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PETSOC-2006-164 Economic Analysis of Thermal Solvent Processes PDF
PETSOC-2006-164 Economic Analysis of Thermal Solvent Processes PDF
PETSOC-2006-164 Economic Analysis of Thermal Solvent Processes PDF
This paper is to be presented at the Petroleum Society’s 7th Canadian International Petroleum Conference (57th Annual Technical
Meeting), Calgary, Alberta, Canada, June 13 – 15, 2006. Discussion of this paper is invited and may be presented at the meeting if
filed in writing with the technical program chairman prior to the conclusion of the meeting. This paper and any discussion filed will
be considered for publication in Petroleum Society journals. Publication rights are reserved. This is a pre-print and subject to
correction.
1
The VAPEX process may be augmented by adding heat. first high-pressure Thermal Solvent experiment was done in a
Heating of a horizontal wellbore will reduce viscosity lab model designed to scale a 20 m thick Burnt Lake reservoir.
sufficiently to produce a large increase in oil rate. The heat will It was a Pujol and Boberg scaled experiment that used propane
also serve to initiate communication between the injector and as the solvent. The model was a rigid “box” inside of a pressure
the producer. The heat will serve to speed the diffusion of vessel. (Figure 1) The experiment was run using Hillmond
solvent into the oil. The combination of heated wellbores and heavy oil. The experimental schematic is shown in (Figure 2).
VAPEX is known as the Thermal Solvent process. Again, a
pair of horizontal wells is used, but the wells contain heating The second sequence of experiments scaled a range of
strings. This heat vaporizes the injected solvent. Solvent vapour processes, from VAPEX to Hybrid solvent, for an Athabasca
moves to the oil interface at the edge of the vapour chamber and bitumen reservoir. They used a “sealed can” type of model
dissolves in the oil. The diluted oil is reduced in viscosity and confined by a gaseous overburden. (Figure 3) The solvent used
flows down the edge of the vapour chamber to the production was propane. The first experiment was VAPEX but with heat to
well. The vaporized solvent is driven out of the oil by the heat initiate communication between wells. The second experiment
as it enters the production well. The vaporized solvent will was a Thermal Solvent experiment, with heated injection and
return to the vapour chamber, where it will mobilize additional production wells. The third experiment was a Hybrid Solvent
oil. experiment in which propane and steam were injected
simultaneously into the injector well. The final experiment was
Heat may be injected by using vaporized solvent or steam. a propane-stream hybrid experiment, but at a higher steam
Because of the low thermal mass of solvent, it is expedient to injection rate.
heat the solvent by co-injection of steam. The result is a Hybrid
Solvent process. This process may be operated at any set of The experiments were done to evaluate the processes. The
steam and solvent rates between pure SAGD and pure VAPEX. experiments were also done to build a database of experimental
Detailed modelling and economic studies are required to performance and the economic evaluation of the thermal solvent
determine an optimum point for this process. process, and the hybrid solvent process, to determine whether
any single process has a significant economic advantage.
2
Experimental Results startup was slow in spite of the initial heating to ensure
communication.
SAGD Simulation @ 1000 kPa The Propane injection rate was initially 100 cc/h liquid. The
This simulation was done to check the effectiveness of operating pressure was 760 kPag. The experiment ran for 15
SAGD at reduced pressure. Injection pressure was 1000 kPa. hours. The experiment produced 14.6% IOIP in 15 hours, and
The steam/oil ratio was 1.66, and the ultimate oil recovery was had a supply cost of $24.97/bbl. Figure 9 shows the cumulative
83.2% IOIP at 10 years. The reduced steam-oil ratio translated injection and production for this experiment. The experiment
into an economic advantage of $3.10/bbl, as compared to 2500 produced oil 48% faster than VAPEX without heat. Figure 10
kPa SAGD. The simulations did not take into account shows the oil production extrapolated to field scale. Startup
geomechanical effects such as reservoir dilation and enhanced was faster than for the cold VAPEX experiment. The oil rate
permeability due to pressure and thermal effects. Figure 5 was approximately 20 m3/d.
illustrates cumulative and incremental oil production, and costs.
