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Utah sits on huge oil reserve
Springville Herald ^ | April 21, 2005

Posted on 04/21/2005 2:56:45 AM PDT by RWR8189

As a prominent advocate for encouraging unconventional energy sources, Sen. Orrin Hatch (R-Utah) was asked to testify today in front of the Senate Energy and Natural Resources Committee on his efforts to develop fuel from a vast untapped domestic oil reserve in tar sandsand oil shale -- a large part of which sits in eastern Utah.

"Who would have guessed that in just Colorado and Utah, there is more recoverable oil than in the Middle East?" Hatch said. "We just don't count it among our nation's oil reserves because it is not yet being developed commercially. I find it disturbing that Utah imports oil from Canada tar sands, even though we have a larger tar sands resource within our own boundaries that remains undeveloped."

According to the U.S. Department of Energy, recoverable oil shale in the western United States -- located mainly in Utah, Colorado and Wyoming -- exceeds one trillion barrels and is the richest and most geographically concentrated oil shale and tar sands resource in the world. Hatch noted that Canada recognized the potential of the large tar sands deposits in the province of Alberta and developed a government policy to go promote their development -- increasing its oil reserves by more than a factor of 10.

Hatch is working with Senators Bennett (R-Utah), Allard (R-Colo.), and Salazar (D-Colo.) to develop a bill that would encourage development of commercially viable oil from oil shale and tar sands.

"I cannot sit by while gas prices are going through the roof, and while I hear from constituent after constituent about the disastrous effect gas prices are having on their livelihoods and their businesses," Hatch said. "Why has Canada moved forward in leaps and bounds, while the United States has yet to take even a baby step in this direction? I believe the difference has been the government policies of the respective countries. We need to change that."


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; US: Colorado; US: Utah
KEYWORDS: allard; anwr; bennett; energy; hatch; hydrocarbons; oil; oilshale; orinhatch; salazar; shaleoil; tarsands; utah
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1 posted on 04/21/2005 2:56:46 AM PDT by RWR8189
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To: RWR8189

GO FOR IT!! USE THAT OIL! I certainly don't want to be dependant on other countries when we have so much oil to tap in here.....the resource is here, let's use it!


2 posted on 04/21/2005 3:05:24 AM PDT by FeeinTennessee (Political correctness: dragging us into a pit and making us weak)
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To: RWR8189

Very interesting news. What is Congress waiting for? Drill!


3 posted on 04/21/2005 3:07:42 AM PDT by M. Espinola (Freedom is never free)
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To: RWR8189
You know Rush brought this up a month or so ago...the reason it hasn't been tapped up until now is that it is not cost effective to recover Oil Shale and Tar Sands until the price of oil is over $30 a barrel....now with $50 a barrel prices, things "SHOULD" move forward....but who knows what will finally trigger action on this...perhaps Orrin Hatch pushing it might get the ball rolling?
4 posted on 04/21/2005 3:11:24 AM PDT by Vaquero ("an armed society is a polite society "( Robert Heinlien).)
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To: RWR8189
"Why has Canada moved forward in leaps and bounds, while the United States has yet to take even a baby step in this direction?

I think he knows the answer to that question.

5 posted on 04/21/2005 3:13:54 AM PDT by beyond the sea (Advanced Directive -- don't step on my blue suede shoes.)
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To: RWR8189

I have a gunny sack of this tar sand. It is very fine sand, like from a seashore. The amalgum is only slightly more juicy than road asphalt. A reverse solvent wash cleans it out of the sand quite easily and leaves a heavy tar.


6 posted on 04/21/2005 3:17:02 AM PDT by nightdriver
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To: RWR8189
Utah sits on huge oil reserve.....called the Public Lands and Parks of the U.S.A. in all states

/U.N.

7 posted on 04/21/2005 3:17:09 AM PDT by maestro
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To: Vaquero
The price of upgraded heavy oil from the Alberta Oil sands is $25.00 bbl in the pipe.

