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One estimate has oil shale extraction needing 10 barrels of water per barrel of oil produced. And, with Colorado's proposed oil shale operations at full capacity, by mid-century, the industry could require as much as 14 times more power than currently generated by the state's largest power plant. These estimates are very imprecise, because the technology is unproven. You might wonder, "Why so much water and energy? And what do do about it?" See the illustration and answer below. A recent Los Angeles Times article, "Energy dispute over Rockies riches," reported: Shell has the most mature technology, which it has been experimenting with at its Mahogany test site, near Rifle, Colo. Tucked into a rolling landscape of empty range land, the company has sunk heaters half a mile into oil shale seams and subjected the rock to 700-degree temperatures. Over weeks or even months, a liquid known as kerogen is produced, which can be refined into diesel and jet fuel.

Haynesville shale map.

Information on the Haynesville Shale Formation, a huge reserve of natural gas located in Louisiana, Texas and Arkansas. Haynesville Shale Maps and information.

Advanced drilling techniques that blast millions of gallons of water into 400-million-year-old shale formations a mile underground are opening up "unconventional" gas fields touted as a key to the nation's energy future. These deposits, where natural gas is so tightly locked in deep rocks that it's costly and complicated to extract, include the Barnett shale in Texas, the Fayetteville of Arkansas, and the Haynesville of Louisiana. But the mother lode is the Marcellus shale underlying the Appalachians.

Gov. Dave Freudenthal urged federal land managers to proceed cautiously in developing rules for oil shale leasing, even though commercial development is likely many years away in Wyoming, if at all. "While oil shale is a technology that may one day be used for large-scale economic production, it is still an unproven and unknown resource and thus caution should be taken in its development," Freudenthal wrote to Bureau of Land Management Director Jim Caswell.

How to find a Marcellus Shale oil and gas drilling related job.

The Bush administration gave energy companies steep discounts in the royalties they will be required to pay as it established the groundwork Monday for commercial oil shale development on federal land. Interior Department officials said the 5 percent royalty rate during the first five years of production was needed to spur drilling while still giving taxpayers a fair return. But that rate is much lower than the 12.5 percent to 18.8 percent the government collects from companies harvesting conventional oil and gas on public lands.

With the continuing debate in Congress over the best way to rein in high energy prices, proponents of a full-scale commercial federal oil shale leasing program are hoping that consumer concerns about prices will translate into a windfall for major oil companies.

Natural gas will provide an increasing share of America's energy needs over the next several decades, doubling its share of the energy market to 40 percent, from 20 percent, according to a report to be released Friday by the Massachusetts Institute of Technology. The increase, the report concluded, will come largely at the expense of coal and will be driven both by abundant supplies of natural gas - made more available by shale drilling - and by measures to restrict the carbon dioxide emissions that are linked to climate change. In the long term, however, the future may be dimmer for natural gas if stricter regulations are put in place to cut greenhouse gas emissions by 80 percent below 1990 levels by 2050 - a goal set by President Obama. Although lower in carbon than coal, natural gas is still too carbon-intensive to be used under such a target absent some method of carbon capture, the authors of the report concluded.

President-elect Barack Obama will nominate Colorado Senator Ken Salazar as the next Secretary of the Department of the Interior, three anonymous Democratic sources have confirmed. The sources say that Salazar has been offered the job, one telling the Rocky Mountain News "It's a done deal." Salazar, a Democrat, is four years into his first term as U.S. Senator from Colorado and has been a vocal critic of the Bush administration's energy and environmental policies, especially those relating to oil and gas development in the American West. When current Interior Secretary Dirk Kempthorne announced the draft rule designed to accelerate oil shale development across the West, Salazar reacted strongly, saying:

My top 10 oil industry stories of 2008: 1. Crude prices soar in 1H, WTI tops $147, Brent right behind 2. Prices collapse below $50 in 2H as demand retreats 3. Ethanol's struggles: VeraSun bankruptcy, others barely profitable, spreads collapse 4. Push begins to lift offshore drilling ban in US; Obama and McCain differ on approach 5. Capital crunch and low prices lead to deferred investment 6. Shale gas supply in US surges, a new factor in supply/demand balance 7. Credit crunch slows activity for once free-wheeling traders 8. Diesel surges, gasoline/naphtha plunge; traditional cracks skewed 9. Russian oil output to fall in 2008, first time in a decade 10. Brazil subsalt finds continue to lift nation's upstream prospects

Richard Heinberg, Post Carbon Institute ... There is a veritable cottage industry of economists and statisticians (including Daniel Yergin, Bjorn Lomborg, Peter Huber, and Michael Lynch) who tirelessly implore their readers not to panic over oil prices because The Market will always come to the rescue. As easy conventional oil depletes, tar sands, oil shale, and biofuels become more economic to produce. Even coal-to-liquids becomes feasible on a large scale. And, as everyone knows, there is an endless amount of coal.

AP reports that falling natural gas prices in the US are making residential consumers happy for the time being, but notes that unconventional (shale) gas drilling has fallen off a cliff in recent months - Homes that use natural gas for heat could save big. The 60 million American homes that rely on natural gas for heat can expect substantially lower bills next winter thanks to a glut in supply and the weak economy. Just as distributors start to lock in contracts for the coming winter, natural gas prices have fallen almost 75 percent. Not all of that will show up as savings on the heating bill, but it should still mean noticeable savings. Utilities also generate about a fifth of the nation's electricity with gas, and many of their customers should notice price breaks as well.

With coal being too dirty and wind farms and nuclear power plants arriving late, it seems the world is left with a stark choice: keep on polluting or turn out the lights. Unless, that is, someone comes up with an alternative. Energy executive Rune Bjornson thinks he has the answer. "Natural gas, more than any other fuel, is an option we have here and now," he tells the BBC in an interview. And, he adds, there is plenty of it around - unlike scarcer resources such as oil and coal.

With coal being too dirty and wind farms and nuclear power plants arriving late, it seems the world is left with a stark choice: keep on polluting or turn out the lights. Unless, that is, someone comes up with an alternative. Energy executive Rune Bjornson thinks he has the answer. "Natural gas, more than any other fuel, is an option we have here and now," he tells the BBC in an interview. And, he adds, there is plenty of it around - unlike scarcer resources such as oil and coal.