The AOSTRA Role in Developing Energy from Alberta Oil Sands

3 The A O S T R A Role in Developing Energy from Alberta O i l Sands

Downloaded by UNIV OF LIVERPOOL on July 14, 2016 | http://pubs.acs.org Publication Date: January 26, 1979 | doi: 10.1021/bk-1979-0090.ch003

R. D. HUMPHREYS Engineering and Managing Consultant, AOSTRA, Edmonton, Alberta, Canada

The o i l sands are located in the northern section of Alberta and up until a year ago it was believed that they contained just over nine hundred and fifty billion barrels of in-place oil. This compares to the total Canadian reserves of conventional o i l of approximately eight billion barrels. Outtrim and Evans (1) of the Energy Conservation Board of Alberta presented a paper just about a year ago and suggested that the reserves in the o i l sands and the carbonates are considerably higher than the previously accepted totals. The Prize It is estimated that the total o i l sands and carbonates may contain in the order of two and a half trillion barrels of in-place oil. Not all of this is recoverable. Less than5%of the Athabasca deposit is recoverable by the mining methods using today's technology and perhaps less than30%of the remaining o i l in a l l the o i l sands deposits is recoverable by in-situ techniques. This means however, that a total of about 300 billion barrels is potentially recoverable. This compares very favourably with the 8 billion barrels estimated in our Canadian conventional o i l reserves. In years of supply i t equates to 400 to 500 years of reserves - a very attractive prize. The presence of the o i l sands has been known for many years and attempts to exploit the deposits commercially go back as far as the turn of the century. These attempts included such endeavours as those by Bitumount, Abasand and others. Dr. Karl A. Clarke, who worked on tar sands over a period of many years with the Alberta Research Council, successfully developed the hot water process used in the GCOS and Syncrude operations. Currently the Great Canadian Oil Sands Ltd. plant is operating at design capacity of 45,000 BPCD and Syncrude Canada Ltd. is in the process of starting-up its operation north of Fort McMurray.

This chapter not subject to U.S. Copyright. Published 1979 American Chemical Society. Tomlinson et al.; Chemistry for Energy ACS Symposium Series; American Chemical Society: Washington, DC, 1979.

