As Syria advances its postwar reconstruction plans, policymakers are placing renewed focus on the energy sector, with oil shale emerging as a potential long-term resource to strengthen energy security and reduce reliance on imports.
Oil shale, a sedimentary rock that releases liquid fuel and gas when heated, is among the country’s largest unconventional energy assets. Estimates place Syria’s reserves at over 40 billion tons, equivalent to nearly 20 billion barrels of oil.
The largest known deposits lie in the Khanaser area of Aleppo’s countryside, where reserves are estimated at 38.8 billion tons. The site’s central location and existing electricity grid connections to Aleppo, Hama, Raqqa and Deir Ezzor make it a strong candidate for large-scale power generation projects.
Officials and analysts say the area could support electricity production of up to 600 megawatts, adding to its strategic importance. Smaller reserves are also found in Wadi Yarmouk in Daraa, as well as in the coastal mountains, the Palmyra range and the Syrian desert.
Rising Prices Improve Project Economics
Economist Hussam Ayesh said oil shale could serve as a substitute for gas or diesel in power plants, reducing pressure on conventional fuel supplies and freeing natural gas for industrial use or export. He said the resource’s economic feasibility has improved as global oil prices rise and regional energy markets remain volatile. If extraction costs remain in the $50 to $60 per barrel range, investment in oil shale projects becomes increasingly realistic.
Beyond fuel production, oil shale also offers industrial applications. Processed byproducts can support the manufacture of ceramics, concrete, fertilizers and plastic granules, while some materials may also be used for soil improvement and agricultural support. International examples continue to shape the discussion. Estonia has long relied on oil shale for a large share of its electricity generation, while Jordan uses it as part of its energy mix through the Attarat project.
Technology May Ease Environmental Risks
Despite its potential, the sector faces significant environmental and technical challenges. Oil shale extraction often requires substantial water use, while processing leaves behind large quantities of spent rock. These concerns have raised questions about sustainability, particularly in water-stressed regions.
Still, newer technologies may reduce some of those risks. Companies such as Shell plc have developed in-situ heating methods that allow extraction below the surface, reducing the need for large-scale excavation. Other techniques, including freeze barriers, can help prevent contamination of groundwater.
Investment Terms Remain Critical
Experts say the long-term success of any Syrian oil shale project will depend not only on reserves and technology but also on carefully structured investment contracts. Particular attention, they say, must go to production costs, electricity purchase prices and risk-sharing terms with investors to avoid heavy financial obligations in the future.
With global supply disruptions and energy prices remaining uncertain, Ayesh said prioritizing energy security has become an economic necessity, making oil shale a resource Syria is increasingly likely to examine more closely.
