chattanooga Corporation Chevron Corporation Chevron Shale Oil Company China National Coal Company China National Petroleum Company (CNPC) China Qinzhou Kaiyuyuan New Energy Company, Ltd Development Engineering Inc. Earth Sciences Inc. Eesti Energia Enefit Enefit American Oil EnShale Energy ExxonMobil Forbes Fugro Robertson Ltd. Fushun Mining Group

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Gansu Coal Company General Synfuels International Global Resource Corporation Harbin Coal Chemical Company Holcim IDT Corporation Independent Energy Partners (IEP) Inter RAO Israel Chemicals Ltd Israel Energy Initiatives (IEI) Japan Oil, Gas & Metals National Corp (JOGMEC) JGC Corporation Jilin Guangzheng Mining Company Jordan Energy and Mining Limited Jordan Oil Shale Company (JOSCo) Karak International Oil (KIO) Laguna Resources Leningradslanets Oil Shale Mining Public Company Longkou Coal Company Lukoil Mitsui Mountain West Energy (MWE) Narva Elektrijaamad Oil India Limited (OIL) Oil-Tech Outotec PennWell Petroleum Petrobras Petro-Canada Queensland Energy Resources (QER) Queensland Shale Oil Limited Red Leaf Resources Rohrbach Zement

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Royal Dutch Shell San Leon Energy Schlumberger Shale Technologies, LLC Shell Oil Company Sinopec Technopian Corporation Total Unitah Resources Inc Uzbekneftegaz Viru Keemia Grupp (VKG) WorleyParsons XOL Xtract Energy Yacimientos Petrolferos Fiscales (YPF)

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Government Agencies and Other Organisations Mentioned in This Report
Ben-Gurion University China Environmental Protection Administration Energy Information Administration (EIA) European Commission European Union (EU) Greenpeace Indian Central Fuel Research Institute (CFRI) Indian Directorate General of Hydrocarbons (DGH) International Energy Agency (IEA) Israeli Ministry of Infrastructure Israeli Water Authority Jordanian Ministry of Energy and Mineral Resources Los Alamos National Laboratory Moroccan Office National des Hydrocarbures et des Mines (ONHYM) Oil Shale Cooperation Centre Organisation for Economic Cooperation and Development (OECD) Russian State Oil and Gas University Syrian Ministry of Petroleum and Mineral Resources US Bureau of Land Management (BLM) US Bureau of Mines US Central Intelligence Agency (CIA) US Department of Energy (DOE) US Geological Survey (USGS) US Office of Naval Petroleum and Oil Shale Reserves World Energy Council (WEC)

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The Oil Shale Market 2011-2021

4.12 The Egyptian Oil Shale Market Forecast 2011-2021
Table 4.36, Table 4.37, Figure 4.32 and Figure 4.33 show visiongains forecast for the Egyptian oil shale market over the next ten years.

Table 4.36 Egyptian Oil Shale Market Forecast 2011-2021 ($m, AGR %)
2010 Sales $m AGR(%) 26 2011 27 4.0 2012 28 4.0 2013 30 6.0 2014 32 8.0 2015 35 9.0 2016 40 15.0 2017 48 19.0 2018 59 22.0 2019 71 22.0 2020 91 27.0 2021 116 28.0

Source: Visiongain 2011

Table 4.37 Egyptian Oil Shale Market Forecast CAGR (%) 2011-2021, 2011-2016, and 2016-2021
2011-2021 CAGR (%) 15.7 2011-2016 8.3 2016-2021 23.6

Source: Visiongain 2011

Figure 4.32 Egyptian Oil Shale Market Forecast 2011-2021 ($m)

140 120 100 80 $m 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year Source: Visiongain 2011

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The Oil Shale Market 2011-2021

Figure 4.33 Egyptian Oil Shale Market Forecast Summary 2011-2021 ($m, Share %, CAGR %, Cumulative) Market size $m Global market ranking Global market share % 2011 $27m 13th
0.9%

2021 $116m 13th

1.0%

2011-2021 CAGR % 2011-2021 CAGR % Ranking 2011-2021 Cumulative market Market Outlook
Source: Visiongain 2011

15.7% 7th $578m High Growth

The Egyptian oil shale market will be worth $27m in 2011, visiongain calculates. Growth in the market will be steady during the first half of the forecast period with a CAGR of 8.3%. However, as Egypt works with other countries to develop its oil shale industry and encourages foreign investment, it will see high levels of growth, with a CAGR of 23.6% during the second half of the forecast period from 2016-2021. Overall, the Egyptian oil shale market will see a CAGR of 15.7%, with a total market size of $40m in 2016 and $116m by the end of the forecast period in 2021.

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Table 4.38 lays out the key drivers and restraints in the Egyptian oil shale market.

Table 4.38 Drivers and Restraints in the Egyptian Oil Shale Market
Drivers Partnerships with Other Countries Interest from Major Companies Source: Visiongain 2011 Restraints Fairly Limited Oil Shale Reserves Political Uncertainty Competition for Scarce Funding

4.12.1 Egyptian Oil Shale Resources

Oil shale was first discovered in Egypt during the 1940s when oil rocks self-ignited during the process of phosphate mining. Egypts supplies of oil shale are found in the Safaga-Quseir area of the Eastern Desert and the Abu Tartour area of the Western Desert. Analysis carried out in the late 1970s estimated that the Safaga-Quseir area possessed around 4.5 billion barrels of in-place oil shale, while the Abu Tartour area contained around 1.2 billion barrels.

4.12.2 Investments in the Egyptian Oil Shale Market

The Egyptian oil shale market is likely to be restrained by a number of factors over the next few years. Firstly, the uprising witnessed in early 2011 which unseated Hosni Mubarak has left the country with a political vacuum. A caretaker military government is currently in control before parliamentary and presidential elections are held in September 2011 and November 2011 respectively. This creates a great deal of uncertainty as to the future political direction and stability of the country, which could dissuade potential investors, particularly as there are no guarantees that the future government will support oil shale development. The new administration is certain to be faced with competing demands for investment, including basic demands such as improved roads and infrastructure, while in a country which already faces water shortages, using up valuable water supplies on the extraction of oil shale could prove unpopular.

However, this has not prevented some companies from investing in the oil shale market in Egypt. Eesti Energia has signed a MoU to assist the local authorities in the country with their efforts to fully assess Egypts oil shale potential, while Houston-based company Apache is interested in Egypts oil shale potential. Although Apache admit that the oil shale potential in Egypt is uncertain, the company

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believes that the shale beneath the East Bahariya field in the west of the country is geologically similar to those found in the US, and could contain between 700 million and 2.2 billion barrels of oil. Apache is planning to drill two unconventional wells in 2011 to explore the oil shale and shale gas opportunities within Egypt.

4.12.3 Partnerships with Other Countries

Following the 4th Workshop on Regional Cooperation for the Clean Utilisation of Oil Shale, which was held at Sharm El-Sheikh in February 2010, Egypt signed an agreement with Morocco, Jordan, Turkey and Syria to establish an Oil Shale Cooperation Centre. The centre, which is headquartered in Jordan, is helping Egypt to more fully assess and then develop its oil shale resources by sharing information, promoting technical support and encouraging international investment.

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