Possible Environmental and Social Impacts of Unconventional Oil (Shale Oil)

by Burak Gndz Budapest University of Technology and Economics Faculty of Chemical Engineering

Budapest, Hungary, 2013

ABSTRACT Energy dependence in 21st century is growing steeply everyday in our life. Development of industries, technologies and increasing population returns as an economic growth. Production evolvement in any sector requires high demand of energy and this outcome as energy dependency. Conventional oil and gas demand due to easy access and developed technologies, makes us more dependent to oil and gas exploration and production. This results as an increase in costs and expenditures within the oil and gas industry. Oil and gas industries are one of the most important sectors in economics and we have high dependency to it. However it is apparent that conventional oil and gas resources will come to end sooner or later. Besides that environmental impacts of oil and gas production and usage cannot be disregarded. All of these reasons bring new ideas for alternative energies and different technologies. Fossil fuels still is the rank number one in total energy consumption in the world. Renewable energy technologies develop very fast but long term pilot projects and high research costs make renewable energies sources still not preferable worldwide energy source for today. Also transportation of renewable energy is still a doubt. Besides the renewable energy, nuclear energy is the most important energy source for many countries but

trustworthy and safety of nuclear power plants still a question mark for many organizations, governments and people. Consequences of these ideas bring countries, organizations, researches and people to focus in different energy resources but in an unconventional one, oil shale and oil sands. Shale oil and shale gas are unconventional fossil fuel resources which are produced from oil shale traps underground. Oil shale is forecasted as an option to meet the global demand due to existing infrastructure for production/consumption and availability of resources by many analysts and economics. Besides from oil shale, there are also other unconventional hydrocarbons. Conventional gases such as natural gas and condensate gases will be replacing with unconventional gases such as gas hydrates, coaled methane and gas sand etc. Most common conventional hydrocarbon, crude oil will leave its place to oil shale and oil/tar sand in the future. Unconventional hydrocarbons resources are geologically distinct from conventional ones because they are most commonly independent of structural layers and traps. North America, South America and Siberia are the leading areas in terms of global distribution of oil/tar sand and oil shale. United States has the major world proved shale oil resources.
-1-

Predictions are much higher than proved ones in the United States as well in other geographical areas in the world. This information and existing of large amount of shale oil recourses could make United States, The New Middle East of the world with largest oil reserve in the planet. Current predictions for proved shale oil and sand gas also could make America the leading country in the world for production of unconventional oil and gas. Although the recovery efficiency of unconventional oils and gases is much less than that of conventional hydrocarbons, their resources and industrial reserves are much higher. Production and utilization of unconventional oils and gases have already started in certain countries and they represent a measurable share in consumption. Research and development activities become a fundamental for many countries and companies for those who have the available resources of unconventional oils and gases. High prices in crude oil and gas, makes the exploration and production of unconventional oil and gas accelerated. In addition environmental impact of the petroleum industry and other fossil fuels is still very negative due to the toxicity to all forms of life in the planet. What will be the further impacts of unconventional oils to the environment as a future fuel option? Extraction of shale oil and shale gas involves a number of environmental impacts such as air pollution due the emission of toxic gases, greenhouse effect, water pollution, large land use and waste. In contrast to environmental impacts, production costs reported by many researches to be much less comparing to crude oil price per barrel. As a developing fuel resource, the production and processing costs are high due to lack of infrastructure and technologies but it seems as a hope for many target groups in replacing with conventional oils and gases. The focus of this research is concerned with economics, industrial, environmental and social impacts of transformation, production and consumption from conventional hydrocarbons to unconventional hydrocarbons.

