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Rudy deLeon

International development policy
Image taken on 2010-03-18 09:09:45 by Center for American Progress Action Fund.

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Read more on Litchfield County Times

Financial Status of Rural People

WHO ARE TRIBALS?

The word “tribal” or Adivasi brings to our mind a picture of half-naked men and women, with arrows and spears in their hands, feathers in their heads, and speaking an unintelligible language, their lives often combined with myths of savagery and cannibalism. However, any person having visited a tribal village will be surprised and thrilled to see a community living close to nature, peace-loving, equitable and with advanced cultural/social forms. Our knowledge about the tribals is very limited, leading us to believe many myths at the cost of their dignity. Even when majority of the communities in the world kept changing their life-styles, competed with each other and developed materialistic instincts to keep pace with the “progress” of the world, there were communities still living in line with their traditional values, customs and beliefs. The exploitative mindset of the mainstream society made these communities recede often into forests and high-altitude mountains, where they could continue to live in peace with Nature and their unpolluted surroundings. As the so-called civilized communities of the mainstream society neither could comprehend the values and ideals of these communities nor had the patience to understand their lifestyles, the mainstream world branded them variously as natives, uncivilized people, Aboriginals, Adivasis, Tribals, Indigenous people etc. In India, we mostly refer them as Adivasis/Girijans. In spite of the merciless treatment by the “civilized” men and the socio-economic perils faced by these communities all over the world, the tribals continue to live in the continents of Africa,Asia, North and South America and Australia.

The Imperial Gazetteer of India, 1911, defines a tribe as a “collection of families bearing a common name, speaking a common dialect, occupying or professing to occupy a common territory and is not usually endogamous though originally it might have been

so”. Another definition of a tribe by D.N. Majumdar is that “a tribe is a collection of families or group of families bearing a common name, members of which occupy the same territory, speak the same language and observe certain taboos regarding marriage,

profession or occupation and have developed a well-assessed system of reciprocity and

mutuality of obligations”.

Can the rural tribes manage their saving? Can the rural tribes aware about the schemes?

These are questions that have engaged the attention of people trying to design microfinance products for the tribes. In the past the tribes were always addressed from the supply side through “schematic finance”, now we have reached a stage where we need patience to understand the financial status, financial flows, savings and their attributes in terms of security ,liquidity and risk-return relationship preferred by the rural tribes. It is known that not only the well to do, but also the tribes have patterns in income and expenditure and have evolved products that take care of these ups and downs in financial flows. The objective of the study was to understand the financial flows of the rural tribes so that a better design of savings and loan products in the microfinance sector can be planned.To fill up the gaps between inflows and outflows, the poor need intermediaries in the form of institutions that help them manage the flows. In all

most all villages the private moneylender performs this gap filling function .The debate between private money lenders and tribes are the common issues in the local economy.

. The moneylender provides access to credit, and there are arguments that the image of the moneylender is unnecessarily tarnished in the literature( Chamala and Sharma, 2003) There are counter arguments on whether this fits with the development intervention to be undertaken [Chavan 2003]. There are arguments that because of traditional relationships of trust, it is almost impossible to replace the moneylender, but possible to redefine the relationship by providing an atmosphere for formal competition [Sriram 2002].There researchers focus on general poor but this paper concentrated on poor tribes.

It is important to understand the roles of each of the players providing finance for the tribes and how they manage money.The most commonly used measure of poverty is based on income or consumption levels. People are considered BPL if their consumption

or income level falls below a minimum needed to meet the basic needs and wants. This level is defined as the “poverty line”. This definition differ from place to place and time to time.. Each country uses a definition appropriate to its level of development, societal norms and values In our country, Planning Commission estimates the proportion and number of poor separately for rural and urban sectors at the national and state levels based on the recommendations of committee members.. The committee members had defined the poverty line as the cost of an all-India average consumption basket at which the calorie norms are met [GoI 2002]. The norms were 2,400 calories per capita per day

for rural areas and 2,100 calories for urban areas. These calorie norms were expressed in monetary terms as Rs 49.09 and Rs 56.64 per capita per month for rural and urban areas, respectively at 1973-74 prices. These figures were updated again with the consumer price indices (CPI) in 1994-95. The updated numbers are Rs 228 and Rs 305 per capita per month, for rural and urban areas, respectively [Pradhan and Subramanian 2001; G1993)..

India has the largest concentration of tribal population in the world. The tribal are the children of nature and their lifestyle is conditioned by the eco-system. India due to its diverse ecosystems has a wide variety of tribal population. Tribes people constitute 8.14% of the total population of the country, numbering 84.51 million (2001 Census). There are 697 tribes notified by the Central Government under Article 342 of the Indian Constitution with certain tribes being notified in more than one State. More than half the Scheduled Tribe population is concentrated in the States of Madhya Pradesh, Chattisgarh, Maharashtra, Orissa, Jharkhand and Gujarat whereas in Haryana, Punjab, Delhi, Pondicherry and Chandigarh no community has been notified as a Scheduled Tribe.

As per 2001 census there were 3.21 lakhs Scheduled Tribes in Kerala State The Tribal population in Kerala State is 2 ??of the total population in the State. The literacy

status of STs was 57.22??in 1991 as against the general literacy rate of 89.81?. Major

portion of the STs are seen in the districts Wayanad, Idukky and Palakkad. The poverty

ratio of the ST families estimated as on 31..03..1 998 was 35.89?. This was 48.47??as

per the State Survey in 1992. Nearly 23??of the tribal families are living within forest

areas. There are 35 tribal communities in the State. Among them Paniyar (nearly 20??) forms the majority. The Paniya and Adiya communities in Wayanad District are very

backward and most of them landless agricultural labourers. There are 5 Primitive tribal

groups (PTGs) viz., Kattunaikan, Cholanaikan, Koragas, Kadar and Kurumbas. These

398 Groups are the most vulnerable communities among the tribals and are all below poverty Line. They constitute 5??of the total tribal population in the State. As per the survey conducted in 1996-97 the population of PTGs was 16678 consisting of 4406 families. . They belong to 35 distinct communities including the primitive tribal groups such as Cholanaikan, Kattunaikans, Kurumbas, Kadars and Koragas. They constitute nearly 4.8% of the Scheduled Tribe population. There are 69,444 ST households in the State while in 1981 it was only 52,421. The present number of ST households is estimated around 84,000. The Scheduled Tribe Population is even more unevenly distributed in the Districts. Among the Districts Wayanad has the highest tribal Population nearly 36??of the Tribal Population. Idukky and Palakkad account for another 26?. The lowest representation of tribal population is in Alappuzha District

This paper try to understand and map the financial flows of the tribes and how do they manage their money available to them? The paper is organised into five sections. Section II looks at the literature. Section III has the geographical setting, methodology, sample size, design and administration of the questionnaire. Section IV contains findings of the study. We conclude with Section V – discussing the issues that need to be addressed at a larger scale and also how this study can be taken forward, while identifying the limitations of the current study.

