SPE DISTINGUISHED LECTURER SERIESis funded principally
through a grant of the
SPE FOUNDATIONThe Society gratefully acknowledges
those companies that support the programby allowing their professionals
to participate as Lecturers.
And special thanks to The American Institute of Mining, Metallurgical,and Petroleum Engineers (AIME) for their contribution to the program.
Unlocking the planet’s heavy oil and bitumen resources – A look at SAGDUnlocking the planet’s heavy oil and bitumen resources – A look at SAGD
Subodh Gupta
EnCana CorporationMarch, 2005
Subodh Gupta
EnCana CorporationMarch, 2005
Author wishes to express thanks for Encana’ssupport and encouragement in allowing to participate in the Distinguished Lecturer Program and in putting this presentation together
A Power Hungry World!A Power Hungry World!
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1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 20200
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10
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20
25
30
35
40
Population Energy Demand
History Projection
World PopulationWorld PopulationBillionsBillions
Energy DemandEnergy DemandTerraWattsTerraWatts
Source: UN Population Division, Energy Information Administration
Conventional Oil SupplyConventional Oil Supply
Predictions based on Hubbert’s theory suggest declining conventional oil supply
Much debate about exact time of the peak
Source: Duncan and Youngqist, Campbell and Laherrerre
2007
2015
Plenty of Fossil Fuel!Plenty of Fossil Fuel!
Source: H. H. Rogner, “An Assessment of World Hydrocarbon Resources,” Annual Review of Energy and Environment, 1997.
Total fossil fuel over 100 times the conventional oil
More unconventional oil than conventional
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10
20
30
40
50
60
Oil
Use
d
Con
vent
iona
l Oil
Unc
onve
ntio
nal O
il
Con
vent
iona
l NG
Unc
onve
ntio
nal N
G
Coa
l
Met
hane
Hyd
rate
s
Trill
ion
Bar
rels
of O
il Eq
uiva
lent
Additional OccurrencesResourcesReservesUsed
0.812.163
17.17
3.086.14
45.78
137.5
Heavy oil / bitumen in place
trillion bbls
CanadaCanada 1.61.6Venezuela 1.2
FSU 0.2 - 2.5
Enormous PotentialEnormous Potential
Source: AEUB, CAPP, EIA, AOSTRA, UNITAR
Consequence of being unconventionalLight vs. Heavy
Consequence of being unconventionalLight vs. Heavy
More difficult to More difficult to recoverrecover
Requires more Requires more downstream downstream processingprocessing
The Downstream ChallengeThe Downstream Challenge
Upgrading process
Differential 5 – 10 $US/bbl
Gasoline
Distillates/Diesel
Resid
How to produce this stuffThe Upstream Challenge
How to produce this stuffThe Upstream Challenge
Source: based on DOE report 2050(draft)
Not easy to recoverIn situ viscosity– Canadian Oilsands: > 1e6 cP– Venezuelan Heavy oil: ~3-10e3 cP
Technology and economics constantly improving– Oilsands context
US
$/bb
l
Can
adia
n O
ilsan
dsV
enez
uela
n H
eavy
-oil
Mid
dle
Eas
tC
onve
ntio
nal
2468
1012
Cost of Production
Canadian Oil Sands: Recovery Technologies
Surface Mining
In Situ– CSS– SAGD
Calgary
Edmonton
FortMc Murray
Cold Lakedeposit32 billion m3
Athabascadeposit 213 billion m3
Alberta
Peace River deposit25 billion m3
Surface Mining
Calgary
Edmonton
FortMc Murray
Cold Lake
Athabasca
Alberta Three-Step Process– Mine Oilsands– Separate Oil from Sand
Washing with Hot Water
– Upgrade the Extracted Oil to Synthetic Crude
Surface Mining
Major projects– Current
Suncor’s mining operationsSyncrude’s mining operationsAthabasca Oil Sands Project
– UpcomingKearl Mine, Horizon, Northern Lights and Fort Hills
– Current Production Capacity ~650kbd – Announced projects to increase to >1million b/d in 10 years
Issues to consider– Economics is location (depth < 75m) dependent
