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Canada
s Oil Sands Overview
and Bitumen Blending PrimerUS National Academy of Science
October 23, 2012
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Global Crude Oil Reserves by Country
25 21 20
3037
47
60
92102
143151
174
211
265
0
50
100
150
200
250
300
S a u d
i A r a b i a
V e n e
z u e l a
C a n a
d a I r a n
I r a q
K u w a i t
A b u D h
a b i
R u s s i a
L i b y a
N i g e r
i a
K a z h a
k h s t a
n
Q a t a
r
U n i t e
d S t a
t e s
C h i n
a
b i l l i o n
b a r r e l s
Source: Oil & Gas Journal Dec. 2011
Restricted
(80%)
Open to
Private
Sector
Oil Sands
55%
Other
45%
World Oil Reserves!"#$ &'
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Canada s Oil Sands
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Oil Sands Projects in Three Deposits
Peace River
Athabasca
ColdLake
Edmonton
Calgary
Ft. McMurray
Fort
McMurray
Cold Lake
Fort Hills
Horizon
Joslyn Creek
Syncrude
Suncor
Dover
MacKay River
Firebag
Hangingstone
Long Lake
Surmont
FosterCreek
Wolf Lake/Primrose
Tucker Lake
Jackfish
KearlLake
Jackpine
• Oil sandsproductionnow exceeds1.6 millionbarrels per day
• $123 billionbuilt from1997-2010
Peace River
Peace River
Seal
NorthernLights
White Sands
In Situ Projects
Mining Projects
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Land Use and Reclamation
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Canadian Oil Sands (Bitumen and SCO)& Conventional Production Forecast
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Oil Sands production technologies
Source: Canadian Centre for Energy Information
Steam Assisted Gravity Drainage SAGD)
In-situ operations:
•
Do not have mines•
Or tailings ponds
Mining – 35 billion barrels reserves
20% of the oil sands reserves is less than 200 feet deep
In-Situ – 135 billionbarrels reserves
80% of the oil sands
reserves is more than200 feet deep
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Oil Sands - In Situ
! 80% of reservesproduced usingin-situ recovery
technology! Too deep to mine
! Technologies:•
Cyclic steam
• Steam Assisted GravityDrainage (SAGD)
Oil Production
SAGD Process
Steam Injection
Reservoir
Oil Production
Steam
Chamber
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In Situ Oil Sands RecoverySteam Assisted Gravity Drainage(SAGD)
Source: DeerCreek
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Cold Lake Cyclic Steam Stimulation (CSS)
Steam andcondensed waterheat the viscous oil
Steam injectedinto the reservoir
Heated oil andwater are pumpedto the surface
Stage 1
SteamInjection
Stage 2
SoakPhase
Stage 3
Production
Courtesy Imperial Oil
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Mined vs SAGD Growth
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Mined Bitumen production :
• Historically integrated with Alberta Upgraders to produce synthetic crude oils
thus this bitumen does not planfully leave the province.
•
Future Mined production designs incorporate a process called Paraffinic FrothTreatment (PFT) which yields a bitumen (and subsequent dilbit/synbit blend)
of improved coker yield value for Refiners/Upgraders as well as maintaining
required Pipeline specifications. This will have some portion leaving theprovincial upgrading network.
SAGD Bitumen Production :
• Upgrader feed as well as going to Refinery markets as dilbits/synbits
• high volumetric growth commodity ex Alberta for bitumen blends
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1.5
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2.5
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2011 2030
Mined
Insitu
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Dilbit vs Synbit
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Raw Bitumen has a density of 960-1020 kg/m3. To meet Pipelines specifications forviscosity and density, and to meet Refinery desired heavy crude yields/qualities, acontrolled blend with a diluent is produced.
