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Managing the Future of Unconventional Oil Resources

Eddy Isaacs, CEO

Alberta Innovates Energy & Environment Solutions (AI-EES)

Managing the Future of Water and Energy

IFAT 2014: Canada Special

May 7, 2014

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Alberta’s energy resources

Source: Alberta Energy Regulator, 2013 * Based on anticipated technology & economic conditions. ** Excluding unconventional gas

Oil (Billion Barrels)

Gas (Trillion Cubic Feet)

Oil Sands (Billion Barrels)

Coal (Billion tonnes)

Remaining Established

1.7 35 168 37

Ultimate Potential*

19.7 223** 315 683

• Third largest proven petroleum reserves in the world, after Saudi Arabia and Venezuela, with 170 billion barrels

• Approximately 75% of Canada’s natural gas production comes from Alberta

• Vast coal resources

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Alberta’s shale and tight oil resources - gaps exist in understanding the size and location

• At an early stage of exploration

• Resource potential and

reserves?

• Potential groundwater water

and surface water impacts

• Well integrity

• Fugitive GHG emissions

• Currently producing ~150,000

bbl/day (~18,000 m3/day) Duvernay Formation and distribution of Swan Hills oil and gas pools (Rokosh et.al., 2012).

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Key Concerns

Water Use and Quality

GHG Emissions

Oil Sands Tailings

Biodiversity

Emissions and Air Quality

Aquatic Ecosystem

Key environmental issues

Land Disturbance

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Tailing ponds on a grand scale

A tailings pond at Syncrude Oil

Sands mining facility

(Picture taken July 2008)

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Examples of tailings technology pathways

Thin Lift Drying (e.g. TROTM ; Suncor) • Commercial demonstration

Water-Capped MFT Technology • Monitored large test ponds over 20 years

• Commercial demonstration being constructed

High Compression Thickener Large-scale pilot filed pilots started in 2001 Will be implemented at Arora N & S mine sites

Centrifuge Process 20 tonnes per hour pilot : Syncrude

Dry stackable whole tailings one year after centrifuge process

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Mine area reclamation

Challenge

• Return mined area to equivalent land productivity prior to mining

Research & deliverables

• Model effects of soil salvage and placement techniques on nutrients and nutrient cycling

• Quantify plant responses to reclamation prescriptions and fertilization

• Align reclamation practices to meet reclamation objectives

Direct placed

LFH

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Water management in oil sands development

• Water use in thermal in-situ recovery (SAGD)

• Water in fluid tailings

• Impact on water quality in the Lower Athabasca

Water use in SAGD

• High water recycling rates - greater than 90%

• Fresh water use among the lowest in the world

• Need to balance GHG emission

Challenges • Facilities handle more water than oil • ~70% of operating costs to heat and

treat water • The more recycling and reuse the

more GHG emissions Innovation Gap: reduced fresh water use and energy requirements

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Alberta – a hot bed for innovation in thermal water treatment

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Headwaters Impacts

Regional flow and

water quality

Water

treatment &

Community

impacts

Source water protection and management

Selected Projects • Wetland health-field research to support the

development of an index of biotic integrity • Dynamics of Alberta’s water supply - overall

understanding of water in Alberta and long-term vulnerabilities (phase 2)

• Energy, GHG and water flow modelling and valuation of GHG Reductions

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Alberta’s renewable energy resources

Bioenergy

Alberta produces 40+ million tonnes of grain and biomass from crops. The forest industry harvested 24 million cubic meters of wood

Geothermal

Solar

Alberta sunny enough?

Wind

1,000 MW + 10,000 MW proposed

Harvest heat from 400,000+ oil & gas wells

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City of Edmonton waste to biofuels plant

MSW 100 mill tones/yr

Ethanol 38 million litres/yr

Biofuels Plant (commercial)

• Reduces landfill by 90% • Eliminates landfill methane • Replaces fossil fuel • Captures produced CO2

• Meets renewable fuel standard

Advanced Energy Research Facility

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Organizations – Seeking Innovative Solutions

Focus

www.cosia.ca

Carbon levy - GHG reductions • Energy Efficiency • Renewables • Carbon Capture & Storage • Greening Fossil Fuels www.ccemc.ca

Edmonton & Ottawa labs & pilot facilities • Oil Sands • Tight oil & Unconventional gas • Frontier Oil & Gas • Coal and Carbon Capture

www.nrcan.gc.ca/energy

Contact: eddy.Isaacs@albertainnovates.ca

Provincial Innovation Agency • Energy Technologies • Renewable & Emerging Technologies • Water & Environmental Management www.ai-ees.ca

Alliance of 13 oil sand companies • Water • Tailings • Land • GHG Emissions

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Thank You