Shell has yet to decide how much water it will need for oil shale development, and Boyd emphasized the company has yet to decide to seek commercial production. Company officials have said that decision is years away.
Posts Tagged ‘Colorado’
The in situ method being used in Shell Oil?s experimental tract involves drilling a well through the oil shale layer (about 2,000 feet) and lowering heated rods that will eventually heat the shale to 650 degrees Farenheit to release the oil.
Boyd added that the company does not ?speed up and slow down? its oil shale research development based on the short-term fluctuations on the price of oil, which has been plunging to lows not seen for years. Shell currently holds three 160-acre oil shale research and development leases in the Piceance Basin. American Shale Oil and Chevron both hold one.
Chevron Corp said on Thursday it had to curtail plans for expansion of a new development in Colorado’s Piceance Basin due to a drop in local natural gas prices.
Shell is experimenting with a plan to heat oil shale in situ ? in place underground ? and then extract high quality oil suitable for uses such as jet fuel.
Royal Dutch Shell PLC, Europe’s largest oil company, said last month that it was pushing back a decision on expanding an oil-sands project in Canada. But Shell’s Denver-based exploration and production company is moving its oil-shale development forward, said Tracy Boyd, communications and sustainability manager
FORT COLLINS – Colorado State University’s Warner College of Natural Resources announced today that it will receive $950,000 in the form of a research grant from Shell Oil Company…
That excitement is likely to last as long as oil prices remain above $30 a barrel, a bottom-line benchmark once cited by leaseholder Royal Dutch Shell. With commercial production at least a decade away, the company has since backed away from that number even as a barrel of oil remains near $100.
Over five years here, Shell Oil conducted a series of secretive experiments that have the potential to blow open the status quo of North American oil production, unlocking the vast reserves of oil shale that underlie Colorado’s Western Slope.
Current shale development is in a research stage. Shell Exploration & Production Co. is working an oil-shale project on three 160-acre parcels in Colorado. Shell agreed with the administration that producers need final leasing regulations so that the “rules of the game” are clear.
BP’s announcement comes three days after rival Royal Dutch Shell PLC announced a C$5.9 billion (about $6 billion) takeover bid for Canadian natural-gas producer Duvernay Oil Corp. Shell also has partnered with EnCana Corp. to enter what has become the hottest new unconventional play, the Haynesville Shale in east Texas and Louisiana.
Shell’s process is complicated. The company plans to insert electric heaters hundreds of feet into the ground to heat the oil shale to between 650 degrees and 700 degrees for more than two years.
Shell Exploration & Production Co. is working an oil-shale research project on three 160-acre parcels in Colorado. Spokeswoman Darci Sinclair in Houston said that the company wants “commercial development as soon as feasible.” She declined to answer whether Shell believes development is commercially viable. She said that the lack of regulatory framework on oil shale “creates additional uncertainty for companies trying to prove viability of new technologies.”
Shell plans to contain the kerogen by utilizing freeze walls — using a refrigeration process requiring electricity to freeze groundwater — to prevent migration into groundwater. As I said this is highly speculative although Shell has built a pilot project.
Shell co-owns a wind farm in Lamar and is involved in 11 wind projects in the U.S. and Europe.