50, 000 Feet - PowerPoint PPT Presentation

1 / 57
About This Presentation
Title:

50, 000 Feet

Description:

Alberta Oil Sands Market Update Strategic Partners: February, 2009 Presentation Overview Ontario Oil Sands Initiative Global Oil Market Update Canadian Oil Market ... – PowerPoint PPT presentation

Number of Views:188
Avg rating:3.0/5.0
Slides: 58
Provided by: sra82
Category:
Tags: feet | polymer | smart

less

Transcript and Presenter's Notes

Title: 50, 000 Feet


1
Alberta Oil Sands Market Update
Strategic Partners
February, 2009
2
Presentation Overview
  • Ontario Oil Sands Initiative
  • Global Oil Market Update
  • Canadian Oil Market Update
  • Manufacturing Crude Oil
  • Oil Sands Capital Projects Update
  • 5 Things to Help You Win in the Oil Sands

3
Ontario Oil Sands Initiative
  • Canadian Manufacturers Exporters (CME)
  • Ontario Government
  • Ministry of Economic Development (MED)
  • Ministry of Small Business Consumer Services
    (MSBCS)
  • Ministry of Northern Development Mining (MNDM)
  • Maximize the economic benefit for Ontarios
    Manufacturers

4
CMEs Oil Sands Initiative
  • Raise awareness about the oil sands market
  • Workshops and SMART Sessions
  • Media publications
  • Help companies develop their market strategy
  • Work directly with Ontario business
  • www.icosmo.ca
  • Studies, media updates, presentations
  • Oil Sands 101 How to do Business in Alberta
  • Searchable directory
  • Facilitate business partnerships
  • Trade missions reverse visits
  • National Buyer-Seller Forum

5
Global Oil Market Update
6
Global Oil Reserves
7
Global Oil Reserves
  • 2006

8
Global Flow of Oil
BP Statistical Review of World Energy June 2008
9
Major Producers and Consumers
MAJOR PRODUCERS
MAJOR CONSUMERS
BP Statistical Review of World Energy June 2008
10
Per Capita Crude Consumption
BP Statistical Review of World Energy June 2008
11
Crude Consumption Since 2000
BP Statistical Review of World Energy June 2008
12
Current and Future Crude Demand
120 m bbd
5 m bbd
13
Crude Oil Price History
145.16 USD July 14, 2008
29.89 December 1, 2003
30.28 December 23, 2008
WTI Source US EIA, February, 2009
14
Current Crude Market Conditions
  • February 09 40 per barrel
  • Global credit markets crisis
  • US OECD are in recession
  • Potential global recession
  • Production Winter 2009
  • 85 million bbd
  • OPEC 30 million bbd
  • Decreased production by 1.5 million bbd on Nov. 1
  • Production capacity 35.7 million bbd -- 39.7
    million bbd by 2010
  • Rest of the world - 55 mb/d

15
US Production and Consumption
CONSUMPTION
2007 20, 860 k bbd
Peak 1970 11, 297 k bbd
PRODUCTION
Source US Energy Information Administration
16
Global Crude Oil Outlook
  • SHORT TERM
  • Demand growth will be weak
  • Price of oil will continue to be undervalued
  • LONG TERM
  • Conventional oil reserves are decreasing
  • The price of oil will rebound and continue to
    climb
  • US policy for secure oil will ensure demand for
    Canadian crude
  • Non-conventional production will continue to grow

17
Canadian Oil Market Update
18
Canadian Oil Production Forecast
4.5 5 million bbd
Actual Forecast
2.7 million bbd
Eastern Canada
Western Canada
Source CAPP Canadian Crude Oil Forecast, June,
2008
19
2007 Canadian Crude Production
Thousands of barrels per day
Total 2, 595 k bbd
Source CAPP Canadian Crude Oil Forecast, June
2008
20
Western Canadian Oil Production
Actual Forecast
Infrastructure planning
4.5 M bbd
In-Situ
2.1 M bbd
Mining
Conventional Heavy
Conventional Light
Pentanes
Source CAPP Canadian Crude Oil Forecast, June,
2008
21
Alberta - Conventional Oil Gas
Actual Forecast
Source CAPP Canadian Crude Oil Forecast, June,
2008 CAPP 2009 Outlook, Nov, 2008
22
Alberta - Natural Gas
  • Alberta Natural Gas production is decreasing
  • North American storage levels are high
  • Mild winter seasons
  • Hurricane seasons have been relatively low-impact
  • Price per MCF is low 6.00
  • Canada has become the swing supply in NA due to
    liquefied natural gas
  • Adjusts production levels to meet market demands
  • US now maintains stable storage levels

