Technology to pay dividends: QER
QUEENSLAND Energy Resources (QER) has spent $300 million on shale oil technology in Queensland equating to nothing yet, according to QER operations manager Chris Anderson.
“We believe it is the way to go as we think it will be a successful technology,” Mr Anderson said.
“The technology works well and you get good oil out of it.”
Speaking at the Golding Industry Conference yesterday, he said domestic oil supply was declining with last year being the lowest production of oil in 40 years.
“The reality is that oil is declining with Australian oil reserves expected to be only 20 per cent by 2030,” he said.
QER is an integrated resources and energy company that holds mining and other tenement rights to several of the largest and potentially most productive oil shale deposits in Australia.
QER considers the Stuart site at Yarwun oil shale resource to be an important source of oil for addressing new technology in fuel production.
The construction of a technology demonstration plant to prove the technology to the Australian Government is under way at the Yarwun site, which is expected to be completed in November.
“We need to establish the technology through a pilot plant which is a mini version of a full-scale plant,” Mr Anderson said.
“It will be a very small capacity plant that will produce 47 barrels a day. We are not about production and we won’t make money from it.”
QER hopes to have the technology demonstration plant in operation by the fourth quarter of 2012.