<DrumBeat: May 12, 2008 The Oil Drum The Impact Of Rising Oil Prices On Sydney Suburbs>

59 comments on Shell's Shale Plans...? (or Why I Am an Oil Shale Skeptic)

Comments can no longer be added to this story.

| Show without comments | PDF version

moabite on May 12, 2008 - 11:20am Permalink | Subthread | Comments top

There are many problems related to water and oil shale. The water rights laws in CO are very restrictive and very specific about who gets water, and when they get water.

Water rights are prioritized Senior to Junior based on the filing date of the claim. Water rights were doled out in CO beginning in the 1850-60 time frames, based on crude estimates of flows of surface water. It is a complex set of rules. Generally water rights apply to surface rights, and wells are under different rules, but still related to surface rights. For example, you can not drill a water well and start pumping a lot of water out of an area without owning surface rights in the same basin. This is in recognition that water in the ground came from, and is part of, the surface flow system.

I have a hard time believing they will ever get enough water. First of all, flows in the Colorado River, which is the main source of water in the area, are also subject to the Colorado River compact signed by Colorado, Utah, New Mexico, Wyoming, Arizona, Nevada and California. This in itself is another hugely contentious issue. A new agreement on use of the water was hammered out just a few months ago, and I doubt massive diversions for oil shale were included. They have been studying how to get water for shale out of the Colorado since the late-60's.

Part of the problem is that the amount of water allocated via water rights exceeds the actual amount of water available in a low water year. What happens during a low water near is interesting. If the flows are 70%, it isn't a 70% across the board decrease in the amount of water given to the holders of the water rights. The Senior holders get ALL of their water, one by one, starting with the oldest water right, and going until the water runs out. Junior rights get full amounts some years, none in others. I doubt an industrial process likes the idea of shutting down during low water years. I guessing part of the plans will include massive new reservoirs to prevent low water year issues.

Here is a good website http://www.crwcd.org .

Comments can no longer be added to this story.
jeffvail on May 12, 2008 - 12:23pm Permalink | Subthread | Parent | Comments top

Additionally, the Colorado River Compact was based on climatology estimates from what we now know was an anomalously wet period--the result is that current estimates are that the river is over-allocated during most years. This hasn't been a problem in the past, as allocations for Utah and Western Colorado were generally not fully used. Now, however, with additional population growth in Utah and Western Colorado, as well as greatly increased demand for water-intensive coal-bed methane production in those regions, the over-allocation problem is very real. There are many competing demands on the Colorado River: provide water to suburbia in Southern California and the Southwest, generate hydroelectricity via Glen Canyon dam (the most threatened at the moment), irrigate croplands in the Southwest, maximize coal-bed methane production, produce significant quantities of oil shale. Pick three.

Comments can no longer be added to this story.
Rich Walden on May 12, 2008 - 6:52pm Permalink | Subthread | Parent | Comments top

If Shell is buying water rights they get the senority that goes with those rights. they do not go to the end of the line.

Comments can no longer be added to this story.
moabite on May 13, 2008 - 9:28am Permalink | Subthread | Parent | Comments top

Absolutely. In fact the story in the Denver Post mentioned the seniority of some of the rights. But there is no way Shell can line up all of the senior rights in the area, which means that during low water years they will be subject to production curtailment. Furthermore, there is an absolute requirement to allow a certain amount of water to pass through the Colorado/Utah border, in essence a huge senior water right.

The way around this problem is to build reservoirs. Look for those proposals soon if Shell is serious, as reservoir permitting and build is a long process.

Comments can no longer be added to this story.

59 comments on Shell's Shale Plans...? (or Why I Am an Oil Shale Skeptic)

Comments can no longer be added to this story.

| Show without comments | PDF version