23
Alberta - Non-Conventional Oil
  • 2nd largest proven reserve in the world
  • Alberta oil sand reserves
  • Athabasca
  • Peace River
  • Cold lake
  • 141, 000 km2 of land
  • 20 of the entire province
  • Larger than the state of Florida
  • 180 billion barrels of proven crude bitumen
  • 315 billion barrels ultimately recoverable
  • 1.7 trillion barrels in place (P10)

24
Manufacturing Crude Oil
25
Oil Sands What is it?
  • Mixture of bitumen and sand
  • Bitumen - C2000 polymer
  • Thick, heavy tar
  • Wont change state (boil)
  • Flows like vegetable shortening
  • Filled with sour impurities
  • NOx
  • SOx

26
Manufacturing Crude Oil
  • This crude oil is manufactured
  • Mining
  • Extraction
  • Upgrading
  • Synthetic Sweet Crude Oil
  • 2 T of oil sand 1 barrel of oil

27
Manufacturing Crude Oil - Mining
  • Surface Mining
  • 18 of resource
  • Within 75 m of surface
  • In Situ
  • 82 of resource

28
Manufacturing Crude Oil - Mining
  • Traditional mining techniques
  • 18 of oil sand is recoverable through open pit
    mining
  • Truck shovel

29
Manufacturing Crude Oil - Mining
Shovel 100 metric ton capacity
  • Truck - Caterpillar 797
  • 100 in service
  • 500 metric tons when empty
  • 400 metric tons per load
  • Tires replaced once per year
  • Reused as cattle feeders

30
Manufacturing Crude Oil in situ
  • 80 of the reserve must be recovered using in
    situ mining techniques
  • Latin for in place
  • Bitumen is removed while most of the sand is left
    behind
  • Partial separation occurs during this process
  • Bitumen/Sand slurry is hydrotransported to the
    extraction plant

31
In Situ Mining Techniques
  • Steam Assisted Gravity Drainage (SAGD)
  • Cyclic Steam Stimulation (CSS)
  • Vapor Extraction Process (VAPEX)
  • Cold Flow
  • Toe to Heel Air Injection

32
Manufacturing Crude Oil - SAGD
  • Steam Assisted Gravity Drainage
  • in situ technology that uses horizontal drilling
  • Steam is injected into the oil sand
  • Produced from natural gas
  • Viscosity of the bitumen is decreased
  • Hot bitumen flows down toward producing wells
    is pumped to surface
  • Expensive, water energy intensive

33
Manufacturing Crude Oil - SAGD
34
Manufacturing Crude Oil Extraction
  • Bitumen/sand/water slurry
  • Dumped into tanks with hot water
  • Separated into 3 layers
  • Top - Bitumen froth
  • Impure
  • Boundary layer
  • Further treated
  • Bottom Sand
  • Bitumen froth is diluted with naphtha and sent
    through centrifuges to remove remaining minerals
    and water

35
Manufacturing Crude Oil - Upgrading
  • Naptha is removed and recycled
  • Bitumen is broken into smaller chain lengths
  • Coker
  • Cracker (LC Finer)
  • Distillation Hydrogenation
  • The sour crude is sweetened by replacing NOx
    SOx with H atoms in hydrotreaters
  • Distillate streams are blended to make the final
    product

36
Crude - Where does it all end up?
1 BARREL 42 US GALLONS
37
Tailings Ponds
  • By-product of the oil sand processing
  • Millions of m3 of sandy, toxic waste water
  • High salt and acid concentrations
  • 6 bbl tailings 1 bbl bitumen

38
Integrated SCO Operations
  • Mining and upgrading at same location in
    Athabasca
  • Suncor (1967) 260, 000 bbd
  • Syncrude (1978) 350, 000 bbd
  • Worlds largest open pit mine
  • Mining and upgrading in different locations
  • Albian Sands Scotford - (2003) 155, 000 bbd
  • Joint Venture Major holder Shell Canada
  • Oil Sands is surface mined and extracted in
    Athabasca region
  • Bitumen is diluted and transported to Scotford
    upgrading refinery outside Edmonton

39
SCO Production
  • Athabasca Upgraders
  • CNRL - Horizon P1 135, 000 bbd
  • Commissioning scheduled Q4 08
  • Opti Canada Long Lake 72, 000 bbd
  • Commissioning scheduled Q4 08

40
In-situ Bitumen Operations
  • Athabasca Region
  • MEG Energy - Christina Lake 3, 000 bbd
  • Nexen - Long Lake 72, 000 bbd
  • Suncor - Firebag 73, 000 bbd
  • Total EP Joslyn 12, 000 bbd
  • Petrobank Whitesands 1, 000 bbd
  • Cold Lake Region
  • BR Oil Sands (Shell) - Orion 10, 000 bbd
  • CNRL 88, 000 bbd
  • Cenovus Energy - Foster Creek 30, 000 bbd
  • Imperial Oil 140, 000 bbd

