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</ref> IEI has completed geological surveys and tests in an appraisal stage and hopes to begin a pilot project during 2012. The pilot project would produced oil not before 2017. The pilot test is intended to prove the viability of the company's ''in-situ'' extraction technology.<ref name=jpost /><ref name=boom>
</ref> IEI has completed geological surveys and tests in an appraisal stage and hopes to begin a pilot project during 2012. The pilot project would produced oil not before 2017. The pilot test is intended to prove that shale oil can be produced safely and economically.<ref name=jpost /><ref name=boom>
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The [[Israel Union for Environmental Defense]] has petitioned the [[Supreme Court of Israel]] to review the legality of the IEI license. The court has scheduled a hearing on the matter for April 2012.<ref> [http://www.faqs.org/sec-filings/111011/IDT-CORP_10-K/#tx239371_12 10-k], IDT Corp, October 11, 2011 </ref>
The [[Israel Union for Environmental Defense]] has petitioned the [[Supreme Court of Israel]] to review the legality of the IEI license. The court has scheduled a hearing on the matter (originally set for April 2012,<ref> [http://www.faqs.org/sec-filings/111011/IDT-CORP_10-K/#tx239371_12 10-k], IDT Corp, October 11, 2011 </ref>
and now deferred to October 2012). IEI is under a court order to halt work until after the hearing.

===IEI technology===
===IEI technology===
IEI plans to use ''In Situ Conversion Process'' technology for its pilot project. The pilot will follow the format of a 1995 ''in-situ'' trial by [[Royal Dutch Shell]], whereby 6&nbsp;vertical wells for electrically heated rods were drilled in a [[hexagonal]] formation, with a production well placed at the center of the hexagon.<ref name=IEI>
IEI plans to use ''In Situ Conversion Process'' technology for its pilot project. The pilot will follow the format of a 1995 ''in-situ'' trial by [[Royal Dutch Shell]], whereby 6&nbsp;vertical wells for electrically heated rods were drilled in a [[hexagonal]] formation, with a production well placed at the center of the hexagon.<ref name=IEI>

Revision as of 15:09, 20 March 2012

Genie Energy
Company typePublic
NYSE: GNE
IndustryOil and gas industry
Electricity
Headquarters
Newark, New Jersey
,
United States
Key people
Howard Jonas (Founder and chairman)
Claude Pupkin (CEO)
Avi Goldin (CFO)
Websitegenie.com Edit this on Wikidata

Genie Energy Ltd. is an energy company headquartered in Newark, New Jersey. It is a holding company comprising IDT Energy, a retail energy provider, and Genie Oil & Gas, which controls the company's ventures in oil shale research and development in Colorado and Israel. Genie was part of IDT Corporation. IDT spun off Genie to its shareholders on October 31, 2011, at which point Class B common stock of Genie Energy Ltd. began trading on the NYSE under the ticker symbol "GNE". [1]

Genie's founder, chairman and controlling shareholder is Howard Jonas. Claude Pupkin is the company's CEO, and Avi Goldin is its CFO. Geoffrey Rochwarger is Genie's vice chairman.

Genie previously announced a strategic advisory board whose members provide strategic direction and council. Its members include former Vice President Dick Cheney, Michael Steinhardt, Jacob Rothschild, and Rupert Murdoch.[2]

IDT Energy

IDT Energy, founded in New York State in 2004, is a deregulated energy provider, or Energy Service Company (ESCO), that resells electricity and natural gas to residential and small business customers in New York, New Jersey, and Pennsylvania. More than 100 ESCOs currently operate in that region.[3] Unlike many of its competitors, IDT Energy does not offer long term, fixed price contracts. Nearly all of its customers are on variable rate plans and can change supplier at any time.[4]

Genie Oil & Gas

Genie Oil & Gas (GOGAS) seeks to acquire and develop unconventional fuel resources including oil shale and develops innovative fuel extraction technologies to produce oil and natural gas. GOGAS consists of American Shale Oil (AMSO) and Israel Energy Initiatives (IEI). 89% of GOGAS is owned by Genie Energy while Jacob Rothschild, Michael Steinhardt and Rupert Murdoch hold minority interests.[2][5][6]

American Shale Oil

Main article: American Shale Oil

American Shale Oil (AMSO) is a 50/50 joint venture between IDT Corp and Total S.A.. [7] AMSO plans to demonstrate that commercial quantities of oil can be produced through its in-situ technology which involves heating oil shale to over 650 °F (340 °C) to extract shale oil.

AMSO's BLM lease

AMSO holds a Research, Development and Demonstration (RD&D) lease from the U.S. Bureau of Land Management in Colorado's Piceance Basin.[8] The lease comprises a tract of 160 acres (65 ha), as well as a preferential right to a contiguous area of 4,960 acres (2,010 ha). The lease grants an initial term of 10 years and the possibility of up to a 5-year extension upon proof of diligent progress toward commercial production. RD&D lessees may apply to convert the leases plus the contiguous area to a 20-year commercial lease once commercial production levels have been achieved and additional requirements are met.[9] AMSO estimates that the total BLM tract of 5,120 acres (2,070 ha) contains 5 billion barrels (790×10^6 m3) of oil equivalent in place, of which 5 billion barrels (790×10^6 m3) is recoverable reserve.[8][10]

AMSO technology

AMSO's tech team is headed by Dr. Alan Burnham, who joined AMSO after a 30 year career in oil shale research at Lawrence Livermore National Laboratory.[11] AMSO's proposed technology is called CCR (Conduction, Convection, Reflux).[8]

Israel Energy Initiatives

Israel Energy Initiatives (IEI) was founded in 2008 to develop oil shale in Israel. In July 2011, the company received a one year extension of a three year license to explore oil shale resources on 238 square kilometres (92 sq mi) in Israel's Shefela region.[12] The area contains large underground oil shale formations, which IEI estimates could potentially be converted to 40 billion barrels (6.4×10^9 m3) of oil equivalent.[13] IEI has completed geological surveys and tests in an appraisal stage and hopes to begin a pilot project during 2012. The pilot project would produced oil not before 2017. The pilot test is intended to prove that shale oil can be produced safely and economically.[13][14]

The Israel Union for Environmental Defense has petitioned the Supreme Court of Israel to review the legality of the IEI license. The court has scheduled a hearing on the matter (originally set for April 2012,[15] and now deferred to October 2012). IEI is under a court order to halt work until after the hearing.

