#1 You'd think this would be oil shale's moment.
06-07-2008, 04:24 PM
- Join Date
- Aug 2005
Fortune talks to Sens. Orrin Hatch and Wayne Allard about the roadblocks to oil shale production.
You'd think with gas prices topping $4 and consumers crying uncle, Congress would be moving fast to spur development of a domestic oil resource so vast - 800 billion barrels of recoverable oil shale in Colorado, Utah and Wyoming alone - it could eventually rival the oil fields of Saudi Arabia.
You'd think politicians would be tripping over themselves to arrange photo-ops with Harold Vinegar (whom I profiled in Fortune last November), the brilliant, Brooklyn-born chief scientist at Royal Dutch Shell whose research cracked the code on how to efficiently and cleanly convert oil shale - a rock-like fossil fuel known to geologists as kerogen - into light crude oil.
You'd think all of this, but you'd be wrong.
Last month, the U.S. Senate's Appropriations Committee voted 15-14 to kill a bill that would have ended a one-year moratorium on enacting rules for oil shale development on federal lands (which is where the best oil shale is located). Most maddening of all - at least to someone like myself not steeped in the wacky ways of Washington - the swing vote on the appropriations committee, U.S. Sen. Mary Landrieu, D-La., voted with the majority even though she actually opposes the moratorium.
"Sen. Salazar asked me to vote no. I did so at his request," Landrieu told The Rocky Mountain News. A Landrieu staffer contacted by Fortune doesn't dispute this, but notes that Landrieu did propose a compromise which Republicans rejected.
She was speaking of U.S. Sen. Ken Salazar, D-Colo., who has emerged as the Senate's leading oil shale opponent. Salazar inserted the aforementioned moratorium into an omnibus spending bill last December, and in May he proposed a new bill that would extend the moratorium another year.
Salazar's efforts have essentially pulled the rug out from under Shell (RDSA) and other oil companies which have invested many, many millions into oil shale research since the passage of the Energy Policy Act of 2005, which established the original framework for commercial leasing of oil shale lands. (Last year, oil shale represented Shell's single biggest R&D expenditure.)
Salazar says he's simply trying to slow things down in order to ensure environmental considerations don't get trampled in the rush to turn western Colorado into a new Prudhoe Bay. But, ironically, his bid to extend the moratorium comes at a time when his fellow Senate Democrats have been blasting Big Oil for not reinvesting enough of their profits into developing new sources of energy.
06-07-2008, 05:44 PM
- Join Date
- May 2008
That is just one more stake in Mary L. heart when she runs for re-election. Her popularity among LA democrats is hanging by a thread with her liberal voting record. She will have a tough time getting re-elected.
Another idiotic idea the Dummies in Congress are considering is banning Canadian oil derived from oil shale because the wackoo env. claim it is destroying the env. Since we import more oil from Canada than any other country, it's not a good idea to piss them off cause they can always sell their oil to China.
The reason for the congressional hearing was an attempt to put the oil exec. in a bad light. It did not work because the majority of Americans blame Congress for the high prices plus they are wise to the fact that taxing the crap out of these companies will not make the price go down.
Last edited by lacarnut; 06-07-2008 at 05:54 PM.
06-07-2008, 09:28 PM
As ALWAYS it is the Democrats that are blocking our energy independence and are responsible for the prices we are paying at the pump.
Do you think the Press will EVER call them on it????
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