Sr Ntjlhketic ® OIL SHALE COAL OIL SANDS VOLUME 23
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Sr ntJlhketic ® OIL SHALE 0 COAL 0 OIL SANDS VOLUME 23 - NUMBER 4 — DECEMBER 1986 QUARTERLY Em Reposiro J:urLpfrng Library 0 THE PACE CONSULTANTS INC. ®Reg. U.S. Pt. OFF. Pace Synthetic Fuels Report is published by The Pace Consultants Inc., as a multi-client service and is Intended for the sole use of the clients or organizations affiliated with clients by virtue of a relationship equivalent to 51 percent or greater ownership. Pace Synthetic Fuels Report is protected by the copyright laws of the United States; reproduction of any part of the publication requires the express permission of The Pace Con- sultants Inc. The Pace Consultants Inc., has provided energy consulting and engineering services since 1955. The company's experience includes resource evalua- tion, process development and design, systems planning, marketing studies, licensor comparisons, environmental planning, and economic analysis. The Synthetic Fuels Analysis group prepares a variety of periodic and other reports analyzing developments in the energy field. THE PACE CONSULTANTS INC. SYNTHETIC FUELS ANALYSIS MANAGING EDITOR Jerry E. Sinor Past Office Box 649 Niwot, Colorado 80544 (303) 652-2632 BUSINESS MANAGER Ronald L. Gist Post Office Box 53473 Houston, Texas 77052 (713) 669-8800 Telex: 77-4350 CONTENTS HIGHLIGHTS A-i I. GENERAL CORPORATIONS Import Fee Gathers Support 1-1 API Accepts Concept of Import Fee 1-2 GOVERNMENT Western Governors Urge Import Fee 1-3 DOE Synfuels Budget Cut 22% for 1087 1-3 Department of Energy Promotes Cooperative Ventures 1-3 ENERGY POLICY AND FORECASTS Chemical Engineers Push for Synthetic Fuels Funding 1-5 G RI Forecast Features Adequate Gas Supplies at Lower Prices 1-5 Bankers Trust Forecasts New High in Oil Imports 1-6 Conoco Forecast Sees Continuing Fall in U.S. Domestic Oil Supply 1-7 TECHNOLOGY Methanol to Ethanol Route May have Advantages i-lU INTERNATIONAL IEP and Idemitsu Kosan Report Process for Higher Alcohols from Syngas 1-12 Japan's RAPAD Reports R&D Progress in Synthetic Fuels 1-13 ENVIRONMENT Chemical Basis for Mutagenicity in Synthetic Fuels Traced 1-18 BLM Proposes New Procedures for Areas of Critical Environmental Concern 1-20 RESOURCE IGT Calculates World Reserves of Fossil Fuels 1-23 RECENT GENERAL PUBLICATIONS/PATENTS 1-26 COMING EVENTS 1-27 II. OIL SHALE PROJECT ACTIVITIES Eastern Oil Shale In Situ Project Completes Blast Test 2-1 Cliffs Engineering, Allis-Chalmers Complete Indiana Cost Estimate 2-1 Unocal Restarts Parachute Creek Plant After Turnaround 2-2 White River Project Turned Over to BLM 2-3 SYNTHETIC FUELS REPORT, DECEMBER 1986 CORPORATIONS New Oil Shale Development Corporation Formed 2-4 New Oil Shale Association Formed 2-4 GOVERNMENT DOE Oil Shale Program Focuses on Year 2000 Feasibility 25 TECHNOLOGY Phillips Patents Sulfur Recycle Retorting System 2-8 Additives Increase Yield from Beneficiated Shale 2-0 Effect of Nitrogen on FCC Catalysts Clarified 2-13 Patent Issued for Retorting Process Using Coal 2-14 INTERNATIONAL Petrosix Studies Fluid Bed Combustion of Retorted Shale 2-17 SPP/CPM Excavate Bulk Sample of Stuart Oil Shale for Testing 2-18 Jordan Ships Oil Shale to China 2-18 Israel Electric Joins Oil Shale Power Plant Project 2-18 New Brunswick Oil Shale Pyrolyzed in Spouted Bed 2-18 Combustion of Australian Spent Shales Compared 2-20 ENVIRONMENT BL M Issues Final EIS for Tract C-a Offsite Lease 2-21 Draft ElS Issued for Wolf Ridge Nahcolite Mine 2-26 Colorado Wildlife Commission Approves Wildlife Mitigation Banking 2-30 BLM to Prepare New Wilderness EIS in Northwest Colorado 2-30 WATER Compromise Developed to Protect Endangered Fish in Colorado River 2-32 RESOURCE Court Supports Ute Tribe in Utah Case 2-34 New Paraho Corporation Sets Utah Land Exchange 2-34 Oil Shale Land Transfers Finalized 2-35 RECENT OIL SHALE PUBLICATIONS/PATENTS 2-37 STATUS OF OIL SHALE PROJECTS 2-42 III. OIL SANDS PROJECT ACTIVITIES PanCanadian Frog Lake Project Detailed 3-1 AOSTRA Gets Underground Drill Rig 3-2 Shell Dedicates Peace River Expansion Project 32 Government Assistance Finalized for Biprovincial Upgrader 3-3 Syncrude May Delay Completion of Expansion 3-3 CORPORATIONS Solv-Ex Details Process Development Activities 3-4 ORS Corporation Reports Progress on Projects 3-5 Suncor Sees Loss in Oil Sands, Shelves Burnt Lake 3-6 Shell Canada Notes Drop in Earnings 3-6 ii SYNTHETIC FUELS REPORT, DECEMBER 1986 Re-Structured Gull Canada Shows Changes in Earnings 3-7 Oleophilic Sieve Seeks Interest in Public Offering 3-8 GOVERNMENT DOE Small Business Program Solicits EOR and Tar Sands Projects 3-11 Alberta Provides Aid Package for Oil Industry 3-12 AOSTRA Issues Ten-Year Review 3-12 ENERGY POLICY & FORECASTS Unitar Sees