Diluents fall into two categories in general
1) naphtha based diluents – used to produce a DILBIT
•
650-750 kg/m3 typical density for diluent
•
natural liquids, ultra light sweet crudes, imported condensates, US and Cdn Refinery components
• nominal 30% diluent required with 70% Bitumen
2) sweet synthetic crude oils (SCO) – used to produce a SYNBIT
•
840-870 kg/m3 typical density for SCO
• same as existing SCO from Alberta upgraders to Refiners for 20+ years; residue free, hydrotreated, low sulfur
•
nominal 50% Synthetic crude required with 50% Bitumen
•
higher refinery value than dilbit (improved yield/value)
Generallly, the market diluent pricing, access to logistics, production technologies, andProducer/Refiner economics dictate a bitumen produced as a dilbit or synbit.
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Bitumen Crude Blends
!
Heavy Crudes vary blend quality somewhat with seasonal temperature (for
bitumen based and conventional heavies).!
Pipeline designs are for 350 cSt viscosity maximum crude and 940 kg/m3density (one is constraining).
!
Bitumen remains constant, with the diluent ratio changing.
! Viscosity limit of 350 cSt is at pipeline reference temperature
! 7.5 - 18.5 deg C = 45.5 - 65.3 deg F
!
Changes on planned schedule from winter to summer in 2 week increments!
Density maximums of 940 are approached in the summer and may becomethe limiting blend constraint for producers then
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Blend
Component
Volume
(m3)
Density
(kg/m!) vol frac wt frac Mass (kg)
Viscosity (cSt
@ 15 C)
Bitumen Heavy 7500 1.0100 51.7% 55.6% 7575 760,000
SCO Diluent 7003 0.8650 48.3% 44.4% 6058 5.85Synbit Total 14503 0.9400 100.0% 100.0% 13633 128
Component
Volume
(m3)
Density
(kg/m!) vol frac wt frac Mass (kg)
Viscosity (cSt
@ 15 C)
Bitumen Heavy 7500 1.0100 74.6% 80.5% 7575 760,000
"CRW" Diluent 2554 0.7200 25.4% 19.5% 1839 0.63
Dilbit Total 10054 0.9363 100.0% 100.0% 9414 350
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Bitumen Crude Blends
!
Currently there are many Diluted bitumen crudes in themarket
! Some produced for 10+ years (CL); many new ones in last 5 years
! Fewer Synbits in the market (due to more costly diluent)
!
CrudeMonitor.ca is a public service providing generic crudequality data for these blends, as well as providing a list ofblend names
! This program is not exhaustive for all pipelines crudes but isrepresentative of all commodity classes including dilbits and synbits
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Crudemonitor.ca
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Sweet Synthetic primer
SYN and OSA – legacy known
sweet synthetics (20+ years)
new entries into commodityclass adding refineryoptimization potential for
yield
Specifications of qualitygenerally tightly controlled
Residue free (no vacuum
bottoms yield)
generic sweet synthetic yields
5
15
25
35
45
55
65
PSC SPX CNS PAS OSA SYN HSB SSX
w t % =
%
o f f
Naphtha
Kero
Gasoil
Long Lake Light
Synthetic
Shell Premium
Synthetic
CNRL Light
Sweet Synthetic
Premium Albian
Synthetic
Suncor Synthetic
A
Syncrude
Synthetic
Husky Synthetic
Blend
Shell Synthetic
Light
(PSC) (SPX) (CNS) (PAS) (OSA) (SYN) (HSB) (SSX)
Density (kg/m3 ) 843.0 ± 17.6 862.4 850.7 ± 1.8 860.5 ± 3.1 860.3 ± 5.8 862.5 ± 5.7 863.9 ± 2.6 863.6 ± 4.0
Gravity ( o API) 36.3 ± 3.5 32.4 34.7 ± 0.3 32.8 ± 0.6 32.8 ± 1.1 32.4 ± 1.1 32.1 ± 0.5 32.2 ± 0.8
Sulphur (wt%) 0.08 ± 0.04 0.04 0.08 ± 0.01 0.05 ± 0.01 0.17 ± 0.02 0.18 ± 0.02 0.10 ± 0.02 0.11 ± 0.04
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2011 Canada and U.S. Demand for Crude Oil by SourceThousand Barrels per Day
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Access to Markets is Essential
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