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Canadian Heavy Oil Association
Upgrading Bitumen Derived Feedstocks -Choices and OpportunitiesChoices and Opportunities
Presented to:
Canadian Crude Quality Technical Association (CCQTA)
Crude Oil Quality Group (COQG) Joint Meeting
Calgary, June 24, 2008
Canadian Heavy Oil Association
Presented by: Gerald W. Bruce , Technical Director CHOA
Outline
• Heavy oil development in Alberta, CanadaHeavy oil development in Alberta, Canada– Growth and development plans
• Bitumen Upgrading– More than just delayed cokingj y g
• The Future revealedThe Future revealed
Canadian Heavy Oil Association
Where Heavy Oil Livesy
• Conventional heavy oil in ythe LLoydminster area– Cold production (CHOP)
• With/without sand• With/without sand
• Mining near Fort McMurray– Athabasca river area
• Thermal productionSteam assisted gravity– Steam assisted gravity drainage (SAGD)
– Cyclical Steam Stimulation (CSS)
Canadian Heavy Oil Association
(CSS)
Mining vs Thermal Productiong
• In-situ thermal methods are used to access “deep” bitumen
Canadian Heavy Oil Association
bitumen
Bitumen Driven
• 12% oil in the “oil sands”• 12% oil in the oil sands– Mining or in-situ thermal production
• Oil is referred to as bitumenff
Canadian Heavy Oil Association
– Heavy, sour, poor quality, difficult to deal with
Bitumen is a Difficult Feedstock
Bitumen Bitumen Derived
M Bit d i d f d t k diff t th M di S t C d
Canadian Heavy Oil Association
Message: Bitumen derived feedstocks are very different than Medium Sweet Crude
Alberta Production Growth
4.5 million per d
ay
barrels/day
3 5 millionBitumen Blendsof b
arre
ls
3.5 millionOil Sands Derived
Synthetic Crude
hous
ands
oTh
Canadian Heavy Oil Association
Source: CAPP – June 2008 (moderate case)
Investment
• Bitumen production– Mining and extraction– Thermal bitumen production
• Steam assisted gravity drainage (SAGD)• Cyclical steam stimulation (CSS)
• Upgrading/refining– Either linked with production or “stand alone”
• Field location vs central– Fort McMurray vs Edmonton
• Pipelines – Including condensate import/return
Canadian Heavy Oil Association
Planned Alberta Investment
Oil Sands> $C162 billion
TOTAL$C2 4 billi
Canadian Heavy Oil Association
>$C254 billionSource: Alberta Finance and Enterprise – March 2008 Update
Projects Backing Upj g p
•May 2008 update2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
•Construction craft personnel forecast
Canadian Heavy Oil Association
Source: COAA
Investment Commentaryy
• Many projects are “on the books”Many projects are on the books
• There are many projects “clustered” in the same schedulesame schedule
• Realities :– workforce, construction, equipment, and
infrastructure
S h d l ill t d• Schedules will extend
Canadian Heavy Oil Association
Upgrading Perspectivepg g p
• Starts at the mine with extraction– Froth treatment
• Can be done in the field with thermal production– Make your own fuel, get rid of diluent
• Can be a purpose built upgrader making SCO– Syncrude, Suncor for exampleSyncrude, Suncor for example
• Can be “linked” to refining
Canadian Heavy Oil Association
New Words – DILBIT and SYNBIT
Bitumen Production Upgrading Refining
Light Crude Refinery
Bitumen Upgrading
(Carbon OUT or H 2 IN)
Light SCO Product
(Carbon OUT or H 2 IN)
Bitumen P d ti
Heavy SCO Product
SYNBIT ProductMedium Crude
Refinery
Production
(Mining or In-Situ)
SYNBIT Product
Heavy Crude Refinery
DILBIT Product
Canadian Heavy Oil Association
Naphtha Diluent
Alberta Upgrading Planspg g
• Existing capacity and planned capacity additionsg p y p p y
• 16 companies with multi-phase upgrading plansp p pg g p– 48 distinct project “phases”
• Range of facility configurations
• Values change “monthly”, but only seem to go in one direction (up).
Canadian Heavy Oil Association
Upgrading in Albertapg g
1 600
1,200
1,400
1,600
en
600
800
1,000
BPD
bitu
me
-
200
400
kB
Operating Construction Approved Application Announced
TOTAL Upgrading = 4.7 million BPD
Canadian Heavy Oil Association
April 2008 data – Strategy Westpg g
Operatingp g
800
1000
n
400
600
bpd
Bitu
me
Syncrude
Suncor
Shell Scotford
0
200
k
1Operating Plants
Note: Excludes Canadian refineries with
Canadian Heavy Oil Association
Upgrading (Petro-Canada, Imperial, Husky)
Construction
400450500
200250300350
PD b
itum
en Shell Scotford expansion
BA Energy (1)
Suncor Millenium Coker
CNRL Horizon (1)
50100150200
k B
P CNRL Horizon (1)
Opti-Nexen (1)
01
Canadian Heavy Oil Association
Approvedpp
600
700
800
n
Suncor Voyageur(1,2)
Opti-Nexen (2)
400
500
600
D bi
tum
en
Opti-Nexen (2)
CNRL Horizon (2,3)
100
200
300
k BP North West Upgrading
(1,2,3)BA Energy (2,3)
01
Canadian Heavy Oil Association
Applicationpp
1200
1400
1600
n
Value Creation (pilot)
Total (1,2)
800
1000
1200
D bi
tum
en
Shell Scotford 2 (1-4)
S (1 2)
200
400
600
k BP
D Synenco (1,2)
StatOil Hydro (1,2)
01
Petro-Canada FortHills(1,2,3)
Canadian Heavy Oil Association
Announced
1000
1200
1400
n
Value Creation (3,4)
600
800
1000
PD
bitu
me Syncrude (3,4)
Opti-Nexen (3,4,5,6)CNRL Horizon (4,5)CNRL P i (1 2)
0
200
400k B CNRL Primrose (1,2)
BlueSky Refining (1,2,3,4)
01
Canadian Heavy Oil Association
Upgrading Developmentpg g p
• At/near production siteAt/near production site– Syncrude, Suncor, CNRL, Opti/Nexen, Value
Creation
• Edmonton Region– Merchant Upgrading
• North West Upgrading• BA EnergyBA Energy
– Shell, Petro-Canada, StatOil Hydro, Total, Synenco, others
Canadian Heavy Oil Association
The Future (revealed)( )
• There will be significant volumes of bitumen derived gfeedstocks in the market place– Bitumen blends
Synthetic Crude Oil (variety of qualities)– Synthetic Crude Oil (variety of qualities)– Finished products
• Encouragement to add value to bitumen in Alberta– Global marketplace
• Environmental responsibility – Emissions managed and by-products eliminated
Canadian Heavy Oil Association
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