Shale Oil

In a previous post we talked about the need to drill here drill now to help overcome our oil supply issues which is really driving up the price of oil and putting pressure on the economy. There have been reports of a lot of oil still left in the United States either in Alaska or off the Atlantic coast. There is Oil in these locations but there is a lot more in the form of what is termed Shale Oil. There is a lot more of this Oil in deposits through out the US. A lot of this is in the State of Utah.

Utah has many times been referred to as the gold mine of the United States because of the rich concentration of all type of minerals found in the State. The majority of the copper available in the US comes from Utah as well as Silver and lot of other minerals. Well it has shale oil too and a company is working on a plan to extract that oil and use it for the United States.

Petroleo Brasileiro SA, Mitsui & Co. and Oil Shale Exploration Co. may produce shale oil in Utah for $45 to $50 a barrel as early as 2013, said Demarco Epifanio, the Petrobras executive responsible for the project.
 

The company will first need to conduct a viability study to determine whether its a viable project, but many experts believe there could be enough Oil in these deposits to power the United state’s Oil energy needs for the next 60 years. If the study produces the anticipated results then Petroleo will build a shale-oil plant in 2010 and will start production of usable oil between 2013 and 2015. OSEC, the acronym for the company    Petrobras, Mitsui and Oil Shale Exploration Co., signed an agreement Monday to study the extraction of oil from shale deposits in Utah. This could be good news for our oil strapped country and should help slow down the rampant speculation of oil futures which is one of the main reasons prices has increased so rapidly.

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