The Grand Junction Daily Sentinel
November 7, 2011, Jason Hanson

Thank you for The Daily Sentinel’s excellent series of articles covering the Oil Shale Symposium a few weeks ago in Golden. One of the articles, “Oil shale boom would come with challenges, speakers say,” mentioned my remarks at the conference’s closing plenary session, reporting that “Only an indefinable variable, what Hanson called an ‘X factor,’ seems to be standing in the way of a full-bore boom.”

I would like to take this opportunity to clarify what I intended to say in my talk. The point I was trying to make is that, historically, volatile oil prices plus national security anxieties plus active federal encouragement are the recipe for an oil shale boom, but that companies needed to add an “X factor” to that equation if they wanted to transform a boom into a stable industry. And that X factor is sustainability.

By “sustainability” I mean business models that will promote planned growth rather than boom-and-bust chaos, and operational plans that demonstrate a commitment to preserving the area’s unique and fragile environment. Even if the companies operating in shale country do finally develop the necessary technology, they will need to address socioeconomic and environmental concerns in order to create a stable industry. Sustainable practices are the key to the industry’s long-term future. Without an intentional focus on sustainability, the chances of another boom and bust cycle are by definition much higher.