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AOSTRA D u r i n g t h e m i d 1970's t h e P r o v i n c i a l Government o f A l b e r t a c o n c l u d e d t h a t t h e huge d e p o s i t s were n o t r e c e i v i n g t h e p r o p e r a t t e n t i o n m e r i t e d f o r s u c h a m a s s i v e p r i z e . They d e c i d e d t o do s o m e t h i n g a b o u t i t and e s t a b l i s h e d a c r o w n c o r p o r a t i o n c a l l e d the A l b e r t a O i l Sands T e c h n o l o g y and R e s e a r c h A u t h o r i t y , now commonly r e f e r r e d t o a s AOSTRA, w i t h i n i t i a l f u n d i n g o f $ 100,000,000. The f u n d i n g h a s s i n c e been r a i s e d t o $ 146,000,000, t o e n a b l e c o n t i n u e d f u n d i n g o f some l o n g e r r a n g e p r o j e c t s , w h i c h w i l l be d i s c u s s e d l a t e r i n t h e p a p e r . The o b j e c t i v e o f t h e A u t h o r i t y was t o d e v e l o p e c o n o m i c a l l y and e n v i r o n m e n t a l l y a c c e p t a b l e t e c h n o l o g y t h r o u g h c o l l a b o r a t i v e a c t i o n by i n d u s t r y , u n i v e r s i t y and g o v e r n m e n t . T h i s m a j o r o b j e c t i v e was s u b d i v i d e d i n t o two c a t e g o r i e s , m u s t s and w a n t s , e a c h o f w h i c h included three goaIs. Musts. A A t l e a s t one i n - s i t u r e c o v e r y p r o c e s s f o r e a c h m a j o r o i l sand r e s e r v o i r t y p e . h R e s o l u t i o n o f major t e c h n i c a l problems o f c u r r e n t surface mining technology. C More e f f e c t i v e and e f f i c i e n t u p g r a d i n g t e c h n o l o g y . Wants. A E v o l u t i o n a r y i n c r e a s e s i n p e r c e n t r e c o v e r y from i n situ deposits. Β A l t e r n a t i v e e x t r a c t i o n technology. C C o n v e r s i o n o f o i l sand i n t o h i g h e r v a l u e d p e t r o l e u m and m i n e r a l p r o d u c t s . Method The method by w h i c h AOSTRA s o u g h t t o c a r r y o u t i t s o b j e c t i v e s was t h r o u g h c o l l a b o r a t i v e a c t i o n by i n d u s t r y , u n i v e r s i t y and g o v e r n m e n t by: A A r r i v i n g a t a consensus o f major t e c h n o l o g i c a l barriers. Β H a v i n g a c c e s s t o and o r g a n i z i n g t h e t e c h n o l o g i c a l base d a t a . C T a k i n g f u l l advantage of u n i v e r s i t y research capability. D F u l l p a r t i c i p a t i o n o f t h e A l b e r l a and C a n a d i a n c o n s u l t i n g Industry. Ε J o i n t i n d u s t r y / A O S T R A p r o j e c t e v a l u a t i o n and parti cipation. I n - s i t u T e c h n o l o g y . The i n i t i a l m a j o r o b j e c t i v e o f AOSTRA t h e n was t o d e v e l o p a new i n - s i t u t e c h n o l o g y o r speed up e x i s t i n g i n s i t u t e c h n o l o g i e s f o r each o f the f o u r major d e p o s i t s . A call f o r p r o p o s a l s r e s u l t e d i n r e s p o n s e o f 21 m a j o r a p p l i c a t i o n s and f r o m t h e s e an i n - s i t u p r o g r a m was e s t a b l i s h e d w h i c h i n c l u d e d four t e s t s i n three o f the four major d e p o s i t s . They i n c l u d e : BP i n t h e C o l d L a k e d e p o s i t . S h e l l i n the Peace R i v e r d e p o s i t .

Tomlinson et al.; Chemistry for Energy ACS Symposium Series; American Chemical Society: Washington, DC, 1979.


