| Table
of Figures |
| Figure 1-1: |
Without syngas from gasification,
roughly $15/bbl is required for natural gas when gas
can be purchased for $7.50/MMBtu. Nearly two MMBtu is
required per barrel of upgraded oil. |
| Figure 2-1: |
The three Alberta oilsands
deposits. Courtesy of Canadian Association of Petroleum
Producers. |
| Figure 2-2: |
Northern Alberta’s oilsands
are thought to contain nearly 200 billion barrels of
bitumen. Photo by Suncor Energy Inc. |
| Figure 2-3: |
Bitumen is extracted from
oilsands and can be upgraded into synthetic crude oil. |
| Figure 2-4: |
Suncor’s oilsand is mined
using shovels with buckets that hold 100 metric tons
(mt), loading 240- to 380-mt trucks. The mine delivers
about 500,000 mt of oilsand per day to preparation plants.
Photo courtesy of Suncor. |
| Figure 2-5: |
The in-situ steam-assisted
gravity-drainage (SAGD) process is used for deposits
deeper than 225 ft by drilling two wells – one for steam
injection to melt the bitumen from the deposit and the
other for bitumen recovery. CAPP estimates 80% of Canada’s
oilsands production will require SAGD. Source: Deer
Creek Energy. |
| Figure 2-6: |
Suncor’s in-situ project
is located on leases known as “Firebag”. The Steam Assisted
Gravity Drainage (SAGD) technology uses underground
wells to inject steam into the oilsands deposits and
collect the bitumen released by the heat. Photo courtesy
of Suncor. |
| Figure 2-7: |
At the Suncor oilsands
plant, hydro-transport pipelines are used to deliver
the crushed and sized ore to the primary extraction
facility where the oilsands are washed with warm water
to separate 90+% of the bitumen from the sand and clay.
The bitumen floats to the top of large settlement tanks,
where it is skimmed from the surface (see Figure 3-2).
Photo courtesy of Suncor. |
| Figure 2-8: |
Over the coming decades,
Canada is expected to become one of the world’s three
largest petroleum exporters, joining the ranks of Saudi
Arabia and Russia. As gasification applications grow,
synbit and upgraded light-synthetic blends will comprise
ever-greater proportions of Canada’s exports. Sources:
Jacobs Engineering and the Canadian Association of Petroleum
Producers (CAPP). |
| Figure 2-9: |
PADD III access for bitumen
blends (LLB) opened up considerable demand from US refining,
reducing the discount bitumen receives relative to West
Texas Intermediate (WTI). Chart compliments of Canadian
Natural Resources Limited. |
| Figure 2-10: |
The Canadian dollar is
steadily climbing against the US greenback, largely
as a result of investment in energy. Source: Bank of
Canada. |
| Figure 3-1: |
Canadian producers can
capture almost 90% of the value of their bitumen if
they establish extensive upgrading capabilities in the
field. Source: Jacobs Consulting, PetroCanada. |
| Figure 3-2: |
Bitumen floats to the top
in giant separation cells filled with warm water. Courtesy
of Suncor. |
| Figure 3-3: |
Bitumen and associated
heavy oils contain greater percentages of long-chain
carbon molecules than conventional crude oils like WTI,
presenting challenges to refineries. This is why converting
the bitumen into SCO, which eliminates the residue and
triples the amount of kerosene and middle distillate,
is so valuable. |
| Figure 3-4: |
At the Suncor oilsands
plant, bitumen is heated and sent to drums where petroleum
coke, the heavy bottom material, is removed. Petroleum
coke, similar to coal, is used as a fuel source for
the utilities plant. Photo courtesy Suncor. |
| Figure 3-5: |
A catalytic cracking unit
consists of one or more tall, thick-walled reactors
with furnaces, heat exchangers and other vessels. Photo
courtesy of Canadian Natural Resources Ltd. |
| Figure 3-6: |
The purpose of this type
of unit is to reduce the sulfur and nitrogen content
of the feed gas and improve the combustion characteristics
of the transportation fuels. In addition to sulfur and
nitrogen removal, hydrotreating reduces the amount of
aromatic hydrocarbons that can give jet kerosene a poor
smoke point and diesel fuel a poor cetane number. Diagram
courtesy of www.lloydminsterheavyoil.com. |
| Figure 3-7: |
Diagram of Long Lake bitumen
extraction and upgrading plan. Courtesy of OPTICanada. |
| Figure 4-1: |
Reactor destined for Long
Lake. Photo courtesy of OPTICanada/Nexen. |
| Figure 4-2: |
Reactors in place at Long
Lake. Photo courtesy of OPTICanada/Nexen. |
| Figure 4-3: |
OPTI Canada is making
significant investments in upgrading infrastructure
for their Long Lake projects, such as this gasifier
near Fort McMurray. Photo compliments of OPTI Canada. |
| Figure 4-4: |
Synenco Energy’s Northern
Lights project, which will employ GE’s gasification
process, aims to produce syngas from petcoke and export
surplus cogen power. GE licenses its gasification technology
for oilsands as well as IGCC projects. Key elements
of the technology are gasification integration in the
areas of air separation, acid-gas removal, sulfur recovery
and H2 purification and recycling. Source: GE. |
| Figure 4-5: |
Northwest Upgrading’s process-flow
diagram. Courtesy of Northwest Upgrading. |
| Figure 4-6: |
Heavy hauler unloading
into sizer at the Suncor oilsands plant, where crushers
and sizers prepare the ore for delivery to primary extraction
via hydro-transport pipelines. |
| Figure 4-7: |
At the Suncor oilsands
plant, bitumen is heated and sent to drums where petroleum
coke, the heavy bottom material, is removed. Petroleum
coke, similar to coal, is used as a fuel source for
the utilities plant. |
| Figure 4-8: |
Suncor's oilsands plant
is located north of Fort McMurray in Alberta. The company’s
vision is to more than double oilsands production to
over half a million barrels per day in the next decade.
