When oil prices last touched record highs — actually, after adjusting for inflation, we're not there yet, but given the effects of Hurricane Katrina, we probably will be soon — politicians' response was more hype than hope.

Oil shale in Colorado! Tar sands in Alberta! OPEC be damned!

Remember the Carter-era Synfuels Corp. debacle? It was a response to the '70s energy shortages, closed down in 1985 after accomplishing essentially nothing at great expense, which is pretty much a description of what usually happens when the government tries to take over something that the private sector can do better. Private actors are, after all, spending their own money.

Since 1981, Shell researchers at the company's division of "unconventional resources" have been spending their own money trying to figure out how to get usable energy out of oil shale. Judging by the presentation the Rocky Mountain News heard this week, they think they've got it.

Shell's method, which it calls "in situ conversion," is simplicity itself in concept but exquisitely ingenious in execution. Terry O'Connor, a vice president for external and regulatory affairs at Shell Exploration and Production, explained how it's done (and they have done it, in several test projects).

Drill shafts into the oil-bearing rock. Drop heaters down the shaft. Cook the rock until the hydrocarbons boil off, the lightest and most desirable first. Collect them.

Please note: You don't have to go looking for oil fields when you're brewing your own.

On one small test plot about 20-by-35 feet, on land Shell owns, they started heating the rock in early 2004. "Product" — about one-third natural gas, two-thirds light crude — began to appear in September 2004. They turned the heaters off about a month ago, after harvesting about 1,500 barrels of oil.

While we were trying to do the math, O'Connor told us the answers. Upwards of a million barrels an acre, a billion barrels a square mile. And the oil-shale formation in the Green River Basin, most of which is in Colorado, covers more than a thousand square miles — the largest fossil-fuel deposits in the world.

Wow.

They don't need subsidies; the process should be commercially feasible with world oil prices at $30 a barrel. The energy balance is favorable; under a conservative life-cycle analysis, it should yield 3.5 units of energy for every 1 unit used in production. The process recovers about 10 times as much oil as mining the rock and crushing and cooking it at the surface, and it's a more desirable grade. Reclamation is easier because the only thing that comes to the surface is the oil you want.