Western Oil Sands Workshop

Transcription

1 Western Oil Sands Workshop Sustainable Development of Oil Sands Challenges in Recovery and Use September 2006 John R. McDougall

2 Outline Oil Sands in Context Production Technology Implications for GHG production Nature and scale of GHG challenges Opportunities and technologies for mitigating impacts ARC R&D initiatives Conclusions

3 Role of Oil Sands (billion m 3 ) Canada World Conventional Heavy Oil Bitumen Alberta s oil sands are the world s largest hydrocarbon resource 315 b bbls proven, 2.5 t bbls potential Alberta oil sands production will rise to between 3 and 5 m bpd over next 2 decades Bitumen production more energy intensive than conventional oil Challenge is sustainable development

4 Major Heavy Oil and Oil Sand Deposits in Canada 129 billion bbls Alberta Athabasca Saskatchewan 1,369 billion bbls Bitumen Heavy Oil Peace River Edmonton Lloydminster Calgary 201 billion bbls Cold Lake 24 billion bbls Regina Initial in-place volumes Alberta data from AEUB

5 Resources Accessible resources (642 billion) Mineable - 59 billion Primary cold production 150 billion In-Situ 433 billion Inaccessible resources (1053 billion) In between (shallow or thin) 103 billion Carbonate 447 billion Others 503 billion

6 Public R&D Stimulated Production $ (CA Millions) Million Barrels

7 Increasing Reserves Through Technology Billions of barrels of bitumen 1,800 1,600 1,400 1,200 1, Remaining in developed projects

8 Increasing Reserves Through Technology Billions of barrels of bitumen 1,800 1,600 1,400 1,200 1, Remaining in developed projects Current technologies: mining, SAGD, cold production 174 Remaining established reserves

9 Increasing Reserves Through Technology 1,800 Billions of barrels of bitumen 1,600 1,400 1,200 1, Next generation technologies: improved mining, hybrid SAGD, cyclic solvent extraction Remaining in developed projects Remaining established reserves Total ultimate potential

10 Increasing Reserves Through Technology 1,800 1,699 Billions of barrels of bitumen 1,600 1,400 1,200 1, Reduce the gap! Ongoing technology development Remaining in developed projects Remaining established reserves Total ultimate potential Initial volume in place

11 Current and Future Oil Sands Production Mining Current 600,000 bpd Future 1,500,000 bpd In-Situ Current 400,000 bpd Future 3,500,000 bpd

12 Production Methods Cold Thermal Solvent Surface Mining In-Situ Thermal Steam Assisted Gravity Drainage Solvent VAPEX Solvent thermal ES-SAGD Combustion In between?

13 Mining Projects Production Technology Mining - Truck and shovel Bitumen extraction Sources of GHG Mining equipment Tailings ponds Power GHG Production 40 kg CO2 e/bbl

14 Bitumen Extraction Process Oil Sand Feed Semi-Mobile Crusher Rotary Breaker Rejects Hot Water Air Chemicals (as req d) Pipeline conditioning Oversize Screen Primary Separation Cell Flotation Cells Air/Gas Steam Bitumen Froth Froth Treatment Tailings Recycle Water Tailings Settling Pond Coarse Tailings Thickened Fine Tailings Flocculants Recycle Water Froth Storage Thickener

15 Mining Based Opportunities Challenges Cost of operations, maintenance Overall recovery Quality of extracted bitumen & market acceptability Water use Energy use & NG dependence Air Emissions Environmental footprint Continuous Improvement Purpose designed equipment Materials handling Decision support systems Sensors / real time control Improved materials Maintenance procedures Improved machine health monitoring systems Step Out Technologies Tailings technology Dry tailings Mobile conditioning equipment Mining equipment design for improved extraction Borehole technology for intermediate reserves At face continuous mining

16 In Situ Projects Production Technology Primary Steam injection Cyclic steam Huff and Puff SAGD Enhanced SAGD Vapex Sources of GHG Production of thermal energy Power pumping and processing GHG Production kg CO2 E / bbl

