Fuels from Oil Shale and Tar Sands

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Fuels from Oil Shale and Tar Sands

• Nature of resource
• Size
• Whats required to produce/process
• Issues

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Atomic H/C Ratios

• Solid-liquid-gas
• Ease of transport
• Less solids pollution
• Less air contamination
• Smaller viscosity

Note scale is a continuum
From Wiser, 2000
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Classification Based on Viscosity.

• Roughly. At room temperature
• m lt 10 cp is a light oil
• m lt 10,000 is a heavy oil
• m lt 106 is a tar sand oil
• m gt 106 is bitumen

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Classification Based Non-organic Sediment.
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H/C Ratio
2
1
0
0
80
Non-Organic Sediment
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The Canadian Oil Sands

• The US consumes annually 7 x 109 bbl oil
• The Alberta Canada (Athabascan) oil (tar) sands
  contain 2 x 1011 bbl oil, recoverable at current
  price, matching the recoverable reserves of Saudi
  Arabia
• The 2005 Albertan tar oil production was 4 x 108
  bbl

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Economic History of the Canadian Oil Sands

• Commercial production of oil from the Athabasca
  oil sands began in 1967, when Suncor opened its
  first mine. Development was soon inhibited by
  declining world oil prices.
• The second mine, operated by Syncrude, began
  operating in 1978. As the price of oil subsided
  after the Arab oil embargo, the plug was again
  pulled on new developments.
• The third mine, operated by Shell Canada started
  operating only in 2003.
• With the 2004-2006 oil price increases, and the
  production cost being 35- 38, the existing
  mines have been greatly expanded and new ones are
  being planned

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Where Will the Tar Oil Go?

• An agreement has been signed between PetroChina
  and Enbridge to build a 400,000 barrel-per-day
  pipeline from Edmonton, Alberta to the west-coast
  port of Kitimat BC to export synthetic crude oil
  from the oil sands to China plus a 150,000 bpd
  pipeline running the other way to import
  condensate to dilute the bitumen so it will flow.
• Sinopec, China's largest refining and chemical
  company, and China National Petroleum Corporation
  have bought shares in major oil sands companies
• India invested 1 billion in the Athabasca Oil
  Sands in 2006. Four Indian companies are involved

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The Oil Sand Crude Bitumen
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Tar Sands.

• Nature Highly viscous hydrocarbon found with
  80-90non-organic material
• Size large deposits in California, Alberta,
  Venezuela
• Conventional mining/processing
• In situ injection of steam
• Issues.
• Energy intensive
• Several commercial processes
• Cogeneration helps
• Low quality crude oil

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Shale Oil

• Oil shales are rocks rich in organic matter
  (kerogen)
• The oil is derived through retorting, i.e.
  pyrolysis in the absence of air, at 445-500 C
• The worldwide reserves of oil shale are estimated
  at 2.6 trillion barrels of recoverable oil.
  1.0-1.2 trillion barrels are in the US
• Oil shale is can be burned as is, but it is a
  low-grade fuel
• Oil shale is currently mined in Estonia, Brazil
  and China

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History of US Shale Oil 1964-1980 On-Again, Off
Again

• 1964 Colony oil shale project of Tosco, Sohio and
  Cleveland Cliffs
• 1972 Colony oil shale project halted after
  270,000 bbls were produced. Occidental Petroleum
  conducts in-situ oil shale experiments at Logan,
  WA. Shell researches Piceance Creek in-situ steam
  injection process for oil shale. Oil drops
  20/bbl
• 1974 Unocal develops new Union B retort
  process Shell and Ashland join Colony Project.
  Oil prices increase, at 41/bbl
• 1976 Unocal begins planning commercial scale
  plant at Parachute Creek to be built when
  investment is economical
• 1977 Oil prices drop. Superior Oil abandons plan
  for Meeker oil shale plant planned since 1972
• 1979 Shell, Ashland, Cleveland Cliffs and Sohio
  sell interests in Colony to ARCO and Tosco Shell
  sells leases to Occidental and Tenneco.
• 1980 Exxon buys Arcos Colony interest and in
  1981 starts Colony II construction, designed for
  47,000 bbl/d by the Tosco II retort process
  Unocal plans Long Ridge 50 000 bbl/d plant
  applying Union B retort Amoco Rio Blanco
  produces 1,900 bbls of in-situ oil

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History of US Shale Oil 1981-2000
1981 Exxon begins to build Battlement Mesa
company town for oil shale workers Second Rio
Blanco in-situ retort demonstration produces
24,400 bbls of shale oil 1982 Oil demand falls
and crude oil prices collapse Exxon closes
Colony II due to cost and poor demand Shell
continues in-situ experiments at Red Pinnacle and
labs through 1983 1985 Congress abolishes
Synthetic Liquid Fuels Program 1987 Shell
purchases Ertl-Mahogany and Pacific tracts in
Colorado Exxon sells Battlement Mesa for
retirement community 1991 Occidental closes C-b
tract project before first retort begins
operation Unocal closes Long Ridge after 5 MM
bbls and 10 years for operational issues and
losses. 1997 Shell tests in-situ heating on
Mahogany property defers further work on
economic basis. 2000 Shell returns to Mahogany
with expanded in-situ heating technology research
plan (ongoing)
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Oil Shale.

• Nature Semi-solid hydrocarbon (kerogen) found
  with 80-90non-organic material
• Size enormous.130 billion bbl of oil
  equivalent in Green River shale (Rocky
  Mountains)..US has 62 of world supply
• To produce bring to surface and retort (heating
  to 400 deg C) converts kerogen to crude
• Issues.
• Excavating issues
• Generate large amount of depleted shale
• Energy intensive
• No commercial processes
• http//www.emdaapg.org/Oil20Shale.htm

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In-Situ Methods

• True In Situ (TIS)
• Fracture oil shale
• Inject air
• Ignite shale
• Modified In Situ (MIS)
• Mine above or below targeted shale deposit
• Fill void with rubbished shale
• Ignite shale
• In Situ Conversion Process (ICP)
• Drill shafts into the oil-bearing rock
• Drop heaters down the shafts
• Cook the rock until the hydrocarbons boil off

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Schematic of In Situ Retorting.
From Shepherd and Shepherd, 1998
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Shells ICP Technology
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Shells ICP Technology

• Freeze wall technology
• Drill shafts 8-12 ft apart around perimeter of
  productive site
• Put in piping
• Pump refrigerants through
• Freezes water in the ground around the shafts
• Forms a 20- to 30-foot ice barrier around the
  site

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Shells ICP Technology
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ICP Advantages

• Reduced environmental impact
• Reduction of costs in mining, transportation, and
  crushing
• Favorable energy balance
• More desirable grade
• Greater production depths
• Extraction from leaner shale
• Quick production drop

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ICP Disadvantages

• Large amount of water required
• Time
• Reliable heater technology
• Heater durability

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Economic Viability
Point of Profit EROEI (Energy Returned on Energy Invested)
Ex Situ 70 95 per barrel 0.7 13.3
ICP gt 30 per barrel 3-4