Alberta has been shipping 500,000 bbls per day into the US market for the last five years.

The oil sand projects in Wood Buffalo have been under development for fifteen years but it are virtually unknown in the US except for a few savvy Texas companies due to the ready availability of cheap Saudi sweet crude.

To develop similar resources in the US will probably take ten years with exploration and infrastructure costs factored in if you started today.

I still remember when Syncrude first started development, all the naysayers said it would never be economical.
8 posted on 04/21/2005 3:27:46 AM PDT by beaver fever
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To: RWR8189

This is an opportunity for the USA to stick it to radical Islam.


9 posted on 04/21/2005 3:28:41 AM PDT by marvlus
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To: FeeinTennessee

How long before tree-hugging Gaia worshippers begin screaming and howling about this?


10 posted on 04/21/2005 3:34:55 AM PDT by Lindykim (Courage is the first of all the virtues...if you haven*t courage, you may not have the opportunity)
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To: All

Bah, $2 a gallon for gas isn't that expensive. Use the rest of the world's oil while it's cheap, then tap it.

:-)


11 posted on 04/21/2005 3:37:54 AM PDT by Reform4Bush
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To: RWR8189
"Who would have guessed that in just Colorado and Utah, there is more recoverable oil than in the Middle East?"

FWIW, I think we should deplete the oil reserves from the Middle East before we tap into our stash.

12 posted on 04/21/2005 3:41:17 AM PDT by Drew68
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To: RWR8189
Oil shale is a tad difficult to work with. There's a river of it about 10 miles wide extending from the Michigan border to the Ohio in Indiana.

It's also highly radioactive. (This is the stuff they used to make the now banned "black boards" out of).

That particular deposit could supply all our energy needs for many centuries.

13 posted on 04/21/2005 3:48:50 AM PDT by muawiyah
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To: M. Espinola
Hatch noted that Canada recognized the potential of the large tar sands deposits in the province of Alberta and developed a government policy to go promote their development -- increasing its oil reserves by more than a factor of 10.


M. Espinola
Very interesting news. What is Congress waiting for? Drill!


Wait a minute. I thought government was evil. I thought the government was your enemy. I thought it was going to take your children away from you to indoctrinate them in the ways of socialism to usher in the reign of the Antichrist. What is this now about calling the Government to intervene in the economy. This is scandalous! We are entering the end times! Yaaaaaaaaaahhhh!

14 posted on 04/21/2005 3:52:38 AM PDT by Skylab (Hi. My name is Tommy Grand from the TV show 'Cheaters'...)
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To: Drew68

Sen. Hatch is a complete buffoon.

I was a cost engineer on the original Exxon/TOSCO Colony Shale Oil project in 1980-81. Since the 1920s, petroleum engineers have been saying that if the price of oil was just $20-$30 per barrel higher, shale oil conversion would be economical. In 1980-81, with Exxon and everybody else expecting the price of oil to go to $80-$100 per barrel, a huge project was started up in Western Colorado near Parachute Creek and Rifle (Grand Junction is the closest real town) to turn shale oil into crude.

There are a million reasons why the project failed, including but not limited to technical problems, cost overruns on an extremely large and complex project, uneconomical location (over 9,000 foot altitude in many places) and when shale oil is heated and pressurized to crack open the rock to release the crude the rock pops like popcorn and you end up with a lot more detritus than you started with.

The tar sands in Canada are so completely different from shale oil that it's laughable. Hatch is a buffoon and should keep his mouth shut - which is asking too much of a Senator, I realize.

"Better to keep your mouth shut and look like an idiot than open it and remove all doubt" . . . . . . .


15 posted on 04/21/2005 3:58:08 AM PDT by Anarchus
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To: Anarchus

"There are a million reasons why the project failed, including but not limited to technical problems, cost overruns on an extremely large and complex project, uneconomical location (over 9,000 foot altitude in many places) and when shale oil is heated and pressurized to crack open the rock to release the crude the rock pops like popcorn and you end up with a lot more detritus than you started with."


