Federal interest in oil shale dates back to the early 20th century, when the Naval Petroleum and Oil Shale Reserves were set aside. Commercial interest followed during the 1960s. After a second oil embargo in the 1970s, Congress created a synthetic fuels program to stimulate large-scale commercial development of oil shale. Commercially backed oil shale projects ended in the early 1980s when oil prices began declining. High oil prices have revived the interest in oil shale. Contents of this report: Intro.; Geology and Production Technology of Oil Shale; History of Oil Shale Development; Incentives and Disincentives to Development; Policy Perspectives; Legislative History to 2006. Charts and tables. This is a print on demand report.

Oil shale is prevalent in the western states of Colorado, Utah, and Wyoming. The resource potential of these shales is estimated to be the equivalent of 1.8 trillion barrels of oil in place. Retorted oil shale yields liquid hydrocarbons in the range of middle-distillate fuels, such as jet and diesel fuel. However, because oil shales have not proved to be economically recoverable, they are considered a contingent resource and not true reserves. It remains to be demonstrated whether an economically significant oil volume can be extracted under existing operating conditions. In comparison, Saudi Arabia reportedly holds proved reserves of 267 billion barrels. Federal interest in oil shale dates back to the early 20th Century, when the Naval Petroleum and Oil Shale Reserves were set aside. Out of World War II concerns for a secure oil supply, a Bureau of Mines program began research into exploiting the resource. Commercial interest followed during the 1960s. After a second oil embargo in the 1970s, Congress created a synthetic fuels program to stimulate largescale commercial development of oil shale and other unconventional resources. The federal program proved short-lived, and commercially backed oil shale projects ended in the early 1980s when oil prices began declining.

In the early 1980s, industry and government took a hard look at the economics of extracting oil from vast deposits of shale that lie beneath the western United States. Oil prices subsided, and interest waned. With oil prices spiking and global demand showing no signs of abating, reexamining the economics of oil shale makes sense. In this report, the authors describe oil shale resources; suitability, cost, and performance of new technologies; and key policy issues that need to be addressed by government decisionmakers in the near future.

This is a print on demand edition of a hard to find publication. Rising oil prices and concerns over declining petroleum production worldwide revived U.S. interest in oil shale after a two-decade hiatus. In addition to technological challenges left unsolved from previous development efforts, environmental issues remained and new issues have emerged. Challenges to development also include competition with conventional petroleum production in the mid-continent region, and increasing petroleum imports from Canada. Contents of this report: Background; Oil Shale Resource Potential; Challenges to Development; Commercial Leasing Program; R&D Program; Programmatic Environ. Impact Statement; Mineral Leasing Act Amendments; Commercial Lease Sale and Royalty Rates. Illus.