20.02.2014 oil shale opportunities in mongolia, ts. gantsog
TRANSCRIPT
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OIL SHALE OPPORTUNITIES
IN MONGOLIA
Ulaanbaatar, 2014
Ts.GantsogExecutive Director Genie Oil Shale Mongolia
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1. What is oil shale?2. Where is it?3. How is it processed?4. Why is it important?5. What are the challenges?
QUESTIONS TO BE ANSWERED:
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Oil Shale is a huge energy resource
Oil shale generally refers to a sedimentary rock that contains solid hydrocarbon materials called kerogen
When oil shale is heated to ~325°C the kerogen generates hydrocarbon liquids and gases
Two basic methods:Above ground ex-situ retortingUnderground in-situ retorting
What is Oil Shale
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155
Extra-heavy oil & bitumenOil shale
100 bln boe
UNCONVENTIONAL POTENTIAL
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Geologic Map of Mongolia
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Cretaceous and the Potential Oil Shale Basins
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Source Rock
r
2480
120° F120° F
350° F350° FGenerationGeneration
MigrationMigration
Seal RockSeal Rock
Reservoir RockReservoir Rock
OilOil
WaterWater
Gas CapGas Cap
EntrapmentEntrapment
Source Rock Tight Oil
Oil – Oil Shale – Shale Gas –Shale Oil
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1 D 1 mD 1 µD 1 nDPermeability (Darcy)
Good Oil Reservoir
World’s Best Oil Reservoir Tight Gas Sand
Source Rock
Spra
berr
ySh
aly
Sand
Permeability of resource types
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Exploring for Oil Shale
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Lacustrine Oil Shale of Mongolia
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IN-SITU CONVERSION PROCESS
¢
Producer
HeaterHeaterOverburden
• Naphtha• Jet• Diesel• Nat. Gas• Hydrogen• Chem. Feed• Heat
High ValueProducts
What is it? • Enhancement of natural
maturation of kerogen by slowheating
• Results in:- thermal cracking- in-situ hydrogenation- high sweep vapor phase
production - high API oil- N, S, O content vary with
resource• Average temperature limited to
diesel boiling point
Potential resource applications:• Oil Shale • Heavy Oil / Bitumen• Coal
How is it done?• Electric resistance/gas
heaters• Underground conductive heat
transport
Adapted from Shell
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Sweden Pioneered In-Situ Retorting During World War II
Motivated by deeper oil shale next to a surface mine
R&D started in 1940Full scale production began in 1942
1 Proprietary and
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152V electric heater wells were placed 2.2 m apart (hexagonal)
Heated to 400 oC in 4 months.
180-m wide advancing at 140 m per year (17-m thick)
26 boreholes/day or 6500 boreholes/year
Oil was higher quality than from surface retorting
Sweden processed 2,450 tons of shale per day, with a yield of 160,000 barrels / year
1 Proprietary and
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Ljungström Field – West with Heater Pattern Relics
Ljungström Field - South
Reclaimed Production Area
1 Proprietary and
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IN SITU HEATER TECHNOLOGIES
Кюри тусгаарлагч бүхий цахилгаан халаагуурууд
Хийн халаагуур
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In-Situ Conversion Pilots
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Subsurface Heating Interval
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100-200 m
50 m
HEATERPRODUCEROBSERVATIONCORE HOLECOMBO. OBV./COREDE-WATERING HOLE GROUND WATER MONITOR
WELL POSITIONS
Proprietary and Confidential
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HEATEDZONE
Producer
Perf’s
3’ Dia. Target
TD @ 300m. Complete with Sucker Rods & Hydraulic Pump in
2-7/8” Tubing
HeaterHole
8-1/2” OH
9-5/8” Csg.
3’ Dia. Target
CanisterHeater
RefluxBaffle
De-WateringHole
3’ Dia. Target
9-5/8” Csg.
9-5/8” Csg. & 7” Slotted Liner
13-3/8 Cond.Drilled & Driven(typ.)
2-7/8”Tubing& Pump
Ground Water Monitor
5’ Dia. Target
9-5/8” Csg.
8-1/2” OH
9-5/8” Csg.