Table 3 shows the numerical simulation results. Thermal Solvent Hybrid Experiment #10
(UTF/C3)
Thermal Solvent Reflux Experiment #5 (C3) This experiment modelled a Thermal Solvent Hybrid process
The high-pressure thermal solvent experiment that was run is (Figure 11) in a 30 m thick Athabasca reservoir. The oil used
a 20 cm high x 40 cm long x 12 cm wide cell (Figure 3) to was UTF bitumen. The solvent used was propane. The initial
simulate a 20 m thick reservoir with 5 m vertical well separation reservoir temperature was 10°C.
and 80 m well pair spacing. The experimental model
represented a slice through a 20 m thick reservoir cell An initial mobilization heat-up phase was required. Both
perpendicular to a pair of horizontal injection/production wells wells were pre-heated by injecting steam. After the pre-heat
at one end of the model. This model represented production phase, the production well steam was shifted to the injection
from half of a well pair. The injection and production wells well only.
were equipped with electrical heaters, 1 in the injector and 1 in
the producer. These were used to vapourize injected solvent, to Solvent injection rates were initially 100 cc/h liquid propane.
heat the reservoir, and to reflux produced solvent. The steam injection rate was 400 g/h. The operating pressure
was 800 kPag. The experiment was run for 14 hours. The
The injector was 5 cm above the producer, and the producer experiment produced 35.5%IOIP in 14 hours. Figure 12 shows
2 cm above the bottom. Propane was injected through the upper the cumulative injection and production. The experiment
well at 50cc/h and oil and solvent produced through the lower showed a 265% rate gain over the VAPEX experiment. Figure
well at 800 kPag. The experiment ran for 15.5 hours. The 13 shows the oil production extrapolated to field scale. The oil
experiment produced 34.3%IOIP in 16 hours, and had a supply rate is a 160% gain over the Thermal Solvent experiment.
cost of $16.05/bbl. Figure 6 shows cumulative injection and oil
production for this experiment. Thermal Solvent Hybrid Experiment #11
(UTF/C3)
VAPEX Experiment #8 (UTF/C3) This experiment modelled a Hybrid solvent process in a 30
The canister type models were insulated with Nomex m thick Athabasca reservoir. The experiment used UTF
blankets plus ¾” plywood panels on the sides of the model. The bitumen. The initial reservoir temperature was 10°C. An initial
model was wrapped with Nomex on the top and bottom to mobilization heat-up phase was used. Both wells were heated to
further control heat loss. The overburden was supplied using 180ºC by injection of steam. Solvent injection rates were
nitrogen gas pressure. initially 100 cc/h liquid propane. The rate was reduced to 75
cc/h later in the experiment, to reduce sampling frequency. The
The model was 20 cm high x 80 cm long x 10 cm wide. It steam injection rate was 500 g/h. The experiment operated at a
had a pair of horizontal wells through the pack, the wells were pressure of 800 kPag. The experiment ran for 14.5 hours. It
vertically spaced, 5 cm apart. An initial mobilization heat-up produced 40.4%IOIP and had a supply cost of $13.09/bbl.
phase was used. Both wells were heated to 180°C for the first Figure 14 shows the cumulative injection and production.
hour of the experiment. The initial reservoir temperature was Figure 15 shows the oil production extrapolated to field scale.
10°C, and the reservoir oil was UTF bitumen. Solvent injection An increase in steam rate from 400 g/h to 500 g/h increased the
rates were initially 100 cc/h liquid propane. Production pressure oil production by 93%.
was 600 - 800 kPa. The experiment ran for 13 hours. The
experiment produced 9.8%IOIP in 13.5 hours, and had a supply
cost of $46.04/bbl. Figure 7 shows the cumulative injection and Economic Assumptions
production for this experiment. Figure 8 shows the oil
production scaled up to the field (1000 m wells). The VAPEX The economic analysis was done by applying a common set
of assumptions to the experimental results. All experiments
3
were 100:1 scale models of a particular recovery process. In cumulative oil rate was 103 m3/day. The largest single cost was
order to extrapolate the experimental results to the field scale, the steam injected. The cumulative SOR was 1.16.
the injection and production data were scaled up to field scale,
and were multiplied by a well length factor to represent a 1000
meter well. A common set of costs was applied to all of the Discussion
cases studied. Significant parameters include: A 12% per anum
discount rate. The well costs were assumed to be $1.2 x106 Cdn The scaling method used, Pujol and Boberg, is good for
per thermal well, and $0.6x106 per non-thermal well. thermal processes, but has a significant limitation when scaling
Exploration costs were set at $0.2x106 per well pair. Project life VAPEX processes. The Pujol and Boberg scaling will correctly
was assigned a value between 10 years and 16 years, depending scale heat transfer, which is the rate- limiting step for a SAGD
on the well life predicted by the experiment or the simulation. process. In a VAPEX process the rate-limiting step is the
Steam generator capital cost was $2.2x106 for a 435 m3/d mixing of solvent into virgin immobile oil. This mixing is the
capacity generator. Water treatment capital cost was $3.3x106 result of several factors, namely molecular diffusion,
for a 600 m3/d capacity plant. Solvent capital cost was $100k. hydrodynamic dispersion as the oil and solvent flow around the
Solvent handling costs were $20k/year/well, and solvent sand grains, flow due to capillary forces and interfacial tension,
recompression costs were $.017/std m3. The solvent costs were and hydrodynamic dispersion due to oil flow around
based on the equivalent energy cost of natural gas. The natural heterogeneities in the reservoir. Accurate expression of these
gas cost was assumed to be $5.87/GJ. mechanisms requires that the lab model sand be the same
permeability as the reservoir sand. This can be done using a
VAPEX model scaling, using the same sand as the reservoir.
