Shale oil
Shale oil is a type of liquid hydrocarbon derived from oil shale, a sedimentary rock rich in organic compounds called kerogens. To extract this oil, the rock undergoes unconventional processes, such as heating or hydraulic fracturing (fracking), which involves injecting a high-pressure mixture of water, sand, and chemicals. While shale oil extraction offers significant reserves, particularly in the United States, it is generally more expensive than conventional oil drilling and has sparked environmental concerns due to potential contamination of water sources and induced seismic activity.
Historically, the oil shale industry emerged in the mid-nineteenth century, but its growth waned with the discovery of crude oil. Renewed interest in shale oil developed in the late twentieth century, particularly after the introduction of advanced extraction techniques that combined fracking with horizontal drilling. This innovation led to a dramatic increase in U.S. oil production, transforming the country into a leading oil producer by 2014. However, fluctuations in global oil prices, driven by factors such as increased production from other countries, have posed challenges to the sustainability of the shale oil industry. As the world moves toward cleaner energy sources, the future of shale oil remains uncertain amidst growing calls for environmental stewardship.
On this Page
Subject Terms
Shale oil
Shale oil is a liquid hydrocarbon extracted using unconventional means from a type of sedimentary rock called oil shale. To separate the oil from the mineral components of the shale, the rock must be subjected to a heating process or a high-pressure mixture of water, sand, and chemicals. The process is more expensive than conventional drilling and has caused controversy among those who claim it is damaging to the environment. Oil shale is found in many parts of the world but is especially prevalent in the United States. Technological improvements in the late twentieth century allowed easier access to the oil and led to an economic boom in the United States and a revolution in the industry.
Origins and History
Oil shale was formed millions of years ago when silt and organic material such as plants and algae settled to the bottom of what were then seas or lakes. Over time, heat and pressure transformed the organic material into oil shale. To create this particular kind of rock, the heat and pressure could not be too high, otherwise more conventional liquid oil would have formed. Oil shale contains organic chemical compounds called kerogens, which are converted into fuel.
Oil shale can be burned without first being processed; this made it an accessible fuel for early humans. Records from the fourteenth century indicate physicians tried to extract the oil from shale to use as medicine. In the seventeenth century, the British discovered a method of making "pitch, tarr, and oyle" from the rock. Commercial production of shale oil began in France and Scotland in the mid-nineteenth century and soon spread to other parts of the world. It was used primarily as a lubricant and a fuel to light lamps.
In the late nineteenth and early twentieth centuries, the discovery of large deposits of liquid crude oil severely damaged the shale oil industry. Crude oil is unrefined petroleum that can be used to make gasoline, kerosene, and other chemicals. Crude oil was accessed through drilling wells, a process much less expensive than that used to extract shale oil. To extract the oil from shale, the rocks first had to be mined and then subjected to a heating process that separated the substances.
In the mid-twentieth century, the United States attempted to reduce its dependency on crude oil from the Middle East by reinvesting in the shale oil industry. A drop in worldwide oil prices in the 1980s, however, effectively killed the business.
A New Oil Boom
Attempts to make shale oil commercially viable continued around the world for years, but the cost of removing the fuel proved too high. A breakthrough occurred in the 1990s, when a new technique was used on an old extraction method called hydraulic fracturing, more commonly known as fracking. Fracking involves blasting the shale with a high-pressure mixture of water, sand, and chemicals to force the oil out of the rock. The method was first employed after the Civil War, when explosives were used to remove the oil. In the 1930s and 1940s, acids and chemicals were used in the process.
In the 1990s, a Texas gas company combined fracking with a method called horizontal drilling. In this process, a well is drilled a mile or two down until it reaches a layer of oil shale. The well then turns at a ninety-degree angle and continues horizontally. The fracking fluid is pumped into the well, and the oil and gas are forced out of the rock and collected. The technique revolutionized the industry, and by 2010, more than 510,000 wells had been drilled in the United States. Many of the world's largest oil shale deposits are in the United States, including the Green River Formation in Colorado, Wyoming, and Utah. While not all the Green River oil is accessible, the formation is estimated to hold 1.2 to 1.8 trillion barrels—many times the crude oil reserves found in Saudi Arabia.
Oil production in the United States skyrocketed, and many rural areas experienced an economic boom as companies brought jobs and prosperity to town. Proponents of fracking maintain it has opened the door for the United States to become energy independent and will lead to cleaner-burning fuels. Environmentalists, however, claim the fluid used in the fracking process contains hazardous chemicals and poses a danger to drinking water. Fracking has also been known to cause seismic activity in earthquake-prone areas, although these quakes are generally small. Despite industry and government assurances that the process is safe, some contamination has occurred. Three families in a northeastern Pennsylvania town were awarded $1.6 million in damages in 2012 after their water was found to be contaminated by fracking.
By 2014, the shale oil boom had allowed the United States to pass Saudi Arabia as the world's largest oil producer. Oil was selling at above $100 a barrel, making the US industry very profitable. Falling demand and the additional influx of oil to the market helped lower prices. The Saudi government also began ratcheting up oil production, further lowering worldwide prices. Some analysts saw the Saudi move as a way to bankrupt the US shale industry and drive it out of business. By early 2016, the price of oil had dropped below $30 a barrel. Many US shale companies began feeling the pinch, cutting back on production and scaling down their operations. Oil prices recovered in the late 2010s and early 2020s. Despite this, the International Energy Agency (IEA) predicted that global demand for all fossil fuels would stop growing by 2030.
Bibliography
"About Oil Shale." Oil Shale and Tar Sands Programmatic EIS Information Center. Bureau of Land Management. Web. 5 Feb. 2016. http://ostseis.anl.gov/guide/oilshale/
"History of Oil Shale." Red Leaf Resources, Inc. Red Leaf Resources, Inc. Web. 5 Feb. 2016. http://www.redleafinc.com/history-of-oil-shale
Kimani, Alex. "IEA Predicts End to Oil & Gas Demand Growth Before 2030." OilPrice.com, 17 Oct. 2024, oilprice.com/Energy/Energy-General/IEA-Predicts-End-to-Oil-Gas-Demand-Growth-Before-2030.html. Accessed 25 Nov. 2024.
Lallanilla, Marc. "Facts About Fracking." LiveScience. Purch. 23 Jan. 2015. Web. 5 Feb. 2016. http://www.livescience.com/34464-what-is-fracking.html
Manfreda, John. "The Real History of Fracking." OilPrice.com. OilPrice.com. 13 Apr. 2015. Web. 5 Feb. 2016. http://oilprice.com/Energy/Crude-Oil/The-Real-History-Of-Fracking.html
"What Is Fracking?" Energy & Capital. Energy and Capital. Web. 5 Feb. 2016. https://www.energyandcapital.com/resources/what-is-fracking/36
"Why U.S. Shale Is Not Capitulating Yet." OilPrice.com. OilPrice.com. 4 Feb. 2016. Web. 5 Feb. 2016. http://oilprice.com/Energy/Crude-Oil/Why-US-Shale-Is-Not-Capitulating-Yet.html