heavy oil market 2014-2024

Heavy Oil Market 2014-2024

Expenditure & Production Forecasts and Prospects for Leading Companies

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Contents 1. Report Overview 1.1 Global Heavy Oil Market Overview

1.2 Global Heavy Oil Market Segmentation

1.3 Market Definition

1.4 How This Report Delivers

1.5 Key Questions Answered by This Analytical Report Include:

1.6 Why You Should Read This Report

1.7 Methodology

1.8 Frequently Asked Questions (FAQ)

1.9 Associated Visiongain Reports

1.10 About Visiongain

2. Introduction to the Heavy Oil Market 2.1 History of the Heavy Oil Market

2.2 Defining Heavy Oil

2.3 Global Heavy Oil Reserves

2.3.1 Current and Future Growth Areas

2.4 Heavy Oil Production Technologies

2.4.1 Cold Heavy Oil Production Processes

2.4.1.1Conventional Production using Horizontal or Multilateral Wells

2.4.1.2 Water Flooding

2.4.1.3 Inert Gas Injection

2.4.1.4 Water Alternating Gas

2.4.1.5 Cold Heavy Oil Production with Sand (CHOPS)

2.4.1.6 Solvent Injection

2.4.1.7 Polymer Flooding

2.4.1.8 Surfactant Flooding

2.4.1.9 Alkaline Flooding

2.4.1.10 Micellar Flooding

2.4.2 Thermal Heavy Oil Production Processes

2.4.2.1 Steam Injection

2.4.2.1.1 Steam Flooding

2.4.2.1.2 Cyclic Steam Stimulation (CSS)

2.4.2.2 Steam Assisted Gravity Drainage (SAGD)

2.4.2.3 Small-Scale Commercial Thermal Technologies

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Contents 2.4.2.3.1 In-situ Combustion

2.4.2.3.2 Thermally Assisted Gas Oil Gravity Drainage (TAGOGD)

2.4.2.3.3 Thermal Assisted Gravity Drainage (TAGD)

2.4.2.3.4 Toe-to-Heel Air Injection (THAI®)

2.4.2.3.5 Solar EOR

2.4.2.3.6 Electro Thermal Dynamic Stripping Process (ET-DSP™)

2.4.2.3.7 Synchronized Thermal Additional Recovery (STAR)

3. Global Heavy Oil Market Forecast 2014-2024 3.1 Global Heavy Oil Market Overview

3.2 Global Heavy Oil Market Analysis

3.3 Global Heavy Oil Drivers & Restraints

3.3.1 Drivers in the Heavy Oil Market

3.3.1.1 Increasing Demand for Oil

3.3.1.2 Vast Resources of Heavy Oil

3.3.1.3 Declining Conventional Reserves

3.3.1.4 Sustained High Price of Oil

3.3.1.5 Desire for Energy Security

3.3.1.6 Proven Technologies

3.3.1.7 Offshore Heavy Oil

3.3.2 Restraints in the Heavy Oil Market

3.3.2.1 Costs

3.3.2.2 Transportation Issues

3.3.2.3 Political and Security Challenges

3.3.2.4 Shortage of Skilled Labour

3.3.2.5 Environmental Concerns

3.3.2.6 Carbon Taxation

3.3.2.7 Opposition to Resource Intensive Oil Production

4. Heavy Oil Submarket Forecasts 2014-2024 4.1 Submarket Comparison and Analysis

4.2 Cold Heavy Oil Submarket Forecast 2014-2024

4.2.1 Cold Heavy Oil Overview and Analysis

4.2.2 Cold Heavy Oil Projects

4.2.3 Cold Heavy Oil Production Forecast

4.3 Thermal Heavy Oil Submarket Forecast 2014-2024

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Contents 4.3.1 Thermal Heavy Oil Overview and Analysis

