AFTP. Technologies Applicable to Heavy Oil / Bitumen

Transcription

1 AFTP Technologies Applicable to Heavy Oil / Bitumen Field - Production/extraction level Midstream - Transportation Level Valorisation - Upgrading level AFTP-Oct-2007

2 FIELD LEVEL production / extraction technologies 3 different routes depending on depth, reservoir characteristics, Depth Mobility MINING (open cast) Draglines Trucks and Shovels shovels and mobile crushers Maturity abandoned next generation increasing decreasing Indicative only IN SITU «Thermal» CSS - Cyclic Steam Stimulation SAGD -Steam Assisted Gravity Drainage THAI Toe-to-Heel Air Injection Electric Heating.. IN SITU «Cold» Diluent / Water / Polymers / CO2 injection CHOS-Cold Heavy Oil Production with Sands Vapex under testing next generation? under testing 2 - AFTP-Oct-2007

3 FIELD LEVEL production extraction technologies (contd).supported by on-going technological improvement / innovations IN-SITU DIRECTIONAL DRILLING ONLINE MONITORING horizontal wells well-paires trajectory optimization WELL ACTIVATION PCP- Progressive Cavity Pump ESP- Electro Submersible pump Gas lift MINING MOBILE EQUIPMENT FOR MINING massive 400 tonnes trucks electric shovels FROTH TREATMENT massive settlement vessels hydrocyclones 3 - AFTP-Oct-2007

4 FIELD LEVEL - Steam Generation where improvement / innovations IS required 25 IN-SITU : SUNCOR FIREBAG-SAGD MININGUPGRADER: Western Oil Sands C$/bbl 15 TOTAL CASH OPERATING COSTS 10 5 of which : Natural Gas Costs H TOTAL CASH OPERATING COSTS 10 5 of which : Natural Gas Costs H 2007 THREE MAIN CHALLENGES TO REDUCE NATURAL GAS NATURAL GAS FUEL Conventional boilers on NG OTSG: One -Through-Steam-Generators Energy efficiency Water quality - GHG reduction ALTERNATIVE FUELS Coal in Conventional PC Boiler Coal / Petcoke in CFB Bitumen (possibly in emulsion form) Other Heavy residues (in CFB or Gasification?) Nuclear?? ? AFTP-Oct-2007

5 MIDSTREAM - TRANSPORTATION LEVEL where improvement / innovations is moving slowly TRANSPORTATION BY «HOT» PIPELINES Heavy-Oil / bitumen is injected «hot» in insulated pipelines Ex: McKay pipeline ~ 40 km, Echo pipeline ~ 150 km DILUTION (TO BRING VISCOSITY BELOW 350 CST) DILBIT ½ bbl of diluent (~65 o API) for 1 bbl of bitumen SYNBIT 1 bbl of diluent (~33 o API) for 1 bbl of bitumen Emulsion ½ bbl of water for 1 bbl of bitumen (Orimulsion) PARTIAL UPGRADING Mainly 2 possible routes: thermal cracking de-asphalting or, no industrial application yet in Canada but in Venezuela TRANSPORTATION ISSUES CAN HAVE A VERY SIGNIFICANT IMPACT ON VALORISATION See next presentation on Heavy Crude Transportation 5 - AFTP-Oct-2007

6 VALORISATION: TECHNOLOGY OR STRATEGY? 1 - why is valorisation a very specific concern: bitumen squeeze high volatility of heavy oil and diluted bitumen prices, because of limited outlets or land locked markets no possible direct hedging yet costly of dilution: 0,5 bbl C5/Condts or 1 bbl of SCO per 1 bbl of bitumen US$/bbl janv.-05 févr.-05 mars-05 avr.-05 mai-05 juin-05 juil.-05 août-05 sept.-05 oct.-05 nov.-05 déc.-05 janv.-06 févr.-06 mars-06 avr.-06 mai-06 juin-06 juil.-06 août-06 sept.-06 oct.-06 nov.-06 déc.-06 janv.-07 févr.-07 mars-07 avr.-07 mai-07 juin-07 juil.-07 août-07 sept.-07 Bit. netback ex Dilbit Bit. netback ex Synbit WTI SCO Edm C5 Edm WCS Hty High crude Oil prices do not always protect for possible poor netbak value, depending on relative blends and diluent pricing 6 - AFTP-Oct-2007

7 VALORISATION: TECHNOLOGY OR STRATEGY? (contd) 2 how to protect heavy oil / bitumen valorisation from market risk DOWNSTREAM INTEGRATION «TECHNICAL» INTEGRATION i.e. upgrading, either on-site or remote, Partial or full upgrading BUT DIFFERENT POSSIBLE APPROACHES TO MITIGATE MARKET RISKS «STRATEGICAL» INTEGRATION Internal or organic (incl. refinery revamping and or refinery purchase, ) External (Marketing Agreement, companies alliance, JV Upstream- Downstream, ) 7 - AFTP-Oct-2007

8 VALORISATION: TECHNOLOGY OR STRATEGY? (contd) 3- Upgrading Technologies (where innovation conflicts with risk aversion...) inovation Proven technology Carbon Rejection Delayed Coker Fluidcoker Flexicoker Hydrogen Addition LC-Finer/H-Oil ENI-EST HDH(Intevep). R&D process. > all 4 upgraders in Venezuela, Suncor in Alberta,.. > in Venezuela and Syncrude in Alberta > 5 worldwide, but not Venezuela nor Alberta > Shell (AOSP), Husky in Alberta (fluidized bed) > demonstration plant running in Italy (slurry) > No demonstration plant yet (slurry) 8 - AFTP-Oct-2007 Main Technological Challenges: increasing the conversion rate increasing desulfurization / demetallization but limiting H2 needs reducing CO2 and other VOCs emissions