GLGY 377 Petroleum Geology

Unconventional Resource Term Paper

Bitumen Sands

Affiliation: Mechanical and Manufacturing Engineering, University of Calgary

Due date: Friday, April 11, 2014
 A. Introduction

The gasoline we burn in our cars, the asphalt that makes up our roads, and the plastic

we use in our toothbrushes are all made from a resource called petroleum. Petroleum

is a viscous mixture of gaseous, liquid and solid hydrocarbons formed naturally within

the earths crust (Petroleum Geology, n.d.). The hydrocarbons are a result of marine

and terrestrial organic matter that has been compacted and heated under layers of rock

over millions of years (Northern Territory Government 2012).

Petroleum can be found in pools that are deep underground. Pools are located in rock,

such as sandstone, that contains many small, interconnected pores. When the rock is

very porous and permeable, such as in carbonate reservoirs, the petroleum is free

flowing and can be pumped out easily (Ratner and Tiemann 2014). Petroleum in this

kind of rock is called conventional oil (liquid petroleum) and conventional gas (gaseous

petroleum), respectively. Unconventional oil and gas refer to petroleum found in rock

that is bacteria-rich, very fine-grained and much less permeable (Ratner and Tiemann

2014). The difference between the two can be described as a sponge and piece of clay:

while it is easy to squeeze water out of a sponge, it is much more difficult to squeeze

water out of clay; the clay must be stimulated, compressed or broken to recover the

water in it, much like an unconventional source of petroleum must be stimulated through

heat and fracking before extracting its oil (Alberta Energy Regulator n.d.).

There are many types of unconventional oil and gas sources such as tight oil, tight gas,

shale oil, shale gas, coalbed methane and bitumen sands. This report will focus on
Albertas bitumen sands, which are a mixture of sand, clay, water and a highly viscous

oil called bitumen.

B. Geology of Albertas Bitumen Sands

A petroleum reservoir originates from the buildup of dead organic matter from marine

and terrestrial environments. Over time sediment is deposited on this organic matter via

wind, river, and ocean systems in which the process of diagenesis transforms the

organic matter and sediments into organic-rich sedimentary rocks (American Chemical

Society n.d.). Diagenesis is the physical, chemical, or biological alteration of sediments

into sedimentary rock at relatively low temperatures and pressures that change the

rocks original mineral content and texture (Schlumberger n.d.). Compaction, chemical

reactions and microbial action cause the carbohydrates and proteins to degrade and

form new structures such as kerogen, a waxy material, and bitumen.

Figure 1: Petroleum production process, American Chemical Society n.d.

A majority of North Americas bitumen deposits can be found in Alberta within the

McMurray Formation, which is up to 150 m thick (see Figure 2) (Conly et al. 2002). A

formation is a body of rock that can be mapped due to its continuity over many

kilometers and distinct thickness (Schlumberger n.d.). What prevents the resource from

being extracted by conventional methods is that bitumen exists as such a viscous

Figure 2: Cross section of ranges 7 to 12 through the Athabasca oil sands region, Conly et.al 2002

substance at room temperature that it will not flow unless it is heated or diluted by

lighter oil. Though bitumen sands located near the surface can be mined and refined,

those located deeper underground require heat stimulation before they can be carried

up through a pipe.

Figure 3: bitumen (black substance) impregnated within sandstone, Canadian Association of

Petroleum Producers n.d.
 C. Extraction Methods

I. Open-Pit Mining

A majority of todays oil recovered from bitumen sands is through open-pit mining.

Similar to coal mining, open pit mining uses large shovels to scoop bitumen sands into

large trucks, where they are then crushed into smaller pieces and mixed with chemicals

and water. This mixture is transported via pipelines to a plant where the bitumen is

separated from the rest of the components (Oil Sands Today n.d.). Common to all open

mining operations are tailing ponds: large, engineered basins over 150 square

kilometers in area that contain water, sand, clay and leftover oil (Oil Sands Today n.d.).

