Current and Future Challenges in Heavy Oil Recovery

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Copyright © SRC 2014 Copyright © SRC 2014 1 Current and Future Challenges in Heavy Oil Recovery Presented by: Mike Crabtree Vice-President, Energy Division Saskatchewan Research Council

Transcript of Current and Future Challenges in Heavy Oil Recovery

Page 1: Current and Future Challenges in Heavy Oil Recovery

Copyright © SRC 2014Copyright © SRC 20141

Current and Future Challenges in Heavy Oil Recovery

Presented by: Mike Crabtree

Vice-President, Energy Division

Saskatchewan Research Council

Page 2: Current and Future Challenges in Heavy Oil Recovery

Copyright © SRC 2014Copyright © SRC 20142

Saskatchewan Research Council (SRC)

Leading provider of R&D and technology commercialization

Over 400 employees

$67 million in annual revenue

67 years of RD&D experience

1,800 clients in 24 countries around the world

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Global Client Distribution (>2000 Clients)

Major E&Ps in N.America, many mid-caps ,many juniors as well as SME Technology Companies

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SRC– Locations

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SRC – HOW WE DO BUSINESS

Single & Multi Client Projects & Services

Simple Fee for Service basis

Operate Across the innovation cycle

Trusted and Respected by both Government and Industry

COMMERCIAL

INNOVATION

INNOVATION CYCLE

CONCEPTS/

FUNDAMENTAL

FEASIBILITY/

DEVELOPMENT

PILOTING/

DEMONSTRATIONS

TEC

HN

OLO

GY

MA

TUR

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Uniquelypositioned

Buildingpartnerships

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What is Heavy Oil? Hydrocarbon compounds characterized by

long, complex molecules which impart high internal friction

resulting in high viscosity.

Flows very slowly – viscosity 1000 to 300,000 mPa-s (cp) in-

situ

Different or modified EOR processes required for recovery

compared to light and medium oils

Field development requires many wells on close spacing

Heavy Oil – Key Properties & Considerations

Copyright CAPP

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Heavy Oil – Current Challenges

Lower production rates and ultimate recoveries than light oils

Often reservoirs are unconsolidated resulting in sanding problems

Produced oil sells at a discount to light crudes

Crude discount can be cyclic due to changing needs for asphalt

Often reservoirs are cold, < 30°C

Often produced with lots of sand - CHOPS

Vast worldwide resource will require many methods of extraction

Industry focus is still on high value crudes – light/tight

Industry still prefers to in-fill drill than field pilot EOR Processes

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In Situ

Thermal

CSS

SAGD

Thermal-Solvent Hybrid

Electrical Heating

Cold

Primary

EOR

CHOPS

Pressure Depletion

Solvents

ASP Waterflooding

Microbial

In Situ Combustion

Vertical wells, Reservoir Economics, Environmental Footprint, Energy Density

Slow Process - Performance?

Field Application? Kinetics?

Wormhole Structure?

Optimized Pressure

Cycle?

Mechanisms? Cyclic or Continuous, Solvent Costs, Retention and Losses, Optimization?

Optimized Waterfloods?

Mechanisms? Field Applications

Process Performance? Solvent Cost/Losses? Accelerated Production

vs Improved Ultimate Recovery

Heavy Oil – Recovery Processes

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Cyclic Steam Stimulation (CSS)

Process Optimization

Limited Application

Economics

Numerical Simulation

Steam Assisted Gravity Drainage (SAGD)

High Capital Costs

High Water and Energy Use

Environmental Costs

Thick Pay Zone Required

In-Situ Combustion (ISC)

Difficult to maintain stable front

Producing hot oil without stalling in cold reservoir

Chemical reaction modeling

Emulsion treatment

Heavy Oil – Current Commercial Technologies

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Hybrid Thermal-Solvent

Enhanced Viscosity Reduction

Reduced Energy Density

Applicable to Shallow Reservoirs

Accelerated Production or Enhanced Ultimate Recovery?

Field Optimization Ongoing

Electrical Heating

Slow Heating Process

Excessive Current Density/Coking?

No Drive Energy Generated

Requires Electrical Grid or Power Generation Capacity

Field Trials Ongoing

Steam & Solvent Injection

Heavy Oil – ‘Near’ Commercial Technologies

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Inject solvent vapor to reduce oil viscosity

Advantages:

Many applications – thin reservoirs, post-CHOPS

High recovery factors - >90% OOIP in lab

Challenges:

Solvent to Oil Ratio - Economics

Solvent Cost - Solvent Storage and Losses

Low Production Rates

Rate Controlling Mechanism?

Optimization?

Heavy Oil Future - Solvent Injection Processes

VAPEX

SVX

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Alkaline, Surfactant, Polymer (ASP)

Alkaline: Uses natural organic acids in heavy oil to produce in-situ surfactants

Surfactant: Reduces interfacial tension for improving displacement efficiency

Polymer: Mobility control for blocking high water or gas saturation channels leading to improved sweep efficiency

Heavy Oil Future - ASP Waterflooding

Advantages:

Applied in the field

Many polymers and surfactants available

Low capital requirements for existing fields

Challenges:

Cost of Chemicals,

High Temp. limitations

High Salinity limitations

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Heavy Oil Future - Low Salinity Waterflooding

Advantages: Has been applied in field with success

Potentially lower cost than ASP

Challenges: Water Treatment (desalination)

Mechanisms Not Fully Understood

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Microbial Enhanced Oil Recovery (MEOR)

At Least Three Mechanisms

Bio-Blocking: Microbe bodies and secretions act as polymers for blocking high water saturation channels

Bio-Surfactants: Microbes produce in-situ or ex-situ surfactants for interfacial tension reduction

Bio-Clipping: Microbes partially consume hydrocarbon chains and/or clip long chains to reduce molecular weight resulting in viscosity reductions

Heavy Oil Future - Microbial Processes

Challenges:

Cannot tolerate temperatures >~60C

May be difficult to deliver nutrients deep into reservoir

Industry concerns over use of bacteria

SRC’s MEOR Large Core System

Advantages:

Naturally occurring microbes present already

Only require nutrients for exponential growth

Can tailor nutrients for desired microbes

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Cold Heavy Oil Production with Sand (CHOPS)

Method that accelerates recovery of oil from unconsolidated sands by co-producing sand, oil and water.

Production of sand produces “wormholes” which cause extremely high permeability in open and dilated channels.

Challenge:

Design of EOR Processes that take advantage of

Wormholes produced during CHOPS

Wormholes:

Injection-Production Shortcuts or Oil Drainage Conduits?

Management of Conductivity – Partial Collapse Desirable?

How?

Modeling for Post-CHOPS EOR Process and Economics

Evaluation

Heavy Oil - Post-CHOPS EOR

SRC’s Wormhole Simulation

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SRC has ‘Unique Service Offerings’ for the Investigation, Development and

Optimization of a wide range of EOR processes for heavy oil and bitumen

reservoirs

As an independent organization, SRC provides reliable, unbiased, confidential

services

Visit our Web Page at www.src.sk.ca

Best of All – Come visit our facilities in Regina

Summary

Page 17: Current and Future Challenges in Heavy Oil Recovery

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Contact:

Muhammad Imran

Business Unit Manager

EOR Field Development, Energy

Saskatchewan Research Council

129 - 6 Research Drive

Regina, Saskatchewan, Canada, S4S 7J7

Phone: 1-306-798-0521; Email: [email protected]

Thank You