2_IntroNewHOProductionMethods

MBDCI
Introduction to the New Heavy Oil

Production Technologies
Intro: New Oil Production Technologies
Maurice B Dusseault
MBDCI
The Difficulties

High viscosity

Reservoir quality

Cost of thermal
energy (steam)

Cost of solvents

Environmental
 Waste solids/liquids
 Emissions
 Landscape issues

…
Courtesy Petrobank
MBDCI
°API and  for Viscous Oils
10000000
Canada
US
1000000
Venezuela/Colombia
Viscosity (cP) at Reservoir T
China
100000
India/Indonesia
Bitumen
US
10000
Canada
1000
Extra Heavy
100
heavy
10
1
1.0 0.95 0.90 0.85 0.80
ρ - Density
0.1
0 5 10 15 20 25 30 35 40 45 50
°API Gravity alcohol
water
Source: OGJ EOR Survey (April 2004)
MBDCI
Athabasca Bitumen – μ = ƒ(T)
In situ T range
Desired μ range
MBDCI
Bitumen Composition
% of whole bitumen
Cold Lake Athabasca Peace Wabasca

River
Asphaltenes 15.3 16.9 19.8 18.6
Deasphalted oil 84 83.1 80 81.2
Saturates 21.3 18.3 15.15 14.6

Monoaromatics 8.3 8.1 8.57 7.61
Diaromatics 3.6 3.8

Polar 24.35 23.8
compounds
MBDCI
Athabasca Mod. Athabasca ASTM Cold Lake Cold Lake
ASTM 2007 2007 Mod. ASTM 2007 ASTM 2007
API Gravity 8.05 10.71

MW MW
Saturates (wt%) 381 17.27 16.9 378 20.74 21.52
Aromatics (wt%) 408 39.7 18.3 424 39.2 23.17
Resin (wt%) 947 25.75 44.8 825 24.81 39.36

Asphaltene (wt
2005 17.28 17.18 1599 15.25 15.95
%)
Carbon (wt%) 83.34 83.62
Hydrogen (wt%) 10.26 10.5
Sulfur (wt%) 4.64 4.56
Oxygen (wt%) 1.08 0.86
Nitrogen (wt%) 0.53 0.45
Residue (wt%) 0.15 0.01

MBDCI
Heavy Oil Production Processes
Production Processes
Primary Thermal Non-Thermal
Thermal
pyrolysis
 Cold Production Steam Combustion  Water Flooding
 CHOPS  CSS  Fire Flooding  CO2, Gas Injec.
 Flooding  THAI™  Chemical Injec.
 SAGD  Top Down  VAPEX
Hybrid Processes
Sequencing
MBDCI
Common Substance Viscosity

centipoise
0.1
Water 1.0
desired viscosity
Conventional oil
Milk
10.0
Viscosity reduction needed
5 to 6 orders of magnitude
Olive Oil Sincor,

100.0
Venezuela
Engine Oil
1,000.0
a
Honey Orinoco live oil
10,000.0
Mayonnaise
Ketchup 100,000.0
a Cold Lake,
Peanut Butter
Canada
1,000,000.0 Source: Oilfield Review
Athabasca Oil Sand
MBDCI
New Production Technologies


CP (Cold Production, horizontal wells)

CHOPS (Cold Heavy Oil Prod. with Sand)

VAPEX (Vapor-Assisted Petr. Extraction)
 A variant is Warm VAPEX

SAGD (Steam-Assisted Gravity Drainage)

HCS (Horizontal Cyclic Steam)

THAI™ (Toe-to-Heel Air Injection)

PPT (Pressure Pulsing Technology)
 As an “add-on” to various production methods
MBDCI
In Alberta…

Peace River area:
HCS + CHOPS

Athabasca area: Oil
mining + SAGD + sands
region
CP (small amount)

Cold Lake area:
CSS + HCS +
CHOPS (some
elt
lB
Oi
SAGD)
y
av
He
In situ

Heavy Oil Belt: Mined
CHOPS mainly Alberta ERCB, from Oil and

Gas Journal, July 2008
MBDCI
The Impact of New Methods…


These new methods will:
 Allow much higher oil recovery from all types
of oil (>60% instead of 30-40%)
 Allow us to re-enter old fields and recover much
of the oil left behind

 Permit economic recovery of viscous oils

Also, these methods will:
 Improve contaminated aquifer clean-up
 Improve solid waste management technologies
 Impact other areas (CO sequestration)…

2
MBDCI
SAGD: New Ideas…


Flow arises from p (standard paradigm)
 p should be maximized (given constraints)

In SAGD, gravity segregation dominates
 Conventional simulations may be flawed
 Predictions not based on complete physics
 Operators still tend to increase p
 Steam break-through, sand influx happens
 Therefore, SAGD is a failure, right?

