Directive 017 Heavy Oil GOR Testing Requirements

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1 Directive 017 Heavy Oil GOR Testing Requirements Colby Ruff, Senior Advisor (Measurement Specialist), Industry Operations IMG General Meeting, January 10, 2017

2 Outline: Current Heavy Oil GOR Testing Requirements Background Challenges With Current Requirements Operator Work Undertaken to Date Possible Next Steps 2

3 3 Current Heavy Oil GOR Test Requirements Heavy oil is oil with a density greater than 920 kg/m 3 and includes crude bitumen (except mines and in-situ). Any single stream of produced, flared, or vented gas exceeding m 3 /day must be measured. If the annual average fuel gas usage exceeds m 3 /day on a per site basis, the fuel gas must be measured.

4 GOR or Hourly Rate Testing Casing Gas M Vent/Flare GOR = (vent/flare volume + fuel volume + tank vapour volume) oil production Hourly rate = (vent/flare volume + fuel volume + tank vapour volume) / total test hours Current Heavy Oil GOR Test Requirements M Test Meters Fuel Vented Tank Vapours (Measured or Estimated) Emulsion Tank Pumping Heavy Oil Well Emulsion Trucked to Treatment Facility 4

5 Current Heavy Oil GOR Test Requirements New single well batteries: Monthly 24 hour tests for six months or until gas production stabilizes If total gas production is > m 3 /day then continuous metering is required. If total gas production is m 3 /day then GOR test results may be used to determine well gas production 5

6 GOR test frequency based on initial GOR test results. Current Heavy Oil GOR Test Requirements Gas rate (10 3 m 3 /d) 0.1 Test frequency Once every 3 years > 0.1 but 1.0 Annually > 1.0 but < 2.0 Semiannually 6

7 7 Current Heavy Oil GOR Test Requirements Multiwell proration batteries Wells with gas production rates > m 3 /day must be GOR tested at the same frequency as proration testing unless metered during proration testing. If well gas production is m 3 /day then single well GOR test procedures may be used. Multiwell battery If gas production at point of collection is < m 3 /day and not metered facility level GOR may be used.

8 8 Gaps in Current GOR Testing Requirements Requirements developed in early 1990s Vertical wells only so gas response was more predictable Horizontal wells equate to larger drainage areas which results in greater variation in gas response (changing production rates). Current testing requirements often do not capture increasing gas rates in a timely fashion. GOR testing requirements are viewed as arbitrary & outdated and often are not adhered to.

9 No work completed on new GOR testing frequency Operator Work Undertaken to Date Some work undertaken by one operator to better quantify production tank venting rates and methane component. has received requests from two operators for an approach that would better quantify tank venting. 9

10 Convene a IMG subcommittee to develop new GOR testing requirements. Possible Next Steps Testing frequency requirements that captures gas response in a timely fashion and minimizes low value GOR testing. Develop a broadly applicable GIS factor to estimate production tank venting. 10

11 Convene a IMG subcommittee to develop new GOR testing requirements cont. Possible Next Steps Assess production, flare and vent rate thresholds above which metering is required. Assess full life cycle costs of GOR testing vs. continuous metering. 11

12 THANK YOU 12

13 Climate Change Methane Emission Reduction Projects Proposed Fuel, Flare, Vent Gas Definitions Fuel Gas: Natural gas that is combusted in engines or heaters that are used in the production and processing of oil and gas at upstream oil and gas well sites and facilities. Other gas usage scenarios that must be reported as fuel gas include gas combusted in: Catadyne and other building heaters. Sulphur recovery unit reaction furnaces 13

14 Climate Change Methane Emission Reduction Projects Proposed Fuel, Flare, Vent Gas Definitions Flare Gas: Natural gas that is intentionally combusted in a flare stack or incinerator at upstream oil and gas well sites and facilities. Gas usage scenarios that must be reported as flare gas include: Waste gas Production tank blanket/purge/ sweep gas Dilution gas mixed with H2S prior to flaring or incineration. 14

15 Flare Gas cont. Climate Change Methane Emission Reduction Projects Make up gas added to a flare gas stream to increase its heating value Gas from dehydrator still columns that is flared or incinerated. Proposed Fuel, Flare, Vent Gas Definitions 15

16 Climate Change Methane Emission Reduction Projects Proposed Fuel, Flare, Vent Gas Definitions 16 Vent Gas: Natural gas that is intentionally vented to the atmosphere at upstream oil and gas facilities. Vent gas usage scenarios that must be reported as vent gas include: Waste gas Gas used to operate pneumatic devices Compressor start up or blow down gas Fugitive emissions Vapors off dehydrator still columns.