Oil Shale Industry - History

History

Oil shale has been used since ancient times. Modern industrial oil shale mining began in 1837 at the Autun mines in France, followed by Scotland, Germany and several other countries. The oil shale industry started growing just before World War I because of the mass production of automobiles and trucks and the supposed shortage of gasoline for transportation needs. In 1924, the Tallinn Power Plant was the first power plant in the world to switch to oil shale firing.

Following the end of World War II, the oil shale industry declined due to the discovery of large supplies of easily accessible and cheaper crude oil. Oil shale production however, continued to grow in Estonia, Russia and China.

Following the 1973 oil crisis, the oil shale industry was restarted in several countries, but in the 1980s, when oil prices fell, many industries faced closure. The global oil shale industry has grown again from the mid-1990s. In 2003, the oil shale development program was initiated in the United States, and in 2005, the commercial leasing program for oil shale and tar sands was introduced.

As of May 2007, Estonia is actively engaged in exploitation of oil shale on a significant scale and accounts for 70% of the world's processed oil shale. Estonia is unique in that its oil shale deposit account for just 17% of total deposits in European Union but it generates 90% of its power from oil shale. Oil shale industry in Estonia employs 7,500 people, which is about 1% of national employment, accounting for 4% of its gross domestic product.