Wrong! New production paradigms needed.

…and, they continue to be perfected…
MBDCI
Viscous Oil Technology - 1985

Isaacs, 1998
Horizontal
wells X X
Vertical Cyclic
Steam X
wells
Stimulation
Thermal Non-thermal
The only viable commercial technology in 1985 for in

situ viscous oil extraction from high porosity
sandstones was CSS – Cyclic Steam Stimulation
MBDCI
Technology Status - 2013
Cold Flow
Horizontal SAGD*
+PPT
wells HCS*
VAPEX?
THAI™?? *Boldface means
IGI*…? fully commercialized
Vertical Cyclic
CHOPS
wells Steam PPT

Stimulation
Thermal Non-thermal
Currently - 2013 - viable technologies at a commercial

scale exist in categories (actual and emerging)
Note: IGI = Inert Gas Injection = GOGD = Gas/Oil Gravity Drainage
MBDCI
Some Technology Drivers…


Whole Earth Model data bases

Better monitoring (4-D seismic, InSAR
surface deformation, microseismics, fibre
optics, etc., etc.)
Better understanding of the physics of:
 Transport processes (Darcy, Fourier, Fick…)

 Thermodynamics and fluids
 Geomechanics

Horizontal wells, coiled tubing, MWD,
pump to surface units, etc.
MBDCI
Horizontal Wells

Horizontal wells have completely changed
our approaches and opened new possibilities
Courtesy Petrobank
MBDCI
Example: Active Seismic Methods
Slice 1
Thermal front monitoring East
using 4-D seismic methods
Slice 2
helps us learn and optimize
management of our projects
Slice 3
Slice 4
West
Source: Courtesy of Chevron Corp. and Caltex
MBDCI
Example: Coiled Tubing Technology

The “Old” Technologies

MBDCI
MBDCI
The “Old” Heavy Oil Technologies


Cyclic steam stimulation - CSS

Steam drive (many variants are possible)

Pressure-driven (p) solvent processes

Pressure-driven combustion processes
 Wet or dry
 Forward or reverse
 Air or O
2
p

All these processes suffer from
 Advective instabilities (p &  instabilities)
 Poor recovery ratios, heat costs, well problems
MBDCI
CSS - First Cycle Control Loss
pressure
A
C D
B original v (= ·z)
initial hmin (= 3)

“thief” zone
A: pBD, usually > v

B: p falls off hmin = 3
C: p rises with V
D: fluid losses?
time
Loss of control (top seal) can occur with a thief zone…

MBDCI
Heat Losses in CSS (Vertical Wells)


Fractures rise, break-through  high heat losses

During injection  fracture flow (distant), but
during production  Darcy flow (proximal), and
this results in more heat losses
High p  bodies of bypassed oil

Steam rises to the top, more bypassed oil

Under the best conditions:
 Up to 35-38% recovery of OOIP (80,000 cP oil)
 Best SOR perhaps 2.2-2.5 (m3 H O/m3 oil produced),
2
and IOL is now >3.5 (2010) (LASER)
MBDCI
CSS Advantages, Disadvantages


“Huff-’n-Puff”: well understood, long history…

25-35% recovery in good reservoirs, but…
Difficulties

Must be a great reservoir (thick, continuous)

Early fracture out of zone, high heat losses
 Well shearing (high  –  ), corrosion, cement
1 3
integrity are all issues in CSS (and HCS)
 High cost of CH + low thermal efficiency
4

Second production phase after CSS? (IGI)
MBDCI
CSS Pike’s Peak Project,

Husky Energy
MBDCI
Pike’s Peak was an economical CSS project,
SOR ~2.2, in an excellent reservoir, 10-30 m
thick, k 2-6 D,  = ~6000 cP, z = 500 m, etc.
Pike’s Peak was converted

to SAGD (2007-2011)
MBDCI
Issues in High-p Steam Processes

 Steam costs $ (high CH4 prices, SOR > 3)
 CH4 remains valuable (low C content)

Sweep efficiencies are rarely >30% in highly
0 +
viscous oils $8. 0 ts
≈ os
 Gravity over-ride EX mc
OP Stea
 Permeability heterogeneities
 Viscous fingering instabilities
 Fracturing into the overburden

Corrosion, well leaking, heat losses….

