No Shale Oil Development In Queensland  

It looks like the lads at Ziff Brothers (and others) and going to be disappointed in their hopes to try and produce shale oil in Queensland, with the state government banning developments for at least 2 years - Bligh says no to north Qld shale project.

Queensland premier Anna Bligh has killed off a controversial $14 billion shale oil project in north Queensland. Ms Bligh cited the need to put the environment first as she quashed plans to start bulk sampling and exploration of the McFarlane deposit, 15km south of Proserpine.

The decision sparked a war of words between the mining lobby and Greenpeace, who campaigned against the development. Ms Bligh said she would not allow the environment to be put at risk while the technology for extraction of the resource was still not proven. "Our environment must come first," the Premier said. "That's why we are putting a 20-year moratorium on all mining activities, bulk sampling and exploration over the McFarlane deposit in the Whitsunday region."

Conservationists feared the project could affect tourism in the Whitsundays region, pollute the Great Barrier Reef and Goorganga wetlands, pose risks to health and disrupt local farming operations.

On Friday local state MP, Member for Whitsunday Jan Jarratt, publicly opposed the development. Mining would not have occurred for several years, if approved.

Shale oil is extracted from sedimentary rocks that contain solid combustible organic matter called kerogen. Under a heating process, the kerogen can be decomposed to release hydrocarbons that can be captured to produce synthetic crude oil and combustible gas.

Ms Bligh said the government would devote the next two years to researching whether shale oil deposits can be used in an environmentally acceptable way. In the meantime no new shale oil mines will be permitted anywhere in the state.