Utah contains significant resources of tar sands which, if developed, could become an important component of the nation's requirements for petroleum products. The economics for production of syncrude from Utah tar sands have historically been just beyond the range of profitability. Production of asphalt, however, appears to be profitable today. Capital and operating costs for production of asphalt may be only two-thirds that for production of syncrude. On the other hand, the price of asphalt has held steady in the range of $25/bbl, even at today's lower crude oil prices. The technology for recovery of domestic tar sands has been under development at the University of Utah for more than a decade. Process design and a feasibility study for commercialization of this technology for production of asphalt are being conducted in Phase I. Subcontracts will be let to the University of Utah for experimental studies and to Asphalt Ridge Operating Company (holders of Asphalt Ridge leases) to conduct site-specific, mining engineering studies and application analyses. Results of the feasibility study will delineate the potential for commercialization of Utah's tar sands for production of asphalt.Anticipated Results/Potential Commercial Applications as described by the awardee: The results of this study will, for the first time, combine the important literature and expertise and specify the details that are required to advance the commercial development of one of this country's major energy resources. The end product addressed in this study is asphalt, a commodity in positive growth demand that has an established.market. A successful feasibility study will serve as a basis for attracting preliminary investment capital for Phase II and Phase III funding. Commercialization of tar sands asphalt will produce a product useful to the public sector at a reduced cost and improved availability. A direct return on Federal research dollars will be realized.Topic 23: Enhanced Oil and Gas Recovery and Tar Sands