Economic Analysis Results Unfortunately type of model does not scale the heat transfer
aspects of the process.
The 2500 kPa SAGD numerical simulations (Figure 4)
showed a minimum cumulative cost of $105/m3 at 5 years, For a thermal process, in particular a steam-assisted process,
when most of the oil was produced, climbing to a cumulative oil the thermal effects may be very important. Other types of
cost of $125/m3 at the end of 10 years, at the conclusion of the scaling are possible but may produce cumbersome experiments.
simulation. The 1000 kPa numerical simulation showed a For this reason we chose to use the thermal model scaling, and
supply cost of $98/m3 at 7 years. At 10 years the incremental to accept the error due to inadequate expression of the mass
cost was $100/m3. The biggest cost (Figure 16) was the cost of transfer mechanisms in a high permeability sand model. For
steam. processes where the heat transfer will dominate, as in solvent-
steam processes, the lab results should be scaleable to the field.
The first high-pressure Thermal Solvent experiment (Figure Processes with a low heat input will have to be upscaled via
6) was done using a 34,000 mPa.s heavy oil and propane. The numerical simulation.
lowest cumulative oil cost was $100.93/m3 at 16 years (Figure
16). There was still significant oil to be recovered, so the This comparison of several thermal-solvent experiments is a
ultimate cost may be lower. The average cumulative oil rate was highlight of key processes as expressed by the experiments,
37.8 m3/d. The largest single cost was the energy (steam rather than a comprehensive examination of the processes,
equivalent) used to heat the wells. simply because a prohibitively large number of experiments
would be required to completely scope out the process domain.
The Athabasca bitumen/propane VAPEX experiment (Figure History-matching the current experiments and then running a
7) produced a minimum cumulative oil cost of $294/m3 at 16 suite of field scale simulations will produce a “road map” of
years (Figure 16). The cost would be expected to come down process performance. This will produce a comprehensive
somewhat in a longer experiment, as the experiment had a very comparison of the process options. An economic analysis run
prolonged startup, in spite of heating the wells for the first hour. on the numerical predictions will predict the relative economic
The average cumulative oil rate was 14 m3/day. The biggest advantage of the processes.
single cost was the injected solvent and solvent inventory,
followed by the well capital cost.
Conclusions
The Athabasca bitumen/propane experiment #9 (Figure 9)
employed Thermal Solvent Reflux. The experiment predicted a 1. The lowest cost processes for Athabasca bitumen was the
minimum cumulative oil cost of $157.05/m3 at 16 years. The Thermal Solvent Hybrid process as modelled in
cumulative cost was still declining, as oil production was far experiment #11 ($13.09/bbl)and low pressure SAGD
from complete. The average cumulative oil rate was 20 m3/d. ($13.06/bbl). This was followed by the 2500 kPa SAGD
The biggest cost was the well capital cost. simulation ($16.16/bbl) and by the Thermal Solvent
Hybrid Experiment #10 ($17.04/bbl).
The Thermal Solvent Hybrid experiment #10 had a 2. The process for heavy oil modelled by Thermal Solvent
minimum cumulative oil cost of $104.88/m3 at 14 years (Figure experiment #5 using hot propane injection had a supply
16). The cost increased to $108.13/m3 at 16 years. The average cost of ($16.05/bbl). The Thermal Solvent process using
cumulative oil rate was 52 m3/d. The biggest cost was the steam refluxed hot propane could recover heavy oil at costs
injected. The cumulative SOR was 1.80. competitive to SAGD.