-2-

TABLE OF CONTENTS Abstract ..................................................................................................................................... 1 Table of Contents ..................................................................................................................... 3 List of Tables............................................................................................................................. 4 List of Figures ........................................................................................................................... 5 Abbreviations ............................................................................................................................ 6 Introduction .............................................................................................................................. 7 Section 1 Oil-Shale Oil .......................................................................................................... 9 1.1 Definition of Shale Oil ..................................................................................................... 9 1.2 History of Shale Oil and its Industry ................................................................................ 9 1.3 Shale Oil Resources ....................................................................................................... 10 1.4 Properties of Shale Oil .................................................................................................... 12 Section 2 Extraction and Processing of Shale Oil............................................................. 13 2.1 Extraction of Shale Oil .................................................................................................. 14 2.2 Conventional (ex situ) Extraction ................................................................................... 15 2.3 Unconventional (in situ) Extraction................................................................................ 15 2.4 Refining Shale Oil .......................................................................................................... 16 Section 3 Environmental Impacts of Shale Oil ................................................................. 17 3.1 Environmental Hazards and Effects of Ex Situ Shale Oil Extraction ............................ 17 3.1.1 Land Usage .......................................................................................................... 17 3.1.2 Waste Water ........................................................................................................ 18 3.1.3 Air Pollution ........................................................................................................ 18 3.1.4 Ecotoxicology ...................................................................................................... 19 3.2 Environmental Hazards and Effects of In Situ Shale Oil Extraction.............................. 20 3.3 Case Study ...................................................................................................................... 21 3.3.1 Review on Estimation for CO2 Evaluation from Oil Shale ................................. 22 Section 4 Social Impacts of Shale Oil and Production ..................................................... 23 Conclusion ............................................................................................................................... 24 References ............................................................................................................................... 25

-3-

List of Tables

Table (1.3): Comparison of 2011 and 2013 reports of ARI .................................................... 10 Table (1.4): Properties of Shale Oil from Different Resources .............................................. 13 Table (3.1.3): Results of Chemical and Ecotoxicological Analysis of Sediments ................. 20 Table (3.3.1a): Carbon Recoveries in the Fisher Assay Products ........................................... 22 Table (3.3.1b): The amount of CO2 Evolution ....................................................................... 22

-4-

List of Figures

Figure (1.2): Oil Shale Production by Several Countries ...................................................... 10 Figure (1.3): Assessed World Shale Gas and Shale Oil Resources ........................................ 11 Figure (1.4): Classification of Oil Types ................................................................................ 12 Figure (2.1): Oil Shale Extraction and Residue Overview ..................................................... 14 Figure (2.3): Shells in-situ Process Scheme ......................................................................... 16 Figure (3.1.1): Major Process Steps in Mining and Retorting of Shale Oil ........................... 17 Figure (3.1.2): CO2 Emission of Different Unconventional Fossil Fuel Resources .............. 19 Figure (4a): Top Global Oil Producers .................................................................................. 23 Figure (4b): Top Global Oil Consumers ................................................................................ 23

-5-

Abbreviations

EIE ARI UGTEP GSGI CSUR API EASAC PAH TGA GC FID

U.S. Energy Information Administration Advanced Resources International Unconventional Gas Technical Engagement Program Global Shale Gas Initiative Canadian Society of Unconventional Resources American Petroleum Institute European Academics Science Advisory Council Polycyclic Aromatic Compounds Thermo Gravimetric Analysis Gas Chromatograph Flame Ionization Detector

-6-

INTRODUCTION

Fossil fuels are the most convenient resources worldwide in order to supply the adequate energy demand in the industry and our daily usage thus; well be getting on with dependency to fossil fuels in this century. Since the industrial revolution in the mid 18th century, humankind developed their technologies steeply. Petroleum revolution brought humankind to another decades and oil industry became the leading industry of the world. Automotive industry and energy industry grew very fast with petroleum revolution and leading countries in economics needed more oil and gas. Technological advancements in chemical, geological and mechanical studies brought oil industry to new phase with more professional drilling and processing way of oil production. Countries and companies wanted to produce more and more oil. When crude oil production reached to its peak around 1980s, people realized that crude oil as fossil fuel has negative impact on human health and the environment. Populated major cities like London, Los Angeles and Tokyo had air pollution problems due to the fossil fuel usage and oil consumption was one of the main reasons. People have started to become more conscious about fossil fuels and their effects on both human health and the environment. After 1990s environmental awareness became more worldwide many governments commenced to put legislative acts on the behalf the environmental protection. Especially European Union Countries put these legislative laws in to act much faster than any other countries in the world. Today mainly the European Union Countries lead to environmentally conscious consumers for oil and gas consumption. Besides from the countries, largest oil companies of the world (Shell, BP, ExxonMobil, and Total etc) have started to invest and promote sustainable development technologies amongst the other oil companies in greater level. Nowadays renewable energy policy and sustainability is a must for every global and local oil companies. Global warming, greenhouse, CO2 emission, renewable energy, climate change and sustainability words are not unfamiliar words for anyone especially for the young generations. In todays world, people are more conscious about the impacts of oil production and consumption but does that mean anything to anyone? Since we are so much dependent to fossil fuel resources, it is not very easy to quit fossil fuel resources very easily. It is known that conventional crude oil resources will come to sooner or later. In this matter energy resources will take their place instead of conventional crude oil. In this research
-7-

