The review, which was done by Houston-based energy consultants Purvin & Gates, looked at the controversial project from a technical, product marketing, economic and environmental viewpoint.
The review compared the Stuart project to the successful Canadian oil sands industry and said that the proposed full-scale commercial phase of the Stuart Project compares favourably with similar sized oil sands development.
Among the key findings, the 73 page report said the Stuart Project represents an opportunity to access 2.6 billion barrels of low cost oil resource; the demonstration plant is 'semi-commercial' and has confirmed the "basic process, configuration and product quality targets"; the technological program is "reasonable" and "appropriate"; the demonstration plant produces high quality oil, which should be readily marketable to Australian or Asian refineries.
In addition, the report said the Canadian oil sands industry is currently expanding to produce more than a million barrels a day, which should give the owners - Southern Pacific Petroleum - the confidence it can achieve similar success; that the project should produce returns similar to the Canadians because of lower capital and cash operating costs. "With crude oil prices as low as $US8 per barrel, projected cash operating costs would continue to be covered," the report said.
In a statement that would no doubt irk opponents of the Stuart project, in particular Greenpeace, the report said the project faces "environmental issues" and SPP has developed a "sound environmental approach" and "will continue to move forward through the regulatory stage in order to gain the necessary approvals for the project."
It added that SPP has produced a greenhouse emission plan that is "reasonable" and when fully implemented, it should bring the net full fuel cycle emissions of oil shale to less than that generated by conventional oil.
The report concluded by saying that the proposed development should be a long term and predictable business due to its extensive resource and the increasing global demand for crude oil. As a result, the project will be fully beneficial to Australia by providing employment opportunities as well as helping the balance of payments by reducing the nation's dependence on imported oil.
