François CUPCICHeavy Oil Research Leader
Extra Heavy Oil and BitumenImpact of Technologies on the Recovery Factor
« The Challenges of Enhanced Recovery »
2ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Confusing heterogeneous denominations :
§ Heavy Oil, Extra Heavy Oil, Oil Sands, Tar Sands, Bitumen, ….è need for a simple classification
4 Classes based mainly on downhole viscosity :0A Class : Medium Heavy Oil 25°> d°API > 18°
100 cPo >µ > 10 cPo, mobile at reservoir conditions0B Class : Extra Heavy Oil 20°> d°API > 7°
10 000 cPo >µ > 100 cPo , mobile at reservoir conditions0C Class : Tar Sands and Bitumen 12°> d°API > 7°
µ > 10 000 cPo, non mobile at reservoir conditions0D Class : Oil Shales
Reservoir = Source Rock, no permeability Mining Extraction only
Heavy Oil : a mix of heterogeneous denominations
3ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Heavy Oil (excluding Oil Shales) : 3 Main Categories
Heavy Oil Classification
Duri
Wabasca
Athabasca
Peace riverCold lake
Lloyminster
Cat canyon
Kern river
Mount poso
Midway
Yorba linda
Belridge
Poso creek
Pilon
Morichal
Eljobo Boscan
Bachaquero
Tia juana
Rospomare
Mormora mare
Sarago mare
ShoonebeckEmeraude
Lacq
Grenade
Varadero
Boca de Jaruco
Bechraji
Upper & Lower Ugnu
West sak
Llancanelo
Captain
Estreito
Alto do rodrigues 1
Mariner (M)
BalolQarn alam
Bressay
Mariner (H)Bati raman
Fazenda belemAlto do rodrigues 2
10
100
1 000
10 000
100 000
1 000 000
10 000 000
0,0 5,0 10,0 15,0 20,0 25,0
API Density
Do
wn
ho
le V
isco
sity
(Cp
o)
Orinoco
B Class : Extra Heavy Oil
C Class : Tar Sands & Bitumen
A Class : Medium
Heavy Oil
uTempa Rosa (11-23°API)
uDalia
u
u Sup.
Canada
4ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
"Heavy Oils" : Resources of 4000 to 5000 Gb (OIP)Potential Reserves depends on recovery factors
Saudi Arabia
Light Oil Reserves
CanadaVenezuela
270
Considerable Potential Reserves : # 500 to 1000 Gb equivalent to 50-100% of worldwide conventional oil reserves
5 to 10 times (?) the ultra-deep offshore potential reserves
mainly (80%) in extra heavy oil, tar sands and bitumens
mainly (80%) in North and South America
less than 1% produced or under active development
310 260
Heavy Oil Reserves
5ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Huge Untapped Resources in Orinoco and Athabasca
ALBERTA
FortMc Murray
Athabasca
Edmonton
Calgary
CretaceousOil Sands
CretaceousHeavy Oils
Peace River
Cold Lake
Lloydminster
45,000 km2
SINCOR OPCO
54,000 km2
Extra Heavy Oils(µ < 10,000 cPo)
Oil in place: 1,200 Gb(PDVSA estimates)
SURMONTSAGDPilot
Tar Sands & Bitumen(µ > 10,000 cPo)
Oil in place: 1,300 Gb(EUB estimates)
6ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
A decisive difference: the geothermal gradient
550 m
1 400 m200 m
DownhDownholeole
pumppump
1 cPo
10 cPo
100 cPo
1 000 cPo
10 000 cPo
100 000 cPo
1 000 000 cPo
10 000 000 cPo
0 °C 50 °C 100 °C 150 °C 200 °C 250 °C 300 °C
Athabasca :• T res. # 11°C
• µ � 1,000, 000 cPo
Thermal Production Compulsory
Orinoco :• T res. # 53°C
• µ # 1,500 to 3,000 cPo
Cold Production Possible
Viscosity = f(tempure)
7ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Production Technologies
1 - Proven technologies… but with limited suitability or
recovery efficiency
• Mining Extraction• Cold Production• Huff & Puff
8ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Mining Extraction• Proven technology• High Recovery Factor• Decreasing operating costs :
3 1980's : > 25 US$/bbl3 2002 : 8 - 12 US$/bbl
• Limited GHG emissions
BUT :• Overburden limited to 50-75 mè suitable to less than 10% of Oil in Place inAthabasca
ALBERTA
FortMc Murray
Athabasca
Edmonton
Calgary
Cold Lake
9ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Cold Production
BUT :• Poor recovery factors (# 5 to 10%)• Unsuitable for bitumens (too viscous)• Unsuitable for reservoirs with active aquifer
• Proven technology• Fair productivities withhorizontal wells (Venezuela)or with CHOPS (Canada)• Limited investments• Limited operating costs(2 to 4 US$/bbl)• Available artificial lifttechnologies: PCP, rodpumps• No GHG emissions
Sand
Oil
+
CHOPS
10ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Example of Cold Production : theExample of Cold Production : the Sincor Sincor Project Project
Coke 6000 t/dSulfur 500 t/dCoker Hydrocracker