ObservationHole
3’ Dia. Target
TD @ 290m. Complete with MI Heater in 4-1/2” Canister w/ Reflux Baffle
TD @ 300m. Complete with Fully Cemented
Welded 2-7/8” Tubing
TD @ 300m. Complete with ESP on 2-7/8” Tubing
TD @ 300m. Complete with ESP on 2-7/8” Tubing
7” Slotted Liner 7” Slotted Liner
8-1/2” OH
8-1/2” OH
12-1/4”
Pilot Well Designs
Proprietary and Confidential
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Well Development
Vertical Wells Horizontal Wells
Proprietary and Confidential
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Scaled up to Commercial Production
production well
heater well
Pilot Pattern
Commercial Pattern
Proprietary and Confidential
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Environmental Protection
In Compliance with all Environmental Laws and
Regulations
Minimizes Surface Disturbance Utilizing Standard Drilling Practices
All Air Emissions within Conventional Oil Production Levels
Utilizes Produced Natural Gas for Self-Sufficient Power
Utilizes no Water nor Fracking Fluids
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Reactors at Ben Gurion University
Oil Shale Pyrolysis Reactors
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Mongolian Oil Shale
Pre-pyrolysis Shale Post-pyrolysis Shale
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0
2
4
6
8
10
12
14
260 344 373 383 392 400 409 422 435
Temp (C)
Oil
volu
me
(ml)
In Situ Mongolian Shale OilO
il Vo
lum
e
Proprietary and Confidential
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In Situ Mongolian Shale Oil
Low Pressure
Medium Pressure
C20
Gasoline & Diesel
C20
Gasoline & Diesel
Proprietary and Confidential
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In Situ Shale Oil
IC4NC4
IC5NC5
22DMB
CP 23DMB 2MP 3MP
NC622D
MP MCP
24DMP 223
TMBBZ
33DMP CH 2MH 23D
MP11D
MCP 3MH 1C3DMC
P1T3
DMCP
3EP 1T2DM
CPNC7
ISTD
MCH113
TMCP ECP 124
TMCP
123TMC
PTOL NC8
IP9EB
MXYL
PXYL
OXYL
NC9IP1
0 PBNC1
0IP1
1
NC11
NC12
IP13
IP14
NC13
IP15
NC14
IP16
NC15
NC16
IP18
NC17
IP19 PHEN
NC18
IP20
NC19
NC20
NC21
C25HBI
NC22
NC23 NC24
NC25
NC26
NC27 NC28
NC29 NC3
0NC3
1NC3
2NC3
3NC3
4NC3
5NC3
6NC3
7NC3
8NC3
9
NC40
NC41
C20
C20
Mongolian In Situ Oil
IsraeliEx Situ Oil
Gasoline & Diesel
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Low Sulfur Fuel
Khoot Ex SituKhoot In Situ
OB In Situ
27
62
520.5%
0.14%
0.5%
API
Sulfur
Sample A Ex Situ
Sample A In SituSample B In Situ
Proprietary and Confidential
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Моngolian Oil Value
0
1
2
3
4
5
6
7
8
9
0 10 20 30 40 50 60 70
S [w
t%]
API Gravity
MayaArab Heavy
ZuetaHeavy
IranHeavy Arab Light
Urals
Bakkan TapisBrent
WTI
Jordan Ex Situ
Genie Israel In Situ
Colorado & Australia – Retort & In situ
Genie Sample B
In Situ Genie Sample A
In Situ
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In-Situ Mongolian Shale Gas
0
5
10
15
20
25
1 atm
10 atm
kg o
f Gas
/bbl
of O
il
Natural Gas
LPG
Hydrogen
Low Pressure
Medium Pressure
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0.7
0.5
4.1
0.5
0.1
1
Energy balance
ШатдагЗанар
CH4
Газрын тос
LPG
C2H6
CH4
H2
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Economy balance
ШатдагЗанар
CH4
Газрын тос
LPG
C2H6
CH4
H2
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Pre-Feasibility Study of the Project
The world’s fifth largest accounting company BDO prepared the pre-feasibility study for Genie's project for construction of a full scale commercial production facility of daily capacity of 6,70 0 tons of oil.
Summary of findings:
The production cost of 1TOE (ton of oil equivalent) is approximately $350.
The cumulative investment, from the construction phase until full production capacity, will be approximately $4 billion.
The annual increase in the government revenues will reach $850 million.
5,600 new jobs (1,200 direct employees and 4,400 indirect employees) will be created.
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Project development risks and costsPolitical factorsRegulatory hurdlesPublic perceptions
• Facts vs. Fiction about oil shale
Environmental considerations
Challenges for Developers
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Public sector revenue• Taxes, bonus payments, and royalties• Economic development• Infrastructure enhancement
Stable industry• Long term employment• Educational growth• Skill development
Secure domestic oil supply• Lower gasoline prices• Improved national security
Potential Benefits from Oil Shale
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Build processing plant with 6,700 tonnes/day of LPG, gasoline, jet, diesel, and fuel oil
Energy self-sufficiency for Mongolia plus exports to China and other Asian markets
Genie becomes one of Mongolia’s largest employers
Vision: Ensure Mongolia’s Energy Independence and Expand Mongolian Exports by Selling Surplus Oil
Products
2020 Vision for Mongolia Oil Shale
3
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1. Oil shale is an important national energy resource• Can provide economic and security benefits• Needs to be part of a long term national energy strategy
2. The economic, environmental and political challenges are equally challenging.
3. Industry is spending millions of dollars on research to find better ways to recover transportation fuels from oil shale. Development is deliberate, thoughtful, and eminent.
4. There will not be an instantaneous oil shale industry causing massive impacts. Development will be incremental and must meet all regulatory requirements.
5. Mongolia needs all domestic sources of energy , conservation and specifically oil shale as a bridge to a society with much less dependence on foreign petroleum.
Summary