Resources:   Lands - Water - Energy  |  About Us  |  Events  | Media/Docs  |  Donate

Oil Shale Leasing

The United States is home to approximately 50% of the world’s oil shale deposits -- most of which are located in the Green River formation of western Colorado, eastern Utah, and southern Wyoming. This oil shale can, in theory, be heated to extreme temperatures of up to 700° F for conversion into low- to medium-grade oil -- literally creating oil from rock. In this region of the west, industry estimates that oil shale could be converted into up to 1 trillion barrels of oil. The problems of cost and serious environmental concerns, however, have so far kept this resource in the ground.

The idea of producing oil from oil shale is enjoying a popularity not seen in over 25 years. During the late 1970s and early 1980s, the oil industry poured billions of dollars into failed oil shale projects in western Colorado. Notwithstanding the high oil prices of the day, oil shale remained prohibitively expensive. That boom ended abruptly on May 2, 1982 -- Black Sunday -- the day that Exxon announced it would close its $5 billion Colony II project near Parachute, Colorado, putting 2,200 people out of work in a single day.

However, with oil prices climbing the time is apparently ripe to reconsider oil shale development. The Bureau of Land Management has asked the public for terms to be included in oil shale research and development leases, and WRA prepared comments detailing environmental concerns and recommending particular provisions to address risks to the landscape, communities, and human health. The U.S. Congress included provisions in the Energy Policy Act of 2005 that seek to accelerate activities related to eventual leasing and development of oil shale and tar sands resources.

In March 2008, WRA led 23 conservation groups in condemning the Bureau of Land Management's plan to open up 2.5 million acres of public land in the western United States for industrial oil shale development. WRA attorney David Abelson is the primary author of the group's comments to the Bureau of Land Management that specify the potential damages from oil shale development on wildlife habitat, recreation, and water supplies. Similar concerns have been raised outside of the conservation community, including Governor Bill Ritter's Administration, Front Range and Western Slope water providers, energy experts, and local governments. Click here to read the comments.

There’s an old saying in Colorado that “Oil shale has a fantastic future -- it always has, and it always will.” Despite the current flurry of interest, only time will tell whether development of oil shale will see the light of day, given its significant risks and exorbitant costs.

Oil Shale and Water Resources

Oil shale development is projected to have a dramatic effect on Colorado’s valuable water resources, yet estimates of the water needed for modern development methods have not been made public. WRA recently joined other conservationists calling on the energy industry to fully disclose to West Slope residents and government officials how development will impact water supplies and water quality. Before steps are taken which could lead to large-scale development, we need a thorough understanding about how water for oil shale development fits into the regional water needs for agriculture, recreation, fish and wildlife, and community growth.
For more information, click here (35KB).