Capital Cost
A comparison of the proposed American oil shale industry to the Alberta oil-sands industry has been drawn (the latter enterprise generated over 1 million barrels per day (160×103 m3/d) of oil in late 2007), stating that "the first-generation facility is the hardest, both technically and economically". According to the United States Department of Energy, in 1980s the costs of a 100,000 barrels per day (16,000 m3/d) ex-situ processing complex ranged from $8–12 billion at 2005 prices. It is estimated that the current capital costs are $3–10 billion at 2005 prices.
The new 100,000 tonnes shale oil per year retort built by VKG cost EEK 1.1 billion (€70.3 million); however, it is located in the existing production site and uses the existing infrastructure.
The RAND Corporation assumes that the development of 100,000 barrels per day (16,000 m3/d) processing plant in the United States will take 12 years, while to achieve the level of 1 million barrels per day (160×103 m3/d) will take at least 20 years and 3 million barrels per day (480×103 m3/d) around 30 years.
Read more about this topic: Oil Shale Economics
Famous quotes containing the words capital and/or cost:
“No wealth can buy the requisite leisure, freedom, and independence which are the capital in this profession. It comes only by the grace of God. It requires a direct dispensation from Heaven to become a walker. You must be born into the family of the Walkers. Ambulator nascitur, non fit.”
—Henry David Thoreau (1817–1862)
“Now that is the wisdom of a man, in every instance of his labor, to hitch his wagon to a star, and see his chore done by the gods themselves. That is the way we are strong, by borrowing the might of the elements. The forces of steam, gravity, galvanism, light, magnets, wind, fire, serve us day by day and cost us nothing.”
—Ralph Waldo Emerson (1803–1882)