4.3.2 Thermal Heavy Oil Projects

4.3.3 Thermal Heavy Oil Production Forecast

5. Leading National Heavy Oil Market Forecasts 2014-2024 5.1 Leading National Heavy Oil Markets Share Forecast 2014-2024

5.2 Barriers to Entry Analysis

5.3 Mexican Heavy Oil Market Forecast 2014-2024

5.3.1 Mexican Heavy Oil Market Overview

5.3.2 Mexican Heavy Oil Projects

5.3.3 Mexican Heavy Oil Market Outlook

5.3.3.1 Mexican Heavy Oil Drivers & Restraints

5.3.3.2 Mexican Heavy Oil Production Forecast

5.4 Brazilian Heavy Oil Market & Submarket Forecasts 2014-2024

5.4.1 Brazilian Heavy Oil Market Overview

5.4.2 Brazilian Heavy Oil Projects

5.4.3 Brazilian Heavy Oil Market Outlook

5.4.3.1 Brazilian Heavy Oil Drivers & Restraints

5.4.3.2 Brazilian Heavy Oil Production Forecast

5.5 Chinese Heavy Oil Market & Submarket Forecasts 2014-2024

5.5.1 Chinese Heavy Oil Market Overview

5.5.2 Chinese Heavy Oil Projects

5.5.3 Chinese Heavy Oil Market Outlook

5.5.3.1 Chinese Heavy Oil Drivers & Restraints

5.5.3.2 Chinese Heavy Oil Production Forecast

5.6 Venezuelan Heavy Oil Market & Submarket Forecasts 2014-2024

5.6.1 Venezuelan Heavy Oil Market Overview

5.6.2 Venezuelan Heavy Oil Projects

5.6.2.1 Carabobo Heavy Oil Projects

5.6.2.2 Ayacucho Heavy Oil Projects

5.6.2.3 Junín Heavy Oil Projects

5.6.2.4 Heavy Oil Projects outside the Orinoco Belt

5.6.3 Venezuelan Heavy Oil Market Outlook

5.6.3.1 Venezuelan Heavy Oil Drivers & Restraints

5.6.3.2 Venezuelan Heavy Oil Production Forecast

5.7 Canadian Heavy Oil Market & Submarket Forecasts 2014-2024

5.7.1 Canadian Heavy Oil Market Overview

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Contents 5.7.2 Canadian Heavy Oil Projects

5.7.3 Canadian Heavy Oil Market Outlook

5.7.3.1 Canadian Heavy Oil Drivers & Restraints

5.7.3.2 Canadian Heavy Oil Production Forecast

5.8 United States’ Heavy Oil Market & Submarket Forecasts 2014-2024

5.8.1 US Heavy Oil Market Overview

5.8.2 US Heavy Oil Projects

5.8.3 US Heavy Oil Market Outlook

5.8.3.1 US Heavy Oil Drivers & Restraints

5.8.3.2 US Heavy Oil Production Forecast

5.9 Colombian Heavy Oil Market Forecast 2014-2024

5.9.1 Colombian Heavy Oil Market Overview

5.9.2 Colombian Heavy Oil Projects

5.9.3 Colombian Heavy Oil Market Outlook

5.9.3.1 Colombian Heavy Oil Drivers & Restraints

5.9.3.2 Colombian Heavy Oil Production Forecast

5.10 Angolan Heavy Oil Market Forecast 2014-2024

5.10.1 Angolan Heavy Oil Market Overview

5.10.2 Angolan Heavy Oil Projects

5.10.3 Angolan Heavy Oil Market Outlook

5.10.3.1 Angolan Heavy Oil Drivers & Restraints

5.10.3.2 Angolan Heavy Oil Production Forecast

5.11 Omani Heavy Oil Market & Submarket Forecasts 2014-2024

5.11.1 Omani Heavy Oil Market Overview

5.11.2 Omani Heavy Oil Projects

5.11.3 Omani Heavy Oil Market Outlook

5.11.3.1 Omani Heavy Oil Drivers & Restraints

5.11.3.2 Omani Heavy Oil Production Forecast

5.12 Kuwaiti Heavy Oil Market & Submarket Forecasts 2014-2024

5.12.1 Kuwaiti Heavy Oil Market Overview

5.12.2 Kuwaiti Heavy Oil Projects

5.12.3 Kuwaiti Heavy Oil Market Outlook

5.12.3.1 Kuwaiti Heavy Oil Drivers & Restraints

5.12.3.2 Kuwaiti Heavy Oil Production Forecast

5.13 Indonesian Heavy Oil Market & Submarket Forecasts 2014-2024

5.13.1 Indonesian Heavy Oil Market Overview

5.13.2 Indonesian Heavy Oil Projects

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Contents 5.13.3 Indonesian Heavy Oil Market Outlook

