Yntbietic Fnei
Total Page:16
File Type:pdf, Size:1020Kb
23c$b/J jflt yntbietic fnei OIL SHALE 0 COAL 0 OIL SANDS VOLUME 24 — NUMBER 3 — SEPTEMBER 1987 QUARTERLY Toll Eril Reposito,y ,.r;.'.ur Lakas Library csdo School of Mcs © THE PACE CONSULTANTS INC. 0 Reg. U.S. Pal. 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, licenser 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 Pt 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 Gill Cuts Coal Gasification Programs 1-i API Data Shows Drop in Oil Production 1-4 GOVERNMENT Petroleum Research Institute Proposed i-S FERC Kills Incremental Gas Pricing 1-5 California to Fund Advanced Energy Technologies i_s ERAB Studying Energy Competitiveness 1-6 ENERGY POLICY AND FORECASTS U.S. Energy Association Calls for Synfimels Development 17 Energy Policy Group Formed 1-7 Governors to Form Council on Energy Assurance 17 Oil Price Collapse Explored at !AEE Conference 1-2 ECONOMICS SRI International Puts Synfuels Into Far Future i-la Refining of Syncrudes No More Expensive Than Heavy Oils 1-13 INTERNATIONAL Metallgesellschaft Sees Brisk FUC Business 1-18 United States/Italy Sign Fossil Fuel Cooperative Agreement 1_18 Trade and Development Program Offers Overseas Opportunities 1-18 NEDO Continues Fossil Energy Research Program i-iS ENVIRONMENT Vice Presidential Task Force Boosts Environmental Benefits of Alcohol Fuels 1-22 RECENT GENERAL PUBLICATIONS/PATENTS 1-25 COMING EVENTS 1-27 II. OIL SHALE PROJECT ACTIVITIES Esso Continues Rundle Payment 21 Unocal Drops Plans for Fluidized Bed Combustor 2-1 New Paraho Asphalt Project Assured of Funding 2-1 I SYNTHETIC FUELS REPORT, SEPTEMBER 1987 CORPORATIONS Ertl Trust Discloses 011 Shale Plans 2-3 Cleveland-Cliffs and Sohio Realign Oil Shale Holdings 2-4 Unocal Highlights Oil Shale Progress 2-4 Shell Oil Company Purchases Ertl and Pacific Oil Shale Blocks 2-4 Magic Circle Mothballs Oil Shale 2-5 SPP and CPM Discuss Oil Shale Status 2-5 GOVERNMENT DOE Lists Rationale for Water-Jet-Assist Mining Program 2-10 GAO Recommended Against Support for Unishnle C 2-11 ENERGY POLICY AND FORECASTS Australia Shale Outlook Should be Positive, But--- 215 TECHNOLOGY Shale Oil Yields Improved by Retorting in Supercritical Fluids 2-I8 LLNL Patents Cascading Bed Retort 2-20 Arsenic Removed by Coking and Water Washing 2-21 Carboxylic Acid Salts Identified as Major Components of Green River Kerogen 2-22 Face Ventilation Tested for Oil Shale Mucking in Long Headings INTERNATIONAL Guide to Australian Shales Published 2-26 ENVIRONMENT Final EIS Issued for Wolf Ridge Nahcolite Solution Mine 2-31 Final Environmental Impact Statement issued for Unocal Phase ii 2-32 WATER Companies File for Water Rights in Oil Shale Area 2-34 Hearing Held on Ruedi Releases for Endangered Species Conservation 2-38 RESOURCE Legislation Places Moratorium on Patenting Oil Shale Lands 2-39 Record of Decision issued for Piceance Basin Resource Management Plan 2-39 BLM Resumes Oil Shale Land Patenting 2-44 House Passes Rahall Bill to Eliminate Oil Shale Land Patents 2-45 Chronology of Oil Shale Claims Litigation Detailed 2-45 Methane Content Measured in C-b Mine Cores 2-46 RECENT OIL SHALE PUBLICATIONS/PATENTS 2-51 STATUS OF OIL SHALE PROJECTS 2-53 ii SYNTHETIC FUELS REPORT, SEPTEMBER 1987 III. OIL SANDS PROJECT ACTIVITIES NewGrade Heavy Oil Upgrader Project Shifts Into High Gear 31 HP Canada and Petro-Canada Break Ground for Wolf Lake Phase 11 3-1 UTF Project ,Proceeding With Gravity Drainage Concept 3-2 Esso Expanding Cold Lake Output by 64,000 Barrels Per Day 3-5 AOSTRA to Test Chevron Process at Underground Test Facility 3-6 CORPORATIONS Sceptre to Combine Horizontal Well With Steam Drive at Tangleflags 3-7 New Heated Pipeline Provides Heavy Oil Route From California to Texas 3-7 Alberta Energy Company and HP Canada to Test Transoil Technology 3-8 ORS Corporation Regroups to Promote Its Single-Well Technology 3-9 Murphy Oil Notes Cut Backs in 1986 3-9 GOVERNMENT DOE to Loan Eon Computer Models 3-I1. ENERGY POLICY & FORECASTS Incentives for EORSVould Have Positive Financial Effect 3-12 ERGS Estimates Effect of Oil Prices on Oil Sands Start Dates 3-13 ECONOMICS Cold Lake Adapts to Remain Profitable at Low Prices 3-17 TECHNOLOGY Canadian Oxy to Run Full-Scale Pipeline Test of Emulsions 3-20 Phillips Patents Combined Extraction and Flash Pyrolysis Process 3-22 Vertical Tube Reactor for Separating Tar Sands Froth Patented 3-24 Steam Reacts with