paper, shale oil as an unconventional future energy entrant was investigated. This paper includes topics mainly about the oil shale resources, production and the environmental effects due to the production processes. Selection of topics was made after scanning various different resources. Oil shale is well known unconventional energy resource but lack of technologies and knowledge in terms production and emission forced me to focus on shale oil resources and extraction processes as well as environmental impacts with current technologies. Moreover economical and political approaches were also made on the basis of oil production and consumption. First section includes basically the definition, classifications and the resources. In this section history of oil shale and shale oil production from oil shale is discussed. How countries increased their researches on oil shale deposits and availability of it with technical recoverability. Shale oil is also discussed due to its different chemical and physical properties and effect of these properties in production. Extraction of oil shale and processing technologies discussed for different techniques. Two main extraction techniques, ex-situ and in-situ extraction processes were handled in the second section. There are various types of different techniques and advancements for both processes but the main discussion was constructed around the main method of performances. Feasibility and environmental effects of current technologies were discussed with pros and cons. On the basis of case study, CO2 emission and estimation of CO2 emission is probed with a review on a performed experiment. Economical benefits of oil shale and its production to countries and humankind were indicated in the last section according to the estimation made in the previous sections. In this sense, short conclusion was constructed on the basis of current economical data and technological advancements.

-8-

Section 1 Oil-Shale Oil Unconventional oil is a type of petroleum product that produced and processed by different techniques and methods other than conventional oil. There are various types of unconventional oil resources such as coal-based liquid supplies, biomass-based liquid supplies, oil sands and oil shales. Oil shale is one of the top unconventional oil sources comparing to other types.

1.1 Definition of Shale Oil

It is common for many publishers that the difference between oil shale and shale oil is not distinguished well. Oil shale is one of the most abundant resources on the earth in which the term oil shale describes rather loosely all types of sedimentary rock containing an appreciable amount (over 3.5%) of organic matter. [1] In fact shale oil has a different meaning than oil shale. In more simple term, oil shale is the organic material in the rock called kerogen and this material can be converted to other forms such as oil and gas after the application of high temperatures. Shale oil is a type of crude oil which also called tight oil, extracted from trapped shale deposits. Basically the heat is applied for the production of oil shale but drilling and fracturing is needed for shale oil.

1.2 History of Shale Oil and Its Industry

Background of oil shale usage goes further in ancient times. Old civilizations were using oil shale rocks and sands generally for heating for burning. In 18th century in France, when the mining era was developing, trade of oil shale began. France was the first country to start producing oil from shale in Autun in 1837, but production was stopped in 1957. [2] From the late 19th century until mid 20th century, after discovering of new resources, countries started to increase their geological researches and mining of oil shale. Scotland was the first country commercially producing oil shale until 1960s. Oil shale production is later followed by countries like China, Russia, Brazil, Estonia and Germany. In the modern era USA also get involved in production of oil shale after discovering large amount of resources. But converting oil shale to shale oil processes started after 1980s by 2 different methods

-9-

which are ex-situ and in-situ processes by leading petroleum companies such as Shell and ExxonMobil. [3] Oil shale to shale oil conversion in ex-situ process has a great impact on the environment and many countries and organizations were against the extraction processes. Later on, in-situ extraction process is utilized in pilot projects in order to mitigate the environmental effects of extraction processes.

Figure (1.2): Oil shale production by several countries [4]

1.3 Shale Oil Resources

Oil shale deposits are spread around the world and those deposits are in wide range in terms of age according to geological time scale. It means that giant deposits may not have any economic value or deposits in much less scale may not be able to be extracted. Besides from that oil shale could be deposited in very different environmental areas such as forests, lakes, marine basins etc. However, geologists and petroleum companies as well as governments and institutions continue their researches in order to find the oil shale resources with a feasible processing and economic value. In this sense, chemical and physical properties and characteristics of oil shale deposits are very important. According to EIAs analysis released in June 2013 based on ARIs report, technically recoverable shale gas resources increased by 10% in 2 years and shale oil resources increased from 32 billion barrels to 345 billion barrels after United States also got involved in to the list. [5]
- 10 -

