Is this a cost effective alternative with oil at $100?
Are there any geo's/oil gurus who can elaborate?
I'm looking at a company that is developing a cheap extraction process, but i want to know if the stuff is actually any good.
The various attempts to develop the world's oil shale deposits, over a period of over 150 years, have experienced successes when the cost of shale oil production in a given region was less than the price of crude oil or its other substitutes. According to a survey conducted by the RAND Corporation, a surface retorting complex (comprising a mine, retorting plant, upgrading plant, supporting utilities, and spent shale reclamation) is unlikely to be profitable in the United States until crude oil prices range between US$70 to US$95 per barrel (in 2005 dollars).
Once commercial plants are in operation and experience-based learning takes place, costs are expected to decline in 12 years to US$35–US$48 per barrel. After production of 1,000 million barrels, costs are estimated to decline further to US$30 – US$40 per barrel. Royal Dutch Shell has announced that its in-situ extraction technology in Colorado could be competitive at prices over US$30 per barrel, while other technologies at full-scale production assert profitability at oil prices even lower than US$20 per barrel. To increase the efficiency of oil shale retorting, several co-pyrolysis processes have been proposed and tested.