UT Arlington researchers' work could lead to $35-a-barrel oil

After a year of trying, University of Texas at Arlington researchers say they have succeeded in producing Texas intermediate-quality crude oil out of lignite.

In a few years, the researchers predict, their discovery could lead to oil that costs $35 a barrel instead of the current $65 to $70.

This could translate into a Lone Star bonanza. Texas sits on a 200-year supply of lignite that’s easily accessible because it lies near the earth’s surface. Lignite, one of the lowest and cheapest grades of coal, is now used to fuel steam-electric power generation.

Dallas Morning News