Anglo-Dutch multinational oil and gas company Royal Dutch Shell has abandoned exploration activities for an oil-shale project situated in Colorado.
The closure of the project came in the wake of the company’s decision to stop the process of converting oily shale rock into liquid by heating the rock and pumping out the oil in the area.
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Royal Dutch Shell spokeswoman Kelly op de Weegh told The Huffington Post: "Our focus is to work with our staff and contractors to safely stop research activities and close the site."
The project had been open since 1982. Shell spent an estimated $30m to create a test subterranean wall to hold in the shale oil when it was heated, but full-scale production would likely have required the construction of a large power plant.
On Tuesday, Shell announced plans to construct a new plant in Louisiana, with an investment of approximately $12.5bn, which would convert natural gas into diesel and jet fuel.
In February 2012, Chevron halted oil-shale research in Rio Blanco County. Exxon Mobil also had to close a $5bn project, situated near the West Slope town of Parachute, causing the company to release around 2,200 workers.
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By GlobalDataGrand Junction former mayor Jim Spehar said the new oil plays in North Dakota and Texas, as well as along the Front Range of Colorado, are flowing significant amounts of oil, and have also reduced the viability of oil shale.
The rock parts of western Colorado are expected to hold around 1 trillion to 1.8 trillion barrels of oil, according to government and industry officials.