3. The Thermal Solvent Reflux experiment #9 had a
The second Thermal Solvent Hybrid experiment (Figure 14) projected supply cost of $24.97/bbl. for recovery of
used a 25% higher steam injection rate. This experiment had a Athabasca UTF bitumen. This is substantially higher than
minimum cumulative oil cost of $82.31/m3 (Figure 16). The the SAGD, cost. It may be possible to further optimize
cost was still declining at the end of the experiment and could this process to improve performance.
have dropped lower with a longer run time. The average 4. Many of the experiments suggested a process life longer
than 15 years. Due to lower oil production rates, a longer
4
payout period than for SAGD is expected. The lower oil
rates are in some cases compensated for by the lower
energy input costs.
5. For VAPEX in Athabasca bitumen, the average oil
production rate was 14 m3/d, which did not produce a
commercially competitive oil cost. The high viscosity of
Athabasca bitumen, and the resulting low diffusivity
resulted in a slow oil recovery process.
Acknowledgements
The authors thank the AERI/ARC/ Core/Industry Research
program for their financial and technical support. Discussions
with Dr. Dave Cuthiell and Dr. Xiaohui Deng, concerning the
numerical simulation of the experiments and the economic
analysis inputs, were much appreciated. Thanks to Ms. Valerie
Pinkoski for final formatting and editing of the manuscript.
REFERENCES
1. FRAUENFELD, T., LILLICO, D., JOSSY, C., RABEEH,
S., SINGH, S., Evaluation of Partially Miscible Processes
for Alberta Heavy Oil Reservoirs, Paper #CIM 96-101,
presented at the 47th Annual Technical Meeting of the
Petroleum Society of CIM, Calgary, Alberta, June 10-12,
1996.
2. PUJOL, L., AND BOBERG, T.C., Scaling Accuracy of
Laboratory Steamflooding Models, Paper presented at the
43rd Ann. Calif. Regional Meeting, Bakersfield, Cal., SPE
Paper No. 4191, 1972.
3. KIMBER, K.D., PUTTAGUNTA, V.R., AND FAROUQ
ALI, S.M., New Scaling Criteria and Their Relative Merit
for Steam Recovery Experiments, Journal of Canadian
Petroleum Technology, July-August 1988, Vol. 27, No.4,
pp. 86 – 94.
4. BUTLER, R.M. AND MOKRYS, I.J.: “Closed Loop
Extraction Method for the Recovery of Heavy Oils and
Bitumens underlain by aquifers: The VAPEX Process”,
Paper No. 35, presented at the Fifth Petroleum Conference
of the South Saskatchewan Section, Regina, Saskatchewan,
Oct. 18 – 20, 1993.
5. KARMAKER, K. AND MAINI, B., “Experimental
Investigation of Oil Drainage Rates in the VAPEX Process
for Heavy oil and Bitumen Reservoirs”, Paper SPE84199,
presented at the SPE Annual Technical Conference and
Exhibition, Denver, Colorado, 5 – 8 October, 2003.
5
Parameter Expt. #5 Expt. #8 Expt. #9 Expt. #10 Expt. #11
Permeability of sand pack (Darcy) 250 250 250 250 250
Oil type Hillmond UTF bitumen UTF bitumen UTF bitumen UTF bitumen
Oil viscosity (mPa.s) 23000@ 20C 47000@ 30C 47,000@ 30C 47,000@ 30C 47,000@ 30C
Reservoir temperature (°C) 22 10 10 10 10
Well configuration 5 cm spaced 5 cm spaced 5 cm spaced 5 cm spaced 5 cm spaced
horizontal pairs horizontal pairs horizontal pairs horizontal pairs horizontal pairs
Steam-oil ratio (m3 CWE/m3 oil) 1.45 0.15 1.43 1.80 1.16
Avg. oil rate 81.8 g/h 59 g/h 83.1 218 g/h 250 g/h
Oil produced @ 13.4 hours 1097 g 795 g 1105 g 2983.g 3387 g
Recovery (%IOIP) 34.3 9.8 14.6 35.5 40.4
3/ 3 3 3
Scaled oil rate (1000 m hor. Well) 37.81 m d 13.68 m /d 20.15 m /d 52.31 m /d 103.02 m3/d
Peak solvent inventory 34 std. l 228 std l 69 std l 65 std. l 107 std. l