Massive well losses through shearing
MBDCI
Imperial Oil Project - CSS


35-40 m of uniform sand, fabulous reservoir

450 m deep, 0.5-2 D permeability, very uniform
sand body, good kv/kh ratio

μ - 150,000 to 200,000 cP in situ without gas
CSS – 12-18 cycles, RF about 0.30-0.35

SOR was once as low as 2.4 (>3.5 now)

Operating expenses exceed 20 $/b (CAN)
 70% of costs are steam generation, H2O…

~25,000 m3 production per well over life

4 acre spacing (many wells)
Steam Flooding
MBDCI
MBDCI
Steam Drive Processes - Theory
Sectional
view
Pr
od
uc
tio
n
Ste
row
m a
in j
There are many variations of

ec
tio
steam injection, including a

n
wide variety of pattern types,

alternating gas/steam,
steam-hot water, fire flood
combinations, etc. etc.
MBDCI
Steam Drive Processes - Reality
Sectional
view
Pr
od
uc
tio
n
row
Air
•Gravity override
rho
•Bypassed oil
ot
wa
•Poor recovery
ter
in
•High heat losses

•Casing shear
MBDCI
Belridge California… (Aera Pet.)

Multiple zones,
different depths
Midway-Sunset Field, California

MBDCI
MBDCI
Comparing CSS and Steamfloods
CSS Steamflooding

<1000 m 
<1000 m depth

>10 m thickness 
>10 m thickness

 > 0.25 
 > 0.25

k > 0.5-1 D 
k > 2-4 D

API > 10° 
API 12°-23°

μ > ~20,000 cP 
μ < ~5000 cP

SOR ~ 2 – 4.5 
SOR ~ 2 – 6

Well spacing 4-8 acres 
Well spacing 2-6 acres
 RF ~ 15-30%  RF ~ 30-60%**
**Can be higher with higher SOR & low μ
MBDCI
However!

Old technologies are being improved…

In situ combustion may eventually succeed
 In hot reservoirs with low RF after CSS?
 Where the conditions are right (high k, low μ)|
 But, no commercial success yet…!

Also, HCS is a commercial technology
 Horizontal wells, steamed sequentially
 Conformance better than CSS, = lower SOR
 Gravity drainage effects become more important

Other developments are taking place…
Post 1985
The “New” Technologies
MBDCI
MBDCI
Commercial Thermal Projects


Imperial Oil Ltd - Cold Lake (>175,000 b/d)
 By far the largest successful CSS in Canada, world
 Exceptionally favorable reservoir (40 m, uniform)
 Casing shear problems, >25 $/b OPEX (CH )

4

Smaller projects (Shell Peace R., Pike’s Peak)

New SAGD projects (2000-2013) Cenovus
Foster Creek and Margarite Lake, Suncor
MacKay River, Total, Conoco-Phillips, Firebag,
CNRL, JCOS, MEG, Devon, Baytex, etc.

But! - heat costs and CH4 consumption
CH4 ~ $7.80/MMBTU 2007, ~ $12.00 Jul 2008, ~ $3.50 2013
MBDCI
EOR and THEOR


Δp processes used for conventional oil
 No viscosity reduction is required
 Issues are displacement efficiency, mobility,
fingering, coning, etc


In heavy oil, we must reduce the viscosity

There are three ways to do this…
 Increase the temperature (e.g. steam, electrical)
 Dilute with a solvent (e.g. naphtha or C H inj.)
3 8
 Reduce the molecular weight by…
 A: Combustion causing molecular scission
 B: Pyrolysis causing molecular scission
MBDCI
T!
Oil Viscosity and Temperature
AR
CH
ºC ºC ºC
100 200 285
107 107
GN
106 Wabasca 106
105
SI
105
DE
104 Athabasca 104
Viscosity in centiPoises
103 Cat Canyon 103
A
Peace
T
NO
102 River 102
Reservoir
Midway Sunset temperature
Cold Lake
101 101
Kern River
Bellevue
Lloydminster
100 100
50 100 150 200 250 300 350 400 450 500