Formation Sand Under In Situ Conditions 3-25 Hydrocracking Athabasca Gas Oil Yields Specification Fuels 3-27 Benefits of Bitumen Dilution Revealed by University of Utah 3-30 INTERNATIONAL Petro-Canada Assists Jordan Heavy Oil Program 334 ENVIRONMENT Dredging Oil Sands Overburden Would Present an Environmental Challenge 335 RESOURCE ERCB Annual Report Reviews Energy Resources In Alberta 3-38 SOCIOECONOMIC Socioeconomic Planning Becomes Important in Alberta 3-41 RECENT OIL SANDS PUBLICATIONS/PATENTS 3-42 STATUS OF OIL SANDS PROJECTS 3-45 iii SYNTHETIC FUELS REPORT, SEPTEMBER 1987 IV. COAL PROJECT ACTIVITIES DOE Authorizes Great Plains to Study Byproducts 4-1 Shell's Coal Gasification Plant in Houston Starts Up 41 Appeals Court Upholds Great Plains Gas Contracts 41 Dow Syngas Plant Starts Up 4-2 CORPORATIONS PCPCO to Begin Licensing of IGCC Power Plant 44 Allis-Chalmers Files Chapter Eleven Bankruptcy 44 Argonne Develops Premium Coal Sample Bunk 4-4 NCA Advocates Aggressive Clean Coal Technology Program 45 UNDERC Marks Technical Progress in Coal Conversion 45 GOVERNMENT BI-Gas Plant Auction Draws Little Interest 40 Energy Department to Fund Small-Scale FOG Developments 48 Two Firms Picked to Complete MUD Proof of Concept Program 48 Public Views Solicited for Clean Coal Technology Program 49 Members Named to Clean Coal Advisory Panel 4-10 DOE Announces Coal Research Grants to Twenty-Eight Universities 4-11 ENERGY POLICY AND FORECASTS NCA Forecast Calls for Little Change in Coal Consumption in 1987 4-14 ECONOMICS Gasification Island Systems May Out-Perform IGCC Systems 4-16 TECHNOLOGY Steady State Solvent Recycle Achieved With ChemCoal Process 4-22 UYDROCARB Process Provides New Type of Synthetic Fuel From Coal 4-24 Tightly Bound Water in Coal May have Large Effect on Coal Research 4-27 Microbial Solubitization of Coal Draws Interest 4-29 INTERNATIONAL (JUDE Sees Future for Coal Gasification Technology 4-33 Veba Del Maintains Hydrogenation Activity 4-35 British Gas Funds Coal Hydrogenation Study 4-35 ENVIRONMENT Radian Wins Contract for Environmental Monitoring at Cool Water 4-38 Mountain Fuel Supply Encounters Problem With Old Gasification Site 4-36 Solid Waste Management for Coal Gasification Processes Under Study 4-36 Biodegradation of Coal Gasification Wastewater Successful at Great Plains 4-38 RESOURCE Powder River Calls for Expressions of Leasing Interest 4-41 Interior's Final Rules Subject PRLA's to Environmental Analysis 4-41 BLM Publishes Guidelines on Royalty Rate Reductions 4-42 Green River-Hams Fork Coal Team to Meet 4-42 IV SYNTHETIC FUELS REPORT, SEPTEMBER 1987 SOCIOECONOMIC Montana Loses to Crow Tribe on Coat Taxes 4-43 RECENT COAL PUBLICATIONS/PATENTS 4-44 STATUS OF COAL PROJECTS 4-51 V SYNTHETIC FUELS REPORT, SEPTEMBER 1987 HIGHLIGHTS Capsule Summaries of the More Significant Articles in This Issue FERC Kills Incremental Gas Pricing The Federal Energy Regulatory Commission has terminated the natural gas in- cremental pricing program which originated in the Natural Gas Policy Act of 1978. This at one time was considered a mechanism for forcing industry to switch from natural gas to alternatives such as synthetic fuels (page 1-5). ERAB Studying Energy Competitiveness The United States Department of Energy's Energy Research Advisory Board has undertaken a study on "Research and Development Initiatives for Energy Com- petitiveness." As reported on page 1-6, the study is expected to be completed by November, 1987. U.S. Energy Association Calls For Synfuels Development "A Call For Action" is the title of a report issued by the U.S. Energy Associa- tion, an arm of the World Energy Conference. The report warns of a looming energy crisis and suggests that a menu of options in synthetic fuels is needed. See page 1-7. Energy Policy Group Formed Eleven U.S. energy companies have formed the National Energy Policy Council to promote the development of a comprehensive national energy policy (page 1-7). Governors Form Council On Energy Assurance Seven governors of western states have agreed to form a National Council on Energy Assurance, which will focus on the development and implementation of a national energy policy. (See page 1-7). Possible Oil Price Collapse Explored At lAKE Conference A report on the annual meeting of the International Association of Energy Economists begins on page 1-8. The major theme of the conference was on coping with world energy market Instabilities.