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:
“For mankind, speech with a capital S is especially meaningful and committing, more than the content communicated. The outcry of the newborn and the sound of the bells are fraught with mystery more than the baby’s woeful face or the venerable tower.”
—Paul Goodman (1911–1972)
“The President has paid dear for his White House. It has commonly cost him all his peace, and the best of his manly attributes. To preserve for a short time so conspicuous an appearance before the world, he is content to eat dust before the real masters who stand erect behind the throne.”
—Ralph Waldo Emerson (1803–1882)