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CHEMISTRY FOR ENERGY

AMOCO i n t h e A t h a b a s c a d e p o s i t . NUMAC i n t h e A t h a b a s c a d e p o s i t . The AMOCO p r o j e c t i s f u r t h e s t a d v a n c e d a n d began o p e r a t i o n s i n t h e l a t t e r p a r t o f 1977. The p r o j e c t was p l a g u e d by c o l d weather problems during p a r t o f the w i n t e r p e r i o d b u t the operat i o n i s now underway and some v e r y e n c o u r a g i n g r e s u l t s a r e c o m i n g forward. The BP p r o j e c t i n t h e C o l d L a k e d e p o s i t i s now c o m p l e t e d a n d o p e r a t i o n s j u s t , underway. C o n s t r u c t i o n i s p r o g r e s s i n g on t h e S h e l l O i l p r o j e c t and i s e x p e c t e d t o be c o m p l e t e d i n m i d 1979. I n i t i a l f i e l d t - s t s have been c o m p l e t e d on t h e NUK/-C p r o j e c t a n d •;:vsuits a r e b e i n g a s s e s s e d i n o r d e r t o d e t e r m i n e t h e f u r t h e r course of a c t i o n . Of a l l t h e f l u i d s i n v e s t i g a t e d AOSTRA h a s c o n c l u d e d t h a t steam and a i r a r e t h e o n l y two t h a t a r e cheap enough t o i n j e c t a t h i g h volumes t o a i d i n r e c o v e r y . These two f l u i d s , e i t h e r a l o n e o r i n c o m b i n a t i o n , have been s e l e c t e d f o r t e s t i n g i n e a c h o f t h e deposits. The s e q u e n c e o f s t e p s i n an i n - s i t u p r o j e c t r e q u i r e s a lengthy p e r i o d o f time. I f laboratory research i s s u f f i c i e n t l y e n c o u r a g i n g a f i e l d t e s t c a n t h e n be a t t e m p t e d . I f the concept w o r k s on t h e i n i t i a l f i e l d t e s t , u s u a l l y a t a c o s t o f 1 - 3 m i l l i o n d o l l a r s , a f u l l pattern test, i n v o l v i n g 5 - 9 w e l l s can be c a r r i e d o u t . I f the p a t t e r n t e s t proves s u c c e s s f u l t e c h n i c a l l y and e c o n o m i c a l l y , i t i s t h e n t h e o r e t i c a l l y p o s s i b l e t o move to a f u l l commercial o p e r a t i o n . However, f o r a number o f r e a s o n s i n v o l v i n g the v a r i a b i l i t y o f t h e d e p o s i t and t h e r i s k s i n v o l v e d , the n e x t phase i s u s u a l l y i n t h e f o r m o f a l a r g e p r o t o t y p e i n c l u d i n g a number o f a d j o i n i n g p a t t e r n s . Large c a p i t a l expendit u r e s a r e r e q u i r e d i n t h i s p h a s e a n d i t i s hoped t h a t t h e t e c h n o l o g y h a s been d e v e l o p e d t o t h e p o i n t where AOSTRA need n o t be involved i n t h i s stage. M i n i n g I m p r o v e m e n t s . The s e c o n d m a j o r o b j e c t i v e was t o d e v e l o p improved s u r f a c e m i n i n g technology. T h i s program seeks t o e l i m i n a t e some o f t h e m a j o r s h o r t - c o m i n g s o f t h e c u r r e n t m i n i n g projects. The c h i e f o f t h e s e b e i n g t h e p r o b l e m o f s l u d g e p r o d u c t i o n f r o m t h e h o t w a t e r p r o c e s s and t h e a t t e n d a n t p r o b l e m s o f s l u d g e d i s p o s a l , dam b u i l d i n g , s o l i d s m a t e r i a l s h a n d l i n g a n d l a n d reclamation. To t h i s end AOSTRA i s engaged i n t h e s e a r c h f o r a dry e x t r a c t i o n process. A s u c c e s s f u l process would recover the 8 - 107. b i t u m e n p r e s e n t l y l o s t t o t h e t a i l i n g s pond a n d w o u l d e l i m i n a t e t h e need f o r t a i l i n g s ponds c o m p l e t e l y . A p i l o t plant i s c u r r e n t l y b e i n g o p e r a t e d i n C a l g a r y b a s e d on a r e t o r t i n g p r o c e s s d e v e l o p e d by a C a l g a r y e n g i n e e r . I f the i n i t i a l t e s t work i s s u c c e s s f u l , i t i s p l a n n e d t o t r a n s p o r t t h e u n i t t o F o r t McMurray f o r f u r t h e r e v a l u a t i o n . The L u r g i - R u h r g a s p r o c e s s i s a d i r e c t r e t o r t i n g o p e r a t i o n w h i c h h a s been p r o p o s e d f o r u s e on t h e A l b e r t a o i l s a n d s . It i s the v i e w o f t h e A u t h o r i t y t h a t t h e n e x t s t e p i n t h e f u r t h e r development o f the L u r g i p r o c e s s i s t o c a r r y o u t a t e s t r u n on



