1. CO 2 -ISSUES ENVIRONMENTAL ASPECTS RELATED TO HEAVY CRUDE OIL PRODUCTION AND UPGRADING by Trude Sundset, Statoil R&D Program Manager Energy21

2. CO 2 and Heavy Oil – content of the presentation 4What are the problems with heavy oil and CO 2 ? 4Some basic CO 2 information 4Ongoing, CO 2 -relevant projects 4CO 2 for enhanced oil recovery (CO 2 -EOR) 4CO 2 -logistics 4Can heavy oil and CO 2 coexist?

3. What are the problems with heavy oil and CO 2 ? 4More energy- and CO2-intensive to extract compared to lighter oil 4 which results in higher CO2-emissions per unit of energy extracted 4Can be more energy intensive to transport 4 Which results in higher CO2-emissions per unit of energy transported 4Upgrading to consumer products calls for energy intensive processes 4 Which results in higher CO2-emissions per unit of energy of product 4In sum: In a CO2-constrained world heavy oil has a handicap

4. The Statoil CO 2 -’vision’ Decarbonisation of fossil fuels to electricity and hydrogen

5. Some basic CO 2 information

6. Phase diagram Super- critical area

7. CO2 Dry Wash

8. Miscibility of oil and CO 2 – an overview 68 bar – 1000 psi Immiscible CO2 102 bar – 1500 psi Miscibility begins to develope 170 bar – 2500 psi CO2 has developed miscibility Higher hydrocarbons (dark spots) begins to condense Final stage: Higher HC forms continuous phase- CO2 immiscible

9. CO 2 sources

10. ”Pure” CO 2 -sources (green) Oil, natural gas and coal regions(red, black) Source: IEA GHG

11. CO 2 Sources

12. Coal power with CO 2 separation 1982 Lubbock, Texas. The plant was based on an oil price of 30$/barrel and was discontinued when the oil prices was sinking later in the 80thies. Only the MEA separation plant is shown. The power plant itself is still running and is located to the right of the picture

13. CO2-capture Pilot Plant at Kaarstoe - Capture from exhaust gas by use of membrane/amine technology

14. Ongoing, CO 2 -relevant projects

15. Sleipner CO2-injection in the middle of the North Sea – 1 MtCO2/yr

17. Snøhvit in the Barents Sea LNG production onshore, 160 km pipeline from land for injection of 0,7 MtCO2/yr CO 2

18. CO 2 for enhanced oil recovery (CO 2 -EOR)

19. Oil production Time CO 2 flood Water- flood Primary Oil production How oil production may develop over time

20. CO 2 Enhanced Oil Recovery CO 2 Injection CO 2 OIL Recycled CO 2 Production Well

21. CO 2 –for-EOR in USA 470 fields in operation with CO2-for EOR 412% increased oil recovery on average 4Natural CO2-sources have the capacity to produce 32 MtCO2/yr and industrial sources 11 MtCO2/ 4On the average 71% of the CO2 remains in the reservoir 4Backproduced CO2 is recovered for reinjection

22. Sygna SFN Snorre B F SFØ Gullfaks 16” A B C Snorre TLP VIGDIS Tordis/Borg Tampen Miscible Gas Injection

23. CO2-logistics

24. Towards commercial CO 2 solutions Utilise Statoil’s expertise to develop carbon management solutions Gas power plants Industry Natural gas production Increased oil recovery Re-use Final storage SourcesTransportation Sinks

25. CO2 – Ship Concept, 20 000 m3 capacity

26. Photo: AF Spesialprosjekt/Statoil bildearkiv CO 2 -storage in rock caverns Based on experience with propane storage at Kårstø, Mongstad and Stenungsund

27. CO 2 -pipeline and -ships in the North Sea ? 485 km (Esbjerg - Karmøy) 270 km (Karmøy Gullfaks) 280 km CO 2 -skip fra andre rene kilder ved havn

28. Weyburn CO2-for-EOR oil field and Dakota Gasification Company  250 million cu.ft. per day CO 2 by-product of coal gasification  95 million cu.ft. per day contracted for Weyburn project  320 km pipeline  CO2 purity 95%  CO2 pressure 14MPa Regina Estevan Bismarck North Dakota Montana Manitoba Saskatchewan Canada USA Weyburn Beulah 36 BCF injected to date

29. Can heavy oil and CO 2 coexist? --- A balancing act?--- 4Heavy oil has much of the same image as coal in a CO 2 -perspective 4In some countries coal has very vocal political promotors 4 less so for heavy oil? 4US led ‘Carbon Leadership Forum’ focused on coal and CO 2 -storage 4 but heavy oil can possibly benefit more than coal 4I believe that heavy oil projects from day 1 should go for more direct CO 2 -management both in production and processing