Page 143 - Synthetic Fuels Handbook

FUELS FROM TAR SAND BITUMEN 129

reservoirs where the oil in-place had viscosity in the range of 10,000 to 25,000 cP (some-
what lower than the viscosity of tar sand bitumen).
Nevertheless, the projects did cover a wide range of reservoir conditions: porosity
ranged from 15 to 37 percent and permeability was up to 6000 millidarcies. Bitumen
saturation was up to 90 percent of the pore space (up to 22 percent by weight of the tar
sand) and the API gravity ranged from 2° to 14° API and viscosity from 1 to 2 million
centipoise.
Finally, the fact that most of the tar sand resource in the United States is too deep for
economic development is reflected in the ratio of the numbers of in situ projects to mining/
extraction projects (almost 4:1).
Obviously, there are many features to consider when development of tar sand resources
is planned. It is more important to recognize that what are important features for one
resource might be less important in the development of a second resource. Recognition of
this facet of tar sand development is a major benefit that will aid in the production of liquid
fuels in an economic and effective manner.
Construction is underway for the next phase of oil sands growth as part of the Voyageur
Project. This is expected to give production capacity of 350,000 bbl/day by 2008 and
includes a new pair of coke drums—the largest ever constructed (using ConocoPhillips’
ThruPlus delayed coking technology)—and a sulfur recovery plant.
Suncor’s Firebag in situ operations are located 40 km northwest of the original oil
sands plant and will form a key part of the increased bitumen supply to the upgraders as
the project progresses.
Key elements of the Voyageur Project are the construction of a third oil sands upgrader
in Fort McMurray; expansion of the bitumen supply; and the continuation of third-party
bitumen supplies.
Plans call for the new upgrader to be constructed approximately half a kilometer south-
west of existing Suncor upgrader facilities.
The new facility will include cokers, hydrotreaters, utilities support, and a 50 km hot
bitumen pipeline to connect the upgrader with the Suncor in situ operations. Preparations
have begun on the site but construction is not expected to begin until 2007 while some final
decisions are made.
The upgrader has been designed to produce light crude oil and production from the
new facility is expected to be brought online in phases starting in 2010 with full capacity
of approximately 550,000 bbl/day targeted in 2012. It is estimated that constructing the
upgrader will cost C$5.9 billion.
Suncor has also identified the need for additional pipeline capacity from Fort McMurray
to Edmonton and the company is pursuing various options to accommodate the additional
volumes. The construction of the upgrader would employ approximately 4000 workers.
Approximately 300 new permanent jobs at Suncor’s oil sands facility are expected to be
created when the upgrader is in full operation.
Suncor also intends to build and operate a petroleum coke gasifier that would reduce the
company’s reliance on natural gas. The gasifier is planned to process about 20 percent of the
proposed upgrader’s petroleum coke (a byproduct of the upgrading process) into synthetic
gas. The synthetic gas would then be used to supply hydrogen and fuel. The gasifier will
add an estimated $600 million to the total cost of this project.
Suncor’s Steepbank and millennium mines currently produce 263,000 bbl/day and its
Firebag in situ project produces 35,000 bbl/day. It intends to spend C$3.2 billion to expand
its mining operations to 400,000 bbl/day and in situ production to 140,000 bbl/day by
2008. An estimate of the recoverable oil resources on Suncor leases is 9 billion barrels of
crude oil.
At current rates of production, the Athabasca oil sands reserves as a whole could last
over 400 years. New in situ methods have been developed to extract bitumen from deep