Canada Sagd

7/25/2019 Canada Sagd

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SPE DISTINGUISHED LECTURER SERIESis funded principallythrough a grant of the

SPE FOUNDATIONThe Society gratefully acknowledges

those companies that support the program

by allowing their professionalsto participate as Lecturers.

And special thanks to The American Institute of Mining, Metallurgical,

and Petroleum Engineers (AIME) for their contribution to the program.


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Unlocking the planets heavy oil and bitumenresources A look at SAGD

Unlocking the planets heavy oil and bitumenresources A look at SAGD

Subodh Gupta

EnCana CorporationMarch, 2005

Subodh Gupta

EnCana CorporationMarch, 2005

Author wishes to express thanks for Encanassupport and encouragement in allowing toparticipate in the Distinguished Lecturer

Program and in putting this presentationtogether


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A Power Hungry World!A Power Hungry World!

0

1

2

3

4

5

6

7

8

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

0

5

10

15

20

25

30

35

40

Population Energy Demand

History Projection

World PopulationWorld Population

BillionsBillions

Energy DemandEnergy Demand

TerraWattsTerraWatts

Source: UN Population Division, Energy Information Administration


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Conventional Oil SupplyConventional Oil Supply

Predictions based onHubberts theory suggest

declining conventional oilsupply

Much debate about exacttime of the peak

Source: Duncan and Youngqist, Campbell and Laherrerre

20

07

20

15


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Plenty of Fossil Fuel!Plenty of Fossil Fuel!

Source: H. H. Rogner, An Assessment of World HydrocarbonResources, Annual Review of Energy and Environment, 1997.

Total fossil fuel over 100 timesthe conventional oil

More unconventionaloil than conventional

0

10

20

30

40

50

60

OilUsed

C

onventionalOil

Unc

onventionalOil

ConventionalNG

UnconventionalNG

Coal

Me

thaneHydrates

TrillionBarrels

ofOilEquivalent

Additional Occurrences

Resources

Reserves

Used

0.812.163

17.17

3.08 6.14

45.78

137.5


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Heavy oil / bitumen in place

trillion bbls

CanadaCanada 1.61.6

Venezuela 1.2FSU 0.2 - 2.5

Enormous PotentialEnormous Potential

Source: AEUB, CAPP, EIA, AOSTRA, UNITAR


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Consequence of being unconventional

Light vs. Heavy

Consequence of being unconventional

Light vs. Heavy

More difficult toMore difficult torecoverrecover

Requires moreRequires more

downstreamdownstreamprocessingprocessing


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The Downstream ChallengeThe Downstream Challenge

Upgradingprocess

Differential5 10 $US/bbl

Gasoline

Distillates/Diesel

Resid


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How to produce this stuffThe Upstream Challenge

How to produce this stuffThe Upstream Challenge

Source: based on DOE report 2050(draft)

Not easy to recoverIn situ viscosity

Canadian Oilsands: > 1e6 cP

Venezuelan Heavy oil: ~3-10e3 cP

Technology and economicsconstantly improving

Oilsands context

US$/bbl

CanadianO

ilsands

VenezuelanH

eavy-oil

MiddleEast

Conventional

2

4

6

8

1012

Cost of Production


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Canadian Oil Sands: Recovery Technologies

Surface Mining

In Situ CSS

SAGD

Calgary

Edmonton

FortMc Murray

Cold Lakedeposit32 billion m3

Athabasca

deposit213 billion m3

Alberta

Peace Riverdeposit25 billion m3


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Surface Mining

Calgary

Edmonton

FortMc Murray

Cold Lake

Athabasca

Alberta Three-Step Process

Mine Oilsands

Separate Oil from Sand

Washing with Hot Water

Upgrade the Extracted Oil toSynthetic Crude


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Surface Mining

Major projects

Current

Suncors mining operations

Syncrudes mining operations

Athabasca Oil Sands Project

Upcoming

Kearl Mine, Horizon, Northern Lights and Fort Hills

Current Production Capacity ~650kbd

Announced projects to increase to >1million b/d in 10 years

Issues to consider

Economics is location (depth < 75m) dependent

Only 5 to 10% reserves suitable

Scale of economy requires huge capital

Calgary

Edmonton

FortMc Murray

Cold Lake

Athabasca

Alberta


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In Situ Processes

Cyclic Steam Stimulation

combustion

zone

steam

combustion

zone

combustion

zone Major projects/operators

Cold Lake - Imperial

Primrose CNRL Advantage

Lower surface disturbance

Less sensitive to shale barriers

Issues to consider Recovery ~25-30%

oil + water


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In Situ Processes

Steam Assisted Gravity Drainage (SAGD)In Situ Processes

Steam Assisted Gravity Drainage (SAGD)

