Cost and GHG impacts of new oil sands technologies

Size: px

Start display at page:

Download "Cost and GHG impacts of new oil sands technologies"

Erica Montgomery
6 years ago
Views:

Presentation at the 37th Annual Conference of the

(IAIA17), 4-7 April 2017, Le Centre Sheraton Montréal

oil sands technologies Experience Nduagu*, Alpha Sow,

1 Presentation at the 37th Annual Conference of the International Association for Impact Assessment (IAIA17), 4-7 April 2017, Le Centre Sheraton Montréal Hôtel Montréal, Canada Cost and GHG impacts of new oil sands technologies Experience Nduagu*, Alpha Sow, Evar Emeozor, Dinara Millington IAIA17, Montreal, QC April

About Canadian Energy Research Institute Overview Founded in 1975, the Canadian

specializing in the analysis of energy economics and related environmental policy

Our mission is to provide relevant, independent, and objective economic research

2 About Canadian Energy Research Institute Overview Founded in 1975, the Canadian Energy Research Institute (CERI) is an independent, non-profit research Institute specializing in the analysis of energy economics and related environmental policy issues in the energy production, transportation, and consumption sectors. Our mission is to provide relevant, independent, and objective economic research of energy and environmental issues to benefit business, government, academia and the public. 2

3 Current Sponsors Supporters include: In-kind support is also provided: 3

4 Table of Content Oil Sands: Opportunities Vs. Challenges Why This Study? Closing The Gaps Methodology Results Concluding Remarks 4

5 Oil Sands Opportunities: Economy To add $200 billion/year to Canada s GDP in 20 years Opportunities 700,000+ Jobs However, significant challenges exist 5 Challenges

6 Crude Production Emissions (kgco 2 e/bbl) Oil Sands Challenges: Costs and GHGs 140 High Costs and GHG Emissions US Non Shale Iran Iraq Basrah Light Venezuela Russian ESPO Saudi Arabia Nigeria Bonny Light Norway Canada SCO California Heavy UK US Shale Brazil Marlim Canada Dilbit Total production costs ($US/bbl) 6

7 Why This Study? - Closing The Gaps Significant R&D efforts towards oil sands development Potential outcomes of these efforts not well-understood Need to quantify cost and emissions reduction opportunities from emerging technologies 7

8 Methodology Assessed potential GHG emissions and cost reductions by new technologies in oil sands in-situ extraction SAGD process divided into 7 segments Focus on technologies near commercialization phase (5 7 years) Data gathered from innovators, interviews, surveys, expert elicitation and secondary sources 8

9 Methodology Pipeline & Transport (PPT) Wells & Reservoir Wellpads (RES) (WWP) Costs & GHG emissions reductions Water & Waste Teatment (WWT) Upgrading (UPG) Business Mgt (BM) Steam Gen (SG) 9

10 Methodology 10

11 Results: Fuel Emissions of Bitumen Production Impact of new technologies on direct fuel emissions SAGD Base

12 Results: Supply Costs of Bitumen Production Impact of new technologies on supply cost SAGD Base 12

13 Results: Technology Configurations Brownfield development Steam solvent Greenfield development Compatible processes and technologies BM WWP RES WWT SG Steam flood management Steam Solvent Magox precipitation and CO2 conversion OTSG Steam with CO2 co-injection Steam/CO2 coinjection Evaporator DCSG Steam CoGen with Steam-solvent Steam-solvent Cogen Digitalization of EPC Steam flood management Well pad standardization Steam Steam Solvent Chemical water treatment SOFC RT- OTSG SOFC Pure Solvent Pure Solvent 13

14 GHG emissions (kgco 2 /bbl) Results: Technology Configurations Supply cost and GHG emissions SAGD Base Steam with CoGen Steam Solvent CoGen Steam Solvent Brown field Pure Solvent Steam/CO2 co-injection Supply Cost (C$/bbl) 14

15 GHG Emissions (Mt CO 2 eq./yr) Results: Oil Sands Emissions & 100 MtCO 2 Cap MtCO 2 eq. Cap Steam-solvent Cogen (SOFC) Scenario Pure Solvent Scenario Steam DCSG Based Scenario Steam SOFC Based Scenario Steam-Solvent (FTB w/o DCSG) Scenario 100 MtCO2 Cap Total Direct Emissions with CH4 Policy 15

16 Results: Upgrading Technologies EJS IYQ Hi-Q HTL DSU CCC Fractal Systems ETX Systems MEG Energy Invanhoe (now Fluid Oil) Field Upgrading Bayshore Petroleum 16

17 Volumetric yield (%) Results: Upgrading Technologies API Gravity 100% 35 90% 80% 70% % 50% 40% % 20% 10% % EJS IYQ Hi-Q HTL Delayed coking Bitumen Dilbit (WCS) 0 Resid Gas oil Diesel Kerosene Distillate Naphtha API 17

18 Results: Upgrading Technologies GHG emissions (kgco 2 eq./bbl) EJS API 19 DSU API 18 CCC API 21 SAGD Dilbit API 20 IYQ API 22.9 HTL API 19 Hi-Q API 20.4 Delayed Coking API WCS-eq. Supply Cost (C$/bbl) 18

19 Concluding Remarks Clear pathways for significant costs and emissions reduction identified in this study Costs reductions of 12% to 46% GHG emissions reduction of 44% to 80% A significant room for oil sands production growth without reaching 100 MtCO 2 eq/year However, de-risking promising technologies through further development (piloting and demonstrations) is imperative 19

20 Canadian Energy Research Institute Questions? Experience Nduagu, Ph.D. Please visit us at 20

Changing US Crude Oil Imports are Driving Refinery Upgrades, Creating Opportunities

1 Changing US Crude Oil Imports are Driving Refinery Upgrades, Creating Opportunities Christopher Buehler, Ph.D., P.E. Praveen Gunaseelan, Ph.D. Crude Oil Quality Association October 22, 2009 Meeting Houston,