What is shale oil: types, production methods, the most important facts

Everyone has heard about the "shale revolution" and the "shale boom" in the USA, but few people have any idea, shale oilhow it is extracted and whether it is as big a threat as "classic" oil.

Types of shale oil

Shale oil is a mineral and, like "classic" oil, is formed from organic residues influenced by certain geological factors.

In the modern energy industry, depending on the method of production, two types of shale oil are distinguished:

• Low-permeability oil (Tight Oil)

This type of oil consists of light fractions and is found in formations with low permeability, which is the reason for the name. To extract low-permeability oil, hydraulic fracturing and drilling of horizontal wells are used.

• Shale Oil (Shale Oil)

Shale oil is produced from kerogen, a special substance found in shale rock. In essence, kerogen is a substance that turns into ordinary oil. To accelerate this process, it is heat-treated directly in the well, which results in shale oil.

Shale oil production

Two methods of shale oil extraction are the most widely used:

• Obtaining shale oil on the surface

In this method, the oil-bearing rock is fed upwards, where it is processed in special units, where it is separated into oil fractions.

• Getting shale oil at depth

This method is used when oil-bearing rock is located at great depths. For this purpose, the technology of drilling horizontal wells into which water is supplied under pressure is used. Under the influence of hydrostroke the so-called hydraulic fracturing occurs. The multiple cracks in the oil-bearing rock begin to release the oil contained in it, which is pumped to the surface.

It is worth noting that the method of using hydraulic fracturing carries significant dangers. The consequence of this technology is ground subsidence, seismic shocks, oil and methane getting into underground groundwater.

The second method of shale oil extraction is the most widespread.

Both methods of shale oil production are not cheap. The cost of a barrel of oil produced by the first method is 90-100 dollars, while the cost of a barrel of oil produced by hydraulic fracturing is about 50-60 dollars.

5 facts about shale oil you need to know

• Fact one

Experts estimate that the world's shale oil reserves amount to about 300 billion barrels, of which 24 billion barrels are located in the United States. Given the current level of consumption, these reserves will be sufficient for more than 300 years.

• Fact Two

The extraction of shale oil is not economically feasible everywhere. In order for shale oil extraction to be economically feasible, the oil-bearing rock of the field must contain at least 90 liters of oil in one ton of oil shale. In addition, the oil-bearing formation must be at least 30 meters thick.

The criterion of 90 liters of oil per ton of rock is met by only 1/3 of all shale oil fields, and the criterion of the required reservoir thickness is even less.

• Fact three

The use of modern technologies makes it possible to produce from 0.5 to 1.25 barrel shale oil from one ton of oil-bearing shale rock.

• Fact four

During the first year of operation of a shale well, the volumes of oil and gas produced significantly exceed the production volumes of "classic" fields. After the first year, the production volume drops by 80%.

• Fact five

The largest shale oil field in the world is the Bakken, North Dakota, USA. Shale oil production at the Bakken site has been underway since 2000. The estimated volume of shale oil reserves is 3.65 billion barrels.

Despite more than fifteen years of experience, the technology of shale oil production is still at the initial stage of development. The cost of shale oil, despite its gradual reduction, still significantly exceeds the cost of production of "classic" oil. Therefore, in the near future, it is unlikely to expect a repeat of the shale revolution in the oil market, as it was in the gas segment, and shale oil reserves should be regarded as a promising reserve energy resource for the future.