Advantage Lower surface disturbance

Lower SOR : 2.5 to 3.5

Economic recoveries ~ 65% Modular capital requirements


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SAGDCurrent and upcoming projects tell the story

SAGDCurrent and upcoming projects tell the story

Current Major Projects

Foster Creek (Encana)

Christina Lake (Encana)

Mackay River (PetroCanada)

Firebag (Suncor)

Primrose/Wolflake (CNRL)

Hangingstone (JACOS)

Upcoming Projects

Joslyn Creek (Deer Creek)

Surmont (ConocoPhillips/TFE)

Long Lake (Nexen/OPTI)

Tucker Lake (Husky)

Sunrise (Husky)

Jackfish (Devon Energy)

Orion (BlackRock)

2004

100200

300

400

500

600

SAGD Production x1000 b/d

2007/2008

Source: based on DOB, Jan. 2005, ADOE


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SAGD

Current Issues?

SAGD

Current Issues?

Energy efficiency (GJ/bbl)

Heat is an expensive input

Water usage

Water recycle adds to the cost

Emissions

SAGD requires steam

steam = fuel and water


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SAGD

It costs to heatSAGD

It costs to heat

Reduction in

Cost of Heat

Use cheaper fuel

Bitumen/Residue to substitute Gas

Nexen/OPTI

Other talked-about alternatives

Heavyoil/Coke/Coal/Nuclear

Reduce heat requirement

Process Improvement

(Also reduces water requirement)

Low Pressure Operation

Use of Solvents SAP ( SAGD + solvent ) Su

b-surface

S

urface


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Low Pressure SAGD Operation

Issues

artificial lift

role of solution gas

Effect of Pressure on SOR and Rate

25m x 7D reservoir

0

1

2

3

100 1000 10000pressure kPa abs.

CSOR

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

ratem3/d/m

CSOR

rate m3/d/m

Source: Edmunds and Chhina, JCPT, Dec. 2001

Effect of Pressure on SOR and Rate

25mx7D reservoir


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Solvent Aided Process

Well

InjectionSteam +Solvent

What role can solvents play? ..SAP


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steam +solvent

condensedsolvent + oil

+ water

S

o

m

hgKSQ

.

......2 =

1Q

Enhanced Gravity Drainage in SAP


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Expected Production with Combining

Solvent with SAGD

0

100

200

300

400

500

600

700

0 200 400 600 800 1000 1200 1400

time

oil

rates

sagd oil rate

sap oil rate

Expected SAP Benefits (example)

SAGD SAP

SOR 2 1.4

Recovery 65% (as high as) 90%

Lower Capital Intensity

Lower Emissions Less Water Usage

Possible In Situ Upgrading


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Encanas Senlac SAP Pilot 2001-2002

Senlac Thermal Facility Phase C

To assess

Rate enhancement

Solvent retention

In situ upgradingAlberta Saskatchewan

Calgary

Edmonton

Lloydminster

Senlac


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Senlac SAP TestSenlac SAP Test

Senlac Pilot, 2001-2002 Butane used as solvent

Oil rate increase of over 50%

Test cut short due to reservoircontainment issue

SAP Pilot at Senlac - C1P Performance

0

100

200

300

400

500

600

Jun-01

Jul-01

Aug-01

Sep-01

Oct-01

Nov-01

Dec-01

Jan-02

Feb-02

Mar-02

Apr-02

May-02

Jun-02

date

oilratesm

3/d

SAGD SAP

expected production with SAGD

daily average production

daily production


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approx. upgrading: 10

API (over base level 12.70API)

