ASPO - Extra Heavy Oil and Bitumen

Extra Heavy Oil and Bitumen
Impact of Technologies on the Recovery Factor
« The Challenges of Enhanced Recovery »
François 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, ….
è need for a simple classification
4 Classes based mainly on downhole viscosity :
0 A Class : Medium Heavy Oil
25°> d°API > 18°
100 cPo >µ > 10 cPo, mobile at reservoir conditions
0 B Class : Extra Heavy Oil
20°> d°API > 7°
10 000 cPo >µ > 100 cPo , mobile at reservoir conditions
0 C Class : Tar Sands and Bitumen 12°> d°API > 7°
µ > 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
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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
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20,0Rosa
uTempa
(11-23°API)
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
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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)
(µ < 10,000 cPo)
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
(µ > 10,000 cPo)
5
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. # 11°C
• T res. # 53°C
• µ ‡ 1,000, 000 cPo
Thermal Production Compulsory
• µ # 1,500 to 3,000 cPo
Cold Production Possible
Downh
ole
pump
550m
200m
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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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
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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
è suitable to less than 10% of Oil in Place in
Athabasca
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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Calgary
Cold Production
• Proven technology
• Fair productivities with
horizontal wells (Venezuela)
or with CHOPS (Canada)
• Limited investments
• Limited operating costs
(2 to 4 US$/bbl)
• Available artificial lift
technologies: PCP, rod
pumps
• No GHG emissions
BUT :
Sand
+
Oil
CHOPS
• Poor recovery factors (# 5 to 10%)
• Unsuitable for bitumens (too viscous)
• Unsuitable for reservoirs with active aquifer
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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Example of Cold Production : the Sincor Project
JOSE
32° API 180Kbls/d
ZUATA
8.5° API 200Kbls/d
Distillation
Hydrotreater
21+200 km
Diluent 70 KBD
12”-20”
26”-36”
ZUATA SWEET
Diluted crude 270 KBD
Cold
Production
Investment
Plateau production
Oil gravity
Technical cost
Contract duration
SOLIDS
Coker
Hydrocracker
: US$ 4.2 billion
: 200 kbd of crude oil
180 kbd of Zuata Sweet
: 8.5° ð 32° API
: < 7 US$ / b
: 35 years
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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 : Maracaïbo & 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
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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
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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
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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
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Production Technologies
3 - Available efficient technology
… with proven results
• Steam Injection and SAGD
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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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
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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
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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 $/bbl
-40%
-60%
-80%
-100%
HEAVY FRACTION
-20%
BRENT
ATHABASCA ORENOQUE
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
Diluted
Bitumen
19°API
Gasoil (145-375°C)
Gasoline (0-145°C)
VGO (375-540°C)
VR 540°C+
Syncrude LR- Syncrude H- Syncrude
coking
OIL with VR SINCOR
23°API
23,5°API
32°API
1
Syncrude HOIL without VR
32,4°API
Syncrude
HDH +
36,3°API
Upgrading : a Balanced Choice
Thermal
Cracking
Deep
Hydrocracking
• Lower Investment Costs
• Higher SCO value
• Lower Cost of Steam :
petcoke may be used as
fuel
BUT
BUT
• Higher Investment Costs
• Lower SCO value
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
• High consumption of
natural gas for H2 and
steam production
19
SAGD 2nd Challenge : To Reduce Cost of Steam
Combustion of natural gas :
• simple and cheap boiler technology
(OTSG)
• reduced treatment of boiler feedwater
• minimized GHG emissions
• limited investment costs :
• # 160 MMUS$ (for 100,000 bopd)
BUT
High operating cost :
3 US$/Bbl
(gas price ± 3 US$/MMbtu)
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1st Alternative Fuel : Combustion of Upgrading Residues
Combustion of residues :
• cheaper fuel than natural gas :
• reduced operating cost : 3 è 1 US$/bbl
• avoids stockpiling of residues (petcoke,
asphalts)
BUT
• Requests specific boilers
• Heavier treatment of boiler feedwater
• High sulphur % è FGD compulsory
• Requires regenerative FGD process to
avoid stockpiling of Ca2SO4
• Higher CO2 emissions
• Higher investment costs :
• 160 è 500 MMUS$ (100,000 bopd)
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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2nd Alternative Fuel : Gasification of Upgrading Residues
S
C
O
Naphta/Gasoil
HDT
Surmont
8°API
100 KBOPD
Gasification of residues :
Synthetic Crude Oil
30.2°API
85 KBOPD
• cheaper fuel than natural gas
• reduced operating cost :
3 è 1,3 US$/bbl
DAO/VGO
T-Star
Crude
unit
hydrogen
Vacuum
distillation
HP Steam
Gasification
Asphalt
Deasphalting
unit
Gas cleanup
and Sulfur
syngas
recovery
• avoids stockpiling of residues
(petcoke, asphalts)
• allows production of H 2 for
hydrotreatment
OTSG
Clean
syngas
• easier capture of SO2 and CO 2
• syngas can be burnt into simple
OTSG boilers
• reduced treatment of boiler
feedwater
BUT
•
Higher investments costs :
•
160 è 360 MMUS$ (100,000 bopd)
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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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$/T CO2
+ 0,5 T CO2 emission / T CO2 captured
è real capture cost # 50 US$/T CO 2
Tax ?
10 US$/T CO 2 ? è + 2 US$/bbl
20 US$/T CO 2 ? è + 4 US$/bbl
30 US$/T CO 2 ? è + 6 US$/bbl
è + 10 US$/bbl !!
Possible solution :
oxy-combustion
(concentration of
CO2)
Off-gas
vent
STEAM /
ELECTRICITY
Oxygen
Production
Flue gas
Treatment
BOILER
CO2 Separation/
Inerts removal
HEAVY RESIDUE
Steam
BFW
CO2
Sequestered
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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Conclusion : Impact of Recovery Efficiency
Technical cost
(US$/bbl)
(
(
(
Upstream + Downstream + 20 $/T CO2 tax
Upstream + Downstream
Upstream only (no upgrading)
20
CO2 Emissions
(kg/bbl)
200
(
15
150
(
SAGD
10
100
(
(
(
5
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
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The End
Thank you for your attention.
ASPO Annual Meeting 2003 - Rueil- 26-27 May 2003
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