Hey after all that taxpayer dough dumped into his best friend Teddy's 'big dig' can't blame a guy for trying....


16 posted on 04/21/2005 4:02:42 AM PDT by Just mythoughts
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To: Skylab
"Wait a minute. I thought government was evil. I thought the government was your enemy. I thought it was going to take your children away from you to indoctrinate them in the ways of socialism to usher in the reign of the Antichrist. What is this now about calling the Government to intervene in the economy. This is scandalous! We are entering the end times! Yaaaaaaaaaahhhh!"

After reading your comments I believe you have entered into your own end times.

17 posted on 04/21/2005 4:07:09 AM PDT by M. Espinola (Freedom is never free)
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To: M. Espinola
After reading your comments I believe you have entered into your own end times.

Just illustrating absurdity with absurdity.

18 posted on 04/21/2005 4:08:38 AM PDT by Skylab (Hi. My name is Tommy Grand from the TV show 'Cheaters'...)
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To: RWR8189

btttt


19 posted on 04/21/2005 4:08:50 AM PDT by dennisw ("Sursum corda")
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To: beaver fever

One backhanded advantage to this is that the Canadians have probably done a fair amount of developing the technology, so the US can benefit from that aspect of the oil sands development up there.


20 posted on 04/21/2005 4:11:45 AM PDT by Meldrim
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To: Meldrim

The RD has already been done including horizontal drilling technology for solvent extraction.

Right now the oil sands are more like open pit mining operations. In the future the oil will be extracted without surface disruption.


21 posted on 04/21/2005 4:19:33 AM PDT by beaver fever
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To: M. Espinola
"Very interesting news. What is Congress waiting for? Drill!"

Unfortunately, it takes more than drilling. Extracting oil from oil shale is more like strip mining than drilling, and actually getting the oil "out" of the rock requires a completely different (and as yet un-developed) processing infrastructure than for either coal or oil.

You will know that "peak oil" theory is real when the stock of companies starting up to extract oil shale or Canadian tar sands or focussing on tertiary oil recovery start to to through the roof. Until then, the "high" price of oil is caused by global political factors and NOT a lack of oil.

All that said, I think the Feds (i.e. Department of Energy") should begin R&D funding on ways and means to make it happen.

22 posted on 04/21/2005 4:27:24 AM PDT by Wonder Warthog (The Hog of Steel)
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To: muawiyah

It's also highly radioactive. (This is the stuff they used to make the now banned "black boards" out of).

Think you are confusing slate (the original blackboard) with transite blackboards. The original Transite was asbestos reinforced cement board and was used in place of slate for a lot of applications such as blackboards, lab countertops, roofing tiles, etc. There were a lot of other applications for Transite (fire-proofing, electrical insulation...) Ended up on the poopy list because of asbestos. (Transite 1000 is a non-asbestos product.)

Transite 1000

23 posted on 04/21/2005 4:31:45 AM PDT by elli1
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To: elli1
I'm older than you. They removed the real blackboards from our classrooms circa 1953 and replaced them with "green boards".

They didn't exactly glow green in the dark but they'd set off a geiger counter!

24 posted on 04/21/2005 4:35:00 AM PDT by muawiyah
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To: RWR8189

I hope it's nowhere near Arches or Bryce canyon or any of the other nat'l parks.


25 posted on 04/21/2005 4:58:56 AM PDT by Huck (One day the lion will lay down with the lamb; Until that day comes, I want America to be the lion.)
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To: muawiyah

They didn't exactly glow green in the dark but they'd set off a geiger counter!

So does a brick!!!!


26 posted on 04/21/2005 5:12:07 AM PDT by jec41 (Screaming Eagle)
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To: RWR8189

The article fails to mention that technology to extract that sort of oil makes its more expensive than oil from the middle east. Canada's shale oil is normally 10 dollars more expensive than the market value.