ZUATA32° API 180 Kbls/d
JOSE
8.5° API 200 Kbls/d
21+200 km
Distillation Hydrotreater
Diluent 70 KBD12”-20”
26”-36”
Diluted crude 270 KBD ZUATA SWEET
SOLIDS
Investment : US$ 4.2 billionPlateau production : 200 kbd of crude oil
180 kbd of Zuata SweetOil gravity : 8.5° ð 32° APITechnical cost : < 7 US$ / bContract duration : 35 years
THE PARTNERS
47 %
38 %
15 %
Cold
Production
TOTAL
11ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Huff & Puff
BUT :• Limited recovery factors (< 15-20%) : only stimulation aroundwellbore• Consumption of energy and increase of GHG emissions
• Proven technology :• Canada : Cold Lake, Wolf Lake & Primrose
• Venezuela : Maracaïbo & Oriente Basins
• California : Kern River
• Limited operating costs :• 4 to 5 US$/bbl
12ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Production Technologies
2 - More efficient technologies… but not yet field proven
• In-Situ Combustion• Solvent Injection
13ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Air & Water
Combustionfront
Mobile oilzone (MOZ)
Producerwell
Cold HeavyOil
In Situ Combustion
• Old technology (1960's)• High Recovery Factor :
• up to 60%
• Self-generation of energy(coke consumption)• In situ upgrading (thermalcracking)
• Field tested nearly exclusively on light oils• Not so many successes (operational and safety problems)• Pattern adapted to extra-heavy oil & bitumen to be foundand field tested ...
BUT :
14ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Solvent Injection
• High Recovery Factor :• up to 60%
• Low energy consumption• In situ upgrading(asphaltene precipitation)• No boiler feedwatertreatment• Limited GHG emissions
• Slow process (molecular diffusivity much smaller than thermaldiffusivity)• Start-up not so easy : need for warming with steam ?• Possible "killing factor" : solvent loss in reservoir ?• Not yet field tested : first pilots being launched in Alberta• Not mature enough for industrial application until some years
BUT :
Capillary mixing Capillary mixing Solubilization Solubilization Swelling Swelling
Solventflows tointerface
ggOilOil
SolventSolvent
Molecular Molecular diffusion diffusion Convective dispersion Convective dispersion Viscosity reduction Viscosity reduction Asphaltene precipitation Asphaltene precipitation
15ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Production Technologies
3 - Available efficient technology… with proven results
• Steam Injection and SAGD
16ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Steam Assisted Gravity Drainage (SAGD)
• High Recovery Factor :• up to 60%
• Quick process (highthermal diffusivity)• Proven technology :
• several pilots since1980's in Alberta andelsewhere
• Mature enough formedium scale field tests
• Huge need of energy : 1500 MW for 100,000 bopd !!• "Killing factor" : steam oil ratio (has to be < 3 vol./vol.)• Large GHG emissions : up to 15,000 Tons/day of CO2 for100,000 bopd• Requires technics adapted to high temperatures (artificial lift,metering, surface pumping, …)
BUT :
17ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
SAGD : already a reality in Alberta
Phase 1 of FosterCreek (EnCana)
Construction ofChristina Lake
(EnCana)
Construction of MacKay River
(PetroCanada)Surmont Pilot
(Conoco-Phillips /TotalTotal / Devon)
1ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
SAGD 1SAGD 1stst Challenge : To Increase Oil Value Challenge : To Increase Oil Value
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
BRENT ATHABASCA ORENOQUE DilutedBitumen19°API
Syncrude LR-coking23°API
Syncrude H-OIL with VR
23,5°API
SyncrudeSINCOR32°API
Syncrude H-OIL without VR
32,4°API
SyncrudeHDH +
36,3°API
Gasoil (145-375°C) Gasoline (0-145°C)
VGO (375-540°C) VR 540°C+
Mid Upgrading
Deep Upgrading
MiniUpgrading
8.5 $/bbl
17 $/bbl
15.6 $/bbl
17.6 $/bblLI
GH
T F
RA
CT
ION
HE
AV
Y F
RA
CT
ION
UPGRADING & VALUE OF THE PRODUCT
19ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Upgrading : a Balanced Choice
ThermalCracking
• Lower Investment Costs• Lower Cost of Steam :petcoke may be used asfuel
DeepHydrocracking
• Higher SCO value
• Lower SCO value
BUT• Higher Investment Costs• High consumption ofnatural gas for H2 andsteam production
BUT
20ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
