By Usama Jalal
KUWAIT, June 28 (KUNA) -- There has been a torrent of contradictory reports and information about shale oil and its feasibility, however one fact is contested, that cost of extraction a barrel of this oil is higher by USD 75 as compared to production of one of the crude produced with traditional means.
Although US officials have repeatedly said that the nation will be the number-one exporter of shale oil by 2025 or 2035 worldwide, many critics cast serious doubts at this strategic prospect.
For now, cost of a barrel of shale oil stands at USD 80-85 as compared to USD 3-6 per barrel of the "traditional oil," thus this fact is in favor of the critics who doubt the US forecast.
US prospects of eventually depending totally on shale oil are unrealistic, they said, noting that high demand for oil and foreseen enormous environmental dangers resulting from the extraction of shale oil from underground rock strata.
Solid shale oil reserves worldwide are now estimated at five trillion, including 3.3 trillion in the US and Canada, compared to 1.37 trillion of the traditional liquid oil.
Very sophisticated processes are warranted for extraction of both shale oil and shale gas. For extraction of one barrel of shale oil four barrels of water are needed for processing.
Energy companies and relevant quarters are seeking to limit the cost of producing shale oil at only USD 50 pb to render this new industry feasible. Indeed, modern technology has proven effective in exploring large regions in the north of US and Europe in search and pumping of the hidden precious oil. Moreover, tentative researches indicate at presence of shale oil in some regional countries, namely Saudi Arabia and possibly Kuwait. But the high cost of producing this type of oil has discouraged these countries from launching investment in this new sector. Moreover, the regional countries are rich in the traditional oil.
Experts forecast the shale oil industry will grow by six times by 2030, provided that affiliate facilities be built -- such as special refineries, cargo fleets and special financial systems.
The world, in case cost of producing shale oil is significantly dropped, may witness a new "oil revolution.
Currently, the US produces one million barrels of shale oil and larger volumes of shale gas, a fact that led to slashing the prices of gas by large. (end) uj.ysa.rk KUNA 281218 Jun 13NNNN