Transcript Alberta Oilsands Facts

The FACTS about ALBERTA OILSANDS
Source: Calgary Herald Photo – Oct.21/05
Presentation Prepared By: Tony Yep - July/2006
ACKNOWLEDGEMENT
This presentation has been compiled using the data and information
available from:
1.
The Calgary Herald Newspaper
-
Five Part Series in Oct/05 or Alberta’s Oilsands
-
Alberta’s Centennial Series, Issue 4, “Black Gold” (Oct 2/05)
-
Other Articles
2.
Global Oil Consumption and Production Data from the Internet
(www.NationsMaster.com)
3.
US News & World Report – Article “The Oil Rush” Apr. 24/06
4.
Bantrel Project Data
TOTAL 1103
Source: Calgary Herald – Our Alberta, Issue 4, “Black Gold” – Oct.2/05
Other Relevant Facts
Source: Calgary Herald Photo – Oct.21/05
•
In 2003, the US Energy Information
Administration formally recognized the
oilsands as a viable supply source.
•
Currently, 175 billion barrels are proven
reserves. As technology evolves, this
number may increase to over 300 billion.
•
The total provincial oilsands deposit is
estimated at over 1.7 trillion barrels.
•
Only 20% of the oilsands deposits in the
Athabasca region are close enough to the
surface to be mined. The rest must be
recovered by underground methods.
•
In the last 40 years, only 4.6 billion barrels
have been extracted. The 175 billion barrels
of reserves are virtually untapped.
•
Alberta has over $80 billion worth of projects
in the next decade to bring total daily
oilsands production rate to over 3 million
bpd.
ALBERTA HAS THE MAJORITY OF THE OILSANDS DEPOSITS
(The Athabasca Oilsands cover an area equal in size to New Brunswick – about 80,000 sq. km.)
Source: Calgary Herald – Our Alberta, Issue 4, “Black Gold” – Oct.2/05
OPEN PIT OILSANDS MINING
1. DIGGING IT OUT
Mining shovels dig into the oilsand and
load it onto huge trucks. The trucks carry
the oilsand to crushers.
2. CONDITIONING AND HYDROTRANSPORTING
The oilsand is broken up in crushers and coarse
material is removed. Hot water is added to the
oilsands. The resulting slurry is fed via hydro-transport
pipeline to the extraction plant.
Source: Calgary Herald Article on Oilsands – Oct.23/05
OPEN PIT OILSANDS MINING
3. PRIMARY EXTRACTION
The mixture of oil, sand and water goes to a
primary separation vessel. Thick bitumen froth
forms at the top of the vessel; this is skimmed
off. Clean sand sinks to the bottom; it’s sent
back to the mine by pipeline to fill in minedout areas. Water from the extraction process,
still containing residual sand, clay and traces of bitumen, is known as
tailings. The tailings are pumped to holding ponds and treated.
4. SECONDARY EXTRACTION
The bitumen is cleared by removing fine clay
particles and water. Still thick, the bitumen is
diluted with naphtha, then stored in holding
tanks and delivered to upgrading for
processing.
Source: Calgary Herald Article on Oilsands – Oct.23/05
OPEN PIT OILSANDS MINING
5. UPGRADING
Upgrading converts bitumen into a lighter, less
dense product, using heat to “crack” big
molecules into smaller fragments.
First,
naphtha is removed and recycled.
Next,
upgrading usually follows this process:
The bitumen is sent to drums where petroleum
coke, the heavy bottom material, is removed.
Coke, similar to coal, can be used as a fuel
source elsewhere, or stockpiled and sold.
Hydrocracking may also be used to add
hydrogen and break up molecules. Hydrocarbon vapours are stabilized and
sent to fractionators where they are separated into marketable products
such as naphtha, kerosene and gas oil.
Source: Calgary Herald Article on Oilsands – Oct.23/05
OPEN PIT OILSANDS MINING
6. SULPHUR REMOVAL
Sulphur can be removed by
hydrotreating, stockpiled and
sold for fertilizer or other
products.