SAGD 2SAGD 2ndnd Challenge : To Reduce Cost of Steam Challenge : To Reduce Cost of Steam
Combustion of natural gas :• simple and cheap boiler technology(OTSG)
• reduced treatment of boiler feedwater
• minimized GHG emissions
• limited investment costs :
• # 160 MMUS$ (for 100,000 bopd)
BUT High operating cost :
3 US$/Bbl (gas price ± 3 US$/MMbtu)
21ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
11stst Alternative Fuel : Combustion of Upgrading Residues Alternative Fuel : Combustion of Upgrading Residues
Combustion of residues :• cheaper fuel than natural gas :
• reduced operating cost : 3 è 1 US$/bbl
• avoids stockpiling of residues (petcoke,asphalts)
BUT• Requests specific boilers• Heavier treatment of boiler feedwater• High sulphur % è FGD compulsory• Requires regenerative FGD process toavoid stockpiling of Ca2SO4
• Higher CO2 emissions• Higher investment costs :
• 160 è 500 MMUS$ (100,000 bopd)
22ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
22ndnd Alternative Fuel : Alternative Fuel : Gasification Gasification of Upgrading Residues of Upgrading Residues
Gasification of residues :• cheaper fuel than natural gas
• reduced operating cost : 3 è 1,3 US$/bbl
• avoids stockpiling of residues(petcoke, asphalts)
• allows production of H2 forhydrotreatment
• easier capture of SO2 and CO2
• syngas can be burnt into simpleOTSG boilers
• reduced treatment of boilerfeedwater
BUT• Higher investments costs :
• 160 è 360 MMUS$ (100,000 bopd)
SSCCOO
Crudeunit
Vacuumdistillation
Naphta/GasoilHDT
DAO/VGOT-Star
Deasphalting unit
Surmont8°API
100 KBOPD
Synthetic Crude Oil30.2°API
85 KBOPD
hydrogen
Asphalt
HP Steam
Gas cleanupand Sulfur recovery
Gasification
syngas Cleansyngas
OTSGOTSG
23ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
SAGD 3rd Challenge : To Reduce CO2 Emisions
Bitumen 100 000 BPOD
Pads
Oil Waterseparation
SteamGeneration
Upgrader
Flexicokercase
Natural gas
Watermake up
C3
SCO
Sulphur
Electrical powerexternal supply
Diluent recycle
Diluted Bitumen 19 °API
Synthetic crude oil
SCO 88 050 BOPD
8 - 12 wellpairs / Pad
SOR : 2.5 Vol / Vol
Artificial lift : Gas lift + ESP
Total CO2 : 14 300 tons / dayTotal CO2 : 14 300 tons / day
CO2CO2
11 000 tons / day11 000 tons / day
CO2CO2
3 300 tons / day3 300 tons / day
82.8 MMSCFD 44.3 MMSCFD
38.5 MMSCFD
Equivalent gas71.9 MMSCFD
Steam : 43 200 tons/day
Nota : CO2 for bitumen production with onlyNatural gas : 6 500 tons / day
24ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
AthabascaSAGD
125
100
75
50
25
0
kg C
O2
/ bar
rel o
f bi
tum
en
AthabascaMine
SINCOR
Upstream
Upgrader
Refining
COCO22 Emissions in SAGD Emissions in SAGD
Range of possible variation
1 ton CO2/ton syncrude
25ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Cost of CO2 Capture
Tax ?10 US$/T CO2 ? è + 2 US$/bbl
20 US$/T CO2 ? è + 4 US$/bbl
30 US$/T CO2 ? è + 6 US$/bbl
Today solution : MEA processtechnical capture cost # 25 US$/T CO2
+ 0,5 T CO2 emission / T CO2 captured
è real capture cost # 50 US$/T CO2
è + 10 US$/bbl !!
CO2 Sequestered
Off-gasvent
BOILER Flue gas Treatment
CO2 Separation/ Inerts removal
OxygenProduction
HEAVY RESIDUE
Steam BFW
STEAM / ELECTRICITY
CO2 Sequestered
Off-gasvent
BOILER Flue gas Treatment
CO2 Separation/ Inerts removal
OxygenProduction
HEAVY RESIDUE
Steam BFW
STEAM / ELECTRICITY
Possible solution :oxy-combustion
(concentration ofCO2)
?
26ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
0
5
10
15
20
0% 10% 20% 30% 40% 50% 60%
Conclusion : Impact of Recovery Efficiency
Technical costTechnical cost(US$/bbl)(US$/bbl)
Recovery Efficiency
Upstream only (no upgrading)Upstream + Downstream((
((
0
50
100
150
200
0% 10% 20% 30% 40% 50% 60%
Recovery Efficiency
COCO22 Emissions Emissions(kg/bbl)(kg/bbl)
((((
(( Upstream + Downstream + 20 $/T CO2 tax
ColdColdProductionProduction
(( ((
(( SAGDSAGD
((
(((( ColdCold
ProductionProduction
((((
SAGDSAGD
27ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Difficult choice between :current proven technologies :
4 limited costs and GHG emissions4 limited recovery factor (10% max?)
emerging “hot” technologies :4 higher recovery factor (40%+?)4 but : higher cost and higher GHG emissions
ConclusionConclusion
A temptation:4Nuclear Energy to produce steam?4But not without drawbacks (especially beyond technology)