Page 184 - Synthetic Fuels Handbook

170 CHAPTER SIX

as other parts of the world reduced the foreseeable need for shale oil and interest and asso-
ciated activities again diminished. Lower-48 U.S. crude oil reserves peaked in 1959 and
lower-48 production peaked in 1970.
By 1970, oil discoveries were slowing, demand was rising, and crude oil imports,
largely from Middle Eastern states, were rising to meet demand. Global oil prices, while
still relatively low, were also rising reflecting the changing market conditions. Ongoing oil
shale research and testing projects were reenergized and new projects were envisioned by
numerous energy companies seeking alternative fuel feedstocks (Table 6.1). These efforts
were significantly amplified by the impacts of the 1973 Arab Oil Embargo which demon-
strated the nation’s vulnerability to oil import supply disruptions, and were underscored by
a new supply disruption associated with the 1979 Iranian Revolution.
TABLE 6.1 Timeline of Oil Shale Projects in the United States

1909 U.S. Government creates U.S. Naval Oil Shale Reserve
1910 Oil shale lands “claim-staked”
1916 U.S. Geological Survey (USGS) estimates 40 billion barrels of shale oil in Green River
Formation in Colo., Wyo., and Utah.
1917 First oil shale retort kiln in DeBeque, Co.
1918 First oil shale boom begins with over 30,000 mining clams; lasts until 1925
1920 Mineral Leasing Act requires shale lands be leased through the Secretary of Interior
1929 Test retort at Rulison stops at 3600 bbl after oil discoveries in Calif., Tex., and Okla.
1944 U.S. Synthetic Liquid Fuels Act provides $18 million for experiments at Anvil Points
1950s Gulf Oil and Shell Oil both purchase oil shale lands in Green River Formation
1956 Anvil Points operations cease after testing three experimental retort processes
1961 Unocal shuts down Parachute Creek “Union A” retort after 18 months and 800 bbl/day
due to cost
1964 Colorado School of Mines leases Anvil Points facility to conduct research on U.S. Bureau of
Mines Gas Combustion Retorts
1967 CER and U.S. AEC abandon plans for “Project Bronco” atomic subsurface retort
1972 Tosco, Sohio, and Cleveland Cliffs halt Colony oil shale project begun in 1964 after 270,000 bbl
of production
1972 Occidental Petroleum conducts first of six in situ oil shale experiments at Logan Wash
1972 Paraho is formed as a consortium of 17 companies, obtains a lease of Anvil Points facility and
builds and operates 24 ton/day pilot plant and 240 ton/day semi-works plant
1970s Shell researches Piceance Creek in situ steam injection process for oil shale and nahcolite
1974 Four oil shale leases issued by BLM under Interior’s Prototype Leasing Program
1974 Unocal develops new “Union B” retort process; Shell and Ashland join Colony Project
1976 Navy contracts with Paraho to produce 100,000 bbl of shale oil for testing as a military fuel
1976 Unocal begins planning commercial scale plant at Parachute Creek to be built when
investment is economic; imported oil prices reach $41 per barrel
1977 Superior Oil abandons plan for Meeker oil shale plant planned since 1972
1979 Shell, Ashland, Cleveland Cliffs, and Sohio sell interests in Colony to ARCO and Tosco;
Shell sells leases to Occidental and Tenneco
1979 Congress passes Energy Security Act, establishing U.S. Synthetic Fuels Corporation;
authorizes up to $88 billion for synthetic fuels projects, including oil shale
1980 Exxon buys Arco’s Colony interest and in 1981 begins Colony II construction, designed for
47,000 bbl/day using Tosco II retort process
1980 Congress approves $14 billion for synthetic fuels development
1980 Unocal plans Long Ridge 50,000 bbl/day plant applying “Union B” retort; begins
construction in 1981
1980 Amoco Rio Blanco produces 1900 bbl of in situ oil at C-a tract
1981 Exxon begins to build Battlement Mesa company town for oil shale workers
1981 Second Rio Blanco in situ retort demonstration produces 24,400 bbl of shale oil