PACE Synthetic Fuels Report V. 24 No. 2

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PACE Synthetic Fuels Report V. 24 No. 2 PII y ntbietic Timmoolm ® llTt. OIL SHALE 0 COAL 0 OIL SANDS VOLUME 24 - NUMBER 2 - JUNE 198.7 QUARTERLY TeD Eli Repository Arthur Lakes Library !crada School of Miriss © THE PACE CONSULTANTS INC. ®Reg . U.S. Pot. 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 Post 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 PROJECT ACTIVITIES New Zealand Synthetic Fuels Finishes One Year Of Commercial Operation i_i CORPORATIONS American Chemical Society Launches New Energy And Fuels Journal 1-2 Battelle Forecasts Rise In R&D Expenditures During 1987 13 Foster Wheeler Corporation Observed Industry Downturn In 1986 14 Amoco Notes Upgrading Technology Development 1-4 GOVERNMENT Fuel Use Act Repealed - 1-5 DOE Continues To Work On Cooperative Ventures Concept 1-5 DOE Energy Security Report Pleases Few 16 ENERGY POLICY AND FORECASTS Shell Describes Status Of Synthetic Fuels 1-9 EIA's Annual Energy Outlook Adjusts For Oil Price Effect i-ia California Energy Commission Biennial Report Promotes Methanol i-la Exxon Official Predicts Significant Rise In Price Of 011 1-19 ECONOMICS DOE Analysis Shows Potential 20 MMBPD Of Synthetic Fuels In 40 Years 121 INTERNATIONAL South Africa Energy Balance Shows Importance Of Synthetic Fuels 124 USSR Outlook Notes Importance Of Synthetic Fuels 126 ENVIRONMENT Syncrudes Could Benefit From Tighter Diesel Sulfur Specs 1-28 RESOURCE BLM And Forest Service Revive Land Exchange Proposal 129 RECENT GENERAL PUBLICATIONS/PATENTS 1-30 COMING EVENTS 1-33 SYNTHETIC FUELS REPORT, JUNE 1987 II. OIL SHALE PROJECT ACTIVITIES RAMEX Reactivates Wyoming In Situ Project 21 SPP/CPM Plan Further Tests In Taciuk Processor 2-1 Unocal Notes Parachute Creek Progress 21 Eastern Shale Research Evaluates Test Retort 2-2 CORPORATIONS Seep Ridge Bond Reduced 2-4 Sohio Released From Utah Bond 2-4 United Stratum Plans Sand Wash Project In Utah 2-4 CERCHAR Studies Electrical In Situ Recovery Methods For Oil Shale 2-5 GOVERNMENT DOE Issues Solicitation For Water-Jet -Assisted Oil Shale Mining 2-6 ENERGY POLICY AND FORECASTS Oil Shale Action Committee Promotes Test Center Concept 2-7 Senator Wirth Pulls For Oil Shale Research Facility 2-8 TECHNOLOGY Hydroperojcides May Be Problem In Shale Jet Fuel 2-9 Amoco Reveals New Oil Shale Beneficiation Method 2-11 Occidental Patents New Approach To Shale Oil Upgrading 2-13 LLNL Runs Eastern Oil Shale In Cascading Bed Retort System 2-16 Bureau Of Mines Studies Explosibility Of Oil Shale Dust 2-18 Beneficiation/Hydroretorting Gives High Yields From Low-Grade Shales 2-19 KECL Finds No Direct Influence Of Steam On Retort Yield 2-22 INTERNATIONAL Brazilian Oil Shale Fines Burned In Fluidized Bed 2-26 Supercritical Extraction Of Demineralized Turkish Oil Shale Tested 2-27 Development Plan For Oil Shale In Israel Outlined 2-29 Morocco Oil Shale Solubilized In Supercritical Toluene 2-32 JOSECO Retort System Starts Up 2-32 ENVIRONMENT Self -Revegetation Of Retorted Oil Shale Demonstrated By Native Plants 233 Strategic Metals Recovered From Alabama Oil Shale Wastewater 2-35 WATER Water Applications Relevant To Oil Shale Listed - 2-37 RESOURCE Bill Introduced To Block Further Issuance Of Oil Shale Patents 2-38 Ute Reservation Ruling Develops Widening Impact 2-38 Oil Shale Activities On Utah State Lands Noted 2-39 SOCIOECONOMIC Socioeconomic Investment Pays Off As Retirement Comunity 2-40 SYNTHETIC FUELS REPORT, JUNE 1987 U RECENT OIL SHALE PUBLICATIONS/PATENTS 2-41 2-44 STATUS OF OIL SHALE PROJECTS III. OIL SANDS PROJECT ACTIVITIES Kaycee Oil Mine Reaches 250 Barrels Per Day 31 Husky Makes New Proposal For Biprovincial Project 3-2 Unocal Shuts Down Operation At Buffalo Greek 3-2 Ganterra Expands Activities At Kearl Lake 3-2 Solv-Ex And Shell Canada Project On Course 33 IJTF Project Selects Horizontal Well Design 3-3 CORPORATIONS Succor Oil Sands Earnings Plummet, Production Up 3-7 Noreen Cuts flack Heavy Oil Activity 3_8 Shell Canadian Subsidiaries Rearranged 39 AEC Reports Strong Position Despite Oil Price Decline 39 BP Canada Cites Success At Wolf Lake 3-11 Westmin Resources Achieves Increased Heavy Oil Output 3-11 Gulf Canada Year Highlighted By Reorganizations 3-12 Si'mnons Marketing Western Extraction Technology's In Situ Process 3-14 Canadian Heavy Oil Association Schedules Activities 3-15 3-15 Exxon Reports Increased Production At Cold Lake GOVERNMENT Energy Department