Only 5 to 10% reserves suitable
– Scale of economy requires huge capital
Calgary
Edmonton
FortMc Murray
Cold Lake
Athabasca
Alberta
In Situ Processes
Cyclic Steam Stimulation
combustion
zone
steam
combustion
zone
combustion
zoneMajor projects/operators– Cold Lake - Imperial– Primrose – CNRL
Advantage– Lower surface disturbance– Less sensitive to shale barriers
Issues to consider– Recovery ~25-30%
oil + water
In Situ Processes
Steam Assisted Gravity Drainage (SAGD) In Situ Processes
Steam Assisted Gravity Drainage (SAGD)
Advantage– Lower surface disturbance– Lower SOR : 2.5 to 3.5– Economic recoveries ~ 65%– Modular capital requirements
SAGDCurrent and upcoming projects tell the storySAGDCurrent and upcoming projects tell the story
Current Major Projects– Foster Creek (Encana)– Christina Lake (Encana)– Mackay River (PetroCanada)– Firebag (Suncor)– Primrose/Wolflake (CNRL)– Hangingstone (JACOS)
Upcoming Projects– Joslyn Creek (Deer Creek)– Surmont (ConocoPhillips/TFE)– Long Lake (Nexen/OPTI)– Tucker Lake (Husky)– Sunrise (Husky)– Jackfish (Devon Energy)– Orion (BlackRock)
2004
100200300400500600
SAGD Production x1000 b/d
2007/2008
Source: based on DOB, Jan. 2005, ADOE
SAGDCurrent Issues?SAGDCurrent Issues?
Energy efficiency (GJ/bbl)– Heat is an expensive input
Water usage– Water recycle adds to the cost
Emissions
SAGD requires steam
steam = fuel and water
SAGD
It costs to heatSAGD
It costs to heat
Reduction in
Cost of Heat
Use cheaper fuelBitumen/Residue to substitute Gas
– Nexen/OPTI
Other talked-about alternatives– Heavyoil/Coke/Coal/Nuclear
Reduce heat requirementProcess Improvement
(Also reduces water requirement)– Low Pressure Operation– Use of Solvents
SAP ( SAGD + solvent ) Sub
-sur
face
Sur
face
Low Pressure SAGD Operation
Issues– artificial lift– role of solution gas
Effect of Pressure on SOR and Rate25m x 7D reservoir
0
1
2
3
100 1000 10000
pressure kPa abs.
CSO
R
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
rate
m3/
d/m
CSORrate m3/d/m
Source: Edmunds and Chhina, JCPT, Dec. 2001
Effect of Pressure on SOR and Rate25mx7D reservoir
Solvent Aided Process
WellInjectionSteam +Solvent
What role can solvents play? ..SAP
steam + solvent
condensed solvent + oil
+ water
S
o
mhgKSQ
ναφ
.......2 ∆
=
µα 1Q
Enhanced Gravity Drainage in SAP
Expected Production with Combining Solvent with SAGD
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100
200
300
400
500
600
700
0 200 400 600 800 1000 1200 1400
time
oil r
ates
sagd oil ratesap oil rate
Expected SAP Benefits (example)SAGD SAP
SOR 2 1.4
Recovery 65% (as high as) 90%
Lower Capital Intensity
Lower Emissions
Less Water Usage
Possible In Situ Upgrading
Encana’s Senlac SAP Pilot 2001-2002
Senlac Thermal Facility – Phase C
To assess – Rate enhancement– Solvent retention– In situ upgrading
Alberta Saskatchewan
Calgary
EdmontonLloydminster
Senlac
Senlac SAP TestSenlac SAP Test
Senlac Pilot, 2001-2002Butane used as solventOil rate increase of over 50%Test cut short due to reservoir containment issue
SAP Pilot at Senlac - C1P Performance
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600
Jun-
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1
Aug
-01
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-01
Oct
-01
Nov
-01
Dec
-01
Jan-
02
Feb-
02
Mar
-02
Apr
-02
May
-02
Jun-
02
date
oil r
ates
m3/
d
SAGD SAP
expected production with SAGD
daily average production
daily production
Senlac SAP TestSenlac SAP Test
Senlac Pilot, 2001-2002Butane used as solventOil rate increase of over 50%Test cut short due to reservoir containment issueapprox. upgrading: 10 API
– (over base level 12.70 API)
In Situ Deasphalting
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01-F
eb-0
2
23-M
ar-0
2
12-M
ay-0
2
01-J
ul-0
2
20-A
ug-0
2