ARI Report Coverage Number of Countries Number of Basins Number of Formations Technically recoverable resources, including U.S. Shale gas (trillion cubic feet) Shale / tight oil (billion barrels)

2011 Report 32 48 69

2013 Report 41 95 137

6,622 32

7,299 345

Table (1.3): Comparison of 2011 and 2013 reports of ARI [6]

In the energy industry, ability to recuperate of resources is a very important factor, thus economical and commercial progression of recoverable resources of oil shale deposits are based on many different elements. A resource on its own doesnt mean anything, however feasibility and development of shale oil production plays a major role. Development of extraction processes such as in-situ extraction and processing technologies may lead shale oil production to new areas and increase in geological knowledge of new resources.

Figure (1.3): Assessed World Shale Gas and Shale Oil Resources [7]
- 11 -

Largest deposits which are technically recoverable can be seen from Figure (1.3) above. According to the different reports and assessment by EIA, ARI, GSGI and UGTEP, total amount technically recoverable shale oil resources are found as 335 billion barrels. This amount is only equal to only 22,6% of the proven crude oil reserves in the world. [8]

1.4 Properties of Shale Oil

Shale oil and oil shale terms refer two completely different resources types since oil shale is not just shale. In fact oil shale is a sedimentary rock which contains kerogen. But shale oil or more accurately tight oil is way more different than oil shale. In this sense classification of oil shale and shale oil is way different from each other. As a light oil type, shale oil is also known as tight oil is the form that in the traps of rock formations. Those rock formations contain oil and differences of this shale/tight oil are huge in terms of porosity, permeability and thickness in comparison with conventional crude oil.

Figure (1.4): Classification of Oil Types [9]

It is not easy to distinguish very common major properties for every shale oil types from different regions of the world. Although researches are being made for chemical and physical properties, there were relatively high differences between sampled resources. The hydrocarbons making up shale oil could be classified as being about 20% alkanes, 20% aromatics, 25% aromatic resins, and 35% olefins and napthenes. By contrast, a typical crude oil would contain about 15% alkanes, 50% aromatics and 35% naphthenes with hardly any olefins or resins. [10]

- 12 -

Location

Sp

gr

Elemental analysis (wt %)

Analysis of distillate (<350), wt% of <350C cut

(API) C Colorado, US Kukersite, Estonia Stuart, Australia Rundle, Australia Irati, Brazil Maoming, China Fushun, China 0.912 85.39 12.09 0.71 1.27 0.54 0.903 94.82 11.40 2.20 1.10 0.48 0.919 84.30 12.00 1.96 1.06 0.68 0.636 79.50 11.50 7.60 0.99 0.41 82.70 12.40 3.34 0.91 0.65 1.010 82.85 9.20 6.79 0.30 0.86 0.943 84.90 H 11.50 O 0.80 N 2.19 S 0.61

Saturates 27

Olefins 44

Aromatics 29

22

25

53

48

50

23

41

36

55

20

25

38

37

25

Table (1.4): Properties of shale oil from different resources [11] Section 2 Extraction and Processing of Shale Oil Extraction of oil shale resources and conversion to liquid fluids or direct extraction shale oil has different classifications. Basically, kerogen in oil shale is converted to shale oil by different methods such as pyrolysis, thermal dissolution and hydrogenation. In principle, the industrial processes are mainly based on ex-situ extraction where oil shale is collected by mining and treated to be processed in the refineries. New developing extraction methods such as in-situ extraction processes are still in development although some of the companies use this method.

- 13 -

2.1 Extraction of Shale Oil

Figure (2.1): Oil Shale Extraction and Residues Overview [12]

Different types of shale oil resources depending on technical recoverability also influence the extraction technologies. In this sense industrial analysts and researchers make their analysis and assessments based on different qualifications. Those qualifications are mainly on the basis of process principles, locations, particle size, physical-chemical properties, and complexity of technologies. Treatment of oil shale can be made by heat and solvents based on different methods. Main techniques are thermal decomposition of organic material, hydrogenation treatment and hydrogen-donor solvent refining process. Besides from processing techniques, it is important that whether the processing is ex-situ extraction or in-situ extraction (Extraction details for ex-situ and in-situ will be discussed later in sections). In-situ extraction process also refers to hydraulic fracturing the rock beds to expedite the flow of the trapped oil. Retorting technique is an also another important method in order to process shale oil. Main retorting techniques used in the industry are underground and aboveground retorting methods. Underground retorting is also called in-situ retorting and the main principle is to burn and pyrolysis the underground shale section in order to obtain crude shale oil. But in case of aboveground retorting, oil shale which is mined out from the site, need to be treated at
- 14 -

crushing process to obtain the feasible scale and heated. Leading shale oil producing countries still use aboveground retorting technologies since underground retorting technologies are not worldwide yet. There are also other major retorting methods such as lump oil shale retorting and particulate oil shale retorting but they are not in common as underground and aboveground methods. [13]