Announces Small Business Awards 3-16 ENERGY POLICY & FORECASTS Long-Term Outlook For Extra Heavy Oil And Natural Bitumen Termed Favorable 3-17 ECONOMICS 3-19 Cost Of High Density Jet Fuel From Tar Sand Determined 3-21 Synerude Makes Economic Progress In Mining Oil Sands TECHNOLOGY 3-24 Carbon Dioxide Increases Bitumen Recovery In hot Water Process 3-25 Canmet Tries Cracking Of Naphthenic Jet Fuel From Oil Sands 3-27 H-Oil Process Tested On Cold Lake Bitumen 3-23 Exxon Patent Fractures Tar Sands With Liquid Carbon Dioxide 3-29 Arco Patents Method For Sinking Shaft Through Oil Sands Formation 3-30 New Tech Oil Patents Mining Assisted Recovery Method ENVIRONMENT RTROSA/Gulf Process Cleans Sludge From In Situ Projects 333 WATER Esso Details Water Management Scheme At Cold Lake 3-37 SYNTHETIC FUELS REPORT, JUNE 1987 111 RESOURCE USGS Estimates Recoverable Heavy Oil And Bitumen Resources For The World 3-41 RECENT OIL SANDS PUBLICATIONS/PATENTS 3-44 STATUS OF OIL SANDS PROJECTS 3-47 IV. COAL PROJECT ACTIVITIES FERC Applications Include Coal Gasification Projects 4-1 ICILnOas Shuts Down, Illinois Drops Funding 41 Great Plains Reduces Projected Operating And Capital Costs 41 CORPORATIONS CERCUAR flbserves 40th Anniversary With New Directions 4-3 Gilbert Sees Shift To Fluidized Beds ( 4-4 NACCO And Basin Electric Note Importance Of Great Plains Plant 44 Sasol Reports Profit Despite Sharp Drop In Prices 4-5 GOVERNMENT DOE Announces Awards To Small Businesses For Coal Conversion And Utilization 4-6 DOE Picks Firms For MUD Development 46 First Three Clean Coal Projects Under Way 47 Government Selects Broker To Sell Great Plains Plant 4-8 W yoming Allocates $30 Million For Coal Projects 4-8 DOE Funds Deep Cleaning Technologies 4-0 President Calls For Additional $2.5 Billion In Clean Coal Funds 4-9 ECONOMICS Estimated Cost Of Liquids From Coal Dropped By 60 Percent At Wilsonville 4-10 Economic Benefits Seen For Coproduction Of Methanol With I.GCC 4-13 Oxygen Purity Affects Gasification Costs 4-13 TECHNOLOGY Amoco Patents Combined UCG And Surface Coal Conversion Process .4-19 Ruhr 100 Process Demonstrates Advantages Of High-Pressure Coal Gasification 4-19 Air Products Patents Basic Quinone Catalyst For Coal Liquefaction 4-22 Alternate Routes Compared For High-Density Fuels From Coal 4-25 High-Density Jet Fuels Made From ITSL And CTSL Coal Syncrudes 4-28 INTERNATIONAL Czechoslovakia Plans Coal Gasification Phase-Out 4-31 U.S.S.R. To Resume Underground Coal Gasification Operations 4-31 Nynaeshamn Project Suffers Another Setback 4-31 NEDO increases Gasification Funding, Reduces Liquefaction 4-32 Ruhrkohle Joins British Coals Point Of Ayr Liquefaction Project 4-32 SYNTHETIC FUELS REPORT, JUNE 1987 Lv ENVIRONMENT America To Become World Showcase Of Clean Coal Technology: Herrington 4-33 RESOURCE Montana Cuts Nation's Highest Coal Severance Tax 435 Wyoming Coal Production Drops For First Time In 18 Years 4-35 DO! And Environmental Groups Reach Agreement On PRLA's. 437 U. N. Committee Changes Proposed Method For Classifying World Coals 4-38 Interior Published Coal Leasing Procedures 439 Coal Industry Opposes Proposed Coal Valuation Regulations 4-39 SOCIOECONOMIC Government Grants Socioeconomic Aid To Great Plains Area 4-41 RECENT COAL PUBLICATIONS/PATENTS 4-42 STATUS OF COAL PROJECTS 4_47 SYNTHETIC FUELS REPORT, JUNE 1987 HIGHLIGHTS Capsule Summaries of the More Significant Articles in this Issue New Zealand Synthetic Fuels Finishes First Year of Commercial Operation New Zealand Synthetic Fuels Corporation operates a natural gas-to-gasoline process. At the end of its first year of commercial operation, the plant is now producing 35 percent of New Zealand's gasoline requirements (page 1-1). Fuel Use Act Repealed Key provisions of the Powerplant and Industrial Fuel Use Act of 1978 have been repealed. Where new powerplants formerly could not be built to burn oil or gas, a utility now needs only to verity that a new gas-fired powerplant could burn syngas from coal. It does not have to provide the capability for making the syngas. See page 1-5. DOE Continues to Work on Cooperative Ventures Concept The United States Department of Energy conducted several public meetings around the country to solicit advice on its proposed cooperative R&D ventures program. Formal statements delivered at the San Francisco meeting by the Electric Power Research Institute and the Gas Research Institute are summarized on page 1-5.
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