In Situ Deasphalting

5

6

7

8

9

10

11

12

13

14

15

01-Feb-02

23-Mar-02

12-May-02

01-Jul-02

20-Aug-02

date

C5-insolubleasphaltenes(w/w%),APIgravity

C1 API

C1 asphaltenes


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approx. upgrading: 10

API (over base level 12.70API)

Over 70% solvent recovery

Solvent Injection and Recovery

0

5000

10000

15000

20000

25000

15-Nov-01

04-

Jan-02

23-

Feb-02

14-

Apr-02

03-

Jun-02

23

-Jul-02

11-Sep-02

31-

Oct-02

20-Dec-02

08-

Feb-03

30-

Mar-03

date

cumulativeinjec

tedsolvent,m3

0

10

20

30

40

50

60

70

80

solventre

covery%

cum c4 inj m3

cumulative C4 % recovery


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Encanas Christina Lake SAP TestEncanas Christina Lake SAP Test

Christina Lake SAP Pilot, 2004-2007

Prove (Athabasca context) rate acceleration

solvent retention

In situ upgrading

Pilot started July 2004

Calgary

Edmonton

Christina Lake

Fort McMurray


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Commercial Under development

SAGD and beyondSAGD and beyondIn situ Processes and Energy Efficiency

SAGD VAPEX,

Energy/bbl

SAP IC


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Solvent without steam - VAPEX

solventvapor

condensedsolvent + oil

Prospects

Minimal energyrequirement

No water recycle issue

Some downhole upgrading

Awaiting field scale demo

Several efforts to field test in oilsands:

Encanas Foster Creek VAPEX Pilot

Consortium DOVAP

SunCors ETS


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Commercial Under development

SAGD and beyondSAGD and beyondIn situ Processes and Energy Efficiency

SAGDVAPEX,

Energ

y/bbl

SAP IC


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SAGD

It costs to heatSAGD

It costs to heat

Reduction in

Cost of Heat

Use cheaper fuel

Bitumen/Residue to substitute Gas

Nexen/OPTI

Other talked-about alternatives

Coke/Coal/Nuclear

Reduce heat requirement

Process Improvement

(Also reduces water requirement)

Low Pressure Operation

Use of Solvents SAP ( SAGD + solvent ) Su

b-surface

Surface


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Cheaper Fuel

Sub-surface

Surfa

ce

Air SecondaryUpgrading

Fuel + H2

H2

Fuel

Product oil PrimaryUpgrading

ResidueGasification

Steam

Generation

Thermal Recovery


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Cheaper Fuel

Sub-surface

Surfa

ce

Air

Heat

Product oil PrimaryUpgrading

ResidueCombustion

Steam

Generation

Thermal Recovery


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Sub-surface

Surfa

ce

Air

Heat

Product oil

Primary

Upgrading

ResidueCombustion

SteamGeneration

Thermal Recovery

Everything in the Reservoir ?

Imagine that!

Everything in the Reservoir ?

Imagine that!


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The prized pursuit ..In Situ Combustion

Air/Oxygen/Water Oil/Gases

air/water zone

combustion zone

coke zonecondensation zone

mobile oil bank

In theory this is great!

minimal fuel requirement

high recoveries

no reservoir loss of priciersubstance

toe heel


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The prized pursuit ..In Situ Combustion


air/water zone

combustion zone

coke zonecondensation zone

mobile oil bank

In theory this is great!

minimal fuel requirement

high recoveries

no reservoir loss of priciersubstance

Petrobanks Whitesands 3-wells Pilot

Location: South of Ft. McMurray

Time-frame: 2005-2008

Proponents expect a $6/bbl costreduction

Source: based on Petrobank website information, Fort McMurray Today


toe heel


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To recap ..

World demand for energy in the near future will grow

Although the conventional oil supply is predicted todecrease, non-conventional economic oil sources areready to step up and fill the gap

SAGD is emerging to be the technology of choice for

the expanding exploitation of Oilsands of Alberta

Energy efficiency and economics of SAGD willsignificantly improve through steps such as SAP.

Dramatic improvement in recovery process areexpected if VAPEX or In Situ Combustion provesuccessful

We live in exciting times to witness and be a part of a

revolution in the Energy Technology!

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Canada Sagd