Download pdf - Upgrading Bitumen Derived Feedstocks - Choices and ... · Upgrading Bitumen Derived Feedstocks - Choices and OpportunitiesChoices and Opportunities Presented to: Canadian Crude Quality

Canadian Heavy Oil Association

Upgrading Bitumen Derived Feedstocks -Choices and OpportunitiesChoices and Opportunities

Presented to:

Canadian Crude Quality Technical Association (CCQTA)

Crude Oil Quality Group (COQG) Joint Meeting

Calgary, June 24, 2008


Presented by: Gerald W. Bruce , Technical Director CHOA

Outline

• Heavy oil development in Alberta, CanadaHeavy oil development in Alberta, Canada– Growth and development plans

• Bitumen Upgrading– More than just delayed cokingj y g

• The Future revealedThe Future revealed


Where Heavy Oil Livesy

• Conventional heavy oil in ythe LLoydminster area– Cold production (CHOP)

• With/without sand• With/without sand

• Mining near Fort McMurray– Athabasca river area

• Thermal productionSteam assisted gravity– Steam assisted gravity drainage (SAGD)

– Cyclical Steam Stimulation (CSS)


(CSS)

Mining vs Thermal Productiong

• In-situ thermal methods are used to access “deep” bitumen


bitumen

Bitumen Driven

• 12% oil in the “oil sands”• 12% oil in the oil sands– Mining or in-situ thermal production

• Oil is referred to as bitumenff


– Heavy, sour, poor quality, difficult to deal with

Bitumen is a Difficult Feedstock

Bitumen Bitumen Derived

M Bit d i d f d t k diff t th M di S t C d


Message: Bitumen derived feedstocks are very different than Medium Sweet Crude

Alberta Production Growth

4.5 million per d

ay

barrels/day

3 5 millionBitumen Blendsof b

arre

ls

3.5 millionOil Sands Derived

Synthetic Crude

hous

ands

oTh


Source: CAPP – June 2008 (moderate case)

Investment

• Bitumen production– Mining and extraction– Thermal bitumen production

• Steam assisted gravity drainage (SAGD)• Cyclical steam stimulation (CSS)

• Upgrading/refining– Either linked with production or “stand alone”

• Field location vs central– Fort McMurray vs Edmonton

• Pipelines – Including condensate import/return


Planned Alberta Investment

Oil Sands> $C162 billion

TOTAL$C2 4 billi


>$C254 billionSource: Alberta Finance and Enterprise – March 2008 Update

Projects Backing Upj g p

•May 2008 update2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

•Construction craft personnel forecast


Source: COAA

Investment Commentaryy

• Many projects are “on the books”Many projects are on the books

• There are many projects “clustered” in the same schedulesame schedule

• Realities :– workforce, construction, equipment, and

infrastructure

S h d l ill t d• Schedules will extend


Upgrading Bitumen


Where to Start Upgrading?pg g


Upgrading Perspectivepg g p

• Starts at the mine with extraction– Froth treatment

• Can be done in the field with thermal production– Make your own fuel, get rid of diluent

• Can be a purpose built upgrader making SCO– Syncrude, Suncor for exampleSyncrude, Suncor for example

• Can be “linked” to refining


New Words – DILBIT and SYNBIT

Bitumen Production Upgrading Refining

Light Crude Refinery

Bitumen Upgrading

(Carbon OUT or H 2 IN)

Light SCO Product

(Carbon OUT or H 2 IN)

Bitumen P d ti

Heavy SCO Product

SYNBIT ProductMedium Crude

Refinery

Production

(Mining or In-Situ)

SYNBIT Product

Heavy Crude Refinery

DILBIT Product


Naphtha Diluent

Alberta Upgrading Planspg g

• Existing capacity and planned capacity additionsg p y p p y

• 16 companies with multi-phase upgrading plansp p pg g p– 48 distinct project “phases”

• Range of facility configurations

• Values change “monthly”, but only seem to go in one direction (up).


Upgrading in Albertapg g

1 600

1,200

1,400

1,600

en

600

800

1,000

BPD

bitu

me

-

200

400

kB

Operating Construction Approved Application Announced

TOTAL Upgrading = 4.7 million BPD


April 2008 data – Strategy Westpg g

Operatingp g

800

1000

n

400

600

bpd

Bitu

me

Syncrude

Suncor

Shell Scotford

0

200

k

1Operating Plants

Note: Excludes Canadian refineries with


Upgrading (Petro-Canada, Imperial, Husky)

Construction

400450500

200250300350

PD b

itum

en Shell Scotford expansion

BA Energy (1)

Suncor Millenium Coker

CNRL Horizon (1)

50100150200

k B

P CNRL Horizon (1)

Opti-Nexen (1)

01


Approvedpp

600

700

800

n

Suncor Voyageur(1,2)

Opti-Nexen (2)

400

500

600

D bi

tum

en

Opti-Nexen (2)

CNRL Horizon (2,3)

100

200

300

k BP North West Upgrading

(1,2,3)BA Energy (2,3)

01


Applicationpp

1200

1400

1600

n

Value Creation (pilot)

Total (1,2)

800

1000

1200

D bi

tum

en

Shell Scotford 2 (1-4)

S (1 2)

200

400

600

k BP

D Synenco (1,2)

StatOil Hydro (1,2)

01

Petro-Canada FortHills(1,2,3)


Announced

1000

1200

1400

n

Value Creation (3,4)

600

800

1000

PD

bitu

me Syncrude (3,4)

Opti-Nexen (3,4,5,6)CNRL Horizon (4,5)CNRL P i (1 2)

0

200

400k B CNRL Primrose (1,2)

BlueSky Refining (1,2,3,4)

01


Alberta Industrial Heartland


Alberta Industrial Heartland

Canadian Heavy Oil AssociationSource: AIHA

Upgrading Developmentpg g p

• At/near production siteAt/near production site– Syncrude, Suncor, CNRL, Opti/Nexen, Value

Creation

• Edmonton Region– Merchant Upgrading

• North West Upgrading• BA EnergyBA Energy

– Shell, Petro-Canada, StatOil Hydro, Total, Synenco, others


The Future (revealed)( )

• There will be significant volumes of bitumen derived gfeedstocks in the market place– Bitumen blends

Synthetic Crude Oil (variety of qualities)– Synthetic Crude Oil (variety of qualities)– Finished products

• Encouragement to add value to bitumen in Alberta– Global marketplace

• Environmental responsibility – Emissions managed and by-products eliminated


Opportunities pp

• Application of innovative technology P d i di d fi i– Production, upgrading and refining

• Anticipating environmental compliance