2.2 Conventional (ex-situ) Extraction

Conventional (ex-situ) extraction process of shale oil is also called surface or mining extraction. There are several technologies used for surface extraction in different regions. These technologies are developed depending on different methods and the location. Principle methods are classified internal combustion, conduction through wall or hot recycled solids. Gas combustion, Oil-tech, Fischer Assay, TOSCO II, Superior Direct, PetroSIX and KENTORT II are some of the sample technologies on test and industrial based. Main principles used in ex-situ extraction process are mining, crushing and ore preparations, and of course retorting. Mining extraction is almost the same method as coal mining on or underground. Main difference is heating of the materials in order decompose the kerogen at around 500-550 C.

2.3 Unconventional (in-situ) Extraction

Unconventional extraction of shale oil is rapidly developing extraction process comparing to ex-situ extraction. This process is considered as more environmental friendly and potentially more recoverable. There are also several different types of technologies for insitu extraction. But in-situ technologies are much younger and some of them are still being tested. Main principles are basically the same and at the end of all of these processes, kerogen is oil shale converted to shale oil. Leading companies of the oil industry developed their own in-situ technologies. Shells ICP, Chevrons CRUSH and ExxonMobils Electrofrac extraction technologies are the most well known processes. During Shells ICP in-situ processes, operations and procedures are performed in the extraction areas. In this process, geology and local environment are the key factors and must be selected carefully. Because of this, before drilling the certain area, during the exploration period engineers have to be sure whether shale oil is trapped underneath the earth or not.
- 15 -

Usually drilling underground is about several kilometers and steel pipes are installed with multiple layers. These multiple layers are consisting of cement and other types of metals. This provides prevention of possible leakage during the drilling. In case of leakage, pressure may cause certain accidents and may cause groundwater to be polluted. After several kilometers drilling, steel pipes reach to oil traps of the shale and then drilling continues horizontally. Same procedures also apply for horizontal drilling then hydraulic fracturing starts. Hydraulic fracturing process helps trapped oil in between rocks to be extracted. When the shale oil is pumped out, companies removed all their equipments and devices and recover the area.

Figure (2.3): Shells in-situ Process Scheme [14]

2.4 Refining Shale Oil

Shale oil as an unconventional oil type has several issues which are still in development. These issues are usually based on fouling, presence of hydrogen sulfide in the crude, blending and sludge formations in the pipeline system due to the waxes and solids. Main downstream operations are same as heavy crude oil but because of lack infrastructures for logistics, it makes shale oil still not very technically recoverable oil resource. Besides from these issues, types of kerogen makes operational difference in several regions. There are 4 main types of kerogen exist. These kerogen types are lacustrine organic matter, marine organic matter, land organic matter and kerogen with non petroleum potential. Along these 4 types, first three types are useful ones but they are also very different from each other. Because their structures are very different from each other. Although lacustrine and marine are aliphatic, land organic is the aromatic type. This results as waxy, oily and gas compounds. In this sense, if lacustrine and marine organic kerogen types are considered, lacustrine organic material is the Type I and marine organic material is Type II. Waxy crude
- 16 -

is produced from type and this material has an issue for viscosity. Chemical additives solve this problem but of course it is more costyl. type II is the ideal one which give normal crude with less flow problems. [15] Although these issues are reported technologies researches are still ongoing. However the main processes retorting and pyrolysis gives synchronized crude oil and after upgrading this crude oil it is still possible to produced quality raw products such as naphtha, jet fuel, diesel, natural gas etc. Section 3 Environmental Impacts of Shale Oil

Oil shale extraction for shale oil production has various different effects on environment. Ex-situ extraction processes are the main causes considered as environmental impacts of shale oil production. In contrast with ex-situ extraction, underground extraction (in-situ) has less much less effect. Since ex-situ extraction is a mining process, land use, left over wastes from extraction, huge amount of water use and air pollution are the main considerations on the basis of environmental impacts. In-situ extraction process has also effects in consideration with large land usage but its still relatively low comparing to ex -situ extraction process.