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Athabasca o i l sands using an e x i s t i n g German p i l o t p l a n t and n e g o t i a t i o n s are c u r r e n t l y underway with L u r g i f o r such a t e s t . I f the A u t h o r i t y decides to take f u r t h e r steps on e i t h e r or both of these two processes, i t w i l l be approaching i n d u s t r y to o b t a i n both f i n a n c i a l and t e c h n i c a l a s s i s t a n c e . Upgrading Bitumen. The t h i r d major o b j e c t i v e was to develop more e f f e c t i v e and e f f i c i e n t upgrading technology. Several bitumen upgrading processes have been considered f o r o i l sand use, but coking processes are being employed f o r the f i r s t two commercial p l a n t s . The f l e x i c o k i n g process, i n i t s f i r s t y e a r of commercial o p e r a t i o n i n Japan, has the advantage of g a s i f y i n g excess coke to a low BTU gas. Both c a t a l y t i c and thermal hydrocracking processes are a l s o being evaluated with p i l o t work underway by the F e d e r a l Government. Underground Mining. The f i n a l technology area considered i s underground mining of the o i l sands. A number of underground mining proposals were r e c e i v e d during the past two years, and a f t e r an extensive review of these with the help of a mining panel, i t has been concluded that there i s not s u f f i c i e n t b a s i c data on the underground c h a r a c t e r i s t i c s of o i l sands on which to base a d e c i s i o n . A number of i n i t i a t i v e s have been taken to gather t h i s missing information. One example i s the measurement of some underground parameters during the c o n s t r u c t i o n of a 14 f o o t diameter tunnel south of F o r t McMurray. Shaft s i n k i n g i s being considered and an estimate of the c o s t of s i n k i n g a s h a f t through the overburden to the o i l sands has been completed. A c h a i r has been e s t a b l i s h e d a t the U n i v e r s i t y of A l b e r t a which w i l l address i t s e l f to the study of g e o t e c h n i c a l p r o p e r t i e s of the o i l sands and the A u t h o r i t y has p a r t i c i p a t e d with a number of companies i n e v a l u a t i n g the Russian underground thermal mining operations. The Board i s c u r r e n t l y a s s e s s i n g a l l of the data and information r e c e i v e d during t h i s past year and i s formulating a p l a n f o r f u t u r e a c t i o n . AOSTRA has appointed a p r o f e s s o r a t each of the three A l b e r t a U n i v e r s i t i e s and has a l s o awarded a number of f e l l o w ships and s c h o l a r s h i p s f o r o i l sands research. T h i s i s i n a d d i t i o n to s p e c i f i c c o n t r a c t research being c a r r i e d out a t the u n i v e r s i t i e s . The c o n t r a c t research work has been focused on those t o p i c s which support the f i e l d p r o j e c t s r e f e r r e d to e a r l i e r . I n d u s t r y / U n i v e r s i t y seminars have been h e l d on an annual b a s i s , the t h i r d one was h e l d i n Calgary i n March, 1978. Technology Ownership The technology that i s developed through any of the AOSTRA programs i s owned e n t i r e l y by AOSTRA and AOSTRA becomes the s o l e l i c e n s i n g agent i n Canada. The l i c e n s e fee w i l l be e s t a b l i s h e d by agreement with the p a r t i c i p a t i n g company or companies and i f agreement cannot be reached on a f a i r market value by t h i s means, an a r b i t r a t i o n procedure has been e s t a b l i s h e d .


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Funding Most of the company partnered projects are funded on a 50:50 basis with shared management and control and the licensing income is divided on a pro rata basis. The company may however invite up to three other industry participants provided the initial company is responsible for any new company default. The partner companies prior technology can be incorporated into the total licensing package. 1


Summary AOSTRA now has four in-situ field projects underway, has completed an initial underground field test in the tunnel at Fort McMurray, is constructing one dry extraction pilot plant, has co r.leted one upgrading pilot test on flexicoking and is currently reviewing programs for LloycVninster type heavy oil recovery and oil upgrading. Finally, as back-up to the field and pilot programs, AOSTRA has been placing considerable emphasis on exploratory research at universities and the Alberta Research Council. Literature Cited 1 Outtrim, C.P. and Evans, R.G., Alberta's oil sands reserves and their evaluation: Heavy Oil Symposium, 28th Annual Technical Meeting of the Petroleum Society of the Canadian Institution of Mining and Metallurgy, May 1977, 41 p. RECEIVED September 25,1978.


The AOSTRA Role in Developing Energy from Alberta Oil Sands

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