Saturday, July 21, 2007

Oil Shale May Affect Oil & Gas Investment

Oil shale, what is that thing?

Here is the definition of Oil Shale.

I think it will have a big impact on the price of oil in the next few years.

I read articles yesterday claiming that US has the biggest reserve of oil shale and is in the process of commerciallising it. It size is five more times than the stated oil reserve in Saudi Arabia.

Previously it was not viable to extract and process oil from oil shale but maybe now.

The figure I got is that crude oil price must be between $30 to $100 to make it viable depending who is saying. And as of yesterday crude oil price is hovering around $75.

Shell has been studying the method for extracting oil from oil shale for about 23years. Recently it has been able to produce 1400barrels of oil from a testing site in Colorada.

So the question in my mind now, when is the time to exit from oil & gas companies investment.

I'm not sure. I have to think more about that.

You may find it interesting to read this report.

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