3.1 Environmental Hazards and Effects of Ex-Situ Shale Oil Extraction 3.1.1 Land Usage

Figure (3.1.1): Major Process Steps in Mining and Retorting of Shale Oil [16]

Land usage of ex-situ methods has great environmental issues not only for the extraction also for the waste materials of the processed oil shale. Because after extraction of oil shale, it is processed and this spent shale produce much greater volume of waste. Waste material ratio is about 25% of the spent shale. It means that, in order to dispose spent shale,
- 17 -

more land is needed that extracted. This also causes problems in maintaining the biodiversity. Since mining processes destroys extracted areas, ecosystem of that area affected dramatically. Its not easy to maintain these areas back to their original state. Although spent shale sometimes can be reused for cement, bricks and road works, other residues from mining and directly result as disposal. [17]

3.1.2 Waste Water

Process water is one of the major waste products in oil shale processing. Process water formed during the extraction processes has a great disposal problem because it contains relatively high amount of soluble organic and inorganic materials. In this sense, 2 main problems are spending clean water from the ecosystem and producing contaminated process water. Despite the fact that every extraction process has different retorting methods and amount of water used, ratio of water usage may change from 20 to 40 percent of the oil produced. In this sense, water treatment capacities of the plants should be large enough to have great negative impacts on the biodiversity. [18] During surface retorting ground and surface water resources are being used and 75% of water (2 bbl water/bbl oil assumed) used for spent shale management. R&D need to reduce water needs and in mine water management. [19]

3.1.2 Air Pollution

Air pollution is still indispensible issue in fossil fuel industry. Fossil fuel itself is an energy source with so many disadvantages. Pollution from the fossil fuels is considered to be responsible for global warming, acid rain and oil spillage. It is almost impossible and expensive to control the pollution fossil fuels. Many researches are made and implemented to reduce the CO2 emission fossil fuels but advanced technologies still not spread around the world. Shale oil as a type of fossil fuel has the major impacts on the environment as all fossil fuel have. Emissions of polluted gases which include nitrogen oxides, sulfur dioxide, hydrogen chloride is inevitable. Besides from these gases, CO2 emissions from shale oil processing still much higher than conventional oil production.

- 18 -

Figure

(3.1.2):

CO2 Fossil

Emission of Different Unconventional

Fuel Resources [20]

Emission of CO2 appears not only by usage as a fuel but also decomposition of kerogen during retorting, upgrading and disposal of the process water. Therefore, emission of CO2 must be treated fragmented ways since emissions roused from several sources. Another important environmental issue regarding to air pollution based on ex-situ process is flue gas formation and the flying ashes. Intensity of flying ash may change depending on the characteristics of shale as well as temperature and partial pressure during the process. [21]

3.1.3 Ecotoxicology

There are several ways can cause common environmental toxicants during shale oil production by ex-situ extraction. Large amount of land usage, process water and air pollution have negative effects on natural life. Especially the hazardous chemicals produced during extraction and upgrading processes the animals, human and plant are exposed to those chemicals through air, water and soil contamination. Individual effects of toxic materials later cause bigger issues in the polluted sites. During extraction process of oil shale usually sulphuric compounds, phenols, alkali and heavy metals are the potential causes of toxicity. In Estonia in the Narva River high concentrations of heavy metals such as Cadmium up to 920 mg/kg and Copper up to 3400 mg/kg were found. PAH compounds were also amongst the highest level up to 278,4 mg/kg. Around the

- 19 -

industrial sites where the rivers and basins are located, contamination of water content is relatively high comparing to presumably clean references. [22] In the table below, acute toxicity levels are also relatively high in comparison with clean references.

