Royalties are paid to Alberta for each barrel of oil produced ... Heavy Oil. • API
Gravity < 22.3. • Non-Thermal. • Lloydminster, Sparky, Dina, Waseca, McLaren ...
Technical Heavy Oil Workshop
Why Are We Here? • What is Canadian Heavy Oil Association? • Why are we here?
CHOA • 1700 individual members • Technical and networking opportunities • Education of members and general public • 25 years of volunteer support to our industry
What Does Alberta Offer? • Broad energy mix • Conventional & Unconventional Crude Oil • Conventional & Unconventional Natural Gas
• Balanced ‘regulatory’ framework that supports private & public investment • Heavy oil producer since 1938 • Evolved our industry through successful application of technology • ‘Well experienced’ service sector
Calgary/Edmonton • + 1,200,000 • Economy centered around petroleum, agriculture & tourism • Strong E&P/Services base
• + 1,200,000 • Provincial Capital • Government, Research & Manufacturing center of Alberta
‘World-Class’ Training & Research • Province has an exceptionally strong ‘high- learning’ educational base • Two major universities
‘public
research’
• Two major ‘technology & trades’ public institutions • Private/public research centers • All actively support heavy oil development in Western Canada
Global Reserves
52% Canada’s Oilsands
• Canada is a major world supplier • Alberta’s heavy oil (oil sands) are significant
Canadian Basins Northern Canada (Offshore)
Western Canadian Sedimentary Basin (WCSB)
West Coast (Exploratory)
Eastern Canada
Transportation & Marketing
Canada is the largest supplier of oil to USA, nearly 2 x Saudi Arabia
Alberta Regulations & Royalty Structure Regulations • Alberta resources are regulated by Energy Resources Conservation Board (ERCB) • Responsible for the production of all natural resources in the province • Strong ‘conservation & sustainability’ mandate • ‘Best-in-Class’ publically-accessible base data Ownership & Royalty • Alberta Crown (Public) owns the resources • E&P companies issued permits to explore and produce through ‘leases’ • Available to small private, large public & multi-national producers • Royalties are paid to Alberta for each barrel of oil produced • Royalty structure set up to encourage private investment in exploration, development , as well as research & development
WCSB Production Mix Leduc/Woodbend, Pembina Cardium, Swan Hills, Midale
Lloydminster Region, Bakken
Cold Lake, Athabasca, Peace River
Canadian Oil Production 2025 Total; 4.6 million barrels/day
2025 Total; 2025 Heavy Oil; 3.7 million barrels/day
Heavy Oil (by API Gravity)
• Heavy Oil API Gravity < 22.3 • High viscosity • Bitumen < 10 API
API = (141.5/sg)-131.5 sg = specific gravity @ 60 F
Oil Gravity & Viscosity
Heavy Oil/Bitumen Mix Unconventional • Bitumen < 10 API; high viscosity (ultra-heavy) • Thermal • Cold Lake & Athabasca Sand • Peace River Carbonates Conventional • Heavy Oil • API Gravity < 22.3 • Non-Thermal • Lloydminster, Sparky, Dina, Waseca, McLaren
Scale of the Oil Sands 250 miles
300 miles
S o urc e : A E UB R e s e rv e s a nd S upply D e m a nd O ut lo o k 2 0 0 5 C o urt e s y o f La ric ina E ne rgy Lt d.