date
C5-
inso
lubl
e as
phal
tene
s (w
/w%
), A
PI g
ravi
ty
C1 APIC1 asphaltenes
Senlac SAP TestSenlac SAP Test
Senlac Pilot, 2001-2002Butane used as solventOil rate increase of over 50%Test cut short due to reservoir containment issueapprox. upgrading: 10 API
– (over base level 12.70 API)Over 70% solvent recovery
Solvent Injection and Recovery
0
5000
10000
15000
20000
25000
15-N
ov-0
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04-J
an-0
2
23-F
eb-0
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14-A
pr-0
2
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un-0
2
23-J
ul-0
2
11-S
ep-0
2
31-O
ct-0
2
20-D
ec-0
2
08-F
eb-0
3
30-M
ar-0
3
date
cum
ulat
ive
inje
cted
sol
vent
, m3
0
10
20
30
40
50
60
70
80
solv
ent r
ecov
ery
%
cum c4 inj m3
cumulative C4 % recovery
Encana’s Christina Lake SAP TestEncana’s Christina Lake SAP Test
Christina Lake SAP Pilot, 2004-2007Prove (Athabasca context)
– rate acceleration – solvent retention– In situ upgrading
Pilot started July 2004
Calgary
Edmonton
Christina Lake
Fort McMurray
Commercial Under development
SAGD and beyondSAGD and beyond
In situ Processes and Energy Efficiency
SAGD VAPEX,
Ene
rgy/
bbl
SAPIC
Solvent without steam - VAPEX
solvent vapor
condensed solvent + oil
Prospects– Minimal energy
requirement– No water recycle issue– Some downhole upgrading
Awaiting field scale demo
Several efforts to field test in oilsands:– Encana’s Foster Creek VAPEX Pilot– Consortium DOVAP– SunCor’s ETS
Commercial Under development
SAGD and beyondSAGD and beyond
In situ Processes and Energy Efficiency
SAGD VAPEX,
Ene
rgy/
bbl
SAPIC
SAGD
It costs to heatSAGD
It costs to heat
Reduction in
Cost of Heat
Use cheaper fuelBitumen/Residue to substitute Gas
– Nexen/OPTI
Other talked-about alternatives– Coke/Coal/Nuclear
Reduce heat requirementProcess Improvement
(Also reduces water requirement)– Low Pressure Operation– Use of Solvents
SAP ( SAGD + solvent ) Sub
-sur
face
Sur
face
Cheaper FuelS
ub-surfaceS
urface
Air SecondaryUpgrading
Fuel + H2
H2
Fuel
Product oil Primary Upgrading
ResidueGasification
SteamGeneration
Thermal Recovery
Cheaper FuelS
ub-surfaceS
urface
Air
Heat
Product oil Primary Upgrading
ResidueCombustion
SteamGeneration
Thermal Recovery
Sub-surface
Surface
Air
Heat
Product oil
Primary Upgrading
ResidueCombustion
SteamGeneration
Thermal Recovery
Everything in the Reservoir ?Imagine that!Everything in the Reservoir ?Imagine that!
The prized pursuit ..In Situ Combustion
Air/Oxygen/Water Oil/Gases
air/water zonecombustion zone
coke zonecondensation zone
mobile oil bank
In theory this is great!– minimal fuel requirement– high recoveries– no reservoir loss of pricier
substance
toe heel
The prized pursuit ..In Situ Combustion
Air/Oxygen/Water Oil/Gases
air/water zonecombustion zone
coke zonecondensation zone
mobile oil bank
In theory this is great!– minimal fuel requirement– high recoveries– no reservoir loss of pricier
substance
Petrobank’s Whitesands 3-wells Pilot
Location: South of Ft. McMurray
Time-frame: 2005-2008
Proponents expect a $6/bbl cost reduction
Source: based on Petrobank website information, Fort McMurray Today
Air/Oxygen/Water Oil/Gases
toe heel
To recap ..
World demand for energy in the near future will grow
Although the conventional oil supply is predicted to decrease, non-conventional economic oil sources are ready to step up and fill the gap
SAGD is emerging to be the technology of choice for the expanding exploitation of Oilsands of Alberta
Energy efficiency and economics of SAGD will significantly improve through steps such as SAP.
Dramatic improvement in recovery process are expected if VAPEX or In Situ Combustion prove successful
We live in exciting times to witness and be a part of a revolution in the Energy Technology!