T in degrees Farenheit
MBDCI
Viscosity Reduction

For most viscous oils, the effect of
temperature on viscosity (μ) is significant…

Each increase of ~6-7°C ~halves μ

Effect of solvents is also significant, but…
 It depends greatly on the solvent used (CnH2n+2,

chlorinated HC, cyclic HC, mix of several…)
 It also depends on the temperature…

Example:
 100,000 cP Alberta oil from Cold Lake becomes
200-400 cP with 6-8% aliphatic naphtha at 30°C
MBDCI
Viscosity Relationships
T-µ for Bitumen 106 cP @ 10ºC
106
105
Viscosity cP
104
103
102
101
100
10 30 100 200
Athabasca bitumen Degrees ºC
MBDCI
Horizontal Wells, Worldwide
The period 1985 – 2000 saw horizontal well

technology become the mature standard it is today
6000
Wells - Worldwide
5000
4000
3000
2000
1000
0
86 88 1990 92 94 96 98 2000
Courtesy of
George Stosur
MBDCI
Horizontal Wells

Horizontal wells are now commonplace…

With applications in various technologies
 Direct cold oil production, water floods…
 Thermal processes (SAGD, steam drive…)
 Horizontal well cyclic steam (Shell Peace River)
 WAG, various IOR configurations

The biggest asset ultimately may be the
advent of gravity segregation (Δρ) methods

Also, in situ combustion might be “reborn”,
based on horizontal well configurations…
MBDCI
Multi-Laterals in Venezuela - CP

Economic with 1500 m long wells, many
wells with daughter laterals (3000-6000 m)

Wells placed in the highest k zones only

Production up to 2000-2500 b/d - 3 D
> 2 cP
k 000

Solvent injection at toe (Sincor) μ < 5

Low operating costs, no sand, no steam
 RF likely to be 11-13% only, life of 12-15 yr

Not suitable for 50% of the zones in the Faja
del Orinoco… (free water, poorer reservoirs)
MBDCI
What is Inert Gas Injection (IGI) and

Where Can it be Used?
(Also called GOGD – Gas/Oil

Gravity Drainage)
MBDCI
Inert Gas Injection (Gravity Process)

Gas is injected high in the
reservoir to move the oil
interface downward
dm
Generally, it is a top down
displacement process,
gas
gravitationally assisted and

p water density stabilized
Note: in a water-wet reservoir,
a continuous 3-D oil film exists,
providing that wg > og + wo
oil
Recovery % can be high
MBDCI
IGI – Processes and Principles


Gas is slowly displaced downward

Any significant Δp is avoided!!
 Oil films remain continuous!
 No isolated oil ganglia are formed!
 Slow drainage continues and continues!!

Base horizontal well is operated at about the
same pressure as the injection point

This eliminates coning, fingering, etc.
 The process is slow but with very high RF
MBDCI
IGI, With Reservoir Structure
inert gas injection

gas rates are controlled to
avoid gas (or water) coning mainly
gas
three-phase zone
horizontal wells
parallel to structure
oil bank, two-phase zone
water-wet sand
water, a min
im um 
 p to
p
p
one phase kee best to monitor
the process;
if coning develops,
drop pressures!
MBDCI
IGI in Flat-Lying Strata
V/t]oil + water N2, CH4

= V/t]gas or flue gas
(voidage filled)
no p, no
3-phase p ~ 0
gas coning
region
hydraulic
2-phase no p, no fractures
region H2O coning
water
horizontal wells
Voidage balance necessary!
MBDCI
Gravity Drainage of Reefs
Oil bank is “squeezed” previous injection/

into the horizontal well production wells
by proper pressure control are used to balance
so that density controls flow voidage, control coning
new horizontal
well trajectory gas cap (wells can
be converted to
methane or inert
gas injection) low p
gas
inj.
horizontal well
bottom water drive placement based
(some wells are on permeability and
converted to
water injection)  drainage rates
MBDCI
IGI Summary

