Oil Shale Development Could Adversely Impact Water Resources, but the Magnitude of These Impacts Is Unknown

In our October report, we found that oil shale development could have  significant impacts on the quantity and quality of surface and groundwater  resources, but the magnitude of these impacts is unknown. According to these experts, in the  absence of effective mitigation measures, impacts from oil shale  development to water resources could result from disturbing the ground  surface during the construction of roads and production facilities,  withdrawing water from streams and aquifers for oil shale operations,  underground mining and extraction, and discharging waste waters from  oil shale operations. Estimates of Water Needs for Commercial Oil Shale Development Vary Widely

Commercial oil shale development requires water for numerous activities  throughout its life cycle; however, we found that estimates vary widely for  the amount of water needed to produce oil shale. These variations stem  primarily from the uncertainty associated with reclamation technologies for  in-situ oil shale development and because of the various ways to generate  power for oil shale operations, which use different amounts of water. Based on our calculations, we estimated that about 1 to 12  barrels of water could be needed for each barrel of oil produced from in- situ operations, with an average of about 5 barrels (see table 1); and  about 2 to 4 barrels of water could be needed for each barrel of oil  produced from mining operations with a surface retort operation, with an  average of about 3 barrels (see table 2). Water Is Likely to Be Available Initially from Local Sources, but the Size of an Oil Shale Industry May Eventually Be Limited by Water Availability

In October 2010, we reported that water is likely to be available for the  initial development of an oil shale industry, but the eventual size of the  industry may be limited by the availability of water and demands for water  to meet other needs. For example, substantial population growth and its  correlative demand for water are expected in the oil shale regions of  Colorado and Utah. A future oil shale industry may also need to  contend with a general decreased physical supply of water regionwide  due to climate change; Colorado’s and Utah’s obligations under interstate  compacts that could further reduce the amount of water available for  development; and limitations on withdrawals from the Colorado River  system to meet the requirements to protect certain fish species under the  Endangered Species Act. Federal Research Efforts on the Impacts of Oil Shale Development on Water Resources Do Not Provide Sufficient Data for Future Monitoring

Since 2006, the federal government has sponsored over $22 million of  research on oil shale development and of this amount about $5 million  was spent on research related to the nexus between oil shale  development and water. Even with this research, we reported that there is  a lack of comprehensive data on the condition of surface water and  groundwater and their interaction, which limits efforts to monitor and  mitigate the future impacts of oil shale development. However, there is  general agreement among those we contacted— including state  personnel who regulate water resources, federal agency officials  responsible for studying water, water researchers, and water experts— that this ongoing research is insufficient to monitor and then subsequently  mitigate the potential impacts of oil shale development on water  resources.   Groundwater movement and its interaction with surface water. As a result of our findings, we made three recommendations in our  October 2010 report to the Secretary of the Interior. Specifically, we  stated that to prepare for possible impacts from the future development of  oil shale, the Secretary should direct the appropriate managers in the  Bureau of Land Management and the U.S. Geological Survey to    establish comprehensive baseline conditions for groundwater and  surface water quality, including their chemistry, and quantity in the  Piceance and Uintah Basins to aid in the future monitoring of impacts  from oil shale development in the Green River Formation;    model regional groundwater movement and the interaction between  groundwater and surface water, in light of aquifer properties and the  age of groundwater, so as to help in understanding the transport of  possible contaminants derived from the development of oil shale; and  coordinate with the Department of Energy and state agencies with  regulatory authority over water resources in implementing these  recommendations, and to provide a mechanism for water-related  research collaboration and sharing of results. Interior generally concurred with our recommendations.
Why GAO Did This Study

Oil shale deposits in Colorado, Utah, and Wyoming are estimated to contain up to 3 trillion barrels of oil--or an amount equal to the world's proven oil reserves. About 72 percent of this oil shale is located beneath federal lands managed by the Department of the Interior's Bureau of Land Management, making the federal government a key player in its potential development. Extracting this oil is expected to require substantial amounts of water and could impact groundwater and surface water. GAO's testimony is based on its October 2010 report on the impacts of oil shale development (GAO-11-35). This testimony summarizes (1) what is known about the potential impacts of oil shale development on surface water and groundwater, (2) what is known about the amount of water that may be needed for commercial oil shale development, (3) the extent to which water will likely be available for such development and its source, and (4) federal research efforts to address impacts to water resources from commercial oil shale development. For its October 2010 report, GAO reviewed studies and interviewed water experts, officials from federal and state agencies, and oil shale industry representatives.

What GAO Found

Oil shale development could have significant impacts on the quality and quantity of water resources, but the magnitude is unknown because technologies are not yet commercially proven, the size of a future industry is uncertain, and knowledge of current water conditions is limited. In the absence of effective mitigation measures, water resources could be impacted by disturbing the ground surface during the construction of roads and production facilities, withdrawing water from streams and aquifers for oil shale operations, underground mining and extraction, and discharging waste waters produced from or used in such operations. Commercial oil shale development requires water for numerous activities throughout its life cycle, but estimates vary widely for the amount of water needed to commercially produce oil shale primarily because of the unproven nature of some technologies and because the various ways of generating power for operations use differing quantities of water. GAO's review of available studies indicated that the expected total water needs for the entire life cycle of oil shale production range from about 1 barrel (or 42 gallons) to 12 barrels of water per barrel of oil produced from in-situ (underground heating) operations, with an average of about 5 barrels, and from about 2 to 4 barrels of water per barrel of oil produced from mining operations with surface heating, with an average of about 3 barrels. GAO reported that water is likely to be available for the initial development of an oil shale industry but that the size of an industry in Colorado or Utah may eventually be limited by water availability. Water limitations may arise from increases in water demand from municipal and industrial users, the potential of reduced water supplies from a warming climate, the need to fulfill obligations under interstate water compacts, and decreases on withdrawals from the Colorado River system to meet the requirements to protect threatened and endangered fish species. The federal government sponsors research on the impacts of oil shale on water resources through the Departments of Energy (DOE) and Interior. Even with this research, nearly all of the officials and experts that GAO contacted said that there are insufficient data to understand baseline conditions of water resources in the oil shale regions of Colorado and Utah and that additional research is needed to understand the movement of groundwater and its interaction with surface water. Federal agency officials also told GAO that they seldom coordinate water-related oil shale research among themselves or with state agencies that regulate water. In its October report, GAO made three recommendations to the Secretary of the Interior to prepare for the possible impacts of oil shale development, including the establishment of comprehensive baseline conditions for water resources in the oil shale regions of Colorado and Utah, modeling regional groundwater movement, and coordinating on water-related research with DOE and state agencies involved in water regulation. The Department of the Interior generally concurred with the recommendations.

What GAO Recommends

GAO is making no new recommendations at this time.