Soaring Energy Prices Prompt a Second Look at Oil Shale

With oil prices at record levels, U.S. energy companies and politicians are taking a long look at a major potential resource: oil shale. The shale is a coal-like rock that, when heated to high temperatures, turns into oil. Some geologists say that the western United States has extensive reserves, possibly enough to yield 800 billion barrels of oil — three times greater than the proven reserves of Saudi Arabia. In the past, when oil prices were low, energy companies tried to extract oil from the shale but gave up when it proved too costly and difficult. Today’s energy prices have changed that equation, and President Bush is urging the exploitation of oil shale. As oil companies take another look at extracting oil shale — 80 percent of which lies below federal lands — environmental groups are worried that shale exploitation could disturb wilderness areas and pollute underground aquifers.