Heavy oil discovery could revolutionize oil sands production
An international team that includes University of Calgary (U of C) scientists has shown how crude oil in oil deposits around the world – including in Alberta’s oil sands – are naturally broken down by microbes in the reservoir.
Their discovery could revolutionize heavy oil and oil sands production by leading to more energy-efficient, environmentally friendly ways to produce this valuable resource.
Understanding how crude oil biodegrades into methane, or natural gas, opens the door to being able to recover the clean-burning methane directly from deeply buried, or in situ, oil sands deposits, says Steve Larter, U of C petroleum geologist in the department of geoscience, who headed the Calgary contingent of the research team.
The oil sands industry would no longer have to use costly and polluting thermal, or heat-based, processes (such as injecting steam into reservoirs) to loosen the tar-like bitumen so it flows into wells and can be pumped to the surface. “The main thing is you’d be recovering a much cleaner fuel,” says Larter, Canada Research chair in petroleum geology. “Methane is, per energy unit, a much lower carbon dioxide emitter than bitumen. Also, you wouldn’t need all the upgrading facilities and piping on the surface.” Biodegradation of crude oil into heavy oil in petroleum reservoirs is a problem worldwide for the petroleum industry. The natural process, caused by bacteria that consume the oil, makes the oil viscous, or thick, and contaminates it with pollutants such as sulphur. This makes recovering and refining heavy oil difficult and costly.
Some studies have suggested that biodegradation could by caused by aerobic bacteria, which uses oxygen. But Larter and colleagues from the U of C, University of Newcastle in the UK, and Norsk Hydro Oil & Energy in Norway, report in the science journal Nature that the dominant process is, in fact, fermentation. It is caused by anaerobic bacteria that live in oil reservoirs and don’t use oxygen. “This is the main process that’s occurring all over the Earth, in any oil reservoir where you’ve got biodegradation,” Larter says. Using a combination of microbiological studies, laboratory experiments and oilfield case studies, the team demonstrated the anaerobic degradation of hydrocarbons to produce methane. The findings offer the potential of “feeding” the microbes and rapidly accelerating the breaking down of the oil into methane. “Instead of 10 million years, we want to do it in 10 years,” Larter says. “We think it’s possible. We can do it in the laboratory. The question is: can we do it in a reservoir?” Doing so would revolutionize the heavy oil/oil sands industry, which now manages to recover only about 17 percent of a resource that consists of six trillion barrels worldwide. Oil sands companies would be able to recover only the clean-burning natural gas, leaving the hard- to-handle bitumen and contaminants deep underground.
Understanding biodegradation also provides an immediate tool for predicting where the less-biodegraded oil is located in reservoirs, enabling companies to in- crease recovery by targeting higher-quality oil. “It gives us a better understanding of why the fluid properties are varying within the reservoir,” Larter says. “That will help us with thermal recovery processes such as SAGD (steam-assisted gravity drainage).” The research team also discovered an intermediate step in the biodegradation process. It involves a separate family of microbes that produce carbon dioxide and hydrogen from partly-degraded oil, prior to it being turned into methane. This paves the way for using the as methane, which could microbes to capture this CO2 then be recycled as fuel in a closed-loop energy system.
This would keep the CO2, a greenhouse gas blamed for global warming, out of the atmosphere.
The petroleum industry already has expressed interest in trying to accelerate biodegradation in a reservoir, Larter says. “It is likely there will be field tests by 2009.” The multidisciplinary team, with the UK contingent led by Ian Head and Martin Jones, included petroleum geologists, microbiologists, organic geochemists and reservoir modellers. The team’s findings are published in Nature, available online at www.nature.com.
