#canada’s oil sands overview

7/23/2019 #Canada’s Oil Sands Overview

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Canada

s Oil Sands Overview

and Bitumen Blending PrimerUS National Academy of Science

October 23, 2012



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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3

Canada s Oil Sands

3



4

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



In Situ Oil Sands RecoverySteam Assisted Gravity Drainage(SAGD)

Source: DeerCreek



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



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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Mined

Insitu



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.



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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