Glen Davis Shale Oil Works

The Glen Davis Shale Oil Works was a shale oil extraction plant in Glen Davis, New South Wales, Australia which operated from 1940 until 1952 and was the last oil-shale operation in Australia until the Stuart Oil Shale Project in the late 1990s.[1] For the period of 1865–1952, it provided one fifth of the shale oil produced in Australia.[2]

Ruins of Glen Davis Oil Shale Works, Nov, 2014.

History

The shale oil industry at Glen Davis was developed for production of shale oil for national defence purposes,[3] although the basis of this project was the 1934 report of the Newnes Investigation Committee, which looked at ways to decrease the number of unemployed miners in the region.[4] The project was operated by National Oil Proprietary Ltd.,[5] a company created as a special purpose vehicle by G. F. Davis of Davis Gelantine. A public notice in the Commonwealth of Australia Gazette, on 28 May 1936, invited offers for developing the oil industry in the Glen Davis area.[3] The company was established by private interests with financial support from the Commonwealth of Australia and New South Wales governments.[5]

Construction of the shale oil works started in 1938 and the plant was commissioned in 1939, with operations starting on 3 January 1940.[2][5][6] During World War II, shale oil produced by the Glen Davis Shale Oil Works was considered to be a strategic resource.[3][7] In 1941, 4,273,315 imperial gallons (19,426,870 l; 5,132,037 US gal) of shale oil were produced.[8]

In 1942, under the National Security Act, the government took over the company and in August 1949 acquired the private shareholdings. After expansion in 1946—to a nominal capacity of 10,000,000 imperial gallons (45,000,000 l; 12,000,000 US gal) of petrol per year—a shortage of mined shale constrained its output. In 1947, the refinery section of the plant was only operating 70-days per year, because not enough unrefined oil was produced by the retorts that were only processing about 400 short tons of shale per calendar day. Productivity was poor and the works' losses were only limited by a petrol excise rebate on the oil that it produced. Securing sufficient skilled labour was a problem, due to the isolated location of Glen Davis. The workforce was around 600.[4][5]

In December 1950, it was decided to end the project. In 1951, the last full year before closure, it produced only 1,452,000 imperial gallons (6,600,000 l; 1,744,000 US gal)[4] and lost £507,637—consisting of a trading loss of £206,078, depreciation of £124,903, and interest of £176,656—revenue from petrol sales was £263,156 but wages, salaries, stores and insurance costs were £501,951. Had the plant achieved even half of its design throughput in 1951, it would have been profitable but, by the end of 1951, the accumulated losses totalled 84% of capital and advances.[9] To the end, the continuing inability to mine sufficient shale to feed the retorts was the cause of the works' losses.[10] Plans to change the method of mining from 'bord and pillar' to 'longwall' never eventuated.[5][11][12]

Government funding ceased in 1952, and Glen Davis was closed on 30 May.[13][14] Although some syndicates had an interest to the facility, no deal was concluded.[15] The closure caused a 'stay down' strike by miners and other workers kept the retorts running without being paid. The 'stay down' strike ended after 26 days, without success, when the Australian Council of Trade Unions decided not to support the strike.[16] Beginning in early 1953, much of the movable equipment and other salvageable items were put on sale at auction.[17]

The works had been the site of contention between communist-inspired and non-communist trade union leadership, particularly between the Miner's Federation—covering the mine workers—and the Australian Workers' Union—covering workers at the retorts and refinery.[18][19][20][21][22] Some saw the rigorous enforcement of the 'darg'—a work quota[23]—by communist-led miners, as the reason for the low production rate of oil shale in the highly mechanised shale mine—with claims that miners were working actively for as little as four hours in an eight-hour shift—that in turn being the cause of the works' eventual fate.[24][25][26][11] Others denied even the existence of a 'darg' and of communist-led unions at Glen Davis, blaming instead the state of the mining equipment and the management for the closure.[27]

Although the works had been intended as a means of securing local petrol production, it had provided only a tiny portion of annual petrol consumption in Australia, which by 1952 was 638-million imperial gallons per year.