Method has been implemented in reservoirs
in Canada with good success since 1991

Not for non-thermal heavy oil projects

Ideal approach for converting old
conventional fields to a GD process

Operating expenses are quite low

Should be considered for new fields, and
for renewing old fields

Ideal for use after thermal technologies,
providing some other conditions are met…
MBDCI
Steam- and Vapor-Assisted Gravity

Drainage Processes in Oil
SAGD – VAPEX – Variants

MBDCI
Pore-Scale Processes in GD
Countercurrent flow in
mineral grain the pores and throats
H2O lead to a stable 3-phase
CH4 system.
CO2
The oil flow is aided by
mineral grain a “thin-film” surface
tension effect which
helps to draw down the

oil very efficiently.
water oil
steam + water To maintain a gravity-
mineral grain oil
gases dominated flow system,
it is essential to create
the fully interconnected
phases, and to not try
and overdrive using
mineral grain high pressures.
MBDCI
Double-Well SAGD or VAPEX
overburden
non-condensing gas zone
Keep p small to
maximize stability countercurrent flow
casing shoes
fluids in
liquid level slotted section
liquids out
Solvents or other gases can be added to affect μ, control heat losses
Some non-condensing gas may help, too much is bad news!

MBDCI
Cross-Section, Canada Sands
This is the “classical” SAGD configuration

Production Injection
Ground
Glacial Gravel and Till

130m
Colorado Group
200 - 700 m 300m
Mannville
395m
Clearwater A & B 450m
McMurray Oil Sands

525m
Paleozoic Limestone
Bottom well at base of reservoir
Courtesy EnCana
SAGD Schematic
55
MBDCI
Courtesy EnCana
MBDCI
Husky Energy
Pike’s Peak Surface facilities -
Two SAGD well pairs
Long-stroke Rotaflex pump

pump jack
Steam lines
Injection well
Slow, long strokes are needed to prevent steam flashing

MBDCI
Lifting Hot Oil

Metal-metal PCP, Joslyn,
since October 2006 (to 180ºC
325)
MBDCI
SAGD Physics with a Water Leg

overburden
Keep p small to
“insulated”
region maximize stability
CH4 + oil
countercurrent countercurrent
flow steam + oil flow
+water + CH4

lateral steam
chamber extension liquid level
oil and water

If Δp/Δz ~0, no water
water leg influx can take place!
SAGD with active bottom water is possible, but control is difficult

MBDCI
Gas and Solvent Processes


IGI: Inert Gas Injection (cold gravity process)

VAPEX: Vapor-Assisted Petroleum Extraction
(also gravity-dominated process)

VAPEX for areas where SAGD is problematic
 Thinner reservoirs (10-20 m), no heat costs!

 More heterogeneous cases (fracturing needed)
 Cases with lower S , lower viscosity, good k

o v
 Asphaltenes may be precipitated, = ƒ(T, solvent)
 Can be used along with SAGD (e.g. +C 6, C7)

Much development remains to be done
MBDCI
Future VAPEX Innovations?


Fracturing to break through shale barriers

Warm VAPEX: inject hot non-aqueous fluids to
execute the process (T + thinning)

Warm VAPEX + IGI (fractionation in situ)

Using VAPEX as a post-thermal or a post-
CHOPS extraction process (second phase)

Enhancing the in situ upgrading potential of
VAPEX by careful gas choice

New well deployment ideas (various
combinations of vertical and horizontal)
MBDCI
SAGD Improvements Possible!
Q (rate) ??
•CSS, then SAGD
•CHOPS, then SAGD
earlier $ returns •SAGD, then IGI
SAGD
SAGD is a slow process – 5-8 years
SAGD ++ may be more profitable
Faster = lower heat costs
time
SAGD with other technologies may be best…

MBDCI
Gravity Drainage Summary

Must keep p low for stability

Must have at least two-phase liquid (and
gas) flow in a fully continuous system

Three-phases, oil-water-gas, is better

Countercurrent flow in the same pores, plus
macroscopic countercurrent flow effects

May be helped by gas, steam, condensable
fluid injection and careful p control

Too much gas can “poison” the process
MBDCI
CHOPS – What is it?