Pipeline Research Council International announces 2008 research program
Pipeline Research Council International, Inc., (PRCI), announces its 2008 research program. Member contributions of $7 million continue a five-year trend of increasing research spending. Research programs in which PRCI is currently engaged now total more than $20 million. “The membership of PRCI has taken a strong leadership position for the past 55 years in assuring that the energy pipeline industry is supported by a world-class research program. The 2008 program continues that legacy and will include research that is vital to the safe and efficient design, construction and operation of pipeline systems world wide,” said PRCI chairman Art Meyer. “In addition, this year’s program includes ethanol transportation research focused on the technical and operational issues associated with delivering a promising source of energy to consumers in a safe, cost-effective and environmentally sound manner.” In addition to its work on ethanol, PRCI’s 2008 program will include:
Mechanical damage – detection, characterization, and management to address third-party damage and geo-technical events.
Design and construction – specialized programs in recognition of the dramatic buildout of the pipeline system in both developed and developing regions.
Integrity management – continued research in corrosion and environmental cracking so as to enhance safety and reduce the potential for incident.
Compressor and pump stations – work to reduce air emissions and reduce fuel requirements.
Measurement – continuing improvements to metering accuracy, reliability and cost-effectiveness.
Underground storage – to improve storage facility integrity and operational flexibility. “PRCI serves as a bellwether for the industry by identifying and researching emerging issues and technologies affecting energy pipeline transportation. By allocating their annual contributions to specific research programs and projects, our members assure that PRCI research directly responds to their needs,” said PRCI president George Tenley. “Member contributions are leveraged with additional funding from several sources, including our leading co-funding partner, the Pipeline and Hazardous Materials Administration in the U.S. Department of Transportation.” To view the research program, visit PRCI’s website at http://www.prci-inc. com and select 2008 Research Program.
Technology from 3M and Alberta Research Council pipes in economic benefits
Pipeline wear is a significant cost to industry – both in unplanned production outages and maintenance costs. The Alberta Research Council (ARC), 3M Canada and Alberta Advanced Education and Technology (AET) are teaming up to develop liners that prevent corrosion and erosion and prolong pipeline life. “ARC is helping 3M develop the pipeline liners by lending our expertise in product testing and evaluation,” says John Wolodko, project leader at ARC. “To do this, we are building a large scale flow loop that will test the liners and evaluate their performance. This will give 3M the opportunity to try out different ideas and see which ones will work best for the oil sands industry.” This collaborative project is part of a larger strategy for 3M as it expands its technical footprint in Alberta. Part of this strategy has included doubling their manpower over the past year and offering the oil and gas industry product and technology solutions across three platforms: worker safety, well completion and corrosion protection. “As one of Canada’s fastest growing economies, Alberta plays a vital part in 3M’s strategic plan,” said Randy Frank, laboratory manager, 3M Canada Energy Markets. “This partnership allows 3M to leverage ARC’s expertise and world-class testing capabilities to tackle a serious issue in oil sands. Knowledge gained from this experience will allow 3M to explore opportunities for larger projects in the province.” “Working with 3M is another example of our government’s successful strategy to encourage collaborative research benefitting Alberta,” says Doug Horner, minister of advanced education and technology. “This $800,000 project to enhance pipeline reliability and performance increases efficiency in a critical industry and ultimately contributes to our province’s growth.” Construction of the flow loop lab and the development of the product concept will be done spring 2008. Then, phase two of the project – prototype design, fabrication and validation – will begin, and is expected to wrap up by the end of 2008. The $805,000 project is funded through 3M ($375,000), ARC ($180,000) and AET ($250,000).
Key energy industry companies unite for CO2 sequestration project
Enbridge Inc. announced that it will lead a group of 19 energy industry participants in the Alberta Saline Aquifer Project (ASAP).
ASAP is a broad-based, industry-supported initiative that participants will roll out in three phases. Phase 1 will involve identifying suitable locations for the long-term sequestration (storage) of carbon dioxide in deep saline aquifers. It is expected to be completed by the end of 2008.
