Introduction

Processing Oilsands Using Gasification
A new oil boom is under way in the Canadian oilsands of northeastern Alberta and western Saskatchewan, as global producers focus on increasing oil supply from these vast resources that can now be economically processed using gasification technology. The use of high-priced natural gas to upgrade bitumen into a high-quality synthetic crude oil (SCO) has kept the oilsands industry from expanding to its true potential. Sustained higher oil prices, the need to explore in politically stable areas and the capability to convert "the bottom of the barrel" from the delayed-coking process into synthetic fuel for power and hydrotreating has made oil companies take another look at the abundant tar sands.

The use of gasification to convert hydrocracking residue from the upgrading process into hydrogen to hydrotreat the bitumen-derived crude will dramatically reduce operating costs in projects such as the OPTI Canada/Nexen Long Lake joint venture. All oilsands producers are studying the use of gasification in their new projects or in the expansion of existing plants. Canadian Natural Resources is currently considering gasification for Phase 4 of its Horizon project. New entrants to the area such as China, Total and Chevron will almost certainly use the technology to develop their leases.

Canadian oilsands are seen as one of the answers to supplying North American refining markets as conventional oil supplies continues to dwindle and as promising state-owned acreage becomes more difficult to access. Current SCO production is expected to triple in the next ten years.

Speakers for the workshop in Houston May 17 and the three-day conference in Calgary will focus on the gasification technology being used in the projects.