Literature Review

The Governments and Financial intermediaries play a key role for uplifting the tribes in our country.The state has intervened in this segment to address the issues

of inequity from time to time. It has not only created institutional mechanisms, but also has had targeted schemes that help the tribes for eradicating their poverty and economic upliftment. However, most of the efforts have been supply-driven and have looked at the credit and not the savings needs of the poor. The microfinance institutions (MFIs) have

Financial Status of Tribes A Study in Wayanad District

A village-level study conducted in Wayanad district of Kerala attempted to map the financial status of the tribes and the funds flow indicated that the overall asset-savings-income profile of the tribes was not alarming. However, most of the assets and savings are liquid, forcing the poor to borrow at high cost. The study reveals the failure of financial institutions to penetrate the savings and loan market. It also reconfirms earlier findings that health-related expenses are one of the major causes of indebtedness amongst the tribes

Still now reliable financial services are not widely available for offering of credit by MFIs is pigeonholed into the ‘grameen’ type with little flexibility and the self-help group

type with more flexibility, concluded by (Smita Parhi and M S Sriram 2006) and they addressed the issues of financial flow.The loan products available in the formal sector do not address the needs of the poor.Therefore, there is still a gap in the needs of the poor and the offerings [Fisher and Sriram 2002]. They need money in lumps and finding ways

to meet such requirements is a challenge. Savings is nothing but the choice of not consuming cash. This is a fundamental and unavoidable first step in money management. We should look at issues pertaining to savings and credit together, to understand

the needs of the poor [Rutherford 2002].There are some recent studies focusing on financial flows of the poor. The MicroSave-Africa has done a series of studies to

provide financial toolkits for bankers and others. These studies recognise the growing interest in introducing savings products in MFIs. The MicroSave and the consultative group to assist the poor (CGAP) collaborated to study the dynamics of institutional

change in transformation of a microcredit institution to a MFI [Wright, Christen and Martin 2000]. They studied Association for Social Advancement (ASA), which is an important model for microcredit institutions planning to introduce savings products.The ASA was a microcredit institution working only on credit delivery and recovery system based on grameen methodology. Rutherford (2000) argues that the best way to designa product is to ask people about their own preferences, because they are the best judges.

. Ruthven and Kumar (2002) argue that the success of the moneylenders, deposit collectors, pawnbrokers who reach people where others fail, is in providing lump sums instantly, with no security and also regular savings devices on a sufficiently small-scale basis. There are many tricks that the formal institutions need to learn from informal players if they want to widen their client base to reach the poor . On savings, Wright (1999) argues that in many instances the poor have “illiquidity preference” which is a

committed savings mechanism that prohibits them from withdrawing in response to trivial needs and allows them to escape from the demands of their relatives for loans or assistance. It was also found that poor give importance to security and liquidity

aspect of savings and do not look for significant returns.Rutherford (2002) did a one year study using financial diaries to understand the financial flows of 42 low-income Bangladeshi families. The study revealed that better managed MFIs were considered “reliable” among the formal and informal financial service providers The factors associated with becoming poor were quite different from the factors associated

with escaping poverty. Therefore, the programmes of the state needed to get an appropriate focus [Krishna 2003]. A study in,12 villages of Rajasthan found that diversification of income sources; irrigation and information on various opportunities were the key factors in overcoming the poverty trap. The social factors that pull them into the poverty trap were mostly not in their control. Even the programmes of state aimed

at poverty reduction were unable to neutralise the negative effects of these social factors. Many times assistance from the state was unable to trickle down to the grassroots. However, Krishna (2003) has argued that the state support through poverty reduction

schemes had a positive effect in making poverty more tolerable. A similar study in Gujarat showed a different picture. Gujarat being economically sound and more industrialised, it was expected a priori that poverty reduction would Rajasthan [Krishna et al 2003]. The authors argued that falling into poverty is not just the converse of escaping from poverty but more than that. It is evident that there is considerable interest amongst scholar in examining the financial flows of the poor. Our study is different from what we have reviewed. It focuses on regions recognized, as backward. The objective of our study is twofold.

1 To understand the financial flow of tribes through empirical analysis.

2 To study the saving habits and credit behaviours..

Methodology

A questionnaire was designed to capture data on various parameters. The design ensured that we use significant events in the last decade as time markers to gather financial data on how these events were managed. We also had asset purchase and sale as additional

markers. These helped us in associating the financial flows – savings, borrowings (both formal and informal) with the ups and downs of a family,and in triangulating the indebtedness data.

Sample selection: choice of the area and village: This study has its focus on families defined as tribal. All families under the “below poverty line (BPL)” category fell into our focus population. It is not our intention to debate the methodology adopted by the state in defining the tribal. As the idea of the study is to look at how tribal managetheir financial flows This is based on the presumption that the findings would be used

for developing financial products that would be offered to a continuum of clients from the very poor upwards. The artificial boundary of a poverty line is only helpful in drawing the sample. While we wanted to base the study in some of the most backward districts in India, the choice of Wayanad was made purposively. The selection of wayanad was driven not only by its general backwardness, but also the geographical backgrounds .

Wayanad formed November 1 1980 as the 12th district and most backward district in Kerala,it is 3.79% urbanized. Wayanad district stand first in the case of adivasi population(about 36%) among other district in the state.

Design of questionnaire: For collecting household data, a detailed questionnaire was designed, with a view to capture financial flows of families over a long horizon of time. The base data were the demographic and asset profile of a household. Other data were built around this to get the financial history of the household. We collected details of income, indebtedness and savings. We sought inputs from local resource persons to include questions/ asset in the checklists specific to the geographical region.

We collected information on the income flows, agricultural land, physical assets, saving habits, loan transactions and the details of the events that happened in the family in the last 10 years. Although the questionnaire was not divided into different stages, each question collected specific information. This collectively gave an idea of the financial flows of a family. In the first part we collected data on the general family details, including income, inward and outward remittances. The second part collected information on landholding and details of other physical assets, including dwelling and livestock details. In this process we captured the information on financial transactions while purchasing or selling assets, the mode of financing and the purpose of purchase. The third part focused on the physical assets, where we captured the information on mode of financing, purpose of purchase, and its value. If any asset has been sold, we found the amount realised from the sale. By seeking this information, we tried to understand the process of acquisition and sale of assets and the circumstances under which they are acquired or sold. In the fourth part, we captured savings and indebtedness details

of the family. We also asked the respondents to rank the sources with whom they had savings and loan transactions to get a feedback on their comfort levels, details on accessibility, costs, security and liquidity of the products they used. We also asked

them the amount of maximum savings and loans and the source where it has been parked or drawn in the last 10 years. This roughly gave us an idea of the reach of the financial institutions and at the same time told us about the extent of convenience and faith the poor placed on these sources. It helped us find which of the formal or informal source provided most acceptable product. Similar details were collected on indebtedness. In the last part we collected details of the events that occurred in the last 10 years – such as marriage of the children, health expenses and purchase of assets or funeral expenses. These event details capture the financial flows involved with birth, death, education, marriage and emergencies. This gave insights into how such events are financed and managed. The questions on which we had difficulty in getting data were about health-related problems and expenses. They were unwilling to talk about these issues. These details were collected in a circumspect manner. Data were not forthcoming on some sensitive issues as well. As this is a tribal area, there is a prevalence of bride price as against dowry in the plains In this area people had a small piece of land, productivity was

low and most of the produce was consumed. The levels of monetisation were also low. Imputing a value for self-consumption was therefore difficult. Using events as time markers were useful, but that gave us the data on financial flows at the event point. However, several respondents were unable to articulate their outstandings, due to low levels of awareness on aspects of repayment and the split between interest and principal.

The data was collected using men and women investigators. We found it was better to use women investigators for data collection. Using women helped us because: – Respondent-women available for a longer part of the day. Therefore, chances of drawing a blank or need to revisit the household were minimal. – Women had the time to patiently answer the questionnaire and were able to recall details more clearly than men, and responded

to women investigators well. – Women were not suspicious and did not have a tendency to hide. However, the downside of collecting data exclusively from women put a question on accuracy. Ideally this data should have been triangulated by a short interview of the men. But due to constraints of time, this could not be done.

Findings

1 Major sources of money transaction in the village are Village moneylenders,

Shop keepers; Family and relatives, Banks , Co-operatve Society and SHG

.

