The Energy Blog

Raytheon Sells RF/CF Technology for Extracting Oil From Shale to Schlumberger

Raytheon has sold its technology to extract oil from shale and tar sands to Schlumberger, a leading oilfield services company.

In order to create new momentum for extracting oil from shale, Raytheon utilized one of its many intellectual property reserves (radio frequency, or RF, technology).

Raytheon’s solution combines RF with critical fluids (CF) processes of small business partner CF Technologies in Hyde Park, Mass. The RF/CF combination uniformly heats buried shale rock, separates the petroleum from the shale, and directs the liberated oil so that it may flow into tanks for extraction. The method is more economical and environmentally responsible than older oil shale extraction techniques as it uses far less power, does not severely disrupt the landscape or leave behind residue that can enter groundwater supplies.

According to the press release the arrangement between the two companies comes as demand for the world’s finite oil supplies continues to increase, the price per barrel is near record highs, and government and industry are looking for new sources of oil to lessen dependency on foreign suppliers.

If successfully harvested, shale could provide a long-term source of reliable, affordable and secure oil. Federal officials estimate that this resource — much of which is locked in a 16,000-acre formation beneath federal land in Colorado, Utah and Wyoming — could yield enough oil to meet U.S. demand at current levels for more than 250 years.

Report Finds Unconventional Fuels and Efficiency Gains Could Make a Significant Impact on required Oil Imports

In a three volume report that a DOE Task Force prepared it was concluded that "the domestic and global fuels supply situation and outlook is urgent. Increasing global oil demand, declining reserve additions, and our increasing reliance on oil and product imports from unstable foreign sources require the Nation to take immediate action to catalyze a domestic unconventional fuels industry." It further went on to say "Aggressive development by private industry, and encouraged by government, could supply all of the Department of Defense’s domestic fuels demand by 2016, and supply upwards of 7 million barrels per day of domestically produced liquid fuels to domestic markets by 2035." Their most aggressive scenario concluded that oil imports would decrease if significant efficiency gains were made.  The following is a shortened summary of the report from EV World. (click to enlarge graph)

The United States' Task Force on Strategic Unconventional Fuels (www.unconventionalfuels.org) has made public its findings and recommendations on the future role to be played by five non-petroleum energy sources found in America: shale oil, heavy crude, tar sands, coal-to-liquids and enhanced oil recovery (EOR) using captured carbon dioxide.. . .

The Task Force . . . takes a comprehensive look at the potential contribution these, heretofore under-utilized resources can make in supplementing the nation's declining petroleum production. They conclude that even under the most aggressive development scenario, these resources could produce about 7.6 million barrels a day of synthetic liquid fuel by 2035. And under current, business-as-usual, conditions -- and assuming a whole host of issues from socioeconomic to technical can be resolved -- unconventional fuels might add 2.3 mbld by 2035, about one-tenth of what America currently consumes. . . .

The contributions made by the various unconventional energy sources under three different utilization scenarios shows America continuing to be largely dependent on imported oil with energy conservation and efficiency making greater contributions then unconventional fuels put together.

American Energy Security Study

The American Energy Security Study (AESS) is the official name of the report referred to in the previous post. In a brief review of the executive summary I picked up the following items that give a little more background about the report.

The American Energy Security (AES) Study shows that the United States can eliminate dependence on oil imports entirely by 2030. It establishes a bold plan to replace approximately five percent of imported oil each year for 20 years, beginning in 2010 (see Figure 1 below). Assuming aggressive implementation beginning in 2007, under the SSEB American Energy Security initiatives domestic liquid fuels production and transportation efficiency savings begin gradually after 2010 and ramp up to produce most of the nation’s liquid fuels requirements by 2030.

To establish U.S. energy security and independence by 2030 all feasible supply and demand options must be aggressively pursued. There is no single answer:

• Transportation energy efficiency improvements are important but, by themselves, can contribute only a small portion of the required solution.
• Renewable biomass fuels are a critical part of the portfolio of required initiatives, but can produce less than one-fourth of the required liquid fuels.
• CTL, oil shale, and EOR will all contribute substantially, and all three technologies must be aggressively deployed.

The U.S. is endowed with the largest alternative oil resources in the world. This includes five hundred billion tons of coal (oil equivalent of approximately 750,000 billion barrels), the potential to sustain 1.3 billion tons of biomass collection/harvesting for liquid fuel production by 2030 (oil equivalent of approximately 4.5 million barrels per day to perpetuity), more than a trillion barrels of oil shale liquid fuels, and 80+ billion barrels of oil stranded in conventional reservoirs that are technically recoverable using CO2 injection and sequestration to enhance oil recovery. These resources rival estimated worldwide conventional oil resources of 1-2 trillion barrels.

New Shale Oil Recovery Process Proposed

Shale reserves, estimated at more than two trillion barrels in the U.S., are a potential source of oil that now may be economically unlocked thanks to technology developed by Raytheon Company (NYSE:RTN) and its partner, CF Technologies.

Radio frequency (RF) energy combined with critical fluid (CF) technology shows promise for efficiently extracting oil from shale. Historically, the lack of an economical and environmentally friendly way for extracting oil from shale has kept it from being a significant energy source.

"Raytheon is an expert in RF technology," said Lee Silvestre, director of Mission Innovation at Raytheon IDS. "What makes this effort a breakthrough is that similar RF technology that we have been applying in core defense products -- radars for tracking and guidance systems -- has demonstrated applications in the energy crisis."

Combining RF and CF technologies provides a revolutionary way for recovering oil from shale reserves worldwide, according to John Moses, president of CF Technologies. Based on laboratory results and analysis, the oil produced is a light product, comparable to kerosene that can be produced by the unique process with high extraction efficiency.  In addition to producing more oil from shale formations, some companies may consider it an option for improving return from existing reserves that have been marginal, including heavy oils, tar sands and spent wells.