Oil Shale Challenges and Opportunities

There may be vast amounts of oil waiting to be unlocked from shale deposits, which could help defer concerns about peak oil farther in the future. But there are also challenges to tapping this unconventional source, according to the U.S. Government Accountability Office.

Opportunities:

• Oil shale deposits in the Green River Formation (Colorado, Utah, and Wyoming) may contain 3 trillion barrels of oil. Half of this may be recoverable, matching the entire world’s known oil reserves.
• Developing shale oil resources could create jobs, increase wealth, and enhance government revenues in tax and royalty payments.

Challenges:

• Development projects could compromise habitats, displace wildlife, strain water and power resources locally, and affect the quality of surface and groundwater.
• Oil-shale processing could also contribute to long-term increases in air pollution.
• The skills required by the jobs created would likely require an influx of new workers and their families, adding stress to local infrastructure and resources.

Source: U.S. Government Accountability Office, www.gao.gov.