Oil Shale Production to be Subsidized Under Bush Administration Proposal
by Matthew McDermott, Brooklyn, NY on 07.23.08
In Canada, tapping the tar sands has been called the most environmentally destructive project on the planet. In the United States, some equally not-so-eco-friendly technologies have been developed to extract oil from shale in Colorado. If the Interior Department has its way, exploiting U.S. oil shale is going to become less financially burdensome for oil companies. Don’t worry, the environmental impact will probably remain high.
Government Willing to Take a Hit on Royalties to Develop Oil Shale Production
Under draft rules issued yesterday, the royalty rates which oil companies pay the federal government for drilling on public lands will be reduced for companies wishing to develop oil shale extraction in Colorado, Utah and Wyoming. Currently companies pay 12.5-18.8% to the feds for on and offshore oil development, while the lowest Interior Department proposal fixes the royalty rate for oil shale at 5%.
Yahoo News quotes Interior Secretary Dirk Kempthorne: “For years, the cost of extracting oil from shale exceeded the benefit, but today that calculus is changing. This makes oil shale a highly promising resource.”
According to the Interior Department shale oil costs between about $38-65 per barrel to produce, whereas onshore conventional oil costs about $19.50 per barrel. The Department also points out that, due to the higher energy requirements of extracting the oil, shale oil produces less energy than conventional oil, coal or wood.
By some estimates, there could be 800 billion barrels of oil locked up in oil shale and 70% of that is on public lands.
I Guess the Bush Administration Doesn’t Think Highly of Pickens' or Gore's Proposals
The fact that this proposal is announced just days after Al Gore calls for all U.S. electricity be generated renewably within 10 years, and two weeks after T. Boone Pickens unveiled his plan to radically increase U.S. wind power and use natural gas to offset petroleum in transportation, shows how mired in business-as-usual thinking regarding energy and environmental policy the current administration is.
Rather than wholeheartedly support the kind of energy policy, civic infrastructure and lifestyle changes that will allow the United States to prosper in a post-carbon, green economy—and build a clean energy independence—the focus is on populist false promises that developing oil shale or lifting bans on offshore oil drilling will reduce short term energy costs. Any long term energy independence that oil shale production may provide will be at the cost of furthering global climate change and increasing environmental degradation of U.S. public lands.
via :: Yahoo News
Tar Sands, Energy Independence
Tar Sands: The Most Destructive Project on Earth
Oil Shale Plant Power by “Clean Coal”--and Cooled by Colorado River Water?
Al Gore’s Repowering America Speech Video Clip
Wind Power to Displace Natural Gas for Electricity, Natural Gas to Power Cars: The Pickens Plan
Thirsty for more? Check out these related articles:
- Canadian Tar Sands Like Tolkein’s Mordor: UN Water Advisor
- New Energy Economy Emerging in the United States
- David Suzuki and Bruce Mau Behind New Eco-Boutique in Toronto
- Bush Administration to Open Public Lands Near Utah's National Parks for Natural Gas and Oil Drilling
Who pays then for the carbon capture and sequestration (CCS)?
Do foreign owned firms like BP and Shell also get to take a pass on royalty payments? Nice touch.
What if the state-owned Saudi Arabian Oil Co. decided it too wanted to extract US oil shale; would they go royalty free? Silly me....they are Royalty!
relevant question: what can we do to oppose this?
This is not a surprising move by any means. That doesn't make it any less enraging.
In this case, the blame game actually serves a purpose. It shows people how important it is to pay attention, understand the issues and make the right choices with your vote. The 60 million zombies that voted for Bush in '04 are very much responsible for all the damage that has been done over the past 8 years. Will they ever accept that responsibility? Hell no.