Courtesy of Suncor. |
| Figure 4-9: |
Peace River Oilsands Upgrading
Map. Courtesy of PRO Upgrading. |
| Figure 5-1: |
Expanding production from
Alberta’s oilsands is reconfiguring North America’s
oil pipelines as shippers and markets connect. Map Courtesy
of Canadian Natural Resources, Ltd. |
| Figure 5-2: |
Enbridge Inc. is has announced
$13 billion in new pipeline projects, like this one
near Hardisty, AB. Photo courtesy of Enbridge. |
| Figure 5-3: |
A new proposed Enbridge
pipeline would connect Chicago directly to Beaumont,
sending bitumen directly to the heart of heavy-oil refining.
Map courtesy of Enbridge. |
| Figure 5-4 |
For each major oilsands
project, pipeline capacity will need to be opened southward
or westward. This map illustrates the pipelines that
will serve the 140,000-b/d Long Lake Project south of
Fort McMurray. |
| Figure 5-5: |
Enbridge intends to loop
its Gateway pipeline to backhaul diluent from Kitimat
refineries to oilsands producers. Map courtesy of Enbridge. |
| Figure 5-6: |
Kinder Morgan Canada’s
Trans Mountain system is being expanded from 225,000
b/d to 260,000 b/d and to 300,000 b/d by 2008. Map courtesy
of Terasen Pipelines. |
| Figure 6-1: |
Canadian oilsands are
connected to some 80 refining operations across North
America, and access is expanding: 80,000-b/d of US Gulf
Coast refining was opened via pipeline in early 2006.
Source: Jacobs Consulting, Canadian Association of Petroleum
Producers. |
| Figure 6-2: |
Flynt Hills Resources’
280,000-b/d Pine Bend refinery in Rosemont, MN, is one
of the main processors of heavy crude from Canada. Photo
courtesy of Flynt Hills Resources. |
| Figure 6-3: |
Suncor’s Commerce City,
CO, refinery, which the company purchased from Valero
in 2005, is the largest refining operation in the Rocky
Mountain region, with a capacity of 90,000 b/d, and
provides a vital link between Canadian oilsands and
Rocky Mountain markets Photo courtesy of Suncor. |
| Figure 6-4: |
BP’s Whiting, IN, refinery
is one of the United States’ largest and oldest refineries,
dating back to John D. Rockefeller and Standard Oil.
Courtesy of BP. |
| Figure 7-1: |
Canada’s National Energy
Board predicts bitumen production will range between
1.9 million b/d and 4.5 million b/d by 2015. In 1995,
the US DOE/EIA predicted syncrude production would not
reach 1.0 million b/d by 2020, but this was reached
in 2004. Chart: National Energy Board. |
| Figure 7-2: |
CNR’s Horizon project
is the world’s fourth largest oil development with six
billion barrels recoverable. Graphic courtesy of CNR. |
| Figure 7-3: |
Canada’s oilsands can
be grouped into three major regions: Athabasca, the
largest, Peace River, the least developed, and Cold
Lake. The nation is estimated to have a reserve-to-production
(RP) ratio of 433 years. Its 2.5 trillion bbl of in-place
bitumen is estimated to be 81% of the world total. About
315 billion bbl of bitumen are considered viable under
current economic and technological conditions. Map courtesy
of the Wall Street Journal, PennWell MAPSearch, Alberta
Energy and Utilities Board, Alberta Geological Survey,
and the US Geological Survey. |
| Figure 7-4: |
Competition for labor is
so fierce that CNR flies in planeloads of workers to
get its workforce up to 2,500 and ultimately between
5,000 and 6,000 by mid-2007. Photo courtesy of CNR. |
| Figure 7-5: |
More than two-thirds of
Alberta’s population lives in the southern half of the
province, too far from the oilsands production region
to commute to project sites. See Table 7-2 for corresponding
population stats. |
| Figure 7-6: |
Demand for raw materials
has risen sharply as world construction projects have
grown. Source: Zeus Energy Consulting Group. |
| Figure 7-7: |
Alberta’s government has
collected C$846 million thus far in 2006, up from just
C$433 million in all of 2005. Map courtesy of Synenco. |
