Statoil Canada oil sands SAGD project produces first oil
27 January 2011
Statoil Canada has produced first oil from its SAGD (steam-assisted gravity drainage) Leismer Demonstration Project (LDP) in the Canadian oil sands after initiating steam injection in September 2010, one month ahead of schedule.
LDP, approved to 10,000 barrels per day (bpd), is the first phase of the Leismer project, which is expected to ramp up to its rated capacity of 18,800 bpd within 24 months, pending final approval by Alberta Environment. Future phases of the Kai Kos Dehseh steam assisted gravity drainage (SAGD) project are also under study. Statoil originally entered Kai Kos Dehseh through the acquisition of North American Oil Sands Corporation in 2007.
Statoil’s oil sands leases are located approximately 120 kilometers south of Fort McMurray in the Athabasca region of north east Alberta. The company’s next phase, Corner, is a proposed 40,000 bpd facility, which along with the eventual further expansion of Leismer to 40,000 bpd, recently received approval by the Alberta Energy Resources Conservation Board (ERCB).
Over the last three years we have increased our understanding of the oil sands business and feel we are now in a good position to apply what we have learned. We will proceed with several research and technology innovations and tests at the LDP project and if successful will apply them to future phases of development to drive economic efficiency and reduce environmental impact, including CO2 reductions at our Alberta operations.
—Lars Christian Bacher, president of Canadian operations for Statoil Canada Ltd.
“W”
Statoil has committed to a 5-year technology plan, which will provide the basis for the company’s ambition to reduce CO2 emissions intensity by more than 40% by 2025.
Statoil Canada Ltd. is the operator of Kai Kos Dehseh with a 60% ownership in the project, while PTT Exploration and Production of Thailand is a partner with a 40% ownership.
The 40% CO2 reduction claimed may be counteracted by other smog creating emissions.
A very recent study on the Texas shale gas operations discovered that smog creating emissions are 3500 times higher than reported by operators.
Will we also find out that CO2 sequestration and SAGD operations also have many times the GHG and smog creating emissions than operators are reporting? Wouldn't be surprised.
Posted by: HarveyD | 27 January 2011 at 11:53 AM
Two CANDU nuclear reactors were built in China in about four years. Some CANDU reactors were modified slightly to provide steam to a heavy water extraction unit. The is no valid reason that one or more CANDU reactors could not be built quickly for making heat and electricity for tar sand processing. Canada should demonstrate that it can be the fastest reactor builder in its own country. Unfortunately, some nearsighted politicians wish to "kill the goose that lays the golden egg" and destroy AECL, so no one wants to buy a new one of the most uranium efficient reactor in the world that can even use the already used US reactor fuels.
Very high temperature electrolysis with local cheap night electricity can produce hydrogen fuel at far lower cost than imported crude. The hydrogen is added to the bitumen to make it into ordinary fuels. But the nuclear heat needed to extract bitumen from tar sands is very much cheaper to make than if it were made from natural gas or coal or even from extracted bitumen. Direct Current cables can move the electricity hundreds of miles to its use if necessary. ..HG..
Posted by: Henry Gibson | 27 January 2011 at 08:17 PM
Because of its now much higher cost, oil fuels are mostly used only fort transportation, but it is this highly inefficient use of the fuel that puts far more CO2 into the air than does the extracting and refining of it. The "Greens" would be outraged if coal fired power plants were operated as inefficiently as most automobiles are. High speeds are very inefficient.
Combined heat and power generators can use natural gas to charge the batteries of an electric automobile and heat and cool the home and heat hot water while doing so with far more efficient use of the fuel than even fuel cells can provide. Such units could also feed power to the grid when the grid operators actuate it with or without the automobile. ..HG..
Posted by: Henry Gibson | 27 January 2011 at 08:31 PM
HG. Could China build transportable CANDU and ship them worldwide, including to Canada? This could be a way to reduce building-construction time and cost by 50+%. Canada could supply the enriched uranium rods.
Posted by: HarveyD | 28 January 2011 at 01:34 PM