Alternative fuels: Parachute Creek shale oil project's economic and operational outlook
The Department of Energy awarded the Union Oil Company $400 million in price guarantees for synthetic crude oil produced by Parachute Creek shale oil project in Colorado. In 1985, Synthetic Fuels Corporation awarded an additional $500 million in price and loan guarantees to Union to modify the project's technology with a fluidized bed combustor. In December 1985, the Congress abolished SFC and transferred responsibility for the guarantees to the Treasury. GAO believes that because of the uncertainty of the project's economic and technical viability, it would not be in the government's best interest to expand an additional $500 million in financial assistance to install the combustor. If Union elects to proceed with the combustor, GAO recommends that Treasury use the analysis in this report to critically evaluate Union's proposal and explore the government's options for minimizing additional outlays on the project.
- Research Organization:
- General Accounting Office, Washington, DC (USA)
- OSTI ID:
- 6978788
- Report Number(s):
- GAO/RCED-87-126
- Country of Publication:
- United States
- Language:
- English
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04 OIL SHALES AND TAR SANDS
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ECONOMIC DEVELOPMENT
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ENERGY SOURCE DEVELOPMENT
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