The Energy Evolution - Hydrogen and Fuel Cells: Advances in Transportation and Power - page 35

In 2001, the DOE returned the undeveloped Naval Oil Shale Reserve
#2 in Utah to the Northern Ute Indian Tribe in the largest transfer of fed-
eral property to Native Americans in the last century.
OIL SHALE
It is generally agreed that worldwide petroleum supply will eventu-
ally reach its productive limit, peak, and begin a long term decline. One
of the alternatives is the Nation's untapped oil shale as a strategically lo-
cated, long-term source of reliable, affordable, and secure oil. The extent
of U.S. oil shale resources, which amounts to more than 2 trillion barrels,
has been known for a century. In 1912, the President established the Naval
Petroleum and Oil Shale Reserves. There have been several commercial
attempts to produce oil from oil shale, but these have failed because of
the lower cost of petroleum at the time. With future declines in petroleum
production, market forces are expected to improve the economic viability
of oil shale.
Commercializing the vast oil shale resources could greatly add to the
country's energy resources. Shale oil could have an effect similar to the 175
billion barrels of oil from Alberta tar sands to Canada's oil reserves. As a re-
sult of the commercial effort, oil from tar sand production now exceeds one
million barrels per day. Oil shale in the United States is as rich as tar sand
and could become a vital component in America's future energy security.
POWER INDUSTRY TRENDS
In Texas, TXU is making a $10 billion investment for future power
needs by creating a new renewable company for the electric power needs
of a growing Texas market. It plans to provide lower-cost, secure and sta-
ble power with new consumer and business service offerings, and a vol-
untary emissions reduction program. The new investments will provide
more reliable electricity thereby reducing dependence on natural gas, as
well as create jobs and lower emissions.
Texas is expected to add almost 6 million residents in the next de-
cade. At the same time, electric power reserve margins in Texas are com-
pressing rapidly and are expected to fall below reliable levels by 2010.
Texas uses natural gas for most of its power generation. Over 70 per-