AMSO - American Shale Oil LLC

What is oil shale?
Oil shale is a sedimentary rock which contains kerogen; it can be converted via pyrolysis into a synthetic crude oil; distilled through high-temperature heating into oil similar to petroleum; or burned directly as a low-grade fuel.

Is it “Oil Shale” or “Shale Oil”?
“Oil Shale” refers to the kerogen-bearing rock; “Shale Oil” is the petroleum-like liquid produced from the oil shale.

How much shale oil is known to be available?
There are an estimated 2 trillion barrels of oil in the United States, comprising 60% of the world's oil shale resources.

Where are the US oil shale reserves located?
The majority of the reserves in the United States are located in the Western United States, in the Green River Formation, which spreads through parts of Colorado, Utah and Wyoming.

How is shale oil produced?
Oil shale is processed through high-temperature heating into shale oil, an oil similar to petroleum. The processing can take place either above ground in retorts once the oil shale has been extracted (ex-situ process) or it can be done more slowly while the oil shale is still underground (in-situ process). In-situ processing allows for fewer waste products, lesser land impact and a smaller amount of water are required for the process.

How much will it cost to produce a barrel of shale oil from oil shale?
We believe we can produce commercial quantities of shale oil in production costs similar to petroleum from challenging frontier environments (deep offshore, arctic areas, oil sands).

Shouldn’t we invest in renewable energy instead?
The two are not mutually exclusive…The impending oil crisis is of such gravity that multiple and complimentary approaches must be adopted in order to mitigate it. The vast potential of the underdeveloped oil shale resource must be a part of the solution, along with other alternatives to conventional crude oil.

Can oil shale be developed in an environmentally responsible manner?
Yes. Protecting the environment is part of a responsible development of a shale oil industry. Existing technologies, including AMSO’s CCRTM process, drastically minimize environmental impacts such as carbon dioxide emissions, water resources consumption, protection of the ground water and land disturbance.

What would extraction of domestic oil shale mean for the US supply of oil?
A new domestic supply of oil would lower prices for consumers across the country, and also secure access to sufficient oil at a time of global competition for limited resources. The development of a domestic oil shale industry would also lighten American dependence on foreign sources of oil, particularly those sources from regimes which may be hostile to US interests.

What would extraction of domestic oil shale mean for national defense?
Sufficient fuel reserves for the military in a time of war is a major concern: increasing prices for fuel add to the burden of military expenses, but even more importantly, as oil becomes scarcer, there is the danger that we will not be able to obtain enough fuel to support national defense. A domestic oil source would mean a secure, assured, accessible supply of oil to power the national defense, regardless of the situation beyond our borders.

Why have we not begun to access this resource before?
Oil shale was considered as a potential new source of power during the energy crisis of the 1970s. However, technology was not sufficiently developed to make it economically viable, when crude oil prices remained consistently low. Additionally, the environmental cost was extremely high, and methods had not been devised to minimize this. Since that point in time, great strides have been made in the oil industry and many other related fields. New technologies can be adapted and employed in the processing of oil shale to make it a viable commercial process, and to protect the environment from damage.

How was AMSO selected to develop this land?
AMSO (then E.G.L. Oil Shale) was one of 20 companies to submit proposals to the federal government for a lease which would allow them to mine and process oil shale found on federal lands in the Western United States. EGL/AMSO was one of only three companies granted a lease in Colorado, along with Shell and Chevron.

How long will it take for the reserves under development to be viable?
AMSO has developed a multi-phase 9-year plan, which will lead from the pilot stage to the conversion of our lease to a commercial lease. Under this plan, we anticipate transitioning to the commercial stage as early as 2014, and produce 100,000 barrels per day in 2018.

Have oil shale resources been accessed and developed in other countries? What was the impact?
The United States holds the majority of the world's oil shale resources. However, other countries have made use of oil shale and other unconventional oil resources. In Estonia, oil shale is used to provide 95% of the country's electrical power.

What are the potential environmental problems associated with oil shale extraction? Oil shale extraction has historically been known to affect the surface land, the air and the water surrounding the extraction site. Potential problems include affects on runoff patterns; "spent shale" which must be disposed of; emissions of CO2, sulfur oxide and nitrogen oxide; and contamnation of groundwater. The majority of these problems stem from ex-situ processes and will be eliminated through operating in-situ, as is AMSO's plan. New technologies used in commercial mining and chemical processing industries will be effective in cleaning air and reclaiming land.

What will be the environmental impact of AMSO's project in Colorado?
It is AMSO's pledge to devote significant time and resources to environmental planning before beginning operations. Because of new technological development, and our choice to operate in-situ, the majority of the historical environmental concerns are minimized or eliminated. The greatest concern in in-situ processes remains the potential for groundwater contamination; however, AMSO decision to focus on the illite layer located under the groundwater level effectively eliminates this concern.

Read more about our commitment to the environment.

How will the people living in the region be affected?
AMSO is committed to keeping members of the local community informed of its plans and operations, and to seek their input and contributions. At all stages, we will work to minimize interruptions to people's daily lives, and to the socioeconomic balance of the area. We have also retained a number of consultants from the region, in the hopes that, in addition to contributing to our effort, they will have a high level of awareness about their own community's needs.

What is "in-situ" mining and what makes it a better choice than "ex-situ" mining?
In ex-situ mining, the shale is taken above ground to be processed in retorts. This can lead to significant disturbance in the land surrounding it, as well as large quantities of spent shale, which must then be disposed of. In in-situ mining, the shale is raised to high temperatures through existing or created fractures in the rock. In-situ minimizes the majority of environmental disturbances, though careful attention must be paid to make certain groundwater contamination does not occur. Our decision to focus on the illite layer which is hundreds of feet below the aquifer addresses this problem. Moreover, AMSO's process, however, eliminates direct injection of fluids into the subsurface, minimizing the potential for impact on groundwater.

How will waste be disposed of?
Operating in-situ will mean that the majority of waste products are eliminated; the greatest potential for waste in oil shale mining is the spent shale and contaminated water which are byproducts of heating ex-situ. AMSO is invested in using the best methods to clean and reclaim contaminated air and water, as well as minimizing the production of such byproducts from the outset.

What is the federal government's involvement with the oil shale industry?

Over 70% of viable oil shale deposits in the US lie on federal lands. In 2005 the Bureau of Land Management sought out proposals by commercial interests to develop the oil shale resources in Colorado, Utah and Wyoming. Five leases were granted to three companies in Colorado (AMSO, Shell and Chevron), and one in Utah (OSEC). The leases provide for ten years to prove the technology. Upon proof of commercial viability and sound environmental processes, the leases may be converted to commercial leases, and the plots expanded to 5,120 acres.

The government's involvement at the moment is limited to these land grants, however, the development of the industry would be greatly aided by government investment, and encouragement of other commercial investment.