2 General household and employment: We used data from50 households from which we collected information. These 50households had total 226 individuals – an average of around five persons per household. The basic demographics are given in Table 2. Usually areas of poverty are associated with a high prevalence of child labour. Our pilot indicates that, of the 85 children (under the age of 15), 45 were perusing some vocation or the other, mainly in agriculture, procurement of minor forest produce (MFP) and

travelling to town to work in non-farm enterprises. Of the others above the age of 18, there were only six persons who claimed to be unemployed. Only 45 children of the total 85 under the age of 15 are studying. The other 40 children who were not in school might

have either been employed in some chore or the other, which the families chose not to reveal or were too young to start work. The levels of education were low (Table 3). Wayanad is listed under one of the most educationally backward districts in the country. There was nobody who had attained education beyond the primary level and about two-thirds of the people were illiterate. Most of the employment opportunities were seasonal in nature. Given this, there is an opportunity to introduce financial products that aid the smoothening of cash flows of these poor people. The details of the employment status are given in Table 4.

3 Income: Households had income from agricultural and non-agricultural sources. The income from non-agricultural sources was higher than from agriculture (Table 5). Continuous drought for the past years and non-availability of cultivable land might have driven them to seek income from non-agricultural activities Many persons from the village go to other city to work with non-farm enterprises. Connection with the city has played a major role in diversification of livelihood opportunities. The new income streams discovered out of diversification from the present job has pumped in extra cash to the regular cash flow . High debt had also forced them to come out of the village

and look for alternatives that fetch them regular cash flows. Sometimes the income is in kind. We captured this by converting the flows into monetary terms. For instance, grass and MFP collected, contributed significantly to the income flow of the household. These were monetised. In the upper end households where the income is more than Rs 4,000 per capita we found that more than one member of the family got regular work in city. Some of them also had land, adding to their flows. Although we did not find households abandoning agriculture, Table 6 shows that agriculture is not lucrative and finding wage

employment seems to be an alternative. The households falling in the lower income group, continued depending on agriculture, and were unable to move out of the poverty trap.

4 Assets : The assets owned by the families are given in Table 7. From the list we see that apart from utensils, cots and rudimentary farm implements, there is pretty little in the form of assets that the households had. The most significant asset in the households were silver ,gold ,handcrafts materials etc . It was found during the field visit that most of the assets listed were not usually sold. People in the village prefer to borrow in times of crisis at fairly high rates of interest, rather than liquidate any assets and if they need to sell their assets they would first sell livestock but would not touch the jewellery. All respondents had a dwelling unit of their own. Some of them had two dwelling units, but the families used both. None of the families had leased out land, while several families had leased in land.

5 Borrowings: The profile of borrowings is shown in Table 8. The maximum number of loan accounts was with moneylenders. However, the average size of a loan from moneylender was smaller than other sources. In all, borrowing from moneylender

and other informal sources accounted for almost 85 per cent of the number of loans and 80 per cent of the amounts borrowed. Borrowing from relatives and from commercial banks had a significantly high average loan size. There was no significant difference between the source from which Group I and Group II had borrowed.4 It appears that SHG was not an option for Group I households. The formal sector has been unable to reach this segment of the population. The reasons might pertain to transaction size and costs. Even the SHGs were working with the upper end of the poor families. When we compared loan amounts and borrower profiles, we found that the commercial banks have a bias towards making loans for productive assets (Table 9). The bank had given one

loan for social consumption5 out of five loans made. The health related expenses, contributed to higher expenditure. The borrower portfolio was diverse for the moneylender. The moneylender had extended loans for consumption, social consumption,

health expenses, buying assets, and also to meet charges for litigation. The moneylender loans for assets were mainly for the purchase of livestock. All SHG loans were for consumption. People borrowed mainly for consumption, social consumption and health-related expenses from the family sources. The community usually funded the social events in the village – the expectation was that the recipient would pitches in when there

was a similar event in others’ family. Therefore, the borrowings for marriage and funerals were usually from informal sources. Only one loan from the family sources was for buying assets. Tables 9 and 10 indicate that people borrowed from moneylenders for asset purchase. Borrowing from moneylenders for emergency purposes, is understandable, but the larger share in asset purchase indicates that there is scope for formal institutions to step in. We should also note that the most frequent purpose for borrowing is “health-related”.

6 Savings: Without the awareness and complex legal requirements of banks most of the savings in SHGs. There was one recurring deposit account. Savings in SHGs were on the weekly basis. Many members were irregular in their savings. Even this was irregular as there is no regular income flow in the household. So whenever there was a little money available with the women either by selling the MFP, vegetables or bamboo, they preferred to save in the safe earthen container inside the house but away from their husbands’ eyes. From the data on financing of asset purchase and financing of significant events, it was evident that these savings are very sparingly used for outflows. Sale of assets and jewellery was not seen at all in the sample households. Savings are perceived to be a different compartment that was to be used sparingly. An overall look at the income, savings and borrowings data indicates that the level of indebtedness is not alarming (the figure). In almost all cases the overall borrowing was less than their annual income, and far less than the total worth of the assets they had. In this sense no respondent suffered from a negative net-worth. However, what seemed to be very prevalent is stashing money away in pots, as there were no alternatives available for savings. Formal sources were accessed only by a handful of people and they also seemed to have multiple accounts. This problem was faced both in the borrowing and the savings departments. Table 11 shows the savings of the poor in institutions

CONCLUSIONS

Mapping the financial flow of the poor requires careful investigation of the income and expenditure patterns and the most important is the involvement of the people themselves. This paper illustrates the results of a study conducted in one village of Kerala which was under the influence of natural calamities and farmers problems for last years and has experienced some rainfall this year. But that area resolve some of the important problems by way of government programes and individual cooperation , particularly pertaining to wage employment and helped them diversify their livelihood sources. Although there are

various studies conducted to identify the factors that drag people into the poverty trap, the major findings of this study are that the overall asset-savings-income profile of the poor in this village give a comfort while compared to the indebtedness. However, most of the assets and savings are illiquid, forcing the poor to borrow at high cost and service such loans. The study indicates the failure of institutions to penetrate the savings and loan market. Even if we assume that the “emergency” needs would be met by the local sources, the institutions (including microfinance mechanisms like SHGs) were unable to

make inroads into financing non-emergency planned needs such as asset purchase and house construction. There is a need for an appropriately designed savings product – a major attribute of the product must be safety. Liquidity and return does not seem to

be a concern as most savings is in a “pot” stashed away. It is important to note that significant borrowings also come from relatives thereby reinforcing the social bonding in the community that we studied. This is also evidenced in the way marriages and other social events are financed. The poor seem to be smoothening their interest costs by resorting to informal, zero cost borrowings for certain purposes. This has an important

indication for us. There has been a very strong fungibility argument for pricing loans uniformly, by MFIs. This is seen both in the Grameen style and SHG type of organisations. One of the arguments is that this takes care of adverse usage of credit (the oft-cited example is subsidy based production credit being used for social consumption). However, the pattern of borrowing and the use to which the poor have put the funds in our sample indicate that if we can ensure the end use, there is a case for differential

pricing of loans. It also proves that informal structures ensure that even in consumption, this could be limited by social systems – the example being the non-availability of finance from the social system for second and subsequent marriages. The study re-confirms the findings of earlier studies – the most killing expense is health related. This leads the poor into further indebtedness. The borrowings for health expenses form one of

the most significant chunks of borrowing. We also noticed that there was no significant difference between the upper end of the poor and the lower end in having access to formal institutions both for savings and loans and in either case the dealings with these institutions were limited. A combination of factors like information about income opportunities, accessible and cheap healthcare facilities, credit on affordable terms and awareness about the unnecessary expenses on social functions would help

them in managing their money judiciously. Although we could gather valuable information but still there are certain things missing and the study does not capture like

the relation between the cost of borrowing with and without collateral – particularly with moneylenders, long-term flows and whether these households have been better-off as compared to a decade ago and the effect of diversification of income streams in dealing with

difficult situations – particularly considering that the sample area was affected by severe droughts in the past three years. A significant gap was also found in the lack of data collected on current expenditure.