27 posted on 04/21/2005 5:18:20 AM PDT by Alex Marko
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To: Drew68; Reform4Bush
FWIW, I think we should deplete the oil reserves from the Middle East before we tap into our stash.

That is an interesting viewpoint, and one I have not yet considered.

Maybe in 100 years, the Middle East will be buying oil from us, and we will be able to charge them whatever we wish.

28 posted on 04/21/2005 5:22:31 AM PDT by Skooz (Host organism for the State parasite)
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To: Alex Marko

"The article fails to mention that technology to extract that sort of oil makes its more expensive than oil from the middle east. Canada's shale oil is normally 10 dollars more expensive than the market value."

Does that include the cost of shipping?



29 posted on 04/21/2005 5:22:33 AM PDT by EQAndyBuzz (60 votes and the world changes.)
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To: RWR8189

Apples and oranges. The Alberta oil sands costs around $13 to produce a barrel of synthetic crude oil whereas it will probably cost three times as much per barrel if using oil shale as the stock.

A better move would be to exponentially increase investment and development of the Alberta oil sands and just utilize or expand existing transcontinental pipelines into US hub markets.


30 posted on 04/21/2005 5:29:03 AM PDT by Edward Watson
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To: beaver fever

"To develop similar resources in the US will probably take ten years with exploration and infrastructure costs factored in if you started today."

If it took Canada ten years to develop the resource, we should be able to do it in considerably less time, simply because we can learn from how they did it.


31 posted on 04/21/2005 5:29:18 AM PDT by untrained skeptic
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To: Reform4Bush

You may actually have an extremely good point. As the middle east's reserves start to dwindle, having large remaining reserves in the US may put us at a huge advantage economically in the future.


32 posted on 04/21/2005 5:31:14 AM PDT by untrained skeptic
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To: maestro

33 posted on 04/21/2005 5:32:18 AM PDT by bmwcyle (Washington DC RINO Hunting Guide)
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To: Drew68

FWIW, I think we should deplete the oil reserves from the Middle East before we tap into our stash.
======


I agree completely. Tapping the shale oil now will do nothing but drop Saudi sweet crude to back to $30/barrel, making the shale oil/tar sands not economically viable.

If we don't buy the Saudi oil, China will at about a 40% discount, putting us at another economic disadvantage to them.

Not using Mideast oil just prolongs there staying power. The faster we use up their oil, the sooner the leaders in the region (Including the Mullahs in Iran) crumble.


Burn up there oil first.








34 posted on 04/21/2005 5:35:21 AM PDT by Josh in PA
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To: bmwcyle
Wow!

Now that is Private U.S. Citizen wealth......keep the U.N. OUT.

That includes Canadians!

35 posted on 04/21/2005 5:35:44 AM PDT by maestro
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To: RWR8189
This is twenty year old news. Every time oil prices go up, they start talking about shale oil. My advice, don't hold your breath.

The word "shortage" doesn't appear anywhere in the Kingdom dictionary.

36 posted on 04/21/2005 5:35:53 AM PDT by HisKingdomWillAbolishSinDeath (Proverbs 10:30 The righteous shall never be removed: but the wicked shall not inhabit the earth.)
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To: Josh in PA

They will have little or no oil with chemical and nuke devices.


37 posted on 04/21/2005 5:39:50 AM PDT by bmwcyle (Washington DC RINO Hunting Guide)
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To: FeeinTennessee
GO FOR IT!! USE THAT OIL! I certainly don't want to be dependant on other countries when we have so much oil to tap in here.....the resource is here, let's use it!

I agree, however, if the cost is going to be the same, I say use up their reserves first.............

38 posted on 04/21/2005 5:41:06 AM PDT by varon (Allegiance to the constitution, always. Allegiance to a political party, never.)
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To: untrained skeptic
There has been a lot of development in exploration and production technology but pipeline infrastructure has to be built.