Deposits and resources

Two seams of oil shale were mined at Glen Davis. The main seam was torbanite and was mined between 5 and 2 feet in thickness. Lying immediately above the 'main seam' was a layer of white clay—6 inches to 2 feet thick—and above that a seam of semi-carbonaceous shale, the 'top' or 'secondary' seam.[12]

When assayed, the shale from the richer 'main seam' averaged 50% oil—containing over 130 imperial gallons (590 l; 160 US gal) per long ton—while the 'top' or 'secondary' seam contained only 8.5% oil, or just over 20 imperial gallons per long ton. The mixed shale from both seams averaged 20% oil or about 50 imperial gallons (230 l; 60 US gal) per long ton. The deposit held a total of 2000-million imperial gallons of oil.[5][12]

There was an independent coal mine nearby that supplied the works with the coal that it used as a fuel for its processes.[28]

The rainfall at Glen Davis was 16 to 18 inches per year and, in dry times, surface water at Glen Davies was insufficient. Bores were put down but the water needed treatment. Water was a constraint on production in the early years. Later, water was supplied from a dam on the Fish River, by a 50-mile pipeline constructed for the plant.[12][29]

Description

The 55,000 acres (22,000 ha) mining and shale oil extraction complex was located in Gindantherie, Goolloinboin, Barton, Glen Alice, and Capertee parishes of Cook and Hunter counties.[3] The mine used bord-and-pillar mining techniques, and employed 170 miners.[5] The shale was crushed by a Pennsylvania single-roll type crusher and was then conveyed into the retorts.[5]

The company planned to use two tunnel ovens, each with a daily capacity of 336 tons, designed by AS Franz Krull of Estonia and Lurgi AG of Germany, similar to those used by some oil shale industries in Estonia.[2][5][30][31] However, for economic reasons, it was decided in March 1939 to instead use a technology that had been employed in the closed Newnes Shale Oil Works, and 64 modified Pumpherston retorts were transferred from Newnes. Other equipment was imported from the United States, including a second bench of 44 retorts added in 1946.[4][5] Retorts were heated by coal obtained from nearby coal mines.[32] The rate of recovery of the retorts was 82% of the assayed oil content.[5]

The oil was treated to create motor oil and was then transported by a 30-mile (48 km) pipeline to storage tanks at Newnes Junction.[5][8]

  • General layout of the works.
  • Retorts c.1947.
  • Retorts and shale conveyor from storage bins c.1947.
  • Diagram of process flow of oil shale from mine to waste dump.
  • Diagram of process flow from retort gas off-take to Condensing Plant and Naphtha Plant.
  • Diagram of process flow for Cracking and Polymerization Plant
  • Diagram of process flow for (Final) Treatment Plant
  • View with refinery in the background c.1947.
  • Refinery c.1947.
  • Naphtha plant c.1947.
  • Ruins of the retorts in November 2014.
  • Ruins with retorts in the background, in November 2014.
  • Remaining township, with Mt Gundangaroo in the background.

