Extra Heavy Oil and Bitumen

Impact of Technologies on the Recovery Factor

The Challenges of Enhanced Recovery
Franois CUPCIC
Heavy Oil Research Leader

Heavy Oil : a mix of heterogeneous denominations

Confusing heterogeneous denominations :

Heavy Oil, Extra Heavy Oil, Oil Sands, Tar Sands, Bitumen, .
need for a simple classification

4 Classes based mainly on downhole viscosity :

0 A Class : Medium Heavy Oil
25> dAPI > 18
100 cPo > > 10 cPo, mobile at reservoir conditions
0 B Class : Extra Heavy Oil
20> dAPI > 7
10 000 cPo > > 100 cPo , mobile at reservoir conditions
0 C Class : Tar Sands and Bitumen 12> dAPI > 7
> 10 000 cPo, non mobile at reservoir conditions

0 D Class : Oil Shales

Reservoir = Source Rock, no permeability
Mining Extraction only

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Heavy Oil (excluding Oil Shales) : 3 Main Categories

Heavy Oil Classification
10 000 000

Downhole Viscosity (Cpo)

Wabasca
Athabasca

C Class :
1 000 000
Tar Sands & Bitumen

Canada

B Class :
Extra Heavy Oil

Peace river
Cold lake
Upper & Lower Ugnu

100 000

Cat canyon
10 000

Boscan
Poso creek
Yorba linda
Fazenda belem
Llancanelo
Alto do rodrigues 2
Lloyminster
Belridge
Kern
river
Orinoco

Eljobo

1 000

Mormora mare

100

A Class :
Medium
Heavy Oil

Tia juana Midway

Estreito
Grenade
Bressay
Morichal
Bati
raman
Mariner (H)
Sarago mare
Alto do rodrigues 1
Duri
Pilon Bechraji
Mount
poso
Rospomare
Qarn alam
Varadero
Balol
Bachaquero Emeraude
Captain
Mariner (M)
Boca de Jaruco
West sak

u
Shoonebeck

u Lacq Sup.
10

uDalia
0,0

5,0

10,0

15,0

API Density
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

20,0Rosa
uTempa
(11-23API)

25,0

"Heavy Oils" : Resources of 4000 to 5000 Gb (OIP)

Potential Reserves depends on recovery factors

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
Heavy Oil Reserves

Light Oil Reserves

270

310

260

Venezuela

Canada

Saudi Arabia

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Huge Untapped Resources in Orinoco and Athabasca

54,000 km2

45,000 km2
ALBERTA

Athabasca
Fort
Mc Murray

Peace River

Cold Lake
Edmonton
Lloydminster
Calgary

SINCOR OPCO

Cretaceous
Oil Sands
Cretaceous
Heavy Oils

SURMONT
SAGDPilot

Extra Heavy Oils

Tar Sands & Bitumen

Oil in place: 1,200 Gb

(PDVSA estimates)

Oil in place: 1,300 Gb

(EUB estimates)

( < 10,000 cPo)

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

( > 10,000 cPo)

A decisive difference: the geothermal gradient

10 000 000 cPo
1 000 000 cPo

Viscosity = f(tempure)

100 000 cPo

10 000 cPo
1 000 cPo
100 cPo
10 cPo
1 cPo
0 C

50 C

100 C

150 C

200 C

250 C

300 C

Athabasca :

Orinoco :

T res. # 11C

T res. # 53C

1,000, 000 cPo

Thermal Production Compulsory

# 1,500 to 3,000 cPo

Cold Production Possible
Downh
ole
pump

550m
200m
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

1400m

Production Technologies
1 - Proven technologies
but with limited suitability or
recovery efficiency
Mining Extraction
Cold Production
Huff & Puff

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Mining Extraction
Proven technology
High Recovery Factor
Decreasing operating costs :
3 1980's

: > 25 US$/bbl

3 2002

: 8 - 12 US$/bbl

Limited GHG emissions

ALBERTA
Athabasca
Fort
Mc Murray

BUT :

Cold Lake
Edmonton

Overburden limited to 50-75 m

suitable to less than 10% of Oil in Place in

Athabasca
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Calgary

Cold Production
Proven technology
Fair productivities with
horizontal wells (Venezuela)
or with CHOPS (Canada)
Limited investments
Limited operating costs
(2 to 4 US$/bbl)
Available artificial lift
technologies: PCP, rod
pumps
No GHG emissions

