Shale oil extraction

Shale oil extraction is an industrial process for unconventional oil production. This process converts kerogen in oil shale into shale oil by pyrolysis, hydrogenation, or thermal dissolution. The resultant shale oil is used as fuel oil or upgraded to meet refinery feedstock specifications by adding hydrogen and removing sulfur and nitrogen impurities. Shale oil extraction is usually performed above ground (ex situ processing) by mining the oil shale and then treating it in processing facilities. Other modern technologies perform the processing underground (on-site or in situ processing) by applying heat and extracting the oil via oil wells. The earliest description of the process dates to the 10th century. In 1684, England granted the first formal extraction process patent. Extraction industries and innovations became widespread during the 19th century. The industry shrank in the mid-20th century following the discovery of large reserves of conventional oil, but high petroleum prices at the beginning of the 21st century have led to renewed interest, accompanied by the development and testing of newer technologies. As of 2010, major long-standing extraction industries are operating in Estonia, Brazil, and China. Its economic viability usually requires a lack of locally available crude oil. National energy security issues have also played a role in its development. Critics of shale oil extraction pose questions about environmental management issues, such as waste disposal, extensive water use, waste water management, and air pollution.

History

In the 10th century, the Assyrian physician Masawaih al-Mardini (Mesue the Younger) wrote of his experiments in extracting oil from "some kind of bituminous shale". The first shale oil extraction patent was granted by the English Crown in 1684 to three people who had "found a way to extract and make great quantities of pitch, tarr, and oyle out of a sort of stone". Modern industrial extraction of shale oil originated in France with the implementation of a process invented by Alexander Selligue in 1838, improved upon a decade later in Scotland using a process invented by James Young. During the late 19th century, plants were built in Australia, Brazil, Canada, and the United States. The 1894 invention of the Pumpherston retort, which was much less reliant on coal heat than its predecessors, marked the separation of the oil shale industry from the coal industry. China (Manchuria), Estonia, New Zealand, South Africa, Spain, Sweden, and Switzerland began extracting shale oil in the early 20th century. However, crude oil discoveries in Texas during the 1920s and in the Middle East in the mid 20th century brought most oil shale industries to a halt. In 1944, the US recommenced shale oil extraction as part of its Synthetic Liquid Fuels Program. These industries continued until oil prices fell sharply in the 1980s. The last oil shale retort in the US, operated by Unocal Corporation, closed in 1991. The US program was restarted in 2003, followed by a commercial leasing program in 2005 permitting the extraction of oil shale and oil sands on federal lands in accordance with the Energy Policy Act of 2005. As of 2010, shale oil extraction is in operation in Estonia, Brazil, and China. In 2008, their industries produced about 930,000 tonnes (17,700 barrels per day) of shale oil. Australia, the US, and Canada have tested shale oil extraction techniques via demonstration projects and are planning commercial implementation; Morocco and Jordan have announced their intent to do the same. Only four processes are in commercial use: Kiviter, Galoter, Fushun, and Petrosix.

Processing principles

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