Over time, sand and clay will sink to the bottom, while the water above will be recycled

and the remaining oil on the surface will be collected.

Figure 4: Illustrated open pit mining operation, Oil Sands Today n.d.

Open-pit mining for bitumen sands in Alberta began in 1967, when Great Canadian Oil

Sands Limited built its first mine in the Athabasca oil sands region (Globe and Mail
2012). Even though half of todays oil recovered from the oil sands is through open-pit

mining, this method can only access about 20 percent of all recoverable bitumen sands.

(American Petroleum Institute 2011). The remaining reserves of bitumen that are

recoverable must be through in-situ (meaning in position) techniques, such as Steam

Assisted Gravity Drainage and Cyclic Steam Stimulation.

II. Steam Assisted Gravity Drainage

Most of the bitumen sands in Alberta are buried about 300 to 400 meters below the

surface, which is well beyond what open pit mining can reach (MEG Energy n.d.). One

way to retrieve the thick bitumen impregnated in the rock is to use a Steam Assisted

Gravity Drainage (SAGD). Steam is generated then pumped through a well and into a

reservoir, thereby heating the bitumen and lowering its viscosity. Another parallel well

about 5 meters below the steam injecting well collects the draining oil due to gravity

Figure 5: Schematic of a SAGD operation, MAG Energy n.d.

(MEG Energy n.d.) The liquefied oil is then pumped up to a facility where it is processed

and distributed to other regions via pipelines for further processing to convert into

usable products such as gasoline, diesel and jet fuel.

SAGD was conceived by a chemical engineer named Dr. Roger Butler in the 1970s who

was working with Imperial Oil at the time (Canadian Petroleum Hall of Fame n.d.).

Though the concept was developed in the 1970s and 1980s, the first commercial SAGD

facility was not built until 1996 by Cenovus in Foster Creek, AB (Alberta Oil Magazine

2013).

D. Economic Impact

SAGD efficiency is measured by the amount of steam needed to produce a barrel of oil,

that is, steam to oil ratio (SOR) (Cenovus n.d.). The lower the SOR is, the more

efficiently the steam is used, which means less fuel is burned to generate steam.

Typical SOR values for SAGD operations are between two to five. In 2010, net fresh

water use through in-situ operations was 0.4 barrels per barrel of oil produced (the

remaining water used is saline and not suitable for drinking), while mining operations

required 3.1 barrels of fresh water per barrel of oil (Canadian Association of Petroleum

Producers 2012). Mining operations therefore use considerably more fresh water than

in-situ operations such as SAGD.

Projects using SAGD technology are becoming increasingly common, for example, in

Alberta less than five SAGD projects existed before 2000, but up to 16 SAGD projects
exist as of November 2013 (Alberta Energy 2013). As of 2012, SAGD, combined with

other in-situ methods, account for 52 percent of bitumen production in Alberta, while

open-pit mining account for the other 48 percent a 3 percent increase for in-situ

methods from 2011 (Pembina n.d.).

E. Conclusion

According to the Government of Alberta, Canada has the third largest proven oil

reserves in the world, with 98 percent situated in Alberta. (Alberta n.d.) Despite this fact,

99 percent of Albertas oil reserves are situated in bitumen sands and therefore cannot

be recovered using conventional methods. Because of its viscous nature at room

temperatures, bitumen must be stimulated by steam or broken up and then processed

before oil can be recovered from the sedimentary rock. Two methods discussed were

open-pit mining and SAGD.

While open-pit mining currently accounts for half of the bitumen production in Alberta, it

can only access about 20 percent of the total bitumen reserves. The remaining 80

percent must be recovered through in-situ methods, such as SAGD and Cyclic Steam

Stimulation. SAGD is proving to be a viable technique in the industry today with a higher

percentage of bitumen being extracted from this method in Albertas oil sands. Despite

the increasing production of oil in Alberta each year, environmental impacts should be

considered such as freshwater usage and treatment of tailing ponds.

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