1. Heavy Oil Issues & Solutions Aubrey Arms October 11, 2005 Energy Technology

2. Overview of presentation Background information Issues regarding Heavy Oil Methods of Extraction Comparative growth of heavy oil Importance of improving technologies Heavy Oil Gasification

3. Background Heavy Oil has an API between 22.3° and 10° High specific gravity, low hydrogen to carbon ratios, high carbon residues High contents of asphaltenes, heavy metal, sulphur and nitrogen Majority of Heavy Oil lies in Canada, Venezuela, and the former Soviet Union

4. Issues Not recoverable in its natural state through a well by ordinary production methods Comprises of 15% of worlds remaining oil reserves Normally sells at 50% discount to WTI Used to produce lower-value products  Fuel oil verses gasoline  However, fuel oil demand has decreased Upgrading Heavy Oil leaves behind even heavier residue Environmental Issues  Oil Spills difficult to clean up  High content of Toxins

5. Methods of extraction Conventional methods (inefficient) Cold heavy oil production with sands (CHOPS)  Sand enters wellborn with oil  Increases production by 100%  Used to produce 22% of Canada’s Heavy Oils Vapor extraction (VAPEX)  Inject vaporized solvents into formation  Oil flows due to gravity drainage Experimental methods  Fireflooding – increases temperature and allows oil to flow easier  Solvents, electric currents, and ultrasound Thermal in-situ recovery  Injecting steam  Recovers up to 20% of conventional heavy oil

6. Growth in Heavy Oil Production Increase in Heavy Oil Decrease in conventional oil

7. Importance of developing new Technologies The end of ‘easy oil’ is over Energy industry is expanding recourses to recover difficult to remove heavy oil Heavy Oil Gasification  Increased value of heavy crude  Combined Deasphalting and Gasifer

8. Heavy Oil Gasification

10. Summary Heavy Oil is more expensive to extract and cost less than medium/light oil Production of heaving oil is increasing while production of medium/light oil is decreasing New methods are necessary to extract heavy oil at lower cost and add value to the product  Gasification

11. References Lloydminster Oilfield Technical Society. OTS Heavy Oil Science Centre. http://www.lloydminsterheavyoil.com http://www.lloydminsterheavyoil.com Centre for Energy. “What are oilsands and heavy oil?” www.centreforenergy.comwww.centreforenergy.com Wallace, Paul. Et al. Heavy Oil Upgrading by the Separation and Gasification of Asphaltenes. Texaco Inc. October 1998.