C – Cold

H – Heavy

O – Oil

P – Production with Sand

Produced ~500,000 b/d <20°API oil in 2003

Major OPEX reductions in 1990’s

10-20% OOIP recovery in good reservoirs

Applicable worldwide? Yes, if the reservoir
properties and conditions are appropriate…
MBDCI
Luseland Field History

30 verticals drilled in 1982-85

Produced using beam pumps, minimal sand

Horizontals tried in 1992-1993 (7600 m),
not successful (all abandoned by 1998)


Aggressive CHOPS w. PC pumps started in
1994, implemented conservatively (slowly)

On average, 30 wells producing since 1985
until late 1990’s, when a major infilling
program was started…
MBDCI
Field Production History
Luseland Field, Monthly Oil and Water Rates 20,000

Oil and Water Rates - m3/mo
16000 Oil rate
12000
Start aggressive CHOPS
8000
Beam pumps, small
4000 amounts of sand
Water rate
Feb-82 Feb-86 Feb-90 Feb-94 Feb-98
MBDCI
Luseland Field Parameters

Bakken Fmn. (Devonian, unconsolidated)

Shallow marine, bar sands, some low k zones

Z = 800 m = 28 - 30%, k = 2-4 D

API = 11.5-13°,  = 1400 cP (live oil in situ)
 So = 0.72, Sw = 0.28 (high!), Sg = 0


Stratum thickness: 5 - 15 m in centre
 Initial pressure: po ~ 6-7 MPa T ~ 30°C
 Gas bubble point: pb  po
MBDCI
Well 14-8 Performance
Luseland Field Central Well 14 - 8

250
Production rate (bbl/d)
Oil rate
200
150
Start CHOPS
100
50
0 Water rate
Jan-81 Jan-85 Jan-89 Jan-93 Jan-97 Jan-01

MBDCI
Well 13-8 Performance
Luseland Field West Well 13 - 8

250
Production rate (bbl/d)
200
150
Start CHOPS Oil rate

100
Water rate
50
0
Jan-81 Jan-85 Jan-89 Jan-93 Jan-97 Jan-01
MBDCI
Edam Field – 31 Well Region
800
700
Production rate, oil or water – m3/d
Oil - m3/day
600 Water - m3/day
500
400
300
200
100
0
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
MBDCI
Cumulative oil or water production – m3 Edam Field – Sand Production
800000 4800
Oil
Cumulative sand production – m3

Water 4132.4
Sand 4000
640000 More sand in the 622027.5
well drilling period
3200
528823.4
480000
2400
320000
1600
160000
800
0 0
1980 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
NOTE: Sand curve is from 13 wells only

of the 31 wells included in the sample
MBDCI
Why More Oil and Faster Oil??

Is it an effect of increased drainage radius?

Is it some other, unknown effect that we
have missed?

We have proved that it is the effect of
reservoir flow characteristics enhancement

associated with sand production
MBDCI
The Short Flow Path Concept
altered (improved) zone oil, water, gas + sand
slu
rr y flu x
flu r r y
x s lu oil
seepage
D
3-15 m
oil
seepage
short oil flow path! 50-150 m
CHOPS process 10-20 vertical exaggeration!

MBDCI
For Successful CHOPS…


Foamy oil mechanism must be active

Continuous sand failure must be occurring

Unblocked slurry transport to the well

Good lifting system in place (PCP, others?)

Good workover practices
 e.g. pressure pulse workovers, foam, CT…

Integrated sand handling system
 Sound and economical sand handling method
 Environmentally secure sand disposal
MBDCI
PCP - Progressing Cavity Pump
Belt drive with

torque control Polished rod
Electric motor
(or hydraulic) Production flow line
Well-head assembly
Well casing
(usually 175 mm) Sucker or co-rods in
production tubing
Production tubing
(usually 72 or 88 mm)
Chromed rotor in
fixed stator
A key element in CHOPS success

MBDCI
Canadian Developments

Advent of massive CHOPS has been very
important to heavy oil industry

CHOPS OPEX dropped from $C12.00/b in 1989
to ~$C6.00/b in 2000!

But, has gone back up to >$12.00/b by 2007

CAPEX dropped by 2003 (cheaper wells, better
pumps, cheaper workovers...), up now

Horizontal wells do not work in all fields!