17 Steam Assisted Gravity Drainage (SAGD) Horizontal well pair near bottom of pay Upper injector / lower producer Steam chamber grows upward and then sideways. Expected recovery % of OBIP

18 Hybrid SAGD Solvent Processes steam condensed solvent vaporized solvent (re-fluxed) oil & condensate layer Improving oil production rates and recovery over SAGD increase of % Reducing energy and water requirements Reducing greenhouse gas emissions Improving overall economics

19 In Situ Based Opportunities Challenges: Markets for product Energy use & natural gas dependence Diluent for transport Overall recovery Water conservation Air Emissions Environmental footprint Continuous Improvement: Energy lower steam/oil ratios Alternative Energy Solvent assisted recovery Reliable down hole pumps Multi-phase flow measurement Water reuse Reservoir simulators Drilling technology Gas-over-bitumen reserves Shallower/ more marginal resources Step Out Technologies: In-Situ combustion and/or gasification In-Situ catalytic processes Electric induction heating Microwave heating Microbial action

20 Upgrading Diluent for shipment ex Alberta Integrated Plants Stand-alone upgraders Sources of GHG Hydrogen production Power GHG production kg CO2 E / bbl

21 Energy for Oil Sands 30% of barrel used to mine and upgrade bitumen Natural gas for: steam hydrogen electricity Energy demand higher for in-situ (17% of bbl for SAGD vs. 4% for mining) Electricity a relatively low portion of energy requirement Current Oil Sands Natural Gas Demand (scf/barrel) In Situ Mining 80 Upgrader Hydrogen - Today Added Future Upgrader Hydrogen 1000 Upgrader Fuel (assumes no coke burning)

22 Technology Opportunities Reduce natural gas use More efficient H 2 production and use Poly-generation Gasify bitumen residue Produce steam, electricity, hydrogen and CO 2 Reduce emissions GHG to produce value-added products SO 2 to produce construction materials, fertilizer Reduce coal transportation cost

23 Reducing Natural Gas Use Energy Source Natural Gas Coal Bitumen Residues Uranium Geothermal (HDR) Conversion System Advanced SMR Conventional combustion Circulating fluidized bed Gasification Nuclear/steam/electrolysis Steam

24 Polygeneration Natural Resources Processes Market Coal Coke Bitumen Biomass Carbon to Synthesis gas (gasification) Gas to liquids (FT) Gas applications Other Processes (EOR/ECBM) Fuels Chemicals Hydrogen Electricity SNG Carbon Dioxide

25 Integrating Gasification

26 Reducing Air Emissions Switch to fuels with reduced impact SO 2, NO X, particulate, metals (Hg) local energy resource alternatives to natural gas are high sulphur GHG emissions Methane CO 2

27 SO 2 Control Current SO 2 control (limestone scrubbers) produces low value by-products or waste Syncrude NH 3 scrubber (2006) Marsulex proprietary ammonia sulfate scrubbing technology Uses waste NH 3 from upgrading 95% SO 2 capture Product is high quality granular ammonium sulphate fertilizer

28 Greenhouse Gases Proof of Global Warming CO 2 equivalent sum of: Carbon Dioxide - CO 2 Methane CH 4 Nitrous Oxide N 2 O

29 GHG Challenges Oil sands GHG emissions / bbl much higher than conventional At 5 mbpd, CO 2 equivalent (based on today s technologies and estimates) would be 145 Mt/y 10% more than total Alberta emissions in 1990 Fugitive emissions are estimated today and are likely understated by a significant amount (DIAL)

30 GHG Reduction Opportunities CO2 capture and sequestration EOR, CBM Syngas production with CO2 capture Bitumen, coke or coal Reduced energy intensity Chemical (Vapex), biological Cleaner sources of steam and power Nuclear, electric drive trucks CO2 conversion Operational efficiency

31 ARC GHG R&D Activities Energy efficiency production and processing technology EOR CO2 injection CO2 capture, transport and storage Emission measurement DIAL Gasification bitumen, coal CBM CO2 enhanced CBM