BUT :

Sand

+
Oil

CHOPS

Poor recovery factors (# 5 to 10%)

Unsuitable for bitumens (too viscous)
Unsuitable for reservoirs with active aquifer
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Example of Cold Production : the Sincor Project

JOSE
32 API 180Kbls/d
ZUATA
8.5 API 200Kbls/d

Distillation

Hydrotreater

21+200 km
Diluent 70 KBD
12-20
26-36
ZUATA SWEET

Diluted crude 270 KBD

Cold
Production

Investment
Plateau production
Oil gravity
Technical cost
Contract duration

SOLIDS

Coker

Hydrocracker

: US$ 4.2 billion

: 200 kbd of crude oil
180 kbd of Zuata Sweet
: 8.5 32 API
: < 7 US$ / b
: 35 years

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

10

Coke 6000 t/d

Sulfur 500 t/d

THE PARTNERS

TOTAL

47 %
38 %
15 %

Huff & Puff

Proven technology :
Canada : Cold Lake, Wolf Lake & Primrose
Venezuela : Maracabo & Oriente Basins
California : Kern River

Limited operating costs :

4 to 5 US$/bbl

BUT :
Limited recovery factors (< 15-20%) : only stimulation around
wellbore
Consumption of energy and increase of GHG emissions

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

11

Production Technologies

2 - More efficient technologies

but not yet field proven

In-Situ Combustion
Solvent Injection

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

12

In Situ Combustion
Combustion
front

Mobile oil
zone (MOZ)

Cold Heavy
Oil

Old technology (1960's)

High Recovery Factor :
up to 60%

Self-generation of energy
(coke consumption)
In situ upgrading (thermal
cracking)

Air & Water

BUT :

Producer
well

Field tested nearly exclusively on light oils

Not so many successes (operational and safety problems)
Pattern adapted to extra-heavy oil & bitumen to be found
and field tested ...
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

13

Solvent Injection
Capillary mixing
Solubilization
Swelling

Solvent
flows to
interface

Molecular diffusion
Convective dispersion
Viscosity
Viscosity reduction
reduction
Asphaltene precipitation

High Recovery Factor :

up to 60%

Low energy consumption

In situ upgrading
(asphaltene precipitation)
No boiler feedwater
treatment
Limited GHG emissions

Solvent

g
Oil

BUT :

Slow process (molecular diffusivity much smaller than thermal

diffusivity)
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
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

14

Production Technologies

3 - Available efficient technology

with proven results

Steam Injection and SAGD

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

15

Steam Assisted Gravity Drainage (SAGD)

High Recovery Factor :
up to 60%

Quick process (high

thermal diffusivity)
Proven technology :
several pilots since
1980's in Alberta and
elsewhere

Mature enough for

medium scale field tests

BUT :

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 for
100,000 bopd
Requires technics adapted to high temperatures (artificial lift,
metering, surface pumping, )
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

16

SAGD : already a reality in Alberta

Construction of
Christina Lake
(EnCana)

Phase 1 of Foster
Creek (EnCana)

Surmont Pilot
(Conoco-Phillips /
Total / Devon)

Construction of Mac
Kay River
(PetroCanada)
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

17

SAGD 1st Challenge : To Increase Oil Value

UPGRADING & VALUE OF THE PRODUCT

80%

60%

40%

LIGHT FRACTION

100%

Deep Upgrading
Mid Upgrading
Mini
Upgrading

17 $/bbl

17.6 $/bbl
15.6 $/bbl

20%

0%

8.5 $/bbl

-40%

-60%

-80%

-100%

HEAVY FRACTION

-20%

BRENT

ATHABASCA ORENOQUE

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Diluted
Bitumen
19API

Gasoil (145-375C)

Gasoline (0-145C)

VGO (375-540C)

VR 540C+

Syncrude LR- Syncrude H- Syncrude

coking
OIL with VR SINCOR
23API
23,5API
32API

Syncrude HOIL without VR

32,4API

Syncrude
HDH +
36,3API

Upgrading : a Balanced Choice

Thermal
Cracking

Deep
Hydrocracking

Lower Investment Costs

Higher SCO value

Lower Cost of Steam :

petcoke may be used as
fuel

BUT

BUT

Higher Investment Costs

Lower SCO value

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

High consumption of
natural gas for H2 and
steam production

19

SAGD 2nd 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)