Table (3.1.3): Results of Chemical and Ecotoxicological Analysis of Sediments [23]

3.2 Environmental Hazards and Effects of In-Situ Shale Oil Extraction

In-situ retorting extraction technologies are considerably much more environmental friendly comparing to ex-situ shale oil production. Although preventing land usage and controlling ground water remain is a problem, this technology is more promising in terms of environmental impacts. Since this technology is a developing one, no significant industrial impact recorded yet. Leading oil companies still continue their pilot projects and spend lots of money for research and development but still so many uncertainties remain alive. Shell as an industrial leader, has considerably itinerated this technology already. After drilling and exploring oil, they usually develop the area with more wells on a single pad. This helps to minimize the disturbance to the surface. In case of prevention of land usage; they aim to reclaim the site to

- 20 -

blend back in to its surroundings and seal the well in the area. Controlling of ground water is still a doubt because due to the hydraulic fracturing, retorting and removing of hydrocarbons alternate the aquifers in the area where the well is located.

3.3 Case Studies

To collect reliable primary data about industrial research is always a major difficulty hence many of the desired data simply not exist or not known. Shale oil production from oil shale production considerably contains much less data than conventional crude oil researches since oil production from conventional crude oil has worldwide proven methods and technologies. This makes almost impossible to construct a structure for a modeling of a research on shale oil production technologies thus, only one review was made on the basis of case study. This research paper below was chosen because of the importance of pyrolysis process in production of shale oil from oil shale.

3.3.1 Review on Estimation for CO2 Evaluation from Oil Shale This review was made based on Shinya Sato & Minoru Enomotos publication Development of New Estimation Method for CO2 Evolved from Oil Shale in 1997. Pyrolysis process is one of the most important steps in processing oil shale in order to maintain oil. Environmental impacts of oil production from oil shale are unavoidable. Authors made their researches to show estimation methods of CO2 emission. Since shale deposits have different chemical structures in terms of composition of different carbon and oxygen contents all over the world, estimations in certain areas does not hold for the shale deposit in another place. In this research, authors use three different oil shale profiles in order to show CO 2 evaluation by the pyrolysis of kerogen and decomposition of carbonates. Three different oil shale profiles were Thai, Colorado and Condor oil shales. Those oil shale profiles were investigated below and above 550 C in order to represent evaluation of CO2 and decomposition of carbonates. Mainly CO2 emissions actualize by pyrolysis of kerogen during retorting of oil shale below 550 C and combustion above 550 C due to the decomposition of carbonates. Temperature above 550 C usually used because of the recovering of spent shale. Retorting and combustion stages are way different for each other and results different figures for CO2 emissions. During this research authors decided as

- 21 -

adequate way of estimation of CO2 emission analyzing by Fisher assay method. This method involves the retorting step of the processing of oil shale to convert to oil. Other method which is acid treatment was also mentioned but not suggested for the retorting step. Sample oil shales from Thai, Colorado and Condor oil shales were used during the experiment. TGA and GC were performed and FID was used to detect methane content in the used gases. Further details and experimental procedures mentioned in the publication.

Oil Shale Carbon Distribution, wt% Total Inorganic Organic Recovery of Fisher assay products, wt% Shale oil Spent Shale Gas and other

Thailand

Colorado

Condor

28,1 6,1 22

20,8 6,9 13,9

10,4 1,7 8,7

18,4 72,5 9,1

10,3 85,0 4,7

6,2 87,5 6,3

Table (3.3.1a): Carbon Recoveries in the Fisher Assay Products [25] Properties of different oil shale profiles can be seen above in the table. Its clearly seen that compositions of oil shale profiles are very different from each other thus they give different recovery figures for shale oil and other products. Oil Shale Weight reduction at below 550C, wt% Organic Inorganic Total Weight reduction at above 550C, wt% Inorganic 12,4 22,7 1,7 2,1 2,6 4,7 1,2 3,7 4,9 0,5 4,7 5,2 Thailand Colorado Condor

Table (3.3.1b): The amount of CO2 Evolution [25]

- 22 -

Oil shale form Condor already decomposed at low temperature around 400C which was a retorting stage thus during combustion stage estimated CO2 emission was much lower. The methods used by the authors show that estimation of CO2 emission is possible. In this sense oil shale retorting and combustion technologies can be improved with experimental analysis. Section 4 Social Impacts of Shale Oil and Production

Crude oil exploration and production and its price has great effect on economics and world politics. Many countries and market drivers of the oil industry foresee their future investments and activities based on crude oil prices. Although not all of the top global oil producer countries are not amongst major economies in Group of Twenty (G20), main oil consumer countries are the member of G20 except from Iran. United States is the only country who holds its place in first three in both of the lists.