Unless the project is close to existing pipeline infrastructure it is difficult to raise capital for exploration and development.

Oil sands development is similar to mining, where typically, it takes eight to ten years to prove out reserves before going into production.

On the bright side heavy oil is economical at $50 oil given that the technological hurdles have been overcome. But these projects have to be huge to be profitable and have long development cycles.
39 posted on 04/21/2005 5:41:14 AM PDT by beaver fever
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To: beaver fever

Well, if we keep developing other energy sources, 10 years from now will probably be about the time we'll really need another source of oil.

The time to get started is now.


40 posted on 04/21/2005 5:54:25 AM PDT by untrained skeptic
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To: Huck
I hope it's nowhere near Arches or Bryce canyon or any of the other nat'l parks.

Closest to Arches - the Uinta Basin is north of there, but quite a ways north. The richest ail shale is the eastern part of the basin that extends into Colorado. The Green River formation is in the area where Utah, Wyoming and Colorado come together and that's where the oil shale and oil sands are concentrated. The dotted line area in Utah below is roughly the Uinta Basin. I assume you know where the parks are.


41 posted on 04/21/2005 5:58:25 AM PDT by green iguana
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To: FeeinTennessee

Probably the reason Canada is ahead of his in receovering shale oil, is because they don't have to contend with our epa. 30 years ago I heard people in the oil business talking about the feasibility of getting shale oil. Orin hatch has just learned this?


42 posted on 04/21/2005 5:58:45 AM PDT by tillacum
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To: green iguana

What the heck is ail shale? Ok... oil shale.


43 posted on 04/21/2005 6:00:58 AM PDT by green iguana
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To: green iguana
Thanks. It doesn't look like it's too far north, just eyeballing it from memory, but at least it's away from it. I'd hate to see Arches become part of a political debate. I'd probably side with the park, against the shale, if it came to it. I guess that makes me a RINO. What do you want? I'm from NJ.
44 posted on 04/21/2005 6:02:32 AM PDT by Huck (One day the lion will lay down with the lamb; Until that day comes, I want America to be the lion.)
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To: beyond the sea

bttt


45 posted on 04/21/2005 6:08:00 AM PDT by ConservativeMan55 (DON'T FIRE UNTIL YOU SEE THE WHITES OF THE CURTAINS THEY ARE WEARING ON THEIR HEADS !)
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To: RWR8189
"Who would have guessed that in just Colorado and Utah, there is more recoverable oil than in the Middle East?" Hatch said.

As I recall, I made this very guess (not specific to Colorado/Utah though) just a couple of weeks ago!

46 posted on 04/21/2005 6:10:27 AM PDT by thoughtomator (Need quote from supporter)
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To: maestro

Washington, DC also sits on a huge oil reserve... unfortunately, it's snake oil.


47 posted on 04/21/2005 6:12:56 AM PDT by thoughtomator (Need quote from supporter)
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To: untrained skeptic

No, it took more like 25 years to develope the tar sands. It has only recently become profitable.


48 posted on 04/21/2005 6:20:28 AM PDT by Former Proud Canadian (.)
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To: Huck

Just noting that the Alberta Oil Sands are in an unpopulated, undeveloped area. Extracting the oil means moving huge amounts of tar sands to the refineries ie. open-pit mining.

They sometimes say the Great Wall of China is the only structure you can see from space. Wrong, you can't see the Great Wall but you can see the biggest open pit mine in the Alberta Oil Sands.

Eventually the mines will be reclaimed but the total area that will eventually be open-pit mined covers thousands of square miles.

Don't know if the folks in Utah would tolerate this.


49 posted on 04/21/2005 6:21:06 AM PDT by JustDoItAlways
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To: Reform4Bush

And that goes for Alaskan oil too. It is great that it is there. We may need it some day. Just not today.


50 posted on 04/21/2005 6:23:03 AM PDT by ordinaryguy
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