41
In-situ Bitumen Operations
  • Peace River / Wabasca
  • Shell - Cadotte Lake 12, 500
  • CNRL Pelican 35, 000
  • Encana Pelican 35, 000

42
Oil Sands Capital Projects Update
43
Alberta Oil Sands - Capital Investment
  • 317 Billion expected from 2008 to 2030
  • 80 Billion in next 4 years
  • More than 3 trillion in economic activity for
    Canada
  • Employment
  • New investment opportunities
  • Additional public sector revenue
  • 1 invested in oil sands 6 Economic activity
    for Canada

44
Oil Sands Expenditure Forecast
Actual Forecast
Source OSDG Forecast, Aug 08 CAPP 2009
Outlook, Nov 08
45
Combined oil sands expenditures historical and
estimated1
Cap ex 15.3 Billion
Op ex 18.2 Billion
Actual Construction Capital Expenditures
Original Estimated Construction Capital
Expenditures (Jan 08)
Actual Operating Expenditures
Original Estimated Operating Expenditures (Jan
08)
Adjusted Estimated Construction Capital
Expenditures (Dec 08)
Adjusted Estimated Operating Expenditures (Dec 08)
12008 construction capital expenditure estimate
for all Alberta oil sands projects, including
related pipeline, upgrader and co-generation
projects original estimates (Jan 2008) and
adjusted (December 2008) per public
announcements. Source Construction Capital
CAPP and Nichols Applied Management, Operating
Expenditure Nichols Study
45
46
Oil Sands Capital Projects
  • Percentage of total capital spent on equipment
  • Mining projects
  • Equipment represents 30 of capital costs
  • In Situ projects
  • Equipment represents 20 of capital costs
  • Upgraders
  • Equipment represents 70 of capital costs

47
Industrial Heartland Upgraders
  • Shell Scotford Upgrader 155, 000 bbd
  • BA Energy Heartland Upgrader Delayed
  • North West Upgrading Under Construction
  • Petro-Canada Fort Hills Upgrader Delayed
  • StatOil Hydro Delayed
  • Syneco Energy Northern Lights Delayed
  • Total EP Delayed
  • Value Creation Delayed

48
Capital spending in the short term?
  • Syncrude
  • Suncor
  • Imperial Oil
  • Total EP
  • Husky
  • Nexan
  • CNRL
  • Baytex Energy Trust
  • Koch Industries
  • North Peace Energy
  • Opti Canada Inc.
  • Royal Dutch Shell

49
What is required?
  • Instrumentation
  • Analyzers
  • Flow instruments
  • Pressure instruments
  • Level instruments
  • Temperature instruments

50
What is required?
  • Valves
  • Solenoids
  • Safety valves
  • Regulating valves

51
What is required?
  • Fabricated Metal
  • Structural steel
  • Heat exchangers
  • Piping
  • Orifice plates
  • Reactors
  • Tanks
  • Distillation columns
  • Pressure vessels

52
What is required?
  • Electrical Equipment
  • Pumps
  • Motors
  • Steam turbines
  • Compressors

53
What is required?
  • Services
  • Machining
  • Industrial automation
  • Energy
  • Environmental and control technologies
  • Engineering and project management
  • Maintenance and supply services

54
Oil Sands Development Factors
Operating Costs
Labour and Capital Costs
The Environment
Oil Transport Infrastructure
Crude Oil Market
Technology Innovation
Investment Climate
Global Energy Demand
55
5 Things to Help You Win in the Oil Sands
56
1. Become an Oil Sands Expert
  • Oil Sands Review Magazine
  • Alberta Oil Magazine
  • The Energy News
  • Canadian Association of Petroleum Producers The
    Oil Sands Developers Group
  • Alberta-Canada.com
  • icosmo.ca
  • Local Alberta News Sources

57
2. Develop an Effective Market Strategy
  • Understand
  • The opportunity for your business
  • Where you fit
  • Your customer
  • Your competition
  • How to win contracts

58
3. Develop a Strong Marketing Plan
  • A professional, suite of active, targeted tools
    will give you an edge over your competition
  • Oil Sands Webpage
  • All-line brochure
  • Oil sands brochure
  • Tradeshow tools
  • Buyer Kit
  • Communications tools

59
4. Active Sales Execution Wins
  • Attend Exhibit at Trade Shows
  • National Buyer Seller Forum
  • Oil Sands Tradeshow Conference
  • Global Petroleum Show
  • Go Expo
  • Take Regular Business Trips
  • Utilize Representatives

60
5. You Dont Need to go it Alone
  • MED Oil Sands Team Directory
  • MSBCS Advisors Resources
  • Economic Development Organizations
  • CME
  • Form Consortia
  • Learn from others

61
THANK YOUStephen.Rach_at_cme-mec.ca
Write a Comment
User Comments (0)
About PowerShow.com