The immense potential of oil shale overshadows existing proved oil reserves. The U.S. Geological Survey has estimated world oil-shale resources of 2.7 trillion barrels, more than twice the 1.2 trillion barrels of Earth's remaining conventional stores of oil. The world's richest share of oil shale lies in northwestern Colorado's Piceance Basin. The heart of the deposit, in the Green River formation, contains between 1.5- and 2.5 million barrels per acre. "With technology breakthroughs, oil shale can close the U.S. energy gap," David Nelson, general manager, asset development, Chevron North America said at a recent oil and gas conference in Denver. At present, economic production has not been achieved from Colorado's oil-shale deposits. But that's something government and industry would both like to change. This year, the Bureau of Land Management awarded five 160-acre demonstration leases in Rio Blanco County, Colorado. Shell Exploration & Production Co. received three, Chevron got one and Midland independent EGL Resources Inc. signed for one. The leases carry 10-year terms, and successful recovery will lead to options for 5,120-acre development leases on each project. (One R&D lease was also awarded in Utah, to Mobile, Alabama-based Oil Shale Exploration Co.) For more on this, see the June issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
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