Figure (4a): Top Global Oil Producers

Figure (4b): Top Global Oil Consumers [26]

Leading economies also lead to oil consuming which shows the dependency to on oil consumption. Although some of the countries like Germany, Canada and Japan want reduce their dependency to fossil fuels by increasing their R&D expenditures in renewable energy, rest of the world still continue their dependency to fossil fuels.

- 23 -

Many of the fast growing economies like China, Brazil, India, Turkey, Poland, Vietnam and Malaysia need fast and feasible energy resources in order to supply their energy demand and remain in the race. In this sense fossil fuels are the most adequate energy resource amongst the other resources. Production of shale oil from oil shale resources can be a future for many countries with current infrastructures. Since only extraction process is way different from crude oil exploration and extraction, upgrading refinery processes mainly the same. Despite the fact that production cost of shale oil still is a challenge due to the lack of technologies and infrastructure, foreshadowing on the basis of future cost would be economically unviable comparing to conventional crude oil. There is no doubt that employment in oil industry will increase in the future but its not easy to make predictions about future oil prices. However consumption of fossil fuel consumption are being released as world energy outlook by many companies.

Conclusion Oil shale extraction to produce shale oil and shale gas still operate in many countries. United States, China, Estonia, Russia, Poland and many other countries have already taken long way in technological developments for the extraction processes. Market drivers of the industry still try to develop their feasible and technically available extraction processes in insitu technologies. Ex-situ extraction technologies have great impact on the environment but some technical developments on retorting and combustion steps may reduce those effects. Land usage in ex-situ extraction seems like a must but intensification of the disposals and spent shales can be developed. Although there land usage is also a problem for in-situ extraction method, its way different from ex-situ mining. But groundwater contamination in underground processes still a question mark since the technology is not a worldwide. In conclusion more time is needed to have energy intensification in terms of environmental, technological and financial concepts. Emission of CO2 and hazardous gases is very high amongst the acceptable levels but can be reduced by developing technologies.

- 24 -

References
[1] Dostrovsky 1988: 17 [2] Jean Laherrere, Review on Oil Shale Data, 2005 [3] Pierre Allix et al., Coaxing Oil from Shale, Winter 2010/2011 [4] Source: World Energy Council [5] Technically Recoverable Shale Oil and Shale Gas Resources: , June 2013, Retrieved from: http://www.eia.gov/analysis/studies/worldshalegas/ [6] Source EIA, http://www.eia.gov/analysis/studies/worldshalegas/ [7] Source: EIA/ARI World Shale Gas and Shale Oil Resource Assessment, June 2013 [8] OPEC, World proven crude oil reserves by country, 1960-2012, www.opec.org/library [9] Source: CSUR, Understanding Tight Oil, http://www.csur.com [10] S.H. Guo, The Chemistry of Shale Oil and Its Refining [11] Source S.H. Guo, The Chemistry of Shale Oil and Its Refining [12] Source: EASAC, A Study on the EU Oil Shale Industry, May2007 [13] Qian and Wand, World Oil Shale retorting Technologies, 2006 [14] Source: Perry A. Fischer, Shale Oil Pilot Projects Proliferate, August 2008, www.worldoil.com [15] Retrieved from: Sephton and Spathopoulos, Shale Oil: A New Age of Oil Abundance Presentation, Imperial College London [16] James T. Bartis et al, Oil Shale Development in the United States Prospects and Policy Issue, 2005 [17] EASAC, A study on the EU oil shale industry, March 2007 [18] Arnold B. Hubbard, Method for Reclaiming Waste Water from Oil-Shale Processing, March 2007 [19] Glen A. Miller, General Perspectives in methods of Oil Shale Extraction and R&D Needs [20] D. W. Pershing & K.K. Kelly, Analysis of CO2 Emissions from Unconventional Fossil Fuel Resources, 2005 [21] Arvo Ots, Estonian Oil Shale Properties and Utilization in power Plants, 2007 [22] Kaja Orupold et al, Impact of Oil Shale Opencast Mining and Combustion on a Narva River, 2012 [23] Retrieved from: Kaja Orupold et al, Impact of Oil Shale Opencast Mining and Combustion on a Narva River, 2012 [25] Retrieved from: Shinya Sato & Minoru Enomoto, Development of New Estimation Method for CO 2 Evolved from Oil Shale in 1997 [26] Both Figures Retrieved from: Securing Americas Future Energy/BP, 2010

- 25 -