What can you do to oppose this? Call your representatives right away. Tell everyone you know to do the same thing. Congress has another week until the August recess and its during that recess that our voices need to be heard. Because chances are they'll be back in September clamoring for energy legislation. Make sure it doesn't include oil shale or offshore drilling!
http://www.sierraclub.org/wildlegacy/blog/
What can you do? Call your representatives and senators right away. Congress has another week until the August recess and it is during that recess that we need to have our voices heard. Chances are they'll return in September clamoring for energy legislation. We have to make sure it does not include oil shale or offshore drilling!
http://www.sierraclub.org/wildlegacy/blog/
Thank God. finally we can move forward and suck this resource from the shale. It is pathetic that there are even 5 posts above mine that worry about carbon capture or stopping this extraction. Just demonstrate how gullible, misinformed or outright stupid the green movement really is at the moment. The vanity that treehuggers have in the belief that man is affecting the natural process of global warming/cooling is staggering. Get a life you all. I need to fill my tank so I can work in an industry other the the cesspool of education, and produce the food that you "drains on humanity" need to live.
My god, the stupidity of you poorly publicly educated idealists saddens me. I suppose the only long term fix will be Darwinism as the mental illness that you all suffer from will be slowly eradicated from our Species as the doers survive and the idealists slowly fade into extinction.
RC
The environmental issues are huge for this. The technique's concept is essentially to cook the Rockies from the inside, and tap the oil from the bottom. That's better than the '70's concept which started by making the rockies into gravel, but not by much.
Also look for roadways in wilderness areas, water requirements, plant and equipment and pipelines to have big impacts.
Ah, the ignorant Robert C arrives just in time :)
I'm sorry, where did it say anything about global warming? Oh that's right, it didn't. Guess elementary school just kinda skipped on by with you, eh? It's the ecological impact stupid, like burning coal impacts the area around it with higher asthma rates, oil drilling destroys the environment around it.
I suppose you think tapping this shale will get you oil tomorrow too seeing as how you "need to fill your tank". Well, jigs up buddy, oil is running dry now whether you want it to our not. No amount of whining and name calling is going to make it come back. No matter how much you desire your delusional little reality, it isn't going to come true. You (unfortunately) live is this one, where Peak Oil is real, oil is not forever and your children or grandchildren probably won't ever drive a gas powered car.
Rc's opening statement is classic:
"Thank God. finally we can move forward and suck this resource from the shale."
At first I thought the letter was sarcasm, but unfortunately it turned out to be real. This is just another example of why most Americans are often ignorant to what is going on in this country and around the world. The "I'll take what I want" attitude is exactly what is wrong with our thinking. Guess what? Everything is NOT ours for the taking. Gorging ourselves with food, oil, products, electricity etc, actually DOES have an impact. Let's grow out of the ME attitude and start thinking a little bigger.
This is a terrible decision by the Bush Administration. People who think that the US will be saved by this policy are sadly mistaken. There isn't enough oil to make a big difference to the global oil markets and the projected costs per barrel are very high (and that ignores the terrible environmental destruction that will take place). At the same time, the US is essentially giving away this land to our wealthiest companies. All to maintain the dying status quo of oil-driven society. More charity for the wealthy while the poor and middle classes struggle. How like a Republican that President of ours is, except for his inability to control Government spending or the National Debt.
How sad to compare the US with Germany, Norway and so many other countries that are accepting the inevitable now, moving away from oil, and embracing solar, wind and other sustainable technologies. We'll be buying the products of German and Chinese solar panel factories, and this shale oil project will do nothing to help anyone who isn't an oil company executive or employee.
Here's an idea -- instead of tearing up the Earth for shale or drilling in every conceivable place for oil, why don't we start with some clean, efficient and renewable that is produced at home like ethanol. I'm not saying it's perfect, but it's a start.
We have an abundance of corn and other crops that can produce ethanol -- it's seem silly not to be making this a staple of our energy policy.
Duhhh Global warming? Hmmm , how did the earth heat up from the last ice Age, let me see I know the Dinosaures Had big Dino SUVs and road all over the planet that they ran on Oil that the got from? Oh I know Dick Channy"s Trillobite relatives...funny how we have never found any of the DINO SUVs burried with thier bones. Wake up U ALgorithisms.