Israel turning to shale for fuel as oil prices remain high
Talk about being in a tight spot.Israel imports most of its fuel. Continued high oil prices and surrounding hostile oil-producing countries have prompted the country to look into alternatives fuel sources.
One possibility is oil shale. The dark rock is abundant in the country and already used in power plants. Previously the costs of obtaining oil from the shale had been expensive compared to oil imports. But now, with current crude oil prices hovering at $70 a barrel and a new oil shale processing technology, Israel can produce fuel oil from shale that costs less than $20 a barrel.
Full details of the technology can be found in the article. A.F.S.K. Hom Tov, the company which owns the patent to the new process, has also developed a method to use the shale byproduct as even more fuel. The company is currently seeking mining rights from the government and is in talks with the friendly country of Jordan to access its oil shale supplies.
[Source: BusinessWeek via MSNBC]
Reader Comments (Page 1 of 1)
Schneegz 7:56AM (7/10/2006)
Talk about a tight spot! Israel's lack of energy independence is even more troubling (for them) than our own!
Shale oil is abundant in the US and Canada. The only reason we haven't used it much in the past is that it is more expensive to process than crude oil. As prices of crude rise, however (about $73/barrel today), shale oil production becomes increasingly more economically viable.
It's just not "green".
Reply
Phil Skergan 12:32PM (7/20/2006)
Numerous problems prevent shale oil development in addition to the cost. The new Israeli technology probably creates a couple more issues, though it sounds like a good innovation. Oil may not be renewable, but it's valuable. But shale oil would not only be "not green" - it would be an environmental nightmare for dubious benefit. It would cost more energy or nearly as much energy as the resulting products. Shell Oil is the only company with an idea, but it is energy intensive, fairly dirty, and they won't know if it is cost-effective for several years. Risk and opportunity cost direct oil companies away from shale and toward better investments.
Reply