32 Research Partners for Carbon Management ARC works with research and industry partners to provide an integrated systems perspective for carbon management activities Alberta Geologic Survey Geological and hydro-geological characterization University of Alberta Rock physics, well-bore integrity University of Calgary Geophysical monitoring CANMET Oxy-fuel, gasification technologies

33 Carbon and Energy Management Focus on energy, environment and climate change Programs: Geological Storage Modelling, Economics, Monitoring, Measurement and Verification ECBM, EGR, EOR ++ Clean Energy Gasification, Fuel Alternatives, Modelling, Process, Emissions Unconventional Natural Gas

34 CO 2 pipeline natural gas pipeline oil pipeline Coalbed Methane Reservoir Gas Reservoir Gas Reservoir Saline Aquifer Coal Mine Coal Mine Oil Reservoir Geologic Carbon Sequestration CO 2 for: Enhanced Oil Recovery Enhanced Coalbed Methane Recovery Enhanced Gas Recovery Acid Gas Injection Deep Disposal ARC is undertaking research in all these areas

35 Why Geological Storage? Reduction of GHG Emissions CO 2 by far the largest Kyoto / Framework Convention Strong forecasted emissions growth Oilsands Coal-fired electricity Economic Potential Enhanced oil recovery Enhanced coalbed methane recovery Enhanced gas recovery Cost avoidance (CO 2 /tonne)

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37 Potential CO 2 Hubs

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39 Current CO 2 Storage Projects Assessment of CO 2 Monitoring potential at Alberta s Four Experimental CO 2 EOR Pilots Monitoring at most suitable site (Penn West Pembina Cardium) Monitoring pilot jointly by Alberta Government and Federal Government Multi-agency research (U of A, U of C, AEUB/AGS)

40 Integrated bio-reactor and bio-gas generator CO 2 Fertilizer N, P, H2O Fertilizers Animal feeds Biopolymers Hydrogen Methane Bio-fuels Bio-prods Carbonates Natural Health Prods Chemicals

41 Recover Minerals from Tailings Creates a new industry Converts oil sands tailings into valuable heavy minerals (approx. 400 kt/yr) No additional mining, disposal or reclamation Potential for added recovery of bitumen, naptha and other minerals products. Courtesy: Titanium Corporation

42 Water Government of Alberta: Water for Life Strategy Industry: Water management planning and conservation trends to use brackish water in place of fresh water must continue to strive for minimum water use and maximum reuse New technologies in mining, extraction, tailings management and in-situ recovery processes

43 Oil Sands Reclamation Challenge Develop reclamation procedures that ensure achieving a sustainable boreal landscape Research and Monitoring (35 years) What soil materials should be salvaged Long-term monitoring (15 years): Reconstructed soils compare favourably with undisturbed soils Revegetation practices highly successful

44 Oil Sands Reclamation

45 Oil Sands: Improved Efficiency OLD NEW Dragline & Bucketwheel Conveyor & Tumblers (80 C) Vertical Wells Coal fired Power Plant Energy Efficiency 45% Reduction in C0 2 per barrel (2008 vs 1990 technology) Truck & Shovel Low Energy Extraction C Hydrotransport SAGD Horizontal Wells Co-Gen Power Plants

46 Oil Sands: Future Future? Combine Lower Energy Extraction Hydrotransport Hybrid Solvent Polygeneration Near zero emissions of sulphur, nitrogen oxides, particulates, mercury, trace elements and organics 40-50% reduction in CO 2 emissions by efficiency improvements, near 100% reduction with carbon management and storage Minimal/Zero water contamination and removal from the natural cycles Maximized solid waste usage and value added products Full and effective site remediation & reclamation Low thermal signatures

47 Summary Technology development and adoption increased the economic viability of oil sands development. Some technology can be sourced from elsewhere Other technologies are under development and nearly ready for demonstration stage. Long-term vision and commitment is required to balance short term problem solving and longer-term strategic agendas. Concentrated sources of GHG emissions create opportunities. Technology and infrastructure required to take advantage of them. Appropriate public policy environment is needed to support strategic agenda and encourage application and commercial deployment (eg. AOSTRA). With such an approach, the future is bright and longterm sustainable oil sand development will proceed.