Let’s talk about another unconventional energy source: oil shale, which will be discussed this week by the House Natural Resources Committee as it considers legislation to promote access to U.S. resources. By all accounts this resource base is enormous. The largest and highest quality oil shale deposits are in sparsely populated areas of Colorado, Utah and Wyoming, and the potentially recoverable oil from Western U.S. oil shale deposits is estimated at more than 800 billion barrels, or nearly three times the proven oil reserves of Saudi Arabia (267 billion). In its September 2011 report on North American resources, the National Petroleum Council notes that given the right technological advances, the potential of oil shale could be significant in terms of energy and jobs.
Several technologies have been developed around the world to make oil shale commercially viable in countries including Brazil, China and Estonia. With the United States holding nearly three times the proven oil reserves of Saudi Arabia in shale oil, we need the right policies to set the stage for commercial viability.
Some argue oil shale shouldn’t be pursued as a resource, claiming it will never be commercially viable – apparently unaware of its commercial success in other countries. If anything, the energy from shale revolution in this country as well as the continued development of alternative and renewable energy sources suggest no potential resource should be dismissed because of its current commercial viability.
The president is right: an all-of-the-above approach is the best path for securing America’s energy future. In oil shale, the United States has another vast energy resource that can’t be dismissed – one that would be best developed by industry and the marketplace, guided by clear policies and a stable regulatory regime.
Kennedy is a policy advisor for upstream and industry operations at API.