Tips on maximising production from mature and #HeavyOil fields

We recently asked Industry experts to answer the following questions:

Why are heavy oil projects so important in the Middle East right now?

What are the top technologies/techniques that you are currently implementing in your heavy oil projects?

What in your opinion is the ultimate issue or challenge facing heavy oil projects in the Middle East at this point in time?

M.R. Riazi | Professor of Chemical Engineering/Editor in Chief | Kuwait University/IJOGCT Shares his thoughts:

1. Why are heavy oil projects so important in the Middle East right now??

Generally, naturally occurring petroleum oils are separated into four categories of light oil (API degree of 30-40 and viscosity of less than few cP like water), medium oil (API from 20 to 30 and viscosity of few hundred centipoise like syrup), heavy oil (API degree between 10 and 20 and viscosity of few thousand cP like honey) and extra heavy oil (API degrees of less that 10 and viscosity in the range of several thousands cP). Oil sands or oil shale, tar and bitumen are also classed as extra heavy oil with a viscosity of more than one million centipoise and no mobility. Heavy oil and extra heavy oil are also referred as unconventional oil.

The main issue for production and processing of heavy oil is its viscosity. Oils with higher viscosity are more difficult and costly to produce, transport and to process in refineries. Heavy oils contain more carbon, sulfur and metals than light oils and their price is much lower than that of light oils. Methods of production of heavy oils by enhanced oil recovery (EOR) techniques generally involve viscosity reduction to increase oil mobility. While with increase in production, many conventional oil reserves are rapidly depleting, therefore there is more focus on production of heavy oil, with nearly 5 trillion barrels worldwide, 10 to 20% of these reserves are in the Middle East and North Africa region. Although more than two-third of world proven oil reserves contain unconventional oil, production from these reserves make up only 10% of total production. It is generally believed the world has already witnessed peak oil production from conventional oil reserves. Some experts believe that because of large deposits of conventional oil in the Middle East, heavy oil resources in this region have been heavily underestimated.

Oil prices reached $147 in July 2008 and then reduced to $34 following the economic depression in 2009. Presently the crude price is about $ 120 and the world economy can handle this price while energy consumption is increasing especially in Asia. Very few believe the oil price would ever go back to the $30-50 range in the future. At the current oil price of more than $100, production and processing of heavy oil is quite profitable. Heavy oil reserves are spread across Middle Eastern countries and the cost of production from these sources is about $10 per barrel, well below $30-40 production cost from Alberta oil shale. Perhaps for countries in the MENA region it would be economically attractive to export light oil at a higher price and to use heavy oil in local refineries. Although the Middle East is known as the capital of conventional oil, heavy oil reserves are vast (about 500 to 900 billion barrels) and as a future energy source it is a time for oil companies to invest in the region’s heavy oil business (both production and processing) to be on the safe side in the future.

2. What are the top technologies/techniques that you are currently implementing in your heavy oil projects?

Heavy oil technologies involved in all areas of production, storage, transportation, refining and processing. The most commonly used EOR methods for production of heavy oil are gas injection and thermal methods such as steam injection both for the purpose of viscosity reduction. For example Wafra oil field at the border of Kuwait and Saudi Arabia which contain some 25 billion barrels of heavy oil has increased its production rate from 3% (through conventional methods) to about 40% (EOR method) through the use of steam injection.

On the processing side, removal of sulfur and metals, as well as cracking of heavy hydrocarbons into lighter compounds through deep conversion processes, are both major challenges. Simulation and design of such processes require proper process and PVT computer simulators which can accurately estimate necessary thermodynamic, volumetric and transport properties through proper characterization of the oil.

What in your opinion is the ