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Non-convention oil is oil extracted using techniques other than the traditional oil well method. Currently, non-conventional oil production is less efficient and some types have a larger environmental impact relative to conventional oil production. Non-conventional types of production include: tar sands, oil shale, bitumen, thermal depolymerization (TDP) of organic matter, and the conversion of coal or natural gas to liquid hyrdocarbon through the Fischer-Tropsch process. These non-conventional sources of oil may be increasingly relied upon for transportation fuel should conventional oil experience depletion. Conventional sources of oil are currently preferred because they provide a much higher ratio of extracted energy over energy used in extraction and refining processes. Technology, such as using steam injection in tar sands deposits, is being developed to increase the efficiency of non-conventional oil production.
Tar sands
A potentially significant deposit of non-conventional oil is the Athabasca Tar Sands site in north-western Canada as well as the Venezuelan Orinoco deposit. It is estimated by oil companies that the Athabasca and Orinoco sites (both of similar size) have as much as two-thirds of total global oil deposits but they are not yet considered proven reserves of oil. Extracting a significant percentage of world oil production from tar sands may not be feasible. The extraction process takes a great deal of energy for heat and electrical power, presently coming from natural gas, itself in short supply. There are proposals to build a series of nuclear reactors to supply this energy.
Oil shale
For much of the 20th century, the U.S. Naval Petroleum and Oil Shale Reserves served as a contingency source of fuel for the Nation's military. Set aside in the early 1900s, these government-owned petroleum and oil shale properties were originally envisioned as a way to provide a reserve supply of crude oil to fuel U.S. naval vessels in times of short supply or emergencies. The Reserves remained mostly undeveloped until the 1970s, when the Nation began looking for ways to maximize its domestic oil supplies. In 1976, Congress passed the Naval Petroleum Reserves Production Act authorizing full commercial development of the Reserves. The crude oil, natural gas, and liquid products produced from the Reserves were sold by DOE at market rates. Revenues were deposited to the U.S. Treasury.
For the two decades that the U.S. Department of Energy managed the Naval Petroleum and Oil Shale Reserves, the properties served valuable functions not only as a source of revenue for the U.S. Treasury but also as a model for improved oil field practices.
In 1996, however, Congress determined that the properties no longer served the national defense purpose envisioned in the early 1900s, and authorized steps towards potential divestment or privatization of them. As a result, in 1996, the government's share of the Elk Hills oil field in California was offered for commercial sale. On February 5, 1998, DOE completed its sale to Occidental Petroleum Corporation for $3.65 billion in the largest privatization of Federal property in the history of the United States.
Subsequently, the Department of Energy transferred two of the Naval Oil Shale Reserves, both in Colorado, to the Department of Interior's Bureau of Land Management. Like many other federally owned lands, these properties will be offered for commercial mineral leasing, primarily for natural gas production and future petroleum exploration. In 2000-2001, the Department also returned the Naval Oil Shale Reserve #2 in Utah to the Northern Ute Indian Tribe in the largest transfer of federal property to Native Americans in the last century.
While not considered a proven reserve of oil, it is estimated 2.0 trillion barrels (318 km³) are contained in oil shale deposits located in Colorado, Utah, Wyoming, Kentucky, Ohio and Indiana.
Bitumen
- Main article: bitumen
Thermal Depolymerization
TDP has the potential to recover a lot of energy from existing sources of waste as well as pre-existing waste deposits. Because energy output varies greatly based on feedstock, it is difficult to estimate potential energy production.
Coal and gas conversion
The conversion of coal and natural gas has the potential to yield great quantities of non-conventional oil albeit at much lower net energy output. Because of the high cost of transporting natural gas, many known but remote fields are not being developed. Conversion can make this energy available even under present market conditions.
See also
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