OCR Text |
Show PcoraEio oil shale module necor Bonanza gains 10 sponsors Ten major energy companies have become industry sponsors for the commercial-size Paraho oil shale module design and demonstration plan recently awarded to Paraho Development Develop-ment Corporation by the Department of Energy (DOE) to be located in Uintah County about 40 miles southeast of Vernal. Ver-nal. The companies are Chevron Research Company (Standard Oil of California), Conoco, Inc., Devy McKee Corporation, Mobil Research & Development Corporation, Mono Power Company (Southern California Edison), Phillips Petroleum Company, Sohio Shale Oil Company (Standard Oil of Ohio), Sunoco Energy Development Co., Texas Eastern Synfuels, Inc., and The Cleveland-Cliffs Iron Company. Phase I work has begun and will cntinue for 18 months at a cost of about $9 million. During this time the planning, plann-ing, design, and cost estimates for the construction and operation of a single, above ground, commercial-size Paraho oil shale retort, a mine, and the supporting suppor-ting facilities will be completed. This will be followed by a Paraho proposal to construct the plant at a cost of around $200 million which will utilize the provisions provi-sions of the new Synthetic Fuels Act. Operation at the beginning of 1984 is anticipated. an-ticipated. This Paraho module will process about 18,000 tons of oil shale per day, producing over 10,000 barrels of crude shale oil plus a product gas which will be used for the generation of electricity. Expansion of this facility to 30,000 barrels bar-rels per day of shale oil production is under consideration and may become - the subject of a separate study. Commercial-size modules represent the next logical step in the development of the vast oil shale resources of the United States and of the rest of the world," Harry Pforzheimer, Jr., President Presi-dent and Chief Executive Officer of Paraho said. "Paraho's technology has been demonstrated to be environmen- tally acceptable and operationally viable on a semi-works scale. "Economic projections to a full size commercial plant, incorporating a 75 guaranteed loan is provided in the new energy legislation, produce attractive rates of return assuming no cost overruns over-runs during construction, start-up on schedule, followed by continuous operation." opera-tion." "Paraho's successful demonstration of a combination of attractive economics and good operability in commercial-size equipment should result in the construction of more oil shale plants and the attainment of this country's national shale oil production goals provided we can get on with the job without further delay," Pforzheimer Pfor-zheimer said. Paraho has produced over 4,600,000 gallons of crude shale oil utilizing its patented technolgy at the Anvil Points Facility near Rifle, Colorado. John B. Jones, Jr., inventor of the Paraho technology said, "We want to continue our research at Anvil Points which we lease from DOE. However, the commercial com-mercial size Paraho oil shale module will be sited on Paraho's Utah State lease situated 40 miles southeat of Vernal." Ver-nal." Paraho has developed a working team of project subcontractors for the module project. The team consists of The Standard Oil Company of Ohio (SOHIO), The Cleveland-Cliffs Iron Company, Davy McKee Corporation, VTN Consolidated, Inc., AeroViron-ment, AeroViron-ment, Incorporated, and Woodward- More than one-third of the physicians who graduate from medical schools in this country each year receive some of their traning in Veterans Adminsitraiton medical centers. Clyde Consultants. Under Paraho's management, this project team will be responsible for performing the scope of work indicated in the DOE agreement. Sohio will be Paraho's primary subcontractor. subcon-tractor. Oil shale is a sedimentary rock containing con-taining the solid hydrocarbon known as kerogen. This rock is mined and crushed crush-ed before processing by Paraho. The retort heats . the shale to 900" Fahrenheit, causing the kerogen to break down into oil vapers, gases, and carbon. When cooled, the vapors form . an oil mist. The mist is collected and separated, producing oil for refining and a useable gas, for generating electicity. Some of the carbon is burned to fuel the Paraho process and some is gasified increasing the production of useable gas and the thermal efficiency of the Paraho process. pro-cess. Paraho shale oil has been refined successfully suc-cessfully in commercial equipment under programs sponsored by the U.S. Navy. The resulting jet fuels, diesel fuels, gasoline, and heavy fuel oil have all been thoroughly tested in the laboratory and in full size mobil equipment. equip-ment. Approximately two trillion barrels of shale oil exist in the tri-state area of Colorado, Utah and Wyoming. The Department of Interior has reported the 600 billion barrels of this oil are recoverable with present technology. This is more than the proven reserves of natural crude oil in the entire world. |