Oil shale, an organic-rich fine-grained sedimentary rock, contains significant amounts of kerogen (a solid mixture of organic chemical compounds) from which liquid hydrocarbons can be extracted. Kerogen requires more processing to use than crude oil, which increases its cost as a crude-oil substitute both financially and in terms of its environmental impact.[1][2] Deposits of oil shale occur around the world, including major deposits in the United States of America. Estimates of global deposits range from 2.8 trillion to 3.3 trillion barrels (450×109 to 520×109 m3) of recoverable oil.[2][3][4][5]
The chemical process of pyrolysis can convert the kerogen in oil shale into synthetic crude oil. Heating oil shale to a sufficiently high temperature will drive off a vapor which processing can distill (retort) to yield a petroleum-like shale oil—a form of unconventional oil—and combustible oil-shale gas (the term shale gas can also refer to gas occurring naturally in shales). Industry can also burn oil shale directly as a low-grade fuel for power generation and heating purposes and can use it as a raw material in chemical and construction-materials processing.[2][6]
Oil shale has gained attention as an energy resource as the price of conventional sources of petroleum has risen and as a way for some areas to secure independence from external suppliers of energy.[7][8] At the same time, oil-shale mining and processing raise a number of environmental concerns, such as land use, waste disposal, water use, waste-water management, greenhouse-gas emissions and air pollution.[9][10] Estonia and China have well-established oil shale industries, and Brazil, Germany, Israel and Russia also utilize oil shale.
Oil shale, an organic-rich sedimentary rock, belongs to the group of sapropel fuels.[11] It does not have a definite geological definition nor a specific chemical formula, and its seams do not always have discrete boundaries. Oil shales vary considerably in their mineral content, chemical composition, age, type of kerogen, and depositional history and not all oil shales would necessarily be classified as shales in the strict sense.[12] Oil shale differs from bitumen-impregnated rocks (oil sands and petroleum reservoir rocks), humic coals and carbonaceous shale. While oil sands originate from the biodegradation of oil, heat and pressure have not (yet) transformed the kerogen in oil shale into petroleum.[2][13][14]
Oil shale contains a lower percentage of organic matter than coal. In commercial grades of oil shale the ratio of organic matter to mineral matter lies approximately between 0.75:5 and 1.5:5. At the same time, the organic matter in oil shale has an atomic ratio of hydrogen to carbon (H/C) approximately 1.2 to 1.8 times lower than for crude oil and about 1.5 to 3 times higher than for coals.[2][11][15] The organic components of oil shale derive from a variety of organisms, such as the remains of algae, spores, pollen, plant cuticles and corky fragments of herbaceous and woody plants, and cellular debris from other aquatic and land plants.[2][16] Some deposits contain significant fossils; Germany's Messel Pit has the status of a Unesco World Heritage Site. The mineral matter in oil shale includes various fine-grained silicates and carbonates.[6][11]
Geologists can classify oil shales on the basis of their composition as carbonate-rich shales, siliceous shales, or cannel shales.[17] Another classification, known as the van Krevelen diagram, assigns kerogen types, depending on the hydrogen, carbon, and oxygen content of oil shales' original organic matter.[12] The most commonly used classification of oil shales, developed between 1987 and 1991 by Adrian C. Hutton of the University of Wollongong, adapts petrographic terms from coal terminology. This classification designates oil shales as terrestrial, lacustrine (lake-bottom-deposited), or marine (ocean bottom-deposited), based on the environment of the initial biomass deposit.[6][18] Hutton's classification scheme has proven useful in estimating the yield and composition of the extracted oil.
