Bitumen Recovery and Technology
Phoenix, AZ - In recent years, investments in oil sands projects have become more attractive due to the increasing price of crude oil and technology improvements that have brought down the costs of bitumen production. The latest report from Energy Business Reports, an energy industry think tank, focuses on the issues, challenges and potentialities associated with bitumen recovery.
In 2005, crude oil derived from oil sands and associated bitumen accounted for about 50% of Canada’s crude oil output. The figure is expected to increase to 77% by 2012. Over the next decade, synthetic crude produced from Alberta's oil sands will be between 1.5 and 1.7 million barrels per day, and the amount of bitumen shipped to market will double from its current volume of around 350,000 bbl/d.
In recent years, investments in oil sands projects have become more attractive due to the increasing price of crude oil and technology improvements that have brought down the costs of bitumen production. The latest report from Energy Business Reports, an energy industry think tank, focuses on the issues, challenges and potentialities associated with bitumen recovery.
Environmental Challenges: For every unit volume of bitumen recovered, six or more units of wet sands and water-saturated tailings must be handled, processed, and eventually reclaimed. In addition, the overburden scraped away from the oil sands layers also needs to be reclaimed. Emissions from oil sands operations include carbon dioxide, sulfur dioxide, nitrogen oxides, hydrogen sulfide, carbon monoxide, methane and other volatile organic compounds, ozone, and particulate matter. Air pollution, acid rain, snow, dust, and ground level smog are all issues for the bitumen industry.
Synthetic Crude Oil (SCO) Quality: SCO derived from bitumen currently has limited value across an expanded market base because of its quality drawbacks. The high aromaticity (strong smell) of SCO is a big problem, and collaborative research is needed to address this issue. The current push toward ultra-low sulfur fuels in both Canada and the U.S. is another quality issue calling for investment.
The Need for Research and Development:
At-Face Mining: Bitumen can be recovered by mining or in-situ production. Moving the extraction step to the mine face is commonly known as at-face mining. The concept of at-face mining includes the integration of various steps in the mining-to-tailings chain through integrated equipment, such as the tar sands combine. This device uses only 20% of the normal extraction water (after recycling) and produces geo-technically stable tailings. Power consumption is also significantly reduced.
Alberta, Canada is home to 85% of the world’s bitumen, and Canadian deposits are virtually the only ones that are economically recoverable for conversion to oil. The growth potential for the bitumen industry is enormous. Its development along the lines outlined in this report will bring major growth in employment, infrastructure, and government tax and royalty intake over the long term. However, extensive research and development is needed to bring costs down further and to address numerous other challenges associated with bitumen extraction and production.
About the Publisher: "Bitumen Recovery and Technology" is published by Energy Business Reports (www.EnergyBusinessReports.com)
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