Gravity drainage (SAGD, VAPEX, hybrid) may
prove valuable to heavy oil growth
MBDCI
CHOPS Summary

More profitable than all thermal methods in
the right type of reservoir (even 10,000 cP)

Very low CAPEX (cheap verticals)

OPEX now is ~$10.00 to $15.00/bbl
 This is lower than any thermal process!!


Pumping issues are solved (PC pumps)

Sand disposal has been solved

Production is currently limited only by:
 Upgrading capacity and transport capacity
MBDCI
In Situ Combustion: Can the “Deep

Reactor” Concept be Revitalized?
MBDCI
In Situ Combustion

The “in situ reactor”, self-energized, is a
dream that has existed for decades

HO in situ combustion projects have been
marginal or failures (advective instabilities)
In the last few years, a new idea has arisen:
toe-to-heel air injection - THAI™


The idea is to maintain stable combustion by
enforcing a short flow path for the products

Whitesands Project – 2006 to now – has not
been a success…
MBDCI
The THAI™ Process
Air or O2 (±H2O) Product
Horizontal well enforces a short

flow and reaction zone, hence flow
instabilities are greatly reduced
Combustion zone Mobile gas and oil bank
Cold reservoir
heel
toe
bypassing?
MBDCI
3-D View of THAI™

Courtesy Petrobank
MBDCI
Is THAI™ Viable?

Short flow path = no bad flow instabilities

Laboratory results are encouraging

A number of advantages:
 High early production (short build-up)
 Much less S in product, heavy metals left behind
 Reduced molecular weight = less coking and H

2
required at surface
 No fuel requirements (CH is costly), or water
4

If it works…, it will be a paradigm shift!!

Currently, it appears not to be viable, but…
MBDCI
Hybrid & Sequenced Development


Combining different technologies
 At the same time, different zones, same zone
 In a sequenced development project

Each technology has its ideal conditions

These may overlap in some cases

The reservoir state changes with development
 Improved k, , Cc

Hybrid and sequenced schemes have merit
 Give more oil for longer periods
 Increase the recovery ratio substantially
MBDCI
Horizontal Cyclic Steam (μ>105 cP)


Drill a large pad of horizontal wells

Inject steam into them sequentially

Horizontal & vertical stress changes mean
that steam fractures will propagate along
well axis, giving excellent conformance

On the production phase…
 Production driven by p (Darcy diffusion)
 Production driven by z (re-compaction)
 Production greatly aided by  (gravity)

10 to 15 cycles → RF ~ 35-45%
MBDCI
Shell Peace River HCS
HCS: Horizontal Cyclic

Steam stimulation
1.8 km
Sequentially steam
the wells across
the pad pattern
MBDCI
HCS - SAGD Wells
Used in Karamay, China as Pump jack

early as 1995
Process has components
of CSS, also SAGD
Still need thick zones Steam tubing
Pump
Slotted liner section
In any steam-based technology, heat losses are key…

MBDCI
CHOPS Plus HCS or SAGD?
Proposed Layout a. CHOPS wells operated

b. Then converted to steam inj.
c. Hor. wells = HCS, then SAGD
CHOPS wells
(thermal completion)
g
l on
m
0
1 00
00-
8
30 m
200 –
250 m
120 -
150 m HCS wells
MBDCI
CHOPS + HCS or SAGD?


Good early oil rate from CHOPS, RF ~ 0.15

Good RF from SAGD ~ 0.60-0.70

CHOPS creates a high permeability zone

SAGD “invades” this zone efficiently

This is interesting, and maybe we can
exploit thinner zones more rapidly

Also, converted CHOPS wells are useful:
 Steam injection, monitoring of p, T, …
 Control of process by injection/withdrawal (gas)

Poorer zones? Use HCS instead of SAGD
MBDCI
Different Areas, Different Methods


Screening of technologies involves careful
assessment of the best for the asset…
A B
Conventional production
50-250 m
50-250 m
Alberta Cross-Section
MBDCI
Sequential Development Approach


e.g.: CHOPS “conditions” the reservoir

Then, CSS is faster because of better
conformance, high k, high Cc

Then, when the whole reservoir is hot and
low viscosity, inject inert gas at the top…