Supply cost (Cdn.$/bbl) 16.05 46.74 24.97 17.19 13.09
Table 2. Summary of Experimental Results
6
Insulation
2.5 cm from wall
5 cm
T.C. rod #7 T.C. rod #1
Thermocouple rods 7.5 cm from wall
injector
injector
heater
heater
12.5 cm producer
producer oil-saturated sand
Wells heater
heater
Cooling coils
40 cm
Figure 1. Thermal Solvent Experimental Apparatus Figure 2. Schematic of Model Used in Hillmond Oil Thermal
Solvent Experiment
600000 300
In jector T.C. #5
5
200000 100
T.C. #6 cm
Producer
90 cm
100000 50
2 cm from bottom
0 0
0 2 4 6 8 10 12 14 16
Year
Figure 3. Schematic of Model Used in Athabasca Bitumen Figure 4. Incremental and Cumulative Oil Prod. and Cost, SAGD
Experiments @ 2500 kPa
600000 300 200000 2000
Incremental Oil Production (m3)
Cumulative Oil Production (m3)
500000 Incremental Oil Cost ($/m3 oil) 250 160000 1600
Cumulative Oil Cost($/m3)
Cum. and Incremental Oil Prod (M3)
400000 200
120000 1200
300000 150
80000 800
200000 100
40000 400
100000 50
0 0
0 0
0 2 4 6 8 10 12 14 16
0 2 4 6 8 10 12 14 16 Time ( hours )
Year
Figure 5. Incremental and Cumulative Oil Prod. and Cost, Figure 6. Thermal Solvent Reflux, C3, Hillmond Oil
SAGD @ 1000 kPa
7
600 900 20 40
800
% recovery Oil rate
500
700
15 30
200 300
5 10
200
100
100
0 0 0 0
0 2 4 6 8 10 12 14 16 0 2 4 6 8 10 12 14 16
Time ( hours ) Scaled Time ( Years )
Figure 7. Thermal Solvent Experiment #8, UTF VAPEX, Heated Well Figure 8. Thermal Solvent Reflux #8, UTF VAPEX,
Startup, Cumulative Injection and Production Heated Well Startup, Scaled Rate and
Recovery
300 1400.0
20 40
1200.0
250
% recovery Oil rate
1000.0
15 30
200
Gas Inj/Prod. (std. l).
Oil/Water/Prod. (g).
800.0
150
600.0 10 20
100
400.0
50 5 10
200.0
0 0.0
0 2 4 6 8 10 12 14 16
Time ( h ) 0 0
0 2 4 Scaled
6 Time ( Years
8 ) 10 12 14
Figure 9. Thermal Solvent Experiment #9, UTF Bitumen, Figure 10. Thermal Solvent Experiment #9, UTF
Cumulative Injection and Production Thermal Solvent, Scaled Rate and Recovery
6000 350
overburden
300
5000
vapor
chamber
Mobilized oil
250
4000
Oil/H2O Inj/Prod. (g).
200
3000
Solvent + steam
150
Injector Oil sand
2000
100
1000
Producer 50
Oil prod. Cum Water prod (g) cum H2O inj ( g) Gas inj. Prod. (std l)
Figure 11. A Solvent-Steam Hybrid Process Figure 12. Thermal Solvent Experiment #10, Steam-
Propane Hybrid, Cumulative Injection and
8
Production
8000 350
Scaled Field Rate and Recovery
100 100
7000 300
90
% recovery Oil rate
6000
80 80 250
50 150
3000
40 40
100
2000
30
20 20 1000 50
10
0 0
0 0
0 2 4 6 8 10 12 14 16
Time ( h )
0 2 4 6 8 10 12 14
Scaled Time ( Years )
Cum Oil Prod. ( g) Cum H2O Prod. (std cc) Cum H2O Inj. ( g)
Cum Gas Inj. (std. l) Cum Gas Prod. (std l)
Figure 13. Thermal Solvent Experiment #10, Steam-Propane Figure 14. Thermal Solvent Experiment #11, Steam-Propane
Hybrid, Scaled Field Rate and Recovery Hybrid, Cumulative Injection and Production
y
Administration Transportation Well Operating
100 200
Steam Water Treatment Capital
Solvent Solvent Handling Capital for Solvent
40.00
80 160
30.00
Oil Rate (m3/d/well) '
60 120
20.00
40 80
10.00
20 40
0.00
Pa
Pa
3)
3)
3)
3)
x#
/C
/C
/C
/C
k
flu
00
00
TF
TF
TF
TF
25
10
Re
(U
(U
U
(U
8(
@
0 0
10
11
3)
#9
x#
D
(C
.#
.#
G
pe
ex
rid
rid
v.
SA
SA
0 2 4 6 8 10 12 14
ap
Va
ol
yb
yb
.S
H
Th
al
al
al
m
m
er
er
er
Th
Th
Th
Oil Recovery (% IOIP) Field Oil Prod. Rate (m3/d/ well)
Figure 15. Thermal Solvent Experiment #11, Steam-Propane Figure 16. Thermal Solvent Hybrid Experimental Economics
Hybrid, Scaled Field Rate and Recovery