Stuart Oil Shale Project

The Stuart Oil Shale Project is an oil shale development project in Australia near Gladstone, Queensland. It was Australia's first major attempt since the 1950s to restart commercial use of oil shale.cite web
title = Petroleum and gas production
publisher = Department of Natural Resources and Water of Queensland
url = http://www.nrw.qld.gov.au/mines/petroleum_gas/index.html
accessdate = 2007-07-20] The project was originally developed by Australian companies Southern Pacific Petroleum NL and Central Pacific Minerals NL (SPP/CPM).

History

In 1997 SPP/CPM signed a joint venture agreement with the Canadian company Suncor Energy to develop the Stuart oil shale deposit.cite paper
title = Survey of energy resources
publisher = World Energy Council
date = 2007
pages = 103-104
url = http://www.worldenergy.org/documents/ser2007_final_online_version_1.pdf
format = PDF
accessdate = 2008-08-17] Suncor was designated as the project operator. In April 2001, Suncor left the project and SPP/CPM became the sole shareholder of the project. In February 2002, due the restructuring of SPP/CPM, SPP became the holding company for the group’s interests, including the Stuart Oil Shale Project. As SPP had granted fixed and floating charges in favour of Sandco Koala LLC in May 2003, the chargee appointed receivers of SPP on 2 December 2003.cite web | title = Esso Australia Resources Pty Ltd v Southern Pacific Petroleum NL. Corporate law judgments. No. 2051 of 2004 | publisher = University of Melbourne. Centre for Corporate Law & Securities Regulation | url = http://cclsr.law.unimelb.edu.au/judgments/states/vic/2004/november/2004vsc477.htm | date=2004 |accessdate = 2007-07-24] In February 2004, the Stuart Oil Shale Project was sold by receivers to the newly formed company Queensland Energy Resources. The plant was shut down on 21 July 2004 because of economic and environmental reasons.cite web |url=http://www.greenpeace.org/international/news/shale-oil-victory | author=Greenpeace Australia Pacific | title=Victory: shale oil project collapses |date=2004-07-21 |accessdate=2007-07-20]

On 14 August 2008, Queensland Energy Resources announced that it has shunned the Alberta-Taciuk Processor (ATP) oil shale processing technology in favor of the Paraho II technology and that the ATP technology-based pilot plant is being dismantled, and obsolete components are being sold.cite news
url=http://www.ogj.com/display_article/337050/7/ONART/none/DriPr/1/Queensland-oil-shale-project-still-in-the-wings/
author=Rick Wilkinson
title=Queensland oil shale project still in the wings
publisher = Oil and Gas Journal
date=2008-08-14
accessdate=2008-08-15]

Industry

The first stage of the project, which cost AU$250-360 million, consisted of an oil-shale mine and pilot retorting plant, which was constructed in 1997-1999.cite web | title = Stuart Oil Shale - Stage 2 | publisher = Department of Infrastructure of Queensland | date=2006-08-15 | url = http://www.infrastructure.qld.gov.au/major_projects/stuart.shtm | accessdate = 2007-07-20] The plant, which was in operation from 1999 to 2004, used the ATP retorting technology being the first application of the ATP technology in the world on oil shale.cite news | url=http://www.gasandoil.com/goc/company/cns01260.htm | title= Stuart Oil Shale project ready for restart | publisher=Alexander's Gas & Oil Connections | date=2000-01-31 | accessdate=2007-07-20] The plant was designed to process 6,000 tonnes of oil shale per day with oil output of convert|4500|oilbbl|m3. From 2000 to 2004 the pilot plant produced over convert|1.5|Moilbbl|m3 of oil. After the closure the facility is kept on care-and-maintenance in an operable condition.cite web | publisher= Geoscience Australia | url= http://www.australianminesatlas.gov.au/info/aimr/shale_oil.jsp | title = Shale oil. AIMR Report 2006 | accessdate=2007-05-30]

The second stage with cost of AU$600 million was planned to consist of a single commercial-size module four times larger than the first with total capacity of convert|19000|oilbbl|m3 of oil products (naphtha and medium shale oil) daily. Originally it was planned to become operational in 2006. The third planned stage was construction of multiple commercial production units with capacity of up to 200 000 barrels of oil products per day. It was envisaged to come on stream during 2010–2013. The environmental impact assessment of stage 2 was suspended in December 2004.cite web |url=http://www.greenpeace.org/australia/news-and-events/media/releases/climate-change/climate-changing-shale-oil-ind |title=Climate-changing shale oil industry stopped |author=Greenpeace Australia Pacific |date=2005-03-03 |accessdate=2007-06-28 ]

Controversy

The project was heavily criticized by environmentalists. Over 20,000 people and 27 environment, tourism and fishing groups opposed the shale oil plant. Greenpeace claimed that greenhouse emissions from the production of shale oil are nearly four times higher than from the production of conventional oil, although SPP promised to reduce greenhouse emissions from production of shale oil to 5% below those of conventional oil by stage 3. Greenpeace also claimed that the Stuart Oil Shale Project is a significant source of highly toxic dioxins and would damage the Great Barrier Reef World Heritage Area during stage 3. Also public health concerns were mentioned.cite web |url=http://www.greenpeace.org/raw/content/australia/resources/fact-sheets/climate-change/stuart-oil-shale-project.pdf |title=Stuart Oil Shale Project | author=Greenpeace Australia Pacific | format=PDF | date=2003-10-01 | accessdate=2007-06-28 ]

References