Favorable Outlook for Heavy Crude and Tar Sands 3-13 Suncor Estimates Operating Costs at C820/Barrel 3-14 ECONOMICS Heat Pipe Process Could Produce Syncrude for Operating Cost of 513.32/13111, 3-16 Lewin Estimates Two Billion Barrels of U.S. Tar Sand Recoverable at Mid $ 2 0fRB L 3-19 TECHNOLOGY In Situ Hydrogenation Process Developed by WorldEnergy Systems 3-22 Horizontal Well Technology Advances 3-25 Heavy Liquid Beneficiation Developed for Alabama Tar Sands 3-30 Texaco Patents Horizontal Well Technique 3-31 INTERNATIONAL China Shows Increasing Interest in Heavy Oil and Oil Sands 3-34 WATER Water Treatment Needs Calculated for In Situ Tar Sands Production 3-36 RESOURCE Tar Sands Units Dissolved, Formed 338 Utah Tar Sands Resources to Be Mapped 3-38 Trapper Canyon Deposit Illustrates Travails of Tar Sand Development 3-38 RECENT OIL SANDS PUBLICATIONS/PATENTS 3-41 STATUS OF OIL SANDS PROJECTS 3-43 IV. COAL PROJECT ACTIVITIES Second Phase of KILnGAS RAM Program to Be Completed in December 1986 4-1 Dow Syngas Project on Schedule for 1907 Start Up 43 Shell Coal Gasification Process to Start Up in 1987 4-5 Cool Water Program Passes Half-Way Point 4-6 Rheinbraun High-Temperature Winkler Plant Starts Up 4_8 PRENFLO Gasifier Starts Up in August 4-9 Scotia Synfuels to Buy Nova Scotia Refinery 4-11 CORPORATIONS Sasol Reports Increase in Profit for 1985-86 4-12 SGI Montana Project Delayed, Others Planned 4-13 Coal Extraction Research Center Reports Successful Year 4-14 iii SYNTHETIC FUELS REPORT, DECEMBER 1986 G u V E K N M ENT DOE Solicits Interest in Coal R&D Activities 4-16 ENERGY POLICY & FORECASTS 10CC to Be Favored Option for Utility Power Plants 4-17 ECONOMICS Uses Found for Gasification Slag 4-20 Army Studies Economics of Coal Gasification/Fuel Cell Cogeneration 4-22 TECHNOLOGY SCI's LFC Process Planned for Scaleups 4-27 IGT Tests Internally Recirculated Gasification Catalyst 4-3t) Improved Sulfur Removal Processes Evaluated for 10CC 4-32 r,i PG International to ri arket Kinetic Extruder 4-34 INTERNATIONAL MIP Process Tests Coal Gasification in Liquid Iron Bath 4_37 USSR Sees Advantages for Fluid fled and Underground Coal Gasifiers 4-38 USSR Studies Plasmatron Coal Gasification Process 4-39 Nynacs Gasification Complex Hit with Setbacks 4-39 South Australia to Build High-Temperature Winkler Gasifier 4-40 Israeli Co-Retorting of Coal and Oil Shale Would Break Even at $22/Barrel 4-40 ENVIRONMENT EPA Questions Whether Clean Coal Awards Meet Acid Rain Criteria 4-41 EPA Relaxes Waiver on Methanol/Gasoline Blends 4-42 EPA Proposes Emission Standards for Methanol Vehicles 4-43 EPA Develops Low-BTU Gasification Wastewater Document 4-44 RESOURCE Ten Year Deadline on Federal Coal Leases Expires December 31, 1986 4-45 RECENT COAL PUBLICATIONS/PATENTS 4-46 STATUS OF COAL PROJECTS 4-53 V. APPENDIX Terms and Conditions of Sodium Leases 5-1 iv SYNTHETIC FUELS REPORT, DECEMBER 1986 HIGHLIGHTS Capsule Summaries of the More Significant Articles in this Issue Import Fee Gathers Support A growing number of companies and organizations representing the oil and gas industry appear to be changing their historic opposition to government involvement in oil pricing. Several have either endorsed or accepted the idea of a fee on imported oil. The articles on page 1-1 to 1-3 sum- marize some of the policy statements which have been made recently. DOE Synfuels Budget Cut 22% for 1987 Fiscal year 1987 funding for synthetic fuels research and development in the U.S. Department of Energy was cut 22 percent from 1986 levels. A summary Table appears on page 1-3. Department of Energy Promotes Cooperative Ventures The U.S. Department of Energy held a meeting in Denver in November to solicit public input on the concept of cooperative funding for research in fossil fuels. About 140 people attended, indicating a reasonable level of interest in the concept (page 1-3). GRI Forecast Features Adequate Gas Supplies at Lower Prices The Gas Research Institute's 1986 forecast of U.S. energy supply and demand to 2010 predicts United States gas consumption to rise to almost 19 quads by the year 2000. A summary of the complete forecast is gi.'en on page 1-5. Bankers Trust Forecasts New High in Oil Imports Bankers Trust Company foresees United States imports rising from 4.3 mil- lion barrels per day in 1985 to 10 million barrels per day by 1995. This increased dependence on foreign sources of supply represents a clear threat to the nation's military and economic security (page 1-6). Conoco Forecast Sees Continuing Fall in U.S. Domestic Oil Supply Conoco's new "World Energy Outlook Through 2000" notes that the major effect of lower oil prices in the near term will be increased reliance on imports to satisfy United States energy demand. A digest of the complete forecast is presented on page 1-7.