Profile Of Wayanad District

District Wayanad

Area (in sq.km.) 2,131

Population 7,80,619

Males 3,91,273

Females 3,89,346

Sex ratio : Females/1000 995

Density of Population 366

Per Capita Income (in Rs) 34,123

Literacy rate 85.25%; Male 89.77%; Female 80.72%

Coastal line in km. Nil

Water bodied area in ha. 936

Forest area in ha. 78787

Assembly Constituencies 1. Kalpatta

2. North Wayanad

3. Sulthan Batheri

Taluks Head Quarters No. of Villages

Vaithiri Vaithiri 18

Sulthan Batheri Sulthan Batheri 15

Mananthavadi Mananthavadi 16

Live stock Population (2000 Census)

Cattle Buffaloes Goats Sheep Pigs

106393 5847 38188 110 3254

Monthly rainfall (m.m)

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Rainfall 7.4 9.1 21.5 96.3 186.3 694.1 1163.6 639.6 258.7 206.6 101.4 26.7

Profile of Noolpuzha Village

Geographical Area (Hec) 24297

Forest Area (Hec) 19287

Cropped Area(Hec) 3330

Irrigated Area (Hec) 200

Total Number of House hold 4627

Population 23151

Male 11806

Female 11345

SC / ST 9861

Hospitals 9

High Schools 3

Post Offices 8

Banks 4

Village Offices 1

Telegraph Offices 1

SHG

General 296

ST 111

Sources: Panchayat Schedule

LIST OF TABLES

Table 2: Distribution of Age across the Sample

Year Age

1-15 85

16-30 68

31-45 34

45 years and above 29

Total 226

Table 3: Level of Education across the Sample

Level Of Education No

Illiterate 126

Literate 48

Primary education 52

Total 226

Table 4: Distribution of the Sample according to Employment Status

Status Employment (Nos)

Unemployed 62

Student 16

Housewife 29

Agriculture 60

Non-farm enterprise (seasonal) 33

Non-farm enterprise (regular) 4

Service 8

Any other 14

Total 226

Table 5: Income Details for Different Occupations

Source of Income

Average Income Per

Person Employed

per Annum (Rs) Capita Income

of Households

per Annum (Rs)

Agriculture 1,329 752

Agricultural wage labour 10,800 2,700

Non-agri enterprises (seasonal) 10,621 2,392

Collecting MFP/grass

(primary employment) 950 480

Overall Income from non-agri sources – 519

Per capita income from all sources 6843

Table 6: Income Sources: Agriculture and Other

Per Capita

Sources From Agriculture

From Other

Total Income

Income of HHs (No of HHs) (No of HHs) (No of HHs)

0-2000 6 33 5

2000-4000 25 12 19

More than 4000 19 5 26

Table 7: Asset Details

Asset List

Number

Approximate Value

of the Asset ( Rs)

Physical assets

Clock 9 940

Scooter 01 7000

Cycle 01 2000

Watch 10 2210

Radio 05 2300

Cot 24 5100

Chairs 01 50

Elec connections

(number of bulb points) 15 3500

Utensils (approx value) 17900

Farm implements 52 11500

Pump 01 8000

Jewellery (silver) (approx value) 213600

Jewellery (gold) (approx value) 1500

Livestock

Cows 3733700

Bullocks 5566000

Goat/sheep 81 35650

Poultry 41 6720

Land (area in acres)

Own irrigated land 0.375 22000

Own rain-fed land 20.5 81000

Own non-cultivable land 11.7 232000

Leased rain-fed land 1.875 66000

Leased non-cultivable land 0.375 10000

Dwelling

Small 7

Medium 20

Large 01

Table 8: Borrowing Details from Different Sources

Details of the Monetary

Transactions Break-up of the

Client Base

Sources Loan

No Of

Accounts Ammount

(Rs) Ave Loan

Size (Rs) Group I

19 Hhs Group Ii

15 Hhs

Commercial banks

post office 05

(7.8) 49,000

(17.33) 9,800

02

03

Moneylenders

42

( 65.62) 134,100

(47.45) 3,193

18

24

SHG

04

(6.25) 2,700

(0.95) 675

00

04

Relatives

12

(18.75) 91,800

(32.48) 7,650

06

06

Any other

0 1

(1.56) 5,000

(1.79 ) 5,000

00

01

Total 64 2,82,600 4,415

38

26

.

* Group I = Per capita income less than Rs 4,000. Group II = Per capita

income more than Rs 4,000

Table 10: Significant Events and How They Were Financed

Event Detail Borrowings

No of Events

in the Past Years(Rs)

Ave Amt

savings

Spent

(Rs)

Used

(Rs)

Marriage of children

19

13,432

1,895

11,537

Health problems of family members 31 1,955

1,281 674

Construction of house 10 7,570 800 5,770

Purchase of agricultural land 07 3,457 428 2 428

Funeral expense 04 200 – 1,200

Other 18 989 906 3,083

.

References

1 . Bapuji M., ‘Tribal Development-Strategies An Overview’, The Indian Journal of

Administrative Science, Vol. III, Jan. -Dec. 1992.

.2 . Beteille, Andre, ‘The Definition of Tribe’, Seminar (14), 1960 in Romesh Thaper (Ed.)

Tribe and Religion in India, McMillan Company of India, Lucknow, 1977.

3 Danda, A.K., ‘Statutory Provisions Safeguarding Interests of Scheduled Tribes and

Scheduled Castes’, in L.P. Vidhyarthi (ed.) Tribal Development and Its Administration,

Concept, Pub. Delhi, 1981.

4 . Dhebar, U.N., Report of the ‘Scheduled Areas and Scheduled Tribes Commission’,

1961, Publication Div. Govt. Of India, Delhi.

5 . Elvin, V., ‘A New Deal for Tribal India, Government of India’, Manager Publication,

Delhi, 1963.

6 . Fernandez W. (ed.), ‘National Development and Tribal Deprivation’ Indian Social

Institute, Delhi, 1992.

.7 Government of India, ‘Ninth Five Year Plan (1997-2002)’, Vol. II.

.8. Government of India, ‘Seventh Five Year Plan (1985-90)’, Delhi.

9 Hasan, Amir, ‘Tribal Administration in India’, B.R. Publishing Corp. Delhi,1988.

.10 Hasan, Amir, ‘Land Reforms in Tribal Areas and Its Consequences’, In H.S. Saxena

(ed.), Perspectives on Tribal Development, Bharath Book Centre, Lucknow, 1998.

11 Hasan Amir, ‘Occupation Pattern on a Tarai Village’, The Eastern Anthropologist, Vol.

XXII 2, July –August 1969.

.12. Hasan, Nadeem, ‘Tribal India’, Palika Prakashan, Delhi 1999.

.13 Karmaker, K.G., ‘Rrural Credit & Shelf Help groups’, Sage Publications, Delhi, 1999.

.14 Mahapatra, L.K., ‘Tribal Development in India: Myth and Reality’. Vikas Publishing

House, Pvt. Ltd., 1994.

15. Mahapatra, L.K., ‘Development for whom? Deprivating the Dispossed Tribals’, Social

Action, 41:3, 1991.

16 Menon, P.S.K., ‘Tribal Development Policies, Plans and programmes’. Yojna, April

2002.

17 Mishra, S.N. and Singh B. (ed.) ‘Tribal Area Development Society for Study of

Regional Development’, New Delhi, 1983.

