American Shale Oil
Encyclopedia
The American Shale Oil, LLC (AMSO), formerly known as EGL Oil Shale, LLC, is a developer of in-situ shale oil extraction technology. It is owned 50% each by Genie Oil and Gas
, an affiliate of IDT Corporation, and Total S.A.
.
to develop and demonstrate its in-situ oil shale extraction technology in Western Colorado
. On 22 January 2008 IDT Corporation and EGL Resources signed an agreement, according to which IDT acquired 75% of EGL Oil Shale and renamed it AMSO, LLC. AMSO was formed on 15 February 2008. Shortly thereafter, IDT bought an additional 15% of AMSO. Subsequently, on 3 March 2009, French oil major Total bought 50% of AMSO's shares for $3.2 million, with EGL Resources selling their remainder and IDT retaining 50%. Genie Energy, a subsidiary of IDT, is the operating partner.
ing of generated oil and a means to collect and produce the oil. The only fluids injected into the formation are recycled fractions of the produced oil in order to optimize the properties of the in-situ oil pool for reflux
ing. AMSO has proposed that permeability of the formation sufficient for convection will be achieved by thermomechanical fracturing. (The original technology proposed by EGL was based on hydraulic fracturing.)
AMSO believes that by heating the rock more quickly than Shell plans to - 3 to 12 months as opposed to several years - the CCR process will consume less energy and require fewer wells.
Researchers at Petrochina
who reviewed AMSOs proposed technology in 2008 noted that the output of oil and gas could be faster, but felt that the technical complexity and costs of the proposed technology were shortcomings, and also noted that the fluid flow would be difficult to control and easy to "short-circuit."
. AMSO is also supported by AMSO and Genie staff at the Genie office in Newark, New Jersey
. According to an SEC filing by IDT in October 2011, AMSO had four full-time employees and fixed assets of US$15,000. The company is leasing a 160 acres (647,497.6 m²) test tract in the Piceance Basin
from the Bureau of Land Management
.
On October 4 2011, AMSO notified the Colorado Division of Reclamation, Mining, and Safety of the need for a Mechanical Integrity Test of its pilot well, due to possible inadequacy of well construction, which could cause contamination of the acquifer overlaying the retort test formation.
, the founder and chairman of IDT Corporation. The president is Claude Pupkin. The chief technology officer and project manager is Alan K. Burnham, and the vice president for operations is Roger L. Day.
Genie Energy
Genie Energy Ltd. is an energy company headquartered in Newark, New Jersey. It is a holding company comprising IDT Energy, a retail energy provider, and Genie Oil & Gas, which controls the company's ventures in oil shale research and development in Colorado and Israel. Genie is part of IDT...
, an affiliate of IDT Corporation, and Total S.A.
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...
.
History
EGL Oil Shale was established as a subsidiary of EGL Resources, a privately owned independent oil and gas company with operations in the southwestern United States. In 2006, it was awarded a lease by the United States Bureau of Land ManagementBureau of Land Management
The Bureau of Land Management is an agency within the United States Department of the Interior which administers America's public lands, totaling approximately , or one-eighth of the landmass of the country. The BLM also manages of subsurface mineral estate underlying federal, state and private...
to develop and demonstrate its in-situ oil shale extraction technology in Western Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
. On 22 January 2008 IDT Corporation and EGL Resources signed an agreement, according to which IDT acquired 75% of EGL Oil Shale and renamed it AMSO, LLC. AMSO was formed on 15 February 2008. Shortly thereafter, IDT bought an additional 15% of AMSO. Subsequently, on 3 March 2009, French oil major Total bought 50% of AMSO's shares for $3.2 million, with EGL Resources selling their remainder and IDT retaining 50%. Genie Energy, a subsidiary of IDT, is the operating partner.
Technology
American Shale Oil is developing a process called "Conduction, Convection, Reflux" (CCR) oil shale conversion. The process combines horizontal wells, which are heated by a downhole burner or other means, and other horizontal or vertical wells, which provide both heat transfer through refluxReflux
Reflux is a technique involving the condensation of vapors and the return of this condensate to the system from which it originated. It is used in industrial and laboratory distillations...
ing of generated oil and a means to collect and produce the oil. The only fluids injected into the formation are recycled fractions of the produced oil in order to optimize the properties of the in-situ oil pool for reflux
Reflux
Reflux is a technique involving the condensation of vapors and the return of this condensate to the system from which it originated. It is used in industrial and laboratory distillations...
ing. AMSO has proposed that permeability of the formation sufficient for convection will be achieved by thermomechanical fracturing. (The original technology proposed by EGL was based on hydraulic fracturing.)
AMSO believes that by heating the rock more quickly than Shell plans to - 3 to 12 months as opposed to several years - the CCR process will consume less energy and require fewer wells.
Researchers at Petrochina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
who reviewed AMSOs proposed technology in 2008 noted that the output of oil and gas could be faster, but felt that the technical complexity and costs of the proposed technology were shortcomings, and also noted that the fluid flow would be difficult to control and easy to "short-circuit."
Operations
AMSO's operating office is located in Rifle, ColoradoRifle, Colorado
The City of Rifle is a Home Rule Municipality in Garfield County, Colorado, United States. The population was 6,769 at the 2000 census. Rifle is a regional center of the cattle ranching industry located along Interstate 70 and the Colorado River just east of the Roan Cliffs, which dominate the...
. AMSO is also supported by AMSO and Genie staff at the Genie office in Newark, New Jersey
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
. According to an SEC filing by IDT in October 2011, AMSO had four full-time employees and fixed assets of US$15,000. The company is leasing a 160 acres (647,497.6 m²) test tract in the Piceance Basin
Piceance Basin
The Piceance Basin is a geologic structural basin in northwestern Colorado, in the United States. It includes geologic formations from Cambrian to Holocene in age, but the thickest section is made up of rocks from the Cretaceous Period...
from the Bureau of Land Management
Bureau of Land Management
The Bureau of Land Management is an agency within the United States Department of the Interior which administers America's public lands, totaling approximately , or one-eighth of the landmass of the country. The BLM also manages of subsurface mineral estate underlying federal, state and private...
.
On October 4 2011, AMSO notified the Colorado Division of Reclamation, Mining, and Safety of the need for a Mechanical Integrity Test of its pilot well, due to possible inadequacy of well construction, which could cause contamination of the acquifer overlaying the retort test formation.
Management
The company's chairman and chief executive officer is Howard JonasHoward Jonas
Howard S. Jonas is the founder of IDT Corp.Jonas founded IDT Corp. in August 1990 and has served as Chairman of the Board since its inception...
, the founder and chairman of IDT Corporation. The president is Claude Pupkin. The chief technology officer and project manager is Alan K. Burnham, and the vice president for operations is Roger L. Day.