• Large geographic area • Remote area of the province
Geology
Mannville Group,Middle/Lower Cretaceous
Middle Cretaceous (outcropped)
Oil Sands Projects
• Largest growing sector in the Canadian Economy
Oil Sands Projects • Surface Mining • In-Situ (SAGD, ES-SAGD, ICP)
• ( • Operating Projects: 1.765 M bbl/d (2012) • Mining – 0.883 M bbl/d • in-Situ – 0.882 M bbl/d Source: Suncor/PetroCanada
• Under Construction: 0.435 M bbl/d (Est. $17 B) • Regulatory Approved 1.590 M bbl/d (Est. $83 B • Waiting on Regulatory Review: 4.465 M bbl/d (Est. $190 B)
11/15-25-049-26W3/0
KB: 609.0 m RR: 1985-09-02 TD: 662.0 m [TVD] FormTD: DPRW Mode: Susp Fluid: Oil HUSKY MCLAREN A15 25 49 26
Lloydminster Heavy Oil Belt Type Log
450 ( 159.0 )
460.00
460.00
CEMSQ
CLNY 464.1 (144.9) [TVD] < U>
PERF
PERF JET
UMCL 470.7 (138.3) [TVD] < U>
Colony Member
CLNY 464.1 (144.9) [TVD]
• Lower and Middle Mannville Group
UMCL 470.7 (138.3) [TVD]
475 ( 134.0 )
McLaren Member
• Reservoir Description: Quartz sands, silts, shales and minor coal
WSEC 488.5 (120.5) [TVD]
Waseca Member
500 ( 109.0 )
SPRK 514.3 (94.7) [TVD]
SPRK 514.3 (94.7) [TVD]
Sparky Member
525 ( 84.0 )
GP 531.5 (77.5) [TVD]
GP 531.5 (77.5) [TVD]
REX 543.7 (65.3) [TVD]
General Petroleum Member
REX 543.7 (65.3) [TVD]
550 ( 59.0 )
LDMR 562.5 (46.5) [TVD]
Rex Member LDMR 562.5 (46.5) [TVD]
Lloydminster Member 575 ( 34.0 ) CMGS 579.0 (30.0) [TVD]
Cummings Member 600 ( 9.0 )
• Deposition: 3-5 m thick blanket sands (Lindbergh) to 35m thick channel sand (Bodo) • Stacked reservoirs; 30 -90m apart separated by intervening water-bearing silts and clay shales • Porosity: 28-32% • Permeability Range: 5-15 D • Lag gravels with high perm. averaging 1-4 D • Average Permeability: 2D
CMGS 579.0 (30.0) [TVD]
DINA 599.5 (9.5) [TVD]
Mannville Group
WSEC 488.5 (120.5) [TVD] < S>
• Sw: 15% • Typical Depth: 500- 560 m deep
DINA 599.5 (9.5) [ TVD]
• No free gas Dina Member
625 ( -16.0 )
• Initial Pressure: 4-6 mPa (somewhat under-pressured) • Reservoir Temperature: 20-25 deg C
DPRW 647.5 (-38.5) [TVD]
DPRW
647.5 (-38.5) [TVD] 650 ( -41.0 )
Devonian 670.00
670.00
• Viscosity: 1000-12,000 cp
History of the ‘Lloydminster Heavy Oil Belt (HOB)’ • Lloydminster oil production started in late 1920’s, difficult production (sand) • Incentives created in the 1940’s promote development; first refinery built in Lloydminster area • Production starts to ramp-up in the late 1940’s; light oil discovered at Leduc • Lloydminster refinery tied into Inter-Provincial Pipeline in early 1960’s • Sand production continued to great impair productivity; developed screen/gravel pack technology • Sharp increase in oil prices in 1970-1980’s lead to great interest in HOB reserves • PCP pumping technology developed in 1980’s • Cold Lake production starts in 1985 • Upgrader capacity built in late 1980’s • CHOPS recovery technology evolves through high volume pumping technology • High commodity pricing has helped sustain technology development (solvent, caustic, etc))
Conventional Heavy Oil Development • Industry has evolved through continuous innovation
Upgrading Capacity Added CHOPS
• Supported by strong oil prices over recent years
PCP
Primary Production
Local Refinery
Horizontal Drilling
Solvent, Caustic Floods, Optimization
Challenge for Conventional Heavy Oil • Oil Sands offer large volumes/reserves, but are capital intensive • High number of suspended ‘conventional’ heavy oil wells;