18 Mohanty, B.B., ‘Land Distribution Among Scheduled Castes and Tribes’, Economic &

Political Weekly, October 6, 2001.

19 Nair, M.K. Sukumar, ‘Tribal Economy in Transition: A Study in Meghalaya’, Inter-

India Pub. Delhi, 1987.

20 . NCW, ‘Report on Tribal Women and Employment’, National Commission for Women,

New Delhi, 1998.

21 . Ramje N. & Bhatnagar, A., ‘Empowerment of Tribals and Sustainable Development of

Non-Wood Forest Produce’. Yojana, April 2000.

22. Saxena, H.S., and Sen, Chandra, ‘Putting People Last: Tribal Displacement and

Rehabilitation’, Inter-India Publications, Delhi, 1999.

23 Singh, A.K., ‘Tribal Development Administration in India’, Bharath Book Centre,

Lucknow (In Press)

24 Chavan, Pallavi (2003): ‘Moneylender’s Positive Image: Regression in

Development Thought and Policy’, Economic and Political Weekly,

December 13, pp 5301-04.

25 Fisher, Thomas and M S Sriram (2002): Beyond Micro-Credit: Putting

Development Back into Micro-Finance, Sage-Vistaar, New Delhi.

26 Mutesasira, L (1999): ‘Savings and Needs in East Africa: An Infinite Variety’

in Potential Products and Product Development Services, MicroSave

Africa, Nairobi.

27 Rutherford, S et al (2002): ‘Innovative Approaches to Delivering Microfinance

Services: The Case of VSSU’, West Bengal, MicroSave Africa,

Nairobi.

Nidheesh K B

Lecturer in Commerce

Pondicherry University

Pondicherry

India

DN! Copenhagen Proposal – Won’t pay for the coffins


Leaked Climate Text Infuriates Developing Nations Global climate talks here in Copenhagen have been shaken up with the news wealthy nations have drafted a secret agreement sidelining poorer countries and the United Nations. On Tuesday, The Guardian newspaper published details of a leaked agreement said to include the US, Britain, Denmark and a handful of others. The deal lacks binding emissions cuts and would allow rich countries to pollute nearly twice as much as poorer nations by 2050. After the document was revealed, dozens of African observers at the summit staged a protest inside the conference halls. Sudanese negotiator Lumumba Stanislaus Di-Aping, the chair of the Group of 77 bloc of developing nations, said the proposals are unacceptable. Lumumba Stanislaus Di-Aping: G77 member states will not walk out of these consultations or negotiations in this late hour, because we cannot afford failure of Copenhagen. And let me just actually be very blunt. Ten billion dollars will not buy developing countries people enough coffins.

Lean and Green

 

The initial response of many companies to Sir Nicholas Stern’s apocalyptic report into the human and economic cost of global warming is likely to have been denial. Sir Nicholas warned that the risks of inaction are high and that time is running out. But according to the Carbon Neutral Company, just 80 out of the FTSE-100 companies have identified climate change as a business risk, and only 38 have targets for emissions reduction.

However, these very companies are likely to be among the world’s biggest polluters. The complex global supply webs they have woven over the past ten years or so in order to gain competitive advantage from manufacturing and assembling goods and components in low-cost economies have increased carbon dioxide emissions considerably.

Governments are increasingly concerned about the environmental impact of carbon. So although the cost of making things has never been as low as it is today, the cost of moving things is set to rise steeply.

Before Christmas hundreds of spectators lined the shore to watch the Emma Maersk being guided into Felixstowe harbour by three tugs. The ship, a quarter of a mile long, 200 feet high and as wide as a motorway, was laden with toys, books, computers, Christmas crackers, decorations and food bound for Britain and mainland Europe. The Emma Maersk is one of a new generation of ships which hold over 10,000 containers. A train to carry the equivalent load would be over 50km long, but most of the containers will be transported by lorry. The impact on road congestion as more of these ships come into service is eye-watering.

As a result we are likely to see the imposition of tax on in-bound container movements, as well as aviation fuel. The consequence will be a return to more local manufacturing, because the cost of transporting goods over long distances will become largely prohibitive.

However, several companies, including Marks and Spencer, have already brought their manufacturing closer to home again as they have realised that long inventory pipelines are inconsistent with the need for agility and responsiveness to sudden changes in demand in the home market.

Others, such as Spanish fashion chain Zara, have resisted getting locked into particular supply arrangements. Zara buys unprinted and un-dyed material ahead of demand from low-cost manufacturing economies, books capacity in local manufacturers in Spain and Portugal, and only decides what it is going to make as the season approaches.

And Hewlett-Packard has lowered its manufacturing costs by ‘designing for localisation’ – that is, building a standard product and configuring it for local needs at regional centres. In so doing it has created a more efficient and responsive supply chain that is local, global – and greener.

Many companies embark on ‘greening’ initiatives as a defensive measure against lobby group pressure or potential reputational damage from an accident or pollution somewhere in their supply chain. But they often find that these initiatives lead to cost savings and other efficiencies. Conversely, other companies are discovering that seeking more cost-effective ways to make or move things round the world has a positive environmental impact.

The bottom line is that companies worried about the cost of greening their operations should perhaps be worried about the cost of not doing so instead.

Orginal Source of the article

I am currently a Director of Impact Executives which is a Global Interim Management provider (part of the Harvey Nash Group) and in this role I am at the frontline of dealing with senior clients and candidates across a wide range of change, HR and resourcing issues. I have extensive commercial experience gained through general management and board roles within both Plc’s and also through running my own businesses. I have over 18 years international experience of providing cross-functional resourcing solutions to both global businesses and start-ups. I specialise in the following sectors: Technology, Media, Telecommunications, Pharmaceutical & Biotechnology, and Local Authorities. Visit my blog at http://www.impactexecutives.com/journal/clivesexton or the Impact Executives website at www.impactexecutives.com.

Global Warming -Environmental change HD Stock Footage


Scenes of environmental degradation, through global warming from NHNZ Moving Images – an award winning documentary film maker and production company. Icebergs, deserts, erosion, flood and tsunami featured

Nasty pair arrested in Phuket for robbery, rape

Nasty pair arrested in Phuket for robbery, rape
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Shale oil extraction

History

Main article: History of the oil shale industry

A.C. Kirk’s retort, used in the mid-to-late 19th century, was one of the first vertical oil shale retorts.

A number of shale oil extraction technologies have evolved over a period of time. In the 10th century, a method of extracting oil from “some kind of bituminous shale” was described by the Arabian physician Masawaih al-Mardini (Mesue the Younger). The first shale oil extraction patent was granted by the British Crown in 1694 to three people who had “found a way to extract and make great quantities of pitch, tarr, and oyle out of a sort of stone”. Modern industrial extraction of shale oil originated in France with the implementation of a process invented by Alexander Selligue in 1838 and about a decade later in Scotland by implementation of the process invented by James Young. During the late 19th century, shale oil extraction plants were built in Australia, Brazil, Canada, and the United States. The 1894 invention of the Pumpherston retort (also known as the Bryson retort) marked the separation of oil shale industry from the coal industry.

China (Manchuria), Estonia, New Zealand, South Africa, Spain, Sweden, and Switzerland began extracting shale oil in the early 20th century. However, crude oil discoveries in Texas during the 1920s and in the Middle East during mid-century brought most oil shale industries to a halt. In 1944, the United States restarted shale oil extraction as part of its Synthetic Liquid Fuels Program. These industries continued until oil prices fell sharply in the 1980s. The last oil shale retort in the United States, operated by Unocal Corporation, closed in 1991. The United States’ oil-shale development program was restarted in 2003, followed by a commercial leasing program in 2005 permitting the extraction of oil shale and oil sands on federal lands in accordance with the Energy Policy Act of 2005.