Source: Calgary Herald Article on Oilsands – Oct.23/05
7. STORED AND SHIPPED
The petroleum liquids are
kept in separate storage
tanks on site until they are
ready to be blended and
shipped down the pipeline
for refining.
IN-GROUND OIL RECOVERY
STEAM ASSISTED GRAVITY DRAINAGE (SAGD)
In the most popular in-situ method, two
horizontal wells are drilled in parallel through
the oil-bearing formation. Steam is injected
into the upper well, heating and softening the
bitumen. The lower horizontal well captures
the bitumen then pumps it to the surface.
The recovered bitumen is sent by pipeline to
be upgraded.
Source: Calgary Herald Article on Oilsands – Oct.23/05
IN-GROUND OIL RECOVERY
CYCLIC STEAM STIMULATION (CSS)
Also known as “huff and puff”
technology, this process requires just
one well bore. Steam is injected for
several weeks, mobilizing the cold
bitumen.
Then the flow on the
injection well is reversed, producing
oil through the same bore. Steam is
re-injected to begin a new cycle when
oil production falls below a critical
threshold.
Source: Calgary Herald Article on Oilsands – Oct.23/05
IN-GROUND OIL RECOVERY
TOE-TO-HEEL AIR INJECTION (THAI)
The process combines a vertical air
injection well with a horizontal
production well. The wells are preheated with steam.
When air is
injected, spontaneous combustion
occurs. Heat loosens the oil, allowing
it to flow by gravity to the horizontal
production well. The combustion front
sweeps the oil from the toe to the heel
of the producing well.
Source: Calgary Herald Article on Oilsands – Oct.23/05
IN-GROUND OIL RECOVERY
VAPOUR EXTRACTION PROCESS (VAPEX)
This experimental method is similar to SAGD. But instead of steam, solvents
such as ethane or propane are injected into the oilsands, producing a thinner
bitumen and creating a vapour chamber through which the oil flows as it
drains. It can be applied in paired horizontal wells, single horizontal wells or a
combination.
Source: Calgary Herald Article on Oilsands – Oct.23/05
Canada produced:
•
2005
2.5 million bpd
(Oilsands &
Conventional Oil)
•
2015
Expect to be 3.5
million bpd
Oilsands Only
Source: Calgary Herald – Our Alberta, Issue 4, “Black Gold” – Oct.2/05
•
Last 40 yrs, extracted only
4.6 billion barrels
•
2005
1 million bpd
•
2015
Expect to be 3
million bpd
KEY PLAYERS IN THE ATHABASCA OILSANDS
NO.
COMPANY
PROJECT
SIZE
(Barrels/Day)
DATE
(On Stream)
1
Suncor Energy
Voyageur
550,000
By 2012
2
Syncrude Canada
Major Expansion
550,000
By 2013
3
Shell Canada
Albion Sands Muskeg River
300,000
By 2010
(Athabasca Oil Sands)
Jackpine
500,000
Planned
4
Canadian Natural Resources
Horizon
232,000
By 2012
5
Imperial Oil
Kearl Oil Sands
300,000
By 2018
6
Total SA (Deer Creek Energy)
Joslyn Oil Sands
140,000
By 2015
7
Synenco Energy (Sinopec)
Northern Lights
114,000
By 2010
8
Conoco Phillips
Surmont
100,000
By 2012
9
Husky Energy
Sunrise Thermal
200,000
Planned
Tucker
35,000
By 2008
Foster Creek
80,000
Planned
Christina Lake
40,000
Planned
10
EnCana Energy
11
Devon Energy Corp
Jackfish
35,000
By 2008
12
Japan Canada Oil Sands Ltd.
Hangingstone
30,000
Planned
13
OPTI Canada/Nexen
Long Lake
180,000
Planned
14
Petro Canada
UTS Fort Hills
190,000
Planned
15
MEG Energy
Christina Lake Regional
25,000
By 2008
16
Others in Planning
3,601 kbpd
or over 3 million bpd by 2015
Source: Calgary Herald Article on Oil Sands - October 22, 2005 & June 30, 2006
WHAT DOES IT COST TO PRODUCE?