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

20

1st Alternative Fuel : Combustion of Upgrading Residues

Combustion of residues :
cheaper fuel than natural gas :
reduced operating cost : 3 1 US$/bbl
avoids stockpiling of residues (petcoke,
asphalts)

BUT

Requests specific boilers

Heavier treatment of boiler feedwater
High sulphur % FGD compulsory
Requires regenerative FGD process to
avoid stockpiling of Ca2SO4
Higher CO2 emissions
Higher investment costs :
160 500 MMUS$ (100,000 bopd)

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

21

2nd Alternative Fuel : Gasification of Upgrading Residues

S
C
O

Naphta/Gasoil
HDT

Surmont
8API
100 KBOPD

Gasification of residues :

Synthetic Crude Oil

30.2API
85 KBOPD

cheaper fuel than natural gas

reduced operating cost :
3 1,3 US$/bbl

DAO/VGO
T-Star
Crude
unit
hydrogen
Vacuum
distillation

HP Steam

Gasification

Asphalt
Deasphalting
unit

Gas cleanup
and Sulfur
syngas
recovery

avoids stockpiling of residues

(petcoke, asphalts)
allows production of H 2 for
hydrotreatment

OTSG
Clean
syngas

easier capture of SO2 and CO 2

syngas can be burnt into simple
OTSG boilers
reduced treatment of boiler
feedwater

BUT

Higher investments costs :

160 360 MMUS$ (100,000 bopd)

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

22

SAGD 3rd Challenge : To Reduce CO2 Emisions

Synthetic crude oil
Bitumen

SCO 88 050 BOPD

100 000 BPOD

Total CO2 : 14 300 tons / day

CO2

Diluent recycle

3 300 tons / day

CO2
Diluted Bitumen
19 API

11 000 tons / day

Oil Water
separation

Pads

Steam : 43 200 tons/day

Steam
Generation

Flexicoker
case

Water
make up

38.5 MMSCFD

Artificial lift : Gas lift + ESP

82.8 MMSCFD

Natural gas

44.3 MMSCFD

Nota : CO2 for bitumen production with only

Natural gas : 6 500 tons / day
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

SCO

Sulphur

Equivalent gas
71.9 MMSCFD

8 - 12 wellpairs / Pad
SOR : 2.5 Vol / Vol

C3

Upgrader

23

Electrical power
external supply

CO2 Emissions in SAGD

kg CO2 / barrel of bitumen

125

1 ton CO2/ton syncrude

100
Range of
possible variation

75

Upstream
Upgrader
Refining

50

25

0
Athabasca
SAGD

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Athabasca
Mine
24

SINCOR

Cost of CO2 Capture

Today solution : MEA process

technical capture cost # 25 US$/T CO2

+ 0,5 T CO2 emission / T CO2 captured
real capture cost # 50 US$/T CO 2

Tax ?
10 US$/T CO 2 ? + 2 US$/bbl
20 US$/T CO 2 ? + 4 US$/bbl
30 US$/T CO 2 ? + 6 US$/bbl

+ 10 US$/bbl !!
Possible solution :
oxy-combustion
(concentration of
CO2)

Off-gas
vent
STEAM /
ELECTRICITY

Oxygen
Production

Flue gas
Treatment

BOILER

CO2 Separation/
Inerts removal

HEAVY RESIDUE
Steam

BFW
CO2
Sequestered

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

25

Conclusion : Impact of Recovery Efficiency

Technical cost
(US$/bbl)

(
(
(

Upstream + Downstream + 20 $/T CO2 tax

Upstream + Downstream
Upstream only (no upgrading)

20

CO2 Emissions
(kg/bbl)

200

(
15

150

SAGD

10

100

(
(
(

Cold
Production

50

(
(

0
10%

20%

30%

SAGD

40%

50%

0
0%

(
(

40%

50%

60%

0%

Recovery Efficiency
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

Cold
Production

10%

20%

30%

Recovery Efficiency
26

60%

Conclusion
Difficult choice between :
current proven technologies :

4 limited costs and GHG emissions

4 limited recovery factor (10% max?)

emerging hot technologies :

4 higher recovery factor (40%+?)

4 but : higher cost and higher GHG
emissions

A temptation:
4Nuclear Energy to produce steam?
4But not without drawbacks
(especially beyond technology)
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

27

The End

Thank you for your attention.

ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003

28