As of 2009[update], shale oil extraction is in operation in Estonia, Brazil, and China. While, Australia, U.S. and Canada have tested shale oil extraction techniques with demonstration projects and are planning implementation on a commercial basis, Morocco and Jordan are also planning to start shale oil production. Only four technologies are in commercial use; namely Kiviter, Galoter, Fushun, and Petrosix.

Process principle

Overview of shale oil extraction

Shale oil extraction process decomposes oil shale and converts kerogen in oil shale into shale oil petroleum-like synthetic crude oil. The process is conducted by pyrolysis, hydrogenation, or thermal dissolution. The most common extraction method is pyrolysis (also known as retorting). In this process, oil shale is heated until its kerogen decomposes into vapors of a condensable shale oil and non-condensable combustible oil shale gas. Oil vapors and oil shale gas are collected and cooled, causing the shale oil to condense. In addition, oil shale processing produces spent shale, which is a solid residue. Spent shale may contain char (some authors use the terms coke residue or semi-coke instead of char) carbonaceous residue formed from kerogen. Depending on the exact composition of oil shale, other useful by-products are also generated during this process. These include ammonia, sulfur, aromatic compounds, pitch, asphalt, and waxes. The efficiency of extraction processes is often evaluated by comparing their yield to the results of a Fischer Assay performed on a sample of the shale.

Pyrolysis is an endothermic process that requires an external source of energy. Most technologies use other fossil fuels such as natural gas, oil, or coal to generate heat, but various experimental methods have used electricity, radio frequency, microwaves, or reactive fluids for this purpose. By-products of the retorting process such as oil shale gas and char may be burned as an additional source of energy and the heat contained in spent oil shale and oil shale ash may be reused to pre-heat the raw oil shale.

The temperature at which perceptible decomposition of oil shale occurs depends on the time-scale of the process. In ex situ retorting processes, it begins at 300 C (570 F) and proceeds more rapidly and completely at higher temperatures. The rate of decomposition is the highest when the temperature ranges between 480 C (900 F) and 520 C (970 F). The ratio of oil shale gas to shale oil generally increases along with retorting temperatures. For a modern in situ process, which might take several months of heating, decomposition may be conducted at temperatures as low as 250 C (480 F). Temperatures below 600 C (1,110 F) are preferable, preventing the decomposition of lime stone and dolomite in the rock and thereby limiting carbon dioxide emissions and energy consumption.

Hydrogenation and thermal dissolution (reactive fluid processes) extract the oil using hydrogen donors, solvents, or a combination of these. Thermal dissolution involves the application of solvents at elevated temperatures and pressures, increasing oil output by cracking the dissolved organic matter. Different methods produce shale oil with different properties.

Classifications

Industry analysts have created several classifications of the methods by which hydrocarbons are extracted from oil shale.

By process principles: Based on the treatment of raw oil shale by heat and solvents the methods are classified as pyrolysis, hydrogenation, or thermal dissolution.

By location: A frequently used distinction considers whether processing is done above or below ground, and classifies the technologies broadly as ex situ (displaced) or in situ (in place). In ex situ processing, also known as aboveround retorting, the oil shale is mined either underground or at the surface and then transported to a processing facility. In contrast, in situ processing converts the kerogen while it is still in the form of an oil shale deposit, following which it is then extracted via oil wells, where it rises in the same way as conventional crude oil.

By heating method: The heating methods used to decompose oil shale may be classified as direct or indirect. While methods that burn materials or insert heat carriers within the retort are classified as direct, methods that conduct heat through retort walls are described as indirect. As of 2009, most of the commercial retorts in operation or under development are direct heating retorts. Another classification is based upon whether the heat is delivered by solids (hot recycled solids methods) or gases. In principle, it is less expensive to deliver heat using solids, especially those already heated by the shale’s pyrolysis, as is the case when spent shale particles are used.

By retort style: Based on the materials and methods used to heat the oil shale to an appropriate temperature, its processing technologies have been classified into internal combustion, hot recycled solids, wall conduction, externallyenerated hot gas, reactive fluid, and volumetric heating methods. There are many possible realizations and combinations of these methods, which are summarized in the table shown below. Some processing technologies are difficult to classify due to their unique methods of heat input (e.g. ExxonMobil Electrofrac) or due to limited information.

Classification of processing technologies by heating method and location (according to Alan Burnham)

Heating Method

Above ground (ex situ)

Underground (in situ)

Internal combustion

Gas combustion, NTU, Kiviter, Fushun, Union A, Paraho Direct, Superior Direct

Occidental Petroleum MIS, LLNL RISE, Geokinetics Horizontal, Rio Blanco

Hot recycled solids

(inert or burned shale)

Alberta Taciuk, Galoter, Lurgi-Ruhrgas, TOSCO II, Chevron STB, LLNL HRS, Shell Spher, KENTORT II



Conduction through a wall

(various fuels)

Pumpherston, Hom Tov, Fischer Assay, Oil-Tech, EcoShale In-Capsule Process, Combustion Resources

Shell ICP (primary method), American Shale Oil CCR, IEP Geothermic Fuel Cell Process

Externally generated hot gas

PetroSIX, Union B, Paraho Indirect, Superior Indirect, Syntec process (Smith process)

Chevron CRUSH, Petro Probe, MWE IGE

Reactive fluids

IGT Hytort (high-pressure H2), donor solvent processes, Chattanooga fluidized bed reactor

Shell ICP (some embodiments)

Volumetric heating



IIT Research Institute, Lawrence Livermore National Laboratory, and Raytheon radiofrequency processes, Global Resource microwave process, Electro-Petroleum EEOP

By raw oil shale particles’ size: The various ex situ processing technologies may be differentiated by the size of the oil shale particles that are fed into the retorts. As a rule, oil shale “lumps” varying in diameter from 10 millimeters (0.4 in) to 100 millimeters (3.9 in) are used in internal hot gas carrier technologies, while oil shale that has been crushed into particulates less than 10 millimeters (0.4 in) in diameter are used in internal hot solid carrier technologies.

By complexity of technology: In situ technologies are usually classified either as true in situ processes or modified in situ processes. True in situ processes do not involve mining or crushing the oil shale. Modified in situ processes involve drilling and fracturing the target oil shale deposit to create voids for the improved flow of gases and fluids through the deposit, thereby increasing the volume and quality of the shale oil produced.

Ex situ technologies

Internal combustion

Internal combustion technologies burn materials (typically char and oil shale gas) within a vertical shaft retort to supply heat for pyrolysis. Typically raw oil shale is fed into the top of the retort and is heated by the rising hot gases, which pass through the descending oil shale, thereby causing decomposition. Shale oil vapors and evolving gases are then moved to a condensing system. Condensed shale oil is collected, while non-condensable gas is recycled and used to carry heat. In the lower part of the retort, spent oil shale is heated to about 900 C (1,650 F) to burn off the char. Recycled gas enters the bottom of the retort and cools the spent oil shale. The Union and Superior multimineral processes depart from this pattern. In the Union process, oil shale is fed through the bottom of the retort and a pump moves it upward. In the Superior multimineral process, oil shale is processed in a horizontal segmented doughnut-shaped traveling-grate retort.

These processes are thermally efficient, since much of the carbon within the shale is burnt, and can achieve 80-90% of Fischer assay yield. Two well-established shale oil industries use internal combustion technologies: Kiviter process facilities have been operated continuously in Estonia since the 1920s, and China’s Fushun Mining Group, a world leader in shale oil production, operates Fushun process facilities. Their product streams, however, are diluted by combustion exhaust.