Note:
The Operating cost
looks at the basic
cost of extracting
bitumen from
oilsands.
The Supply cost
include other costs
such as capital and
operating expenses,
taxes and royalties.
National Energy Board Data
Source: Calgary Herald Article on Oilsands – Oct.21/05
SCARY THOUGHTS
World Oil Consumption
80 million bpd
120 million bpd
2005
2025
37.8 yrs
25 yrs
If China and India increase the consumption to 120 mbpd, this will not be
sustainable in the long run. More energy reserves/sources will need to
be found.
Note:
At 20 mbpd consumption, United States at 4.6% of the
world population is consuming 25% of the oil production.
OIL CONSUMPTION / PRODUCTION BY COUNTRY
2005 DATA (BASED ON 80 MBPD TOTAL)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Consumption
United States
China
Japan
Russia
Germany
India
Canada
South Korea
Brazil
France
Italy
Saudi Arabia
Mexico
United Kingdom
Source: CIA World Fact Book Jan.10/05
www.NationMaster.com website
Production
Rank
25%
8%
7%
3.5%
3.3%
3.0%
2.7%
2.7%
2.6%
2.5%
2.3%
2.2%
2.2%
2.1%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Saudi Arabia
Russia
United States
Iran
Mexico
China
Norway
Canada
Venezuela
United Arab Emirates
Nigeria
Kuwait
United Kingdom
Iraq
Source: BP Statistical Review of World Energy 2005
www.NationMaster.com website
13.4%
11.7%
9.2%
5.2%
4.8%
4.4%
4.0%
3.9%
3.8%
3.4%
3.2%
3.1%
2.6%
2.5%
SCARY THOUGHTS
Given this supply and demand scenario, what do you think?
In Alberta, if the price of oil remains above $40 US/barrel, all existing
facilities will expand, and planned new projects will go ahead.
Question
Do you think oil will fall to below $40 US/Barrel?
SOME OTHER INTERESTING ENERGY INFORMATION
•
It takes two tonnes of oilsands to make one barrel (159 litres) of oil.
•
The Alberta Energy and Utilities Board (EUB) estimates 41 trillion cubic
feet of natural gas, or 8 years of reserves at current consumption rates.
•
Coalbed methane is now a viable alternative source for natural gas.
Technology can access these unconventional gas reserves estimated to
be more than 500 trillion cubic feet.
•
Alberta has more than 1,000 years of coal supply.
•
Synthetic oil can be created from coal using improved Fisher – Tropsch
synthesis. Coal → gas → paraffin wax → diesel fuel. This process is
deemed to be viable at $45 US/barrel and above.
Source: Calgary Herald – Our Alberta, Issue 4, Oct.2/05 and US News & World Report – “The Oil Rush” Apr. 24/06
SOME OTHER INTERESTING ENERGY INFORMATION
•
United States has tremendous oil shale potential in the 16,000 sq.mi.
Green River Formation in Colorado, Utah and Wyoming where 800
billion barrels of oil are estimated to be recoverable if the right
technologies can be found.
•
Biggest environmental issue for all unconventional oil and energy
sources is spikes in greenhouse gas emissions.
•
3000 – Estimated number of products made from crude oil including
inks, crayons, bubblegum, plastics, dishwashing liquids, deodorants,
eyeglasses, tires, ammonia and heart valves.
Source: Calgary Herald – Our Alberta, Issue 4, Oct.2/05 and US News & World Report – “The Oil Rush” Apr. 24/06
DOES ALBERTA SHARE ITS
WEALTH WITH THE REST
OF CANADA ?
Based on the CERI data, a
resounding YES!
Alberta has a little more than
one-third share. Is this fair?
What is good for Alberta is good
for Canada and the other
provinces.
Source: Calgary Herald article– Oct.25/05
THANKS !
ANY QUESTIONS?
P.S.
I don’t ever complain about the price of gas!