EGL Resources, Inc. THE EGL OIL SHALE PROCESS. 17 th Annual International Oil Shale Symposium October 16-18, 2006, Colorado School of Mines

Transcription

1 EGL Resources, Inc. THE EGL OIL SHALE PROCESS 17 th Annual International Oil Shale Symposium October 16-18, 2006, Colorado School of Mines 1

2 WORDWIDE DISCOVERIES vs PRODUCTION THE GROWING GAP 2

3 WORLDWIDE BRIEF SUMMARY Currently consuming our inventory 3

4 HISTORICAL AND FORECAST WORLD OIL PRODUCTION CRUDE OIL & NATURAL GAS LIQUIDS?? 4

5 WORLDWIDE BRIEF SUMMARY Currently consuming our inventory Peak oil production imminent 5

6 CRUDE OIL PRICES SINCE 1861 (2003$)? 6

7 WORLDWIDE BRIEF SUMMARY Currently consuming our inventory Peak oil production imminent Post peak prices will be very high 7

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10 WORLDWIDE BRIEF SUMMARY Currently consuming our inventory Peak oil production imminent Post peak prices will be very high Wild card Global warming debate 10

11 U.S. INCREASING RELIANCE ON IMPORTS M BPD Million bbl per day U.S. Consumption U.S. Production 19.8M BPD 9.3M BPD 53% 10.5M BPD Total Imports 19.7M BPD 8.6M BPD 70% Includes 4M BPD Finished Products Source: EIA (AEO 2004); Reference Case 11

12 U.S. Situation Increasingly reliant on & vulnerable to imports 12

13 MPG WORLDWIDE MILEAGE STATISTICS 13

14 U.S. Situation Increasingly reliant on & vulnerable to oil imports U.S. average vehicle mileage efficiency is very poor 14

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16 175 billion bbls = 5MMBOPD for 96 yrs! 16

17 U.S. Situation Increasingly reliant on & vulnerable to oil imports U.S. average vehicle mileage efficiency is very poor North American non-conventional oil resources are world class 17

18 Oil Shale Commercialization Process I. Laboratory Phase II. Field Testing Phase III. Commercial Phase Basic Research Applied Research Bench Scale Plants Pilot Plants Semi Works (Scale Up) Demo Plants Commercial Plants Hytort Kentort Oil Tech Syntec Time: 25/20 20/10 yrs yrs Cost: STB Exxon FB AC Roller Grate Dravo Superior Paraho Lurgi ATP Tosca MIS/IS 10/5 yrs Unocal Petrosix Galator Kivitor China $10 5 $10 6 $10 7 $ yrs New Technology: Gov t Cost-Sharing NETL Role Nat. Labs Commercial Feasibility Study $5 Million Grants Cost-Sharing Gov t/industry PR/NPOSR Role ` Stabilize Market with Incentives 18 * Lukens Diagram

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20 U.S. Situation Increasingly reliant on & vulnerable to oil imports U.S. average vehicle mileage efficiency is very poor North American non-conventional oil resources are world class Commercial production lead times are long 20

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23 EGL S RD&D Test Site 23

24 EGL RD&D TEST SITE 24

25 EGL RD&D RETORT INTERVAL 25

26 EGL Resources, Inc. Process Schematic 26

27 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control 27

28 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control Use of natural processes 28

29 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control Use of natural processes Higher quality product 29

30 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control Use of natural processes Higher quality product Minimal water usage 30

31 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control Use of natural processes Higher quality product Minimal water usage More energy efficient 31

32 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control Use of natural processes Higher quality product Minimal water usage More energy efficient Smaller local environmental impact 32

33 THE EGL OIL SHALE PROCESS Insitu pluses vs surface retorting or partial insitu combustion of oil shale Closed heating system = more control Use of natural processes Higher quality product Minimal water usage More energy efficient Smaller local environmental impact Fewer greenhouse gas emissions 33

34 THE EGL OIL SHALE PROCESS Insitu challenges Isolation of aquifers 34

35 THE EGL OIL SHALE PROCESS Insitu challenges Isolation of aquifers Economically efficient and environmentally acceptable energy sources for heating the shale 35

36 THE EGL OIL SHALE PROCESS Insitu challenges Isolation of aquifers Economically efficient and environmentally acceptable energy sources for heating the shale Reclamation 36

37 THE EGL OIL SHALE PROCESS Insitu challenges Isolation of aquifers Economically efficient and environmentally acceptable energy sources for heating the shale Reclamation Technical 37

38 THE EGL OIL SHALE PROCESS Insitu challenges Isolation of aquifers Economically efficient and environmentally acceptable energy sources for heating the shale Reclamation Technical Learning curve 38

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40 INVESTMENT INCENTIVES Long term continuity of National Policy and Regulatory Practices Joint government/industry/academic research Cooperation between all stakeholders Tax incentives Government loan guarantees/grants 40

41 JOBS, ECONOMIC IMPACT AND TAXES Should be similar to Canadian Tar Sands 41

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45 CONCLUSIONS Commercial production lead times are long Future world oil prices will be sufficient to justify and sustain shale oil production Early efforts will be expensive and require joint research and tax incentives Production costs will decrease over time Shale oil will moderate future world prices by providing a stable, long term supply U.S. economic and security benefits are huge EGL s goal is to support local communities & conduct an ethical and transparent project 45

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47 Energy Comparison Preliminary Energy Efficiencies for Various Unconventional Resource Recovery Processes Process 1 st Law efficiency Energy Selfsufficiency Energy Return on Investment Conventional Petrol. E&P US Oil Shale Surface Alberta Oil Sands - Surface Alberta Oil Sands in-situ (similar also to heavy oil) US Oil Shale in-situ, nonelectric heat US Oil Shale in-situ, electric heat IGCC with FT synthesis

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