238
PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
Heavy oil can be found in Alaska, California, and Wyoming, and
exist in other countries besides the United States and Venezuela.
However, like production from oil sands, heavy oil production in
the United States presents environmental challenges in its consumption of other energy sources, which contributes to greenhouse
gases, and potential groundwater contamination from the injectants needed to thin the oil enough so that oil will flow through
pipes. Canadian tar sand and heavy oil, and Venezuelan tar sand
and heavy oil are expected to represent cumulatively at least 3 trillion barrels of higher cost crude oil resources. In fact, the known
heavy oil reserves in Venezuela represent almost 90% of the proven
heavy oil reserves in the world. Venezuelan production of heavy oil
approaching one million barrels per day per day is projected to be
sustained at this rate through 2040.
Worldwide production of tar sand bitumen, largely from Alberta,
contributed approximately 1.6 million barrels of oil per day, and
over the next 10 to 12 years output is expected to increase to
3.5 million barrels per day by 2030. More refiners will begin investing to process it and come to depend on the Synbit and Dilbit for a
significant part of their supply (Pavone, 2009). However, production of liquid fuels from tar deposits presents significant environmental challenges. The production process uses large amounts of
natural gas, which generates greenhouse gases when burned. In
addition, large-scale production of bitumen and synthetic fuel from
tar sand requires significant quantities of water, typically produce
large quantities of contaminated wastewater, and alter the natural
landscape. These challenges may ultimately limit production from
this resource, even if sustained high oil prices make production
profitable.
Nevertheless, the forecast is for the addition of significant tar
sand capacity, which includes significant additions to capacity
from both surface mining and in-situ production using injected
steam (Pavone, 2009). Of the alternative methods, in-situ production is expected to grow at a much faster pace than conventional
mining methods. In addition, North West Upgrading will install
an upgrader in Sturgeon County, Canada, capable of upgrading 77
000 barrels per day of bitumen. The upgrader will use delayed coke
(Lurgi) gasifiers and a hydrocracking unit utilizing the LC-Fining
technology (Lummus Chevron). Commercial heavy oil developments have been considered (or are occurring) in Iran (SorooshNowruz fields), Oman (Mukhaizna field) as well as Brazil (Marlim
Sul and Jubarte) and Occidental Petroleum has taken a 15% share
PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
Heavy oil can be found in Alaska, California, and Wyoming, and
exist in other countries besides the United States and Venezuela.
However, like production from oil sands, heavy oil production in
the United States presents environmental challenges in its consumption of other energy sources, which contributes to greenhouse
gases, and potential groundwater contamination from the injectants needed to thin the oil enough so that oil will flow through
pipes. Canadian tar sand and heavy oil, and Venezuelan tar sand
and heavy oil are expected to represent cumulatively at least 3 trillion barrels of higher cost crude oil resources. In fact, the known
heavy oil reserves in Venezuela represent almost 90% of the proven
heavy oil reserves in the world. Venezuelan production of heavy oil
approaching one million barrels per day per day is projected to be
sustained at this rate through 2040.
Worldwide production of tar sand bitumen, largely from Alberta,
contributed approximately 1.6 million barrels of oil per day, and
over the next 10 to 12 years output is expected to increase to
3.5 million barrels per day by 2030. More refiners will begin investing to process it and come to depend on the Synbit and Dilbit for a
significant part of their supply (Pavone, 2009). However, production of liquid fuels from tar deposits presents significant environmental challenges. The production process uses large amounts of
natural gas, which generates greenhouse gases when burned. In
addition, large-scale production of bitumen and synthetic fuel from
tar sand requires significant quantities of water, typically produce
large quantities of contaminated wastewater, and alter the natural
landscape. These challenges may ultimately limit production from
this resource, even if sustained high oil prices make production
profitable.
Nevertheless, the forecast is for the addition of significant tar
sand capacity, which includes significant additions to capacity
from both surface mining and in-situ production using injected
steam (Pavone, 2009). Of the alternative methods, in-situ production is expected to grow at a much faster pace than conventional
mining methods. In addition, North West Upgrading will install
an upgrader in Sturgeon County, Canada, capable of upgrading 77
000 barrels per day of bitumen. The upgrader will use delayed coke
(Lurgi) gasifiers and a hydrocracking unit utilizing the LC-Fining
technology (Lummus Chevron). Commercial heavy oil developments have been considered (or are occurring) in Iran (SorooshNowruz fields), Oman (Mukhaizna field) as well as Brazil (Marlim
Sul and Jubarte) and Occidental Petroleum has taken a 15% share