Hot recycled solids

Hot recycled solids technologies deliver heat to the shale via solid particlesypically oil shale ash. These technologies usually employ rotating kiln retorts, fed by fine oil shale particles generally having a diameter of less than 10 millimeters (0.4 in); some technologies use particles even smaller than 2.5 millimeters (0.10 in). The particles are heated in a separate chamber or vessel, advantageously preventing the dilution of oil shale gas with combustion exhaust.

In the Galoter process, the spent oil shale is burnt in a separate furnace and the resulting hot ash is mixed with oil shale particles to cause decomposition. This process and its modified version, Enefit, have been used in Estonia’s Narva Oil Plant for several decades. The TOSCO II process uses hot shale ash and ceramic balls heated by contact with the ash. The distinguishing feature of the Alberta Taciuk process (ATP) is that the entire process occurs in a single rotating multihamber horizontal vessel. An ATP plant extracted 1.5 million barrels (238.4809410^3 m3) of shale oil between 2000 and 2005 at the Stuart Oil Shale Plant, but is now being dismantled.

Alberta Taciuk Processor retort

Conduction through a wall

These technologies transfer heat to the oil shale by conducting it through the retort wall. The shale feed usually consists of fine particles. Their advantage lies in the fact that retort vapors are not combined with combustion exhaust. The Combustion Resources process uses a hydrogenired rotating kiln, where hot gas is circulated through an outer annulus. The Oil-Tech staged electrically heated retort consists of individual inter-connected heating chambers, stacked atop each other. Its principal advantage lies in its modular design, which enhances its portability and adaptability. The Red Leaf Resources EcoShale In-Capsule Process combines surface mining with a lower-temperature heating method similar to in situ processes by operating within an earthen impoundment structure. Inside the impoundment, a hot gas circulated by parallel pipes heats the oil shale rubble. As the impoundment could be constructed in the empty space created by mining, it allows rapid reclamation of the topography.

Externally generated hot gas

In general, externally generated hot gas technologies are similar to internal combustion technologies in that they also process oil shale lumps in vertical shaft kilns. Significantly, though, the heat in these technologies is delivered by gases heated outside the retort vessel, and therefore the retort vapors are not diluted with combustion exhaust. The Petrosix process, used at the world’s largest operational surface oil shale pyrolysis retort in So Mateus do Sul, Paran, Brazil, employs this technology.

Reactive fluids

Reactive fluid technologies are suitable for processing oil shales with a low hydrogen content. In these technologies, hydrogen gas (H2) or hydrogen donors (chemicals that donate hydrogen during chemical reactions) react with coke precursors (chemical structures in the oil shale that are prone to form char during retorting but have not yet done so). The reaction roughly doubles the yield of oil, depending on the characteristics of oil shale and process technology.

Reactive fluids technologies include the IGT Hytort (high-pressure H2) process, donor solvent processes, and the Chattanooga fluidized bed reactor. In the IGT Hytort oil shale is processed in a high-pressure hydrogen environment. The Chattanooga process uses a fluidized bed reactor and an associated hydrogen-fired heater for oil shale thermal cracking and hydrogenation.

In situ technologies

In situ technologies heat oil shale underground by injecting hot fluids into the rock formation, or by using linear or planar heating sources followed by thermal conduction and convection to distribute heat through the target area. Shale oil is then recovered through vertical wells drilled into the formation. These technologies are potentially able to extract more shale oil from a given area of land than conventional ex situ processing technologies, as the wells can reach greater depths than surface mines. They present an opportunity to recover shale oil from low-grade deposits that traditional mining techniques could not extract.

During World War II a modified in situ extraction process was implemented without significant success in Germany. One of the earliest successful in situ processes was the underground gasification by electrical energy (Ljungstrm method) process exploited between 1940 and 1966 for shale oil extraction at Kvarntorp in Sweden. Prior to the 1980s, many variations of the in situ process were explored in the United States. The first modified in situ oil shale experiment in the United States was conducted by Occidental Petroleum in 1972 at Logan Wash, Colorado. The newest technologies explore a variety of heat sources and heat delivery systems.

Wall conduction

Shell’s freeze wall for in situ shale oil production was designed to separate the process from its surroundings

Wall conduction in situ technologies use heating elements or heating pipes placed within the oil shale formation. The Shell in situ conversion process (Shell ICP) uses electrical heating elements for heating the oil shale layer to between 650 F (340 C) and 700 F (370 C) over a period of approximately four years. The processing area is isolated from surrounding groundwater by a freeze wall consisting of wells filled with a circulating super-chilled fluid. Disadvantages of this process are large electrical power consumption, extensive water use, and the risk of groundwater pollution. The process, under development since the early 1980s, was tested at the Piceance Basin Mahogany Research Project. 1,700 barrels (270 m3) of oil were extracted in 2004 at a 30-by-40-foot (9.1 by 12 m) testing area.

American Shale Oil CCR Process

In the American Shale Oil CCR Process, superheated steam or another heat transfer medium is circulated through a series of pipes placed below the oil shale layer to be extracted. The system combines horizontal wells, through which steam is passed, and vertical wells, which provide both vertical heat transfer through refluxing of converted shale oil and a means to collect the produced hydrocarbons. Heat is supplied by combustion of natural gas or propane in the initial phase and by oil shale gas at a later stage.

The Independent Energy Partners’ Geothermic Fuels Cells Process (IEP GFC) extracts shale oil by exploiting a high-temperature stack of fuel cells. The cells, placed in the oil shale formation, are fueled by natural gas during a warm-up period and afterward by oil shale gas generated by its own waste heat.

Externally generated hot gas

Chevron CRUSH process

Externally generated hot gas in situ technologies use hot gases that are heated above-ground and then injected into the oil shale formation. The Chevron CRUSH process, developed in partnership with Los Alamos National Laboratory, injects heated carbon dioxide into the formation via drilled wells and heats the formation through a series of horizontal fractures in which the gas circulates. Petro Probe has proposed a process which involves injecting super-heated air into the oil shale formation. Mountain West Energy’s In Situ Vapor Extraction process uses similar principles of injection of high-temperature gas.

ExxonMobil Electrofrac

Main article: ExxonMobil Electrofrac

ExxonMobil’s in situ technology uses electrical heating with elements of both wall conduction and volumetric heating methods. It injects an electrically conductive material such as calcined petroleum coke into the hydraulic fractures created in the oil shale formation which then forms a heating element. Heating wells are placed in a parallel row with a second horizontal well intersecting them at their toe. This allows opposing electrical charges to be applied at either end.

Volumetric heating

Artist’s rendition of a radio wave-based extraction facility

The concept of oil shale volumetric heating by radio waves (radio frequency processing) was developed at the Illinois Institute of Technology during the late 1970s. This technology was further developed by Lawrence Livermore National Laboratory. The oil shale would be heated by vertical electrode arrays. Deeper volumes could be processed at slower heating rates by installations spaced at tens of meters. The concept presumes a radio frequency at which the skin depth is many tens of meters, thereby overcoming the thermal diffusion times needed for conductive heating. While the Laboratory has not conducted a rigorous evaluation of the concept, private investigations may have been undertaken. Its drawbacks include intensive electrical demand and the possibility that groundwater or char would absorb undue amounts of the energy.

Radio frequency processing in conjunction with critical fluids is being developed by Raytheon together with CF Technologies and tested by Schlumberger, while Global Resource Corporation is testing microwave heating. Electro-Petroleum proposes electrically enhanced oil recovery by the passage of direct current between cathodes in producing wells and anodes located either at the surface or at depth in other wells. The passage of the current through the oil shale formation results in resistive Joule heating. Microwave heating technologies are based on the same principles as radio wave heating, although it is believed that radio wave heating is an improvement over microwave heating because its energy can penetrate farther into the oil shale formation.

Economics

NYMEX light-sweet crude oil prices 19962009 (not adjusted for inflation)

Main article: Oil shale economics

The dominant question for shale oil production is under what conditions shale oil is economically viable. The various attempts to develop oil shale deposits have succeeded only when the shale-oil production cost in a given region is lower than the price of petroleum or its other substitutes. According to a survey conducted by the RAND Corporation, the cost of producing a barrel of shale oil at a hypothetical surface retorting complex in the United States (comprising a mine, retorting plant, upgrading plant, supporting utilities, and spent shale reclamation), would range between US$7095 ($440600/m3), adjusted to 2005 values). Assuming a gradual increase in output after the start of commercial production, the analysis projects a gradual reduction in processing costs to $3040 per barrel ($190250/m3) after achieving the milestone of 1 billion barrels (16010^6 m3). Royal Dutch Shell has announced that its Shell ICP technology would realize a profit when crude oil prices are higher than $30 per barrel ($190/m3), while some technologies at full-scale production assert profitability at oil prices even lower than $20 per barrel ($130/m3).

To increase the efficiency of oil shale retorting and by this the viability of the shale oil production, researchers have proposed and tested several co-pyrolysis processes, in which other materials such as biomass, peat, waste bitumen, or rubber and plastic wastes are retorted along with the oil shale. Some modified technologies propose combining a fluidized bed retort with a circulated fluidized bed furnace for burning the by-products of pyrolysis (char and oil shale gas) and thereby improving oil yield, increasing throughput, and decreasing retorting time.

A critical measure of the viability of oil shale as an energy source lies in the ratio of the energy produced by the shale to the energy used in its mining and processing, a ratio known as “Energy Returned on Energy Invested” (EROEI). A 1984 study estimated the EROEI of the various known oil shale deposits as varying between 0.713.3; some companies and newer technologies assert an EROEI between 3 and 10. To increase the EROEI, several combined technologies were proposed. These include the usage of process waste heat, e.g. gasification or combustion of the residual carbon (char), and the usage of waste heat from other industrial processes, such as coal gasification and nuclear power generation. The water needed in some extraction processes offers an additional economic consideration: this may pose a problem in areas with water scarcity.

Environmental considerations

Main article: Environmental impact of the oil shale industry

Objections to its potential environmental impact have stalled governmental support for extraction of shale oil in some countries, e.g. Australia. Shale oil extraction may involve a number of different environmental impacts that vary with process technologies. Depending on the geological conditions and mining techniques, mining impacts may include acid drainage induced by the sudden rapid exposure and subsequent oxidation of formerly buried materials, the introduction of metals into surface water and groundwater, increased erosion, sulfur gas emissions, and air pollution caused by the production of particulates during processing, transport, and support activities. Surface mining for ex situ processing, as with in situ processing, requires extensive land use and ex situ thermal processing generates wastes that require disposal. Mining, processing, spent shale disposal, and waste treatment require land to be withdrawn from traditional uses and should therefore avoid areas of high population density. Depending on the processing technology, the waste material may contain pollutants including sulfates, heavy metals, and polycyclic aromatic hydrocarbons, some of which are toxic and carcinogenic. Experimental in situ conversion processes may reduce some of these impacts, but may instead cause other problems, such as groundwater pollution.

The production and usage of oil shale usually generates more greenhouse gas emissions, including carbon dioxide, than conventional fossil fuels. Depending on the technology and the oil shale composition, shale oil extraction may create also sulfur dioxide, hydrogen sulfide, carbonyl sulfide, and nitrogen oxides emissions. Developing carbon capture and storage technologies may reduce the processes’ carbon footprint.

Concerns have been prominently raised over the oil shale industry’s use of water, particularly in arid regions where water consumption is a sensitive issue. In some cases, oil shale mining requires the lowering of groundwater levels below the level of the oil shale strata, which may affect the surrounding arable land and forest. Above-ground retorting typically consumes between one and five barrels of water per barrel of produced shale oil, depending on technology. Water is usually used for spent shale cooling and oil shale ash disposal. In situ processing, according to one estimate, uses about one-tenth as much water.

A 2007 programmatic environmental impact statement issued by the United States Bureau of Land Management stated that surface mining and retort operations produce 2 to 10 US gallons (7.6 to 38 l; 1.7 to 8.3 imp gal) of waste water per 1 short ton (0.91 t) of processed oil shale.

See also

Oil shale geology

Oil shale reserves

References

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^ Tiikma, Laine; Johannes, Ille; Pryadka, Natalja (2002). “Co-pyrolysis of waste plastics with oil shale”. Proceedings. Symposium on Oil Shale 2002, Tallinn, Estonia: 76. 

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External links

Oil Shale. A Scientific-Technical Journal (ISSN 0208-189X)

Oil Shale and Tar Sands Programmatic Environmental Impact Statement (EIS) Information Center. Concerning potential leases of Federal oil sands lands in Utah and oil shale lands in Utah, Wyoming, and Colorado.

“Shale Oil Now” Campaign. Links and articles on America’s shale oil compiled by Jon Moseley

The United States National Oil Shale Association (NOSA)

Shale Oil Information Center. A Colorado non-profit corporation disseminating information focusing on the history of the extraction of oil shale and oil sands.

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Where to Find the Best Economy Car Hire

Hiring a car can quite often be the cheapest option of transport when on holiday; especially if you are travelling with a small group or a family. Hiring a car means you won’t have to pay expensive airport taxi transfers or rely on taxis during your stay. It is important to remember however that if you are planning on travelling a long distance in your hire car and want to save money you must make sure the vehicle you hire is an economy car.

With fuel prices in Spain much like the UK we can no longer expect to see good economy at the pumps. With petrol being as expensive as ?1.26 per litre the more economical your car is the more spare money you will have to enjoy during your holiday. The message seems to be taking care of our environment will also take care of your wallet.

Today car hire companies even have economy hybrid cars in their fleets. These cars run on combined electric motors and conventional petrol engines. Hybrid cars work by using the Petrol engine to run a dynamo which in turn will charge batteries whilst cruising at speed; but through traffic and when starting and stopping frequently the engine can be turned off and the car will drive seamlessly powered by the electric motors. This can be quite disconcerting at first because the car makes almost no sound what so ever, but when it is needed again the conventional combustion engine will start automatically.

Recent developments in technology have even seen cars fitted with tyres and materials which create less friction when in use or regenerative breaking which captures energy which would otherwise be lost when breaking. A staggering amount of energy is lost when breaking in a car in fact if you are travelling at 60 miles per hour and break to zero enough heat energy is produced to boil 2 litres of water. Hybrid cars use less petrol and therefore produce less harmful emissions; they are kinder on your pocket and kinder to the planet. The best cars produce less than 100 grams of Carbon dioxide per kilometer travelled.

If you specifically want an economy hybrid or very economical car it is best to book as far in advance of your departure as possible. By using our On-line search engine you can be sure of getting the most comprehensive and cheapest quotes. The search engine will return prices from over 25 companies providing car hire in Spain. You can then look into which package represents the best deal for you. As a word of precursory warning don’t always go for the one which looks cheapest. Sometimes for a small amount more you can waiver any excesses; or they might have hidden extras which another company doesn’t look carefully and shop through the several economy car hire companies on our search engine.

Many economy hybrid cars available today on the market can achieve around 65 miles per gallon when driven sensibly. This is more like 30 MPG in a conventional car; you could potentially spend half as much on fuel during your stay with an economical hire car. Even if a company doesn’t offer hybrid technology you can save money by making sure the car you rent has an economical petrol engine. Check the statistics when you make your booking. By doing this you are going to make savings in the long run which will mean you have more to spend and enjoy during your trip.

Economy Car Hire . One search to compare the best car hire companies online. With so many interesting places to discover a Car Hire Spain is the recommended and most cost effective transport option.