 Gravity drainage is slow but efficient

If a large amount of oil is still in place,
perhaps combustion could be effective:
 Reservoir is hot, easier combustion & flow
 Good permeability paths, less channeling
MBDCI
The New Production Technologies

Status
Method Years Suitability
(2013)
$ - fully Best for 3-20 m zones,no
CHOPS >20
commercial mobile water or water legs
$$$ Probably limited to
SAGD ~13
profitable thicker zones, > 15-20

m
$$ Useful along with other
PPT ~5-7
early days methods (cold flow,
CHOPS)
$$ some Best in <500 cP
VAPEX ?
field trials cases, or along with
SAGD
IGI ~20 $ Good kv & low  needed
HCS ~10-14 $$$ Lower k than SAGD, >15m
MBDCI
Limits to Heavy Oil Production


Production issues have been “solved” by new
technologies (CHOPS, SAGD, HCS, etc.)
 High differential price, plus market insecurity
 Environmental issues are significant - H 2O, CO2

Restricted upgrading and refining capacity exists
for heavy bitumen in North America

Also, restricted transportation capacity
 West coast pipeline? New capacity for US lines?

We are no longer “production limited” in Canada
MBDCI
Waste Disposal Problems


Particularly in CHOPS, but also elsewhere…

Huge volumes of sand, emulsion, and other
waste streams are produced
 Road-spreading, field spreading???
 Washing oil out of sand??? ($$)

Solutions
 Landfill use has been relaxed
 Deep injection of sand + emulsion + H O
2
 Disposal in dissolved salt caverns
MBDCI
Slurried Solids Waste Disposal
Solid waste injection site in Duri, Sumatra,

just one degree from the equator
Wastes pit
Control room
Water storage
Injection
System
www.terralog.com
MBDCI
Conclusions

Conventional oil will soon peak

Heavy oil, bitumen will partly fill the gap

Remarkable VO production method advances
recently, largely in Canada (investment…)

Must be tried, optimized, perfected…

The future for heavy oil remains promising at
present (high prices for oil…)

Many problems are being solved…

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MBDCI

Introduction to the New Heavy Oil

°API and  for Viscous Oils

Athabasca Bitumen – μ = ƒ(T)

Cold Lake Athabasca Peace Wabasca

Saturates 21.3 18.3 15.15 14.6

Diaromatics 3.6 3.8

API Gravity 8.05 10.71

Aromatics (wt%) 408 39.7 18.3 424 39.2 23.17

Resin (wt%) 947 25.75 44.8 825 24.81 39.36

Hydrogen (wt%) 10.26 10.5

Sulfur (wt%) 4.64 4.56

Oxygen (wt%) 1.08 0.86

Nitrogen (wt%) 0.53 0.45

Residue (wt%) 0.15 0.01

Heavy Oil Production Processes

Primary Thermal Non-Thermal

Common Substance Viscosity

Olive Oil Sincor,

New Production Technologies

CHOPS mainly Alberta ERCB, from Oil and

The Impact of New Methods…

of the oil left behind

 Permit economic recovery of viscous oils

 Impact other areas (CO sequestration)…

SAGD: New Ideas…

 Predictions not based on complete physics

 Operators still tend to increase p

 Steam break-through, sand influx happens

 Therefore, SAGD is a failure, right?

Viscous Oil Technology - 1985

The only viable commercial technology in 1985 for in

Technology Status - 2013

wells Steam PPT

Currently - 2013 - viable technologies at a commercial

Some Technology Drivers…

 Transport processes (Darcy, Fourier, Fick…)

Example: Active Seismic Methods

Example: Coiled Tubing Technology

The “Old” Technologies

The “Old” Heavy Oil Technologies

CSS - First Cycle Control Loss

initial hmin (= 3)

A: pBD, usually > v

Loss of control (top seal) can occur with a thief zone…

Heat Losses in CSS (Vertical Wells)

CSS Advantages, Disadvantages

CSS Pike’s Peak Project,

Pike’s Peak was converted

Issues in High-p Steam Processes

 Viscous fingering instabilities

 Fracturing into the overburden

Imperial Oil Project - CSS

Steam Drive Processes - Theory

There are many variations of

steam injection, including a

wide variety of pattern types,

Steam Drive Processes - Reality

•High heat losses

Belridge California… (Aera Pet.)