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Project Overview

Objective: Determine the most feasible method of shale oil production, analyzing subsurface designs, reservoir characteristics, surface processing facilities, and project scheduling.
Location: Often located in areas like the Colorado Rocky Mountains, characterized by low population and significant natural habitats.

Process: Involves mining the ore, using well-known technology.
Environmental Impact: Large environmental footprint due to open mines, emissions, and the "popcorn effect".

Process: Underground conversion of kerogen to oil and gas.
- Step 1: Heating kerogen in the ground to convert it into oil and gas.
- Step 2: Construction of a freeze wall and water removal to prevent environmental impact.
- Step 3: Production of hydrocarbons from the kerogen conversion.
- Step 4: Processing and transportation of the produced oil and gas.
Environmental Impact: Lower environmental impact compared to above ground retorting. This method is being explored by companies like Shell Oil with projects such as the Mahogany Project.

Analysis: Unsteady state 1D temperature profile created using tools like ANSYS.
Heater Placement: Heaters spaced 60 feet apart, with 25 heaters per acre.
Initial Reservoir Temperature: 150°F.
Boundary Conditions: Include freeze walls to prevent large environmental impacts.

Drilling Costs: Approximately $26.4 million for 250 heater wells and 80 producer wells per 10-acre plot, with each well costing around $80,000.
Freeze Wall Construction: Double wall pipes placed 8 feet apart, using calcium chloride brine at -10°F to create an impermeable barrier.

Production Schedule: Production planned on a 10-acre tract basis, with a target of 40,000 barrels per day per tract, and a new tract added every year.
Revenue Projections:
- Crude oil sales: Estimated at $130,680,000.
- Gas sales: Estimated at $35,640,000.
- Gas to power plant: Estimated at $420,000.
Total Piping Cost: Estimated at $173,840,000.

Location Impact: Significant impact on natural habitats due to large land clearings and drilling activities.
Emissions: Choice of power plant and on-site processing can affect emissions levels.

Site Preparation: Includes drilling wells, freeze wall formation, and water removal.
Production Phase: Involves continuous refrigeration and heating, water injection, and site reclamation.

Pipelines: Necessary for transporting the produced oil and gas to market.
Surface Processing Facilities: Required for oil and gas separation and further processing.