IEI technology

IEI plans to use In Situ Conversion Process technology for its pilot project. The pilot will follow the format of a 1995 in-situ trial by Royal Dutch Shell, whereby 6 vertical wells for electrically heated rods were drilled in a hexagonal formation, with a production well placed at the center of the hexagon.[16] IEI has also stated that subsequent development (conditioned on receiving a development lease) would be based on technology more similar to that proposed by sister company AMSO, including horizontal wells and injection of hot gas or fluids.[10] The chief scientist at IEI is Harold Vinegar, former chief scientist for in-situ conversion processes with Royal Dutch Shell.[17] Vinegar has claimed that proposed in-situ technology can produce oil at all-in costs of US$35-40 per barrel.[18][19][20] However, according to Genie Energy's SEC filing, the company recognizes that it may not be able to develop technology that is environmentally acceptable and economically viable.[21]

Environmental concerns

Israel's major environmental organizations, including the Jewish National Fund, the Society for the Protection of Nature in Israel, Greenpeace, and the Israel Union for Environmental Defense have protested the IEI license. Environmental concerns include the potential for contaminating Israel's Shfela aquifer, which runs underneath the Shfela oil shale formation, for destroying a rural region of Israel that currently promotes eco-tourism, and for reversing Israel's efforts to reduce greenhouse gas emissions.[14] Residents of the local community of Adullam and their supporters have also mounted a campaign to stop the IEI work, citing both the environmental damage and the questionable economic value of the project.[22]

References

  1. ^ "Genie Energy Begins Trading on NYSE". Business Wire. 2011-10-31. Retrieved 2011-12-7. {{cite web}}: Check date values in: |accessdate= (help)
  2. ^ a b "Business and Financial Leaders Lord Rothschild and Rupert Murdoch Invest in Genie Oil & Gas" (Press release). IDT Corporation. 2010-11-15. Retrieved 2011-10-06.
  3. ^ New York Public Service Commission
  4. ^ 10-k, IDT Corp, July 31, 2011
  5. ^ "Michael Steinhardt to Become Chairman of IDT Corporation Subsidiary, Israel Energy Initiatives" (Press release). IDT Corporation. 2010-04-19. Retrieved 2011-10-06.
  6. ^ Barkat, Amiram (2010-11-22). "Murdoch, Rothschild invest in Israeli shale oil". The Jerusalem Post. Retrieved 2011-10-06.
  7. ^ "Total buys 50 pct stake in AMSO to sell shale oil". Reuters. 2009-01-14. Retrieved 2011-10-06.
  8. ^ a b c Secure Fuels from Domestic Resources: The Continuing Evolution of America's Oil Shale and Tar Sands Industries (PDF) (4th ed.). United States Department of Energy. 2010. pp. 14–15. Retrieved 2011-10-06.
  9. ^ Andrews, Anthony (2008). Developments in Oil Shale (PDF) (Report). Congressional Research Service. pp. 18–19. CRS RL34748. Retrieved 2011-10-06.
  10. ^ a b IDT Corporation (PDF). Rodman & Renshaw Annual Global Investment Conference. September 13, 2011. Retrieved 2011-10-21.
  11. ^ "Alan K. Burnham Ph.D. Executive Profile". Bloomberg Businessweek. Retrieved 2011-10-31.
  12. ^ 10-k, IDT Corp, October 11, 2011
  13. ^ a b Udasin, Sharon (2011-07-01). "Oil shale can bring energy security and independence". The Jerusalem Post. Retrieved 2011-10-06.
  14. ^ a b Ben-David, Calev (2011-06-02). "Looking for an Oil Boom in Israel's Napa Valley". Bloomberg Businessweek. Bloomberg. Retrieved 2011-10-06.
  15. ^ 10-k, IDT Corp, October 11, 2011
  16. ^ IEI Shfela Oil Shale Pilot: Addendum to the Environmental Document (PDF) (Report). Israel Energy Initiatives. 2011. Retrieved 2011-10-21. {{cite report}}: Unknown parameter |month= ignored (help)
  17. ^ The Magnificent 7 (PDF). Shell in the Middle East (Report). Shell Oil. April 2007. pp. 43–47.
  18. ^ King, Ian (2011-03-11). "Oil shale reserves can turn Israel into major world producer". The Australian. Retrieved 2011-10-06.
  19. ^ Rabinovitch, Ari (2011-04-27). "Oil shale could help Israel energy independence". Reuters. Retrieved 2011-10-06.
  20. ^ Barkat, Amiram (2011-09-26). "Thar's oil in them thar Israeli rocks". Globes. Retrieved 2011-10-29.
  21. ^ "Preliminary Information Statement". Genie Energy. Retrieved 2011-10-11.
  22. ^ Laylin, Tafline (2010-12-08). "Oil & Wine Don't Mix: Over 1,000 Israelis Protest Oil Shale In Adullam". Retrieved 2011-10-18.
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