See also

References
  1. Dyni, John R. (2006). "Geology and resources of some world oil-shale deposits. Scientific Investigations Report 2005–5294" (PDF). U.S. Department of the Interior. U.S. Geological Survey: 5–7. Retrieved 2 December 2012. Cite journal requires |journal= (help)
  2. Mägi, Vahur (10 August 2008). Estonian Oil-shale Technology in Australia. International Committee for the History of Technology 2008 Conference. Victoria, British Columbia: University of Victoria. Retrieved 2 December 2012.
  3. "National Oil Proprietary Limited Agreement Ratification Act 1937" (PDF).
  4. Spooner, W. H. (17 June 1952). "This Is Why Glen Davis Has Had To Close Down". The Sydney Morning Herald. Retrieved 2 December 2012.
  5. Kraemer, A.J.; Thorne, H.M. (July 1951). Oil Shale Operations in New South Wales, Australia (PDF). United States Department of the Interior. pp. 4–44. Retrieved 2 December 2012.
  6. "Oil From Shale. Production To-day". The Sydney Morning Herald. 2 January 1940. Retrieved 2 December 2012.
  7. "Offer For Glen Davis Oil Plant By Syndicate". The Age. 27 June 1951. Retrieved 2 December 2012.
  8. "Glen Davis". Lithgow Tourism Information Website. Retrieved 2 December 2012.
  9. "Heavy losses". Daily Telegraph (Sydney, NSW : 1931 - 1954). 15 May 1952. p. 7. Retrieved 7 June 2020.
  10. "Shale Processing". Sydney Morning Herald (NSW : 1842 - 1954). 17 January 1951. p. 2. Retrieved 7 June 2020.
  11. "New Method At Glen Davis Is Suggested - The Newcastle Sun (NSW : 1918 - 1954) - 11 Jan 1951". Trove. Retrieved 8 June 2020.
  12. The staff of National Oil Proprietary Ltd, Glen Davis. (3 July 1950). "The Development of the Oil Shale Industry at Glen Davis, New South Wales, Australia". SECOND OIL SHALE AND CANNEL COAL CONFERENCE, Organised by the Institute of Petroleum.
  13. Dyni, John R. (2010). "Oil Shale". In Clarke, Alan W.; Trinnaman, Judy A. (eds.). Survey of energy resources (PDF) (22 ed.). WEC. pp. 103–104. ISBN 978-0-946121-02-1. Archived from the original (PDF) on 4 March 2012. Retrieved 2 December 2012.
  14. An Assessment of Oil Shale Technologies (PDF). United States Office of Technology Assessment. DIANE Publishing. June 1980. pp. 109–110. ISBN 978-1-4289-2463-5. NTIS order #PB80-210115. Retrieved 2 December 2012.
  15. "Offer For Glen Davis Oil Plant By Syndicate". The Age. 21 May 1952. Retrieved 2 December 2012.
  16. "Stay-down Strike At Glen Davis Ends After 26 Days". The Sydney Morning Herald. 29 June 1952. Retrieved 2 December 2012.
  17. "Advertising - The Sydney Morning Herald (NSW : 1842 - 1954) - 22 Nov 1952". Trove. Retrieved 8 June 2020.
  18. "Attend Town Hall Glen Davis rally". Tribune (Sydney, NSW : 1939 - 1991). 25 June 1952. p. 1. Retrieved 8 June 2020.
  19. "Communists Banned at Glen Davis". Mudgee Guardian and North-Western Representative (NSW : 1890 - 1954). 11 August 1949. p. 2. Retrieved 8 June 2020.
  20. "A.W.U. Activities. - N.S.W. Branch GLEN DAVIS FINAL NOTE ON COMMOS. AND COMPANY - The Australian Worker (Sydney, NSW : 1913 - 1950) - 23 Aug 1950". Trove. Retrieved 8 June 2020.
  21. "Where Will the Coms. Go Next?". Trove. Retrieved 8 June 2020.
  22. "A.W.U. ACTIVITIES - NEW SOUTH WALES BRANCH P.O. Address: 238 Castlereagh Street, Sydney. Telegraphic Address:". Trove. Retrieved 8 June 2020.
  23. "darg - Wiktionary". en.wiktionary.org. Retrieved 8 June 2020.
  24. "Crippling Darg At Glen Davis". Sydney Morning Herald (NSW : 1842 - 1954). 15 January 1951. p. 2. Retrieved 8 June 2020.
  25. "Who Killed Glen Davis?". Land (Sydney, NSW : 1911 - 1954). 12 January 1951. p. 4. Retrieved 8 June 2020.
  26. "GLEN DAVIS: KENNY HAS HOPE". Sun (Sydney, NSW : 1910 - 1954). 11 January 1951. p. 2. Retrieved 8 June 2020.
  27. ""There Is No Darg at Glen Davis" - Yass Tribune-Courier (NSW : 1929 - 1954) - 5 Feb 1951". Trove. Retrieved 8 June 2020.
  28. "Glen Davis town and oil-works | NSW Environment, Energy and Science". www.environment.nsw.gov.au. Retrieved 3 June 2020.
  29. "NEW WATER SUPPLY". Daily Telegraph (Sydney, NSW : 1931 - 1954). 2 July 1943. p. 8. Retrieved 7 June 2020.
  30. Holmberg, Rurik (2008). Survival of the Unfit. Path Dependence and the Estonian Oil Shale Industry (PDF). Linköping Studies in Arts and Science. 427. Linköping University. pp. 85–86, 89, 94, 129–131. Retrieved 2 December 2012.
  31. "Ilmar Öpik. Biographical Data" (PDF). Oil Shale. A Scientific-Technical Journal. Estonian Academy Publishers. 19 (2 Special): 187–195. 2008. ISSN 0208-189X. Retrieved 2 December 2012.
  32. "Oil Plant Not To Take Coal". The Age. 16 July 1949. Retrieved 2 December 2012.
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