5.13.3.1 Indonesian Heavy Oil Drivers & Restraints

5.13.3.2 Indonesian Heavy Oil Production Forecast

5.14 Russian Heavy Oil Market & Submarket Forecasts 2014-2024

5.14.1 Russian Heavy Oil Market Overview

5.14.2 Russian Heavy Oil Projects

5.14.3 Russian Heavy Oil Market Outlook

5.13.3.1 Russian Heavy Oil Drivers & Restraints

5.13.3.2 Russian Heavy Oil Production Forecast

5.15 Ecuadorian Heavy Oil Market Forecast 2014-2024

5.15.1 Ecuadorian Heavy Oil Market Overview

5.15.2 Ecuadorian Heavy Oil Projects

5.15.3 Ecuadorian Heavy Oil Market Outlook

5.15.3.1 Ecuadorian Heavy Oil Drivers & Restraints

5.15.3.2 Ecuadorian Heavy Oil Production Forecast

5.16 Iranian Heavy Oil Market Forecast 2014-2024

5.16.1 Iranian Heavy Oil Market Overview

5.16.2 Iranian Heavy Oil Projects

5.16.3 Iranian Heavy Oil Market Outlook

5.16.3.1 Iranian Heavy Oil Drivers & Restraints

5.16.3.2 Iranian Heavy Oil Production Forecast

5.17 Saudi Arabian Heavy Oil Market & Submarket Forecasts 2014-2024

5.17.1 Saudi Arabian Heavy Oil Market Overview

5.17.2 Saudi Arabian Heavy Oil Projects

5.17.3 Saudi Arabian Heavy Oil Market Outlook

5.17.3.1 Saudi Arabian Heavy Oil Drivers & Restraints

5.17.3.2 Saudi Arabian Heavy Oil Production Forecast

5.18 Rest of the World Heavy Oil Market Overviews 2014-2024

5.18.1 Rest of the World Heavy Oil Market Overview

5.18.2 The Bahraini Heavy Oil Market

5.18.3 The Egyptian Heavy Oil Market

5.18.4 The Indian Heavy Oil Market

5.18.5 The Iraqi Heavy Oil Market

5.18.5.1 Iraqi Heavy Oil Projects

5.18.6 The Italian Heavy Oil Market

5.18.7 The Kazakh Heavy Oil Market

5.18.8 The North Sea Heavy Oil Market

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Contents 5.18.9 The Peruvian Heavy Oil Market

5.18.10 Rest of the World Heavy Oil Production Forecast

6. PEST Analysis of the Heavy Oil Market 2014-2024

7. Expert Opinion 7.1 Breitling Energy Corporation

7.1.1 Background on Breitling Energy and its Operations

7.1.2 Breitling Energy and Heavy Oil Production in the US

7.1.3 Influence of US Shale Boom on Heavy Oil Production in the US

7.1.4 Heavy Oil Production Costs in the US

7.1.5 Global Price of Oil and Its Influence on Heavy Oil Production

7.1.6 The Influence of Refinery Bottlenecks on Heavy Oil Production and US Exportation

of Crude Oil

7.1.7 Influences on Heavy Oil Production Outside the US

8. Leading Companies in the Heavy Oil Market 8.1 The Top 10 Companies in the Heavy Oil Market

8.1.1 Chevron

8.1.1.1 Overview and Heavy Oil Operations

8.1.1.2 Future Outlook

8.1.2 China National Petroleum Corporation (CNPC)



8.1.3 Ecopetrol



8.1.4 ExxonMobil



8.1.5 Pacific Rubiales



8.1.6 Petróleos de Venezuela (PDVSA)


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Contents 8.1.6.2 Future Outlook

