The Benefits of Oil Shale Production to Local, State and Federal Governments
Ft.McMurray in Alberta, Canada, grew from a sleepy town of 15,000 people in the 1960’s to the present thriving community of 75,000 because of the oil sands industry. It is expected that Vernal, Utah, and the surrounding area will experience similar growth.
Communities in the Canadian province benefit greatly because of the thriving oil sands industry. Royalties to Alberta and the provincial government equal approximately $15 million (Canadian) per day.
The State of Utah has much to gain in the near future as credible, experienced and well-funded companies like OSEC invest in the region’s oil shale.
Benefits to the State of Utah will include:
• Royalties paid to the federal government on BLM Lands, with portions of these royalties Dbeing paid to the state and local governments.
• Increased tax base
• Thousands of high paying jobs
• Increased economic activity
Oil Shale
Part of the solution to our energy problem can be found right here in
America—the development of our vast domestic resources of oil shale.
Oil shale is one of the most abundant and accessible energy sources in the country.
The U.S. geologic survey estimates there are 2.5 to 3 trillion barrels of proven resources of shale oil throughout the world. This is equivalent to one to two times the total world crude oil reserves.
Studies show that 72% of the world’s recoverable shale oil lies within the boundaries of the United States, in comparison to only 5% of the world’s recoverable crude oil. The United States’ largest oil shale reserves are located in the Green River Formation, the area composed of southern Colorado, eastern Utah, and western Wyoming. It is estimated that the Green River Valley contains approximately 1.5 trillion barrels of
proven resources from oil shale.That is enough oil to meet the United States’ present energy demands for the next 200 years.
 U.S. Senator Orrin Hatch (R-Utah) is actively working with the U.S.Department of Energy, Department of Interior and the Department of Defense to support the development of America’s oil shale resources. On a recent tour of the White River Oil Shale Mine in eastern Utah, Senator Hatch stated, “You’re talking about tremendous reserves—if we can recover up to one trillion barrels of oil, that’s more proven reserves than all of the proven reserves in the Middle East put together.”
What is Oil Shale?
Oil shale is a fine-grained, sedimentary rock that contains an organic material called kerogen. Kerogen can be heated, separated from the rock, processed and turned into liquid shale oil. The liquid shale oil is treated and refined into diesel and jet fuels as well as gasoline.
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Senator Orrin Hatch:
“As long as oil stays over $30-
40 a barrel, this is going to be
a tremendous project. It will
keep us the industrial leaders
of the world.” |
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Stuart Rose
Chairman, OSEC
“All of the money, instead of
flowing out of the United
States to overseas interests, is
going to stay in the United
States.” |
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Congressman James V. Hansen:
“It will be a very viable industry
and a great thing for the State of
Utah and for all of America. Most
importantly, it will allow America
to become less dependent on
foreign oil.” |
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