US Gives Energy Giants Blessing To Turn Rock Into Oil

Shell already has a well-advanced U.S. test site which has produced shale oil and Jill Davis, a spokeswoman for Shell’s oil shale project, said the government’s research lease will give it a chance to demonstrate and improve its technology as well as tap into future commercial leases. “It will be the end of the decade before we get clearance to go forward,” said John Hofmeister, President of Shell’s U.S. operations. “It won’t be developed before 2015.”

Shell’s plan is to drill holes and fill them with heaters, gradually warming the rock to release organic matter, or kerogen, in the shale as oil and gas. “We can make high quality products straight out of the ground,” with little processing to turn into diesel, jet fuel and naphtha, said Davis.

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