While Rand and others do a pretty good job of analyzing new energy technologies, they wind up being very conservative because of the way processes and techniques are slowly made public. Shell (and others doing energy research) are very skeptical of patent protection and intellectual property protection in foreign markets, so they dont release many of the details until theyre ready to start production even though they have many more solutions than what they initially make public. The Law of the Sea Treaty (LOST) and many other international agreements (even though we havent ratified LOST) have common good or other language that could allow the UN to declare a patented idea too important to recognize the patent and allow others to use the ideas. This has happened in the drug industry and LOST specifically states that any new technology developed to use in international waters must be given to developing countries to use also after the UN takes their skim off the top.WarmWaterDiver:Bill51, I read over the Rand report on shale oil, and one of the 'unknowns' in that report on the newer method proposed by Shell is changes to underground aquifers and the potential for leaching salts left in the rock after the oil is removed. That's a pretty big unknown which would have to be resolved for the $30/barrel price neighborhood. It does state the recovered oil from this method could be sent directly to a refinery without need for immediate treatment for unstable compounds, unlike the other methods.
The other methods, which include potential application of the systems used for tar sands adapted to shale oil, showed $75 to $90 per barrel estimate price required for the first commercial scale plant.
I think the day Shell feels comfortable with being able to produce oil at $55 a barrel while meeting strict environmental guidelines, theyll start up a plant.