Israel: Oil Shale
April 7th, 2011Via: Energy Tribune:
Harold Vinegar, the former chief scientist of Royal Dutch Shell, has devised an ambitious plan that would, if successful, turn Israel into one of the world’s leading oil producers. Now chief scientist for Israel Energy Initiatives (IEI), Vinegar maintains that the 238 sq km Shefla Basin holds the world’s second largest shale deposits outside the United States, from which around 250 billion barrels of oil – about the same as Saudi Arabia’s proven reserves, could be extractable. IEI estimates the marginal cost of production at between US$35 and US$40 per barrel. That, says Vinegar, would be cheaper than the US$60 or so per barrel it would cost to extract crude oil in more hospitable locations such as the Arctic, and even favourably with the US$30-US$40 in Brazilian deepwater.
IEI, owned by the American telecom giant IDT Corp, anticipates starting commercial production by 2020, producing 50,000 barrels a day initially. While that figure is a fraction of the 270,000 barrels per day Israel currently consumes, Vinegar maintains it is a further key step toward achieving energy independence. Vinegar proposes thermal recovery for Israeli shale oil.
The IEI shale oil project has already attracted serious interest from investors. In November last year, Jacob Rothschild and media mogul Rupert Murdoch bought an $11million stake in Genie Oil and Gas, the division of IDC that is the parent company of IEI. Genie’s advisory board also includes former vice-president Dick Cheney and hedge fund investor Michael Steinhardt. But it seems development funding is likely to be no bar to the Shefla project. Vinegar states, “Funding is not needed for the pilot and demonstration, although once we are getting 50,000 barrels per day, we would want to have a partner. We have been approached by all the majors.”
Mr Vinegar,
Your name and oil don’t mix.