Economics
The energy subsidy to produce oil from oil shale is heavy. Since the oil shale has to be mined, transported, retorted, and then disposed of at least 40% of the energy value is consumed in production. Water is also needed to add hydrogen to the oil shale oil before it can be shipped to a conventional oil refinery. The largest deposit of oil shale in the United States is in western Colorado (the Green River Shale deposits) a dry region without surplus water. The oil shale can be ground into a slurry and transported via pipeline to a more suitable pre-refining location.
Environmental Considerations
Oil shale exploitation has all the normal environmental effects from open-pit mining, the pre-refining stage to get crude oil may emit ash, pipelines must be built to an oil refinery, and the waste rock must be disposed of, rock which incidentally is a known carcinogen. Oil shale rock expands by around 30% after processing due to a popcorn effect from the heating.