Grace Wall Conlon

A miasma of misinformation has settled down around the fledgling oil shale industry, discouraging or delaying most of the leading oil companies from moving forward with research and development plans. A major problem for would-be investors is the Department of the Interior's moratorium on oil shale development on federal lands. Eighty percent of oil shale resources are in federal lands administered by the Bureau of Land Management; this moratorium put a hold on leasing of those federal lands.

According to Gary Aho, CEO of Sage Geotech, a leading consultant in the field of geological and mining engineering sciences, there are only six research, development and demonstration leases available, each with 160 acres of federal lands. Five are in Colorado, one in Utah. If research is successful, it is hoped that these leases can be converted to a commercial basis instead of research. But no rules and regulations have been set up. Lessees aren't willing to risk substantial funds and end up having only 160 acres if the conversion to commercial status is not guaranteed.

A Programmatic Environmental Impact Statement, being developed by the Bureau of Land Management, is behind schedule; it is promised for the end of this year.

A few independent oil shale pioneers are using their own company's funds to push forward with this technology. Rex Franson, CEO of EnShale, Inc. Orem, is determined to move forward with their RD&D. He feels it is time to stop waiting for the federal government to act. A key factor, feeding this enthusiasm, is that the Green River Formation stretching across Colorado, Wyoming and Utah has double the amount of oil available in the known reserves of the Middle East.

EnShale has leases for mineral rights on 4,650 acres of Utah state land and plans to acquire additional state leases and private property to consolidate its holdings. Current leases have 667 million barrels of oil resource. One of their mines could feed 15,000 barrels of shale oil daily for 100 years. A pilot plant, under construction, will be operative this fall and will handle retorting, the first stage of a 4-stage system that includes upgrading, gasification and water reclamation. Refined oil end-products will be gasoline, diesel, jet fuel and fuel oils.

Supporters of oil shale exploration speak of the lack of incentives offered by the federal government during the recent regeneration of interest in oil shale. Glenn Vawter, Executive Director of the National Oil Shale Association is convinced that the outlook for success is still questionable -- if one looks at the politics involved. The last program -- when the federal government was involved in the '70s -- had lots of incentives which do not exist now.

On the upside, Shell Oil is going forward with its RD&D. Among all the big oil companies, Shell is notable for proceeding the most vigorously with research and development.

Oil Shale Exploration Company, Mobile, Ala., and Red Leaf Resources, Salt Lake City, also are in the vanguard of this emerging industry. Laura Nelson, vice president for energy and environmental development for Red Leaf Resources, says Red Leaf has mineral rights for 18,000 acres of land in Utah. Its pilot plant is under construction and the company plans to have output of up to 4,000 barrels of shale oil per day by year end.

These movers and shakers among the oil shale developers want the American public to know the facts about the viability of oil shale, and to be apprised of Congressional actions that are delaying research and development and contributing to the United States' continuing unhealthy dependence on foreign oil.

Current prediction for what will likely be the initial operating cost to produce a barrel of shale oil is for it to be less than $30 per barrel. With crude oil prices hovering around $130 per barrel, potential profit margins for shale oil are impressive.

All in all, it is evident the U.S. could eliminate the need for imported hydrocarbons by extracting its 2 trillion barrels of oil from oil shale deposits here at home. Brazil and Estonia have commercial plants operating; China is involved in oil shale operations. The U.S. is behind because Congress has gone backward. With oil prices at an all-time high, we must go forward.

• Provo resident and freelance writer Grace Wall Conlon formerly was a columnist for Advertising Age.