As with all oil and gas resources, analysts distinguish between oil shale resources and oil shale reserves. "Resources" refers to all oil shale deposits, while "reserves", represents those deposits from which producers can extract oil shale economically using existing technology. Since extraction technologies develop continuously, planners can only estimate the amount of recoverable kerogen.[1][6] Although resources of oil shale occur in many countries, only 33 countries possess known deposits of possible economic value.[19][20] Well-explored deposits, potentially classifiable as reserves, include the Green River deposits in the western United States, the Tertiary deposits in Queensland, Australia, deposits in Sweden and Estonia, the El-Lajjun deposit in Jordan, and deposits in France, Germany, Brazil, China, southern Mongolia and Russia. These deposits have given rise to expectations of yielding at least 40 liters of shale oil per tonne of oil shale, using the Fischer Assay.[6][12]
A 2005 estimate set the total world resources of oil shale at 411 gigatons — enough to yield 2.8 to 3.3 trillion barrels (520 km3) of shale oil.[2][3][4][5] This exceeds the world's proven conventional oil reserves, estimated at 1.317 trillion barrels (209.4×109 m3), as of 1 January 2007.[21] The largest deposits in the world occur in the United States in the Green River Formation, which covers portions of Colorado, Utah, and Wyoming; about 70% of this resource lies on land owned or managed by the United States federal government.[22] Deposits in the United States constitute 62% of world resources; together, the United States, Russia and Brazil account for 86% of the world's resources in terms of shale-oil content.[19] These figures remain tentative, with exploration or analysis of several deposits still outstanding.[2][6] Professor Alan R. Carroll of University of Wisconsin–Madison regards the Upper Permian lacustrine oil-shale deposits of northwest China, absent from previous global oil shale assessments, as comparable in size to the Green River Formation.
Humans have used oil shale as a fuel since prehistoric times, since it generally burns without any processing.[24] Britons of the Iron Age also used to polish it and form it into ornaments.[25] Modern industrial mining of oil shale began in 1837 in Autun, France, followed by exploitation in Scotland, Germany, and several other countries.[2][26] Operations during the 19th century focused on the production of kerosene, lamp oil, and paraffin; these products helped supply the growing demand for lighting that arose during the Industrial Revolution.[27] Fuel oil, lubricating oil and grease, and ammonium sulfate were also produced.[28] The European oil-shale industry expanded immediately before World War I due to limited access to conventional petroleum resources and to the mass production of automobiles and trucks, which accompanied an increase in gasoline consumption.
Although the Estonian and Chinese oil-shale industries continued to grow after World War II, most other countries abandoned their projects due to high processing costs and the availability of cheaper petroleum.[2][6][26][29] Following the 1973 oil crisis, world production of oil shale reached a peak of 46 million tonnes in 1980 before falling to about 16 million tonnes in 2000, due to competition from cheap conventional petroleum in the 1980s.[9][19] On 2 May 1982, known in some circles as "Black Sunday", Exxon canceled its US$5 billion Colony Shale Oil Project near Parachute, Colorado because of low oil-prices and increased expenses, laying off more than 2,000 workers and leaving a trail of home-foreclosures and small-business bankruptcies.[30] In 1986, President Ronald Reagan signed into law the Consolidated Omnibus Budget Reconciliation Act of 1985 which among other things abolished the United States' Synthetic Liquid Fuels Program.[4]
The global oil-shale industry began to revive at the beginning of the 21st century. In 2003, an oil-shale development program restarted in the United States. Authorities introduced a commercial leasing program permitting the extraction of oil shale and oil sands on federal lands in 2005, in accordance with the Energy Policy Act of 2005.
As of 2008, industry uses oil shale in Brazil, China, Estonia and to some extent in Germany, Israel, and Russia. Several additional countries started assessing their reserves or had built experimental production plants, while others had phased out their oil shale industry.[2] Oil shale serves for oil production in Estonia, Brazil, and China; for power generation in Estonia, China, Israel, and Germany; for cement production in Estonia, Germany, and China; and for use in chemical industries in China, Estonia, and Russia.[2][29][33][34] As of 2009, 80% of oil shale used globally is extracted in Estonia.[33][35]
Romania and Russia have in the past run power plants fired by oil shale, but have shut them down or switched to other fuel sources such as natural gas. Jordan and Egypt plan to construct power plants fired by oil shale, while Canada and Turkey plan to burn oil shale along with coal for power generation.[2][19][36] Oil shale serves as the main fuel for power generation only in Estonia, where the oil-shale-fired Narva Power Plants accounted for 95% of electrical generation in 2005.