IndianOil sees alternative energy in Shale Oil
New Delhi   23-Jan-2010
IndianOil has taken a baby step to tap shale oil as an alternative source of energy to conventional crude oil. Mr. Anand Kumar, Director (R&D), IndianOil, said the company has obtained samples of "Oil Shale", a fine-grained sedimentary rock, from Assam and has started analysing its oil bearing potential and the feasibility for further processing. Oil shale contains large amounts of organic matter (kerogen), which yields substantial amount of oil when subjected to destructive distillation or pyrolysis. The synthetic oil, which is obtained by destructive distillation of oil shale, is known as shale oil. The process involves using high temperature and .pressure to extract the oil. The IndianOil study is being carried out in collaboration with the Directorate General of Hydrocarbons (DGH). Two-thirds of the oil shale resources are located in North America while Europe and Australia both account for approximately 12 per cent. Canada has already made huge investments in the exploitation of oil sands. Currently, the major shale oil producers are Estonia, Brazil and China, while Australia, USA, Canada and Jordan have planned to set up or restart shale oil production. In 2005, the global shale oil production was 6,84,000 tonnes and the largest shale oil producer was Estonia. China is also emerging as a major global producer. Several other countries are also conducting research on their oil shale reserves and production methods and India has now joined this club. Mr. Kumar said, “India would also look for collaboration with these established players to expedite the process. In India, oil shale is found in association with coal in Assam and Arunachal Pradesh. The coal-shale deposits occur as outcrops towards the south of the oil fields in a thickly forested region called the Belt of Schuppen. IOC's Digboi refinery is located in the vicinity.” The oil shale reserves in Assam are estimated at 137 billion tonnes with a recovery factor of 10-20 per cent. Currently, coal mining is being carried out in the area. The associated organic rich shale is dumped as waste material. Although the presence of oil shale is known, the exact position, thickness and extent of horizon have still to be mapped. Systematic exploration, sampling and analysis in potential areas are required. "We also need to explore the possibility of getting shale oil produced from some existing facilities for detailed characterisation and feasibility studies for processing and assessing processing capabilities," Mr. Kumar said. This step is important for economic feasibility as the quality of oil will help in assigning a value to it. The DGH is also in touch with a French agency to source the required knowhow. The Nagpur-based Mineral Exploration Corporation Ltd (MECL) will be involved with the exploration and mapping of the reserves as well. The potential world resources of shale oil are huge. Estimates of the global volume of potential shale oil, based on known reserves, range from 530 to 1,430 billion tonnes. This is three to nine times as much as the current proven conventional global oil reserves. Countries with huge reserves of tar sands and oil shale would become self-reliant in energy with the exploitation of these resources.