Phase 2 will involve a pilot project during which sequestration sites will be designed to receive injected carbon dioxide. Later phases will involve expanding the project to a large-scale, long-term commercial sequestration operation.
ASAP is the first project of its kind in Canada, and will play a major role in advancing industry and government’s knowledge of carbon dioxide sequestration. ASAP participants represent a wide range of expertise in the energy sector.
ATCO/Stittco Pipeline reduces greenhouse gases by 18,500 tonnes
ATCO Midstream and partner Stittco Energy Limited recently opened a new 40-kilometre pipeline. Through collaboration with Canadian Natural Resources Ltd., the pipeline will eliminate about 18,500 tonnes of greenhouse gas emissions annually by reducing the flaring of solution gas associated with local oil production. “The initiative of ATCO Midstream and Canadian Natural has resulted in the only project of its kind in Manitoba that delivers a quality business solution in combination with real environmental benefits,” said Kevin Cumming, president, ATCO Midstream. “This project shows the environmental leadership that can occur when people work together to find solutions.” The project will transport previously fl ared solution gas from Canadian Natural’s Pierson battery in southwest Manitoba and connect to the Wolstitmor gathering system for processing into propane, butane and other useable products at the Nottingham gas plant in southeastern Saskatchewan. The greenhouse gas reduction is approximately the amount generated during the heating of more than 2,200 typical Canadian homes each year.
Dresser-Rand to supply $15 million of equipment for Russian offshore project
Dresser-Rand Group, Inc. will supply a VECTRA 40G generator package to Sie-mens Oil and Gas Offshore/Sevmornefte-gaz for its Prirazlomnaya project.
This is the third VECTRA generator package to be delivered to this platform since the fall of 2005. Once installed, all three packages will run together to meet increasing offshore power demand.
The Dresser-Rand VECTRA 40 power turbine was developed to be compatible with the GE LM2500+ gas generator. Together they offer the most effective power package available for high-speed operation. As part of a complete package with the GE LM2500+, the VECTRA turbine has an ISO rating of 40,200 horsepower (30 megawatts). Thermal efficiency is 39.9 percent at full load, with a corresponding mass fl ow to 180 pounds per second. The VECTRA 40 has a maximum continuous operating speed of 6,500 rpm.
SensorTran receives $8 million in funding
SensorTran, Inc., the developer of the world’s most advanced distributed temperature sensing (DTS) technology, announced an $8 million round of venture capital financing. The round was co-led by new investor Advantage Capital Partners and prior investor Expansion Capital Partners, with all existing investors participating, including WHEB Ventures and Stonehenge Capital Company.
SensorTran develops distributed temperature sensing (DTS) solutions that offer real-time, high-resolution and continuous temperature measurements along optical fibres. The technology is the result of six years of research, development, field experience, and proprietary know-how. Applications of this platform technology include monitoring transmission and distribution power cables, downhole oil and gas wells, high-temperature vessels, pipelines, storage tanks and climate change. SensorTran’s customers include Baker Hughes, Core Lab, Tyco, N-Star, BC Hydro, as well as numerous Fortune 1000 companies.
AlturnaMats acquires Mobile Matts
AlturnaMats, Inc. announces the acquisition of Mobile Matts. According to Michael Gierlach, president of AlturnaMats, the integration of AlturnaMats with Mobile Matts comprises the largest ground protection mat manufacturing group in the U.S. and enables dealers worldwide to offer customers a broad selection of mats. These rugged ground protection mats are used to eliminate damage to lawns and soft terrain due to vehicle traffic in well drilling. The mats are used to keep heavy vehicles from getting bogged down in mud. Mobile Matts are now available through AlturnaMats’ extensive dealer network. AlturnaMats, Inc. offers its well known AlturnaMats. Mobile Matts are slightly lighter in weight and have a unique “M” shaped tread. All three mats are fully guaranteed for six years, though they last much longer. Both firms also market one-piece plastic outrigger pads in a large variety of sizes.