8.1.7 Petroleos Mexicanos (Pemex)



8.1.8 Petroleos Brasiliero (Petrobras)



8.1.9 Royal Dutch Shell



8.1.10 Total



8.2 Other Companies in the Heavy Oil Market

8.2.1 Baytex Energy Corporation

8.2.2 BP

8.2.3 Cenovus Energy Inc.

8.2.4 China National Offshore Oil Corporation (CNOOC)

8.2.5 ConocoPhillips

8.2.6 Husky Energy

8.2.7 Ivanhoe Energy Inc.

8.2.8 Lukoil

8.2.9 Occidental Corporation

8.2.10 Petroleum Development Oman (PDO)

9. Conclusion, Findings, and Recommendations 9.1 Market Outlook

9.2 Key Findings

9.2.1 Differences in National Heavy Oil Markets

9.2.2 Cold versus Thermal Heavy Oil Markets

9.3 Recommendations

9.3.1 Regional Leaders

9.3.2 Nations Lowering Barriers to Entry

9.3.3 Sanctions May Be a Game Changer

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Heavy Oil Market 2014-2024: Expenditure & Production Forecasts and Prospects for Leading Companies is due to an increase in expenditure on this project that year, as the operation is brought up to full

production capacity.

Table 5.38 below provides detailed information on the current heavy oil projects in Angola.

Company Location Project/ Field Name

Reserve Size (bbl)

API Gravity (⁰ )

Production Process

Production (BPD)

Total E&P Angola (40%); Statoil (23.33%), Esso Exploration Angola (20%), BP (16.67%)

Offshore, Block 17

Dalia 1bn proved and probable

21⁰ to 23⁰

Cold; Water-flooding, Polymer Injection

240,000

Total E&P Angola (40%); Statoil (23.33%), Esso Exploration Angola (20%), BP (16.67%)

Offshore, Block 17

Pazflor: Perpetua, Acacia, Zinia, Hortensia Fields

590m proved and probable

17⁰ to 22⁰

Cold 145,000

Table 5.39 below provides detailed information on the future heavy oil projects in Angola.

Company Location Project/ Field Name

Reserve Size (bbl)

API (⁰ )

Production Process

Projected Production (BPD)

Start Year

Total E&P Angola (30%); Sonangol (30%); Sangol-Sinopec International (20%); Exxon E&P Angola (15%); Galp Energia (5%)

Offshore Block 32 Kaombo - -

Cold; Polymer Injection

170,000 2017 or 2018

Source: Visiongain 2014


Table 5.38 Current Angolan Heavy Oil Projects (Company, Location, Field Name, Reserve Size (bbl), API Gravity (⁰ ), Production Process, Production (bpd))

Table 5.39 Future Angolan Heavy Oil Projects (Company, Location, Project Name, Reserve Size (bbl), API Gravity (⁰ ), Extraction Method, Projected Production (bpd), Start Year)

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Heavy Oil Market 2014-2024: Expenditure & Production Forecasts and Prospects for Leading Companies 5.12 Kuwaiti Heavy Oil Market & Submarket Forecasts 2014-2024

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-24Cold 116.8 116.8 116.8 116.8 116.8 116.8 116.8 216.8 396.0 396.0 396.0 396.0 2,501.6AGR (%) 0.0 0.0 0.0 0.0 0.0 0.0 85.6 82.7 0.0 0.0 0.0

Thermal 350.0 944.3 944.3 944.3 1,236.3 1,280.1 1,338.5 1,440.7 1,414.0 1,443.2 1,516.2 1,617.6 14,119.4AGR (%) 169.8 0.0 0.0 30.9 3.5 4.6 7.6 -1.9 2.1 5.1 6.7Total Spend 466.8 1,061.1 1,061.1 1,061.1 1,353.1 1,396.9 1,455.3 1,657.5 1,810.0 1,912.2 2,013.6 2,013.6 16,621.0

2019-24 6.7

6.6

6.5CAGR (%) 2014-19

CAGR (%) 2014-24

0

20

40

60

80

100

120

140

0

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

AGR

(%)

CAPE

X ($

m)

Year

Kuwait Cold Kuwait Thermal AGR %


Table 5.47 Kuwaiti Heavy Oil Market & Submarket Forecasts 2014-2024 ($m, AGR %, CAGR%, Cumulative)


Figure 5.43 Kuwait Heavy Oil Market & Submarket Forecasts 2014-2024 ($m, AGR%)

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Heavy Oil Market 2014-2024: Expenditure & Production Forecasts and Prospects for Leading Companies

7. Expert Opinion ____ 7.1 Breitling Energy Corporation Chris Faulkner is the President, Chief Executive Officer and Chairman of the Board of Directors of

Breitling Energy Corporation. He has experience in various aspects of the oil and gas industry,

both in the United States and abroad. Based in Dallas, Texas, Mr Faulkner and Breitling Energy

have won numerous awards. In 2013, Mr Faulkner was named Industry Leader of the Year for the

Southwest Region, by the Oil & Gas Awards, as well as Oil Executive of the year by the American

Energy Research Group.

Breitling Energy has repeatedly voted the Best North American Operator award from the World

Finance Magazine, taking home the award in 2011, 2012, and 2013. The company is growing U.S.

energy company based in Dallas and is engaged in the exploration and development of high-

probability, lower risk onshore oil and gas properties. The company’s dual-focused growth strategy

primarily relies on leveraging management’s technical and operations expertise to grow through

the drill-bit, while also growing its base of non-operating royalty interests. Breitling’s oil and gas

operations are focused primarily in the Permian Basin of Texas and the Mississippi oil window of

southern Kansas, with non-operating investments in Texas, North Dakota, Oklahoma and

Mississippi. Visiongain interviewed Mr Faulkner in July 2014 and appreciates his time insight.

7.1.1 Background on Breitling Energy and its Operations Visiongain: Can you tell me about your firm and your experience in the oil and gas industry?

Chris Faulkner (CF): I studied engineering and business administration, but I started in the oil

and gas industry on the technology side in the year 2000. Our company [Breitling Energy

Corporation] has segued into an Exploration and Production (E&P) company. This current

generation of the company is about 10 years old now. I’m the CEO and have been a co-founder

from the start of the company. I have two business partners, and we went public in December

2013.

We’re a pure play E&P company; we focus 100% on upstream production. We lease land, look for

oil and sell it, so we don’t get involved in pipeline or refinery work.

Visiongain: And which geographical area are you focused on currently?

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Heavy Oil Market 2014-2024: Expenditure & Production Forecasts and Prospects for Leading Companies 8.1.1 Chevron

8.1.1.1 Overview and Heavy Oil Operations Incorporated in 1926, Chevron is today one of the six global supermajors, active in more than 180

countries. The company has a vast portfolio of oil & gas projects globally, involving the exploration,

production and transportation of oil & gas, as well as the refining, marketing and distribution of

transportation fuels and lubricants.

Chevron has extensive heavy oil operations, with the greatest global reach among the leading

companies in the market. Chevron operates large steamfloods taking place in California and at the

Duri field in Indonesia, as well as a pilot project at the Wafra field between Kuwait and Saudi

Arabia. The company also has large deepwater heavy oil operations at the Frade field, offshore

Brazil as well as interests in a number of other heavy oil projects throughout the world.

Table 8.2 provides a summary of Chevron and their involvement in the heavy oil market.

Headquarters San Ramon, California, US

Employees 60,700

Stock Exchange New York Stock Exchange – CVX

Total Heavy Oil Expenditure 2014 ($m) 4,053

Global Heavy Oil Market Share 2013 (%) 7.6%

Global Heavy Oil Market Rank 2013 5th

Five-Year Outlook Strong Growth

Chevron’s steamflood taking place at the Duri Field, located on the eastern coast of Sumatra, is

one of the largest in the world, with production of 190,000 bpd. Having been discovered in 1944,

steamflood technology was first applied to the field in 1985, and the technique is currently utilised

on around 80% of the field. Despite the long history of steamflooding at the field, Chevron believes


Table 8.2 Chevron Corporation Overview: Headquarters, Employees, Stock Exchange,

Total Heavy Oil Expenditure 2014 ($m), Global Heavy Oil Market Share 2014 (%),

Global Heavy Oil Market Rank 2014, Five-Year Outlook

heavy oil market 2014-2024

Business

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