GEOG 3EE3 Lecture Notes - Lecture 8: Natural-Gas Processing, Tight Oil, Unconventional Oil
4 Apr 2019
School
Department
Course
Professor
February 1, 2019
LECTURE 8 - OIL PART 2
MIDTERM #1:
- Next week
- 35 M/C
- Lecture 2-7
- 24 questions from lecture (4 each lecture)
- 11 questions from textbook (2-3 each chapter; describe/explain on concept or terminology)
- A-O → MDCL 1102
SLIDE 3: 1. FUTURE OIL DEMAND
- 2000-2040
- Looking at the world demand and different sector in which oil is needed (e.g. power generation,
chemical)
- There is increasingly overall demand
- Demands for liquid fuels is projected to grow by: about 20%
- In a 100% percent light-duty EV by 2040 model: light-duty transport demand would
disappear
SLIDE 4: PROJECTIONS OF FUTURE WORLD OIL SUPPLY
- Projected by mid-century, we would be running out of oil fuel
- Conventional oil fields are usually off-shore (aka in other countries in Middle East)
- More conversion of natural gas liquids as a replacement
- Growth of unconventional oil
- Increase hydrocarbons
SLIDE 5:
- Tight oil is projected for greater share for oil production than others
- Global liquids production: rises by 20%
- Most growth expected to occur in tight oil and NGLs: ~30% of global supply
- NGL → natural gas liquids
- With enhanced recovery, there would not be a big drop
- The limit that Hubbert was forecasting is getting pushed much further ahead of time
SLIDE 6: 2. THE OIL ECONOMY IN CANADA
- A major source of revenues for governments
- In terms of taxes, royalties, land sales, etc.
- Governments find this an economic incentive
- A major component of trade with the USA
- Looking at billion of dollars
- USA is primary customer and market for crude oil (around 22% is crude oil)
- Big part of Canada’s economy
SLIDE 7: CANADA AND WORLD OIL PRODUCTION
February 1, 2019
- Canada is 4th largest producer of crude oil, NGLs, etc.
- Canada is 4th world exporter
- Saudi Arabia exports a lot of their oils (16% is exported out of the country)
SLIDE 8: THE OIL SANDS
- 10 to 12% bitumen, mixed with sand, clay, silt, and water
- Bitumen is upgraded to synthetic oil
- Area underlain by oil sands: 142 000 km2
- Minable area: 4 800 km2
- Area being mined: 901 km2
- Not much of the land is impacted, but this is only surfaced mining
- A lot of the areas that are underlain has to be harvested via injections → still more potential in
land loss
SLIDE 9:
- 7 large-scale projects in 2017 involving mining
- “Steam Injection” → pushed into the surface and breaks the bond of bitumen and then pumped back
into the surface
- Now 55% of the current projection
- 81% are now doing this process
- Expansion could take place via the injection
- Bitumen upgrading: crude bitumen processed to make it lighter - “synthetic crude oil”
- Total upgrading capacity in Canada is: 1.29 MMb/d
- Bitumen may also be blended with diluent and sold to: refineries capable of processing
heavier oils
SLIDE 10:
- 1.2 trillion L
- 220 km2
- Extremely toxic
- Known to cause a lot of impacts, especially wildlife (e.g. birds dying)
- Affecting water quality and watersheds
- Impacts on neighbouring Aboriginal health (e.g. cancer)
- Expected to last into 22nd century
SLIDE 11: CANADIAN OIL RESERVES AND PRODUCTION
- We can see that other provinces are minor players compared to Alberta for the production process
- Billion of barrels in December 2017
- Vast majority of them are 167.7 barrels in oil sands
- Majority of the reserves are recoverable via steam injection rather than mining
- We can see the production has been stepping up
SLIDE 12:
- This was for Western Texas Intermediate
Document Summary
11 questions from textbook (2-3 each chapter; describe/explain on concept or terminology) Looking at the world demand and different sector in which oil is needed (e. g. power generation, chemical) Demands for liquid fuels is projected to grow by: about 20% In a 100% percent light-duty ev by 2040 model: light-duty transport demand would disappear. Slide 4: projections of future world oil supply. Projected by mid-century, we would be running out of oil fuel. Conventional oil fields are usually off-shore (aka in other countries in middle east) More conversion of natural gas liquids as a replacement. Tight oil is projected for greater share for oil production than others. Most growth expected to occur in tight oil and ngls: ~30% of global supply. With enhanced recovery, there would not be a big drop. The limit that hubbert was forecasting is getting pushed much further ahead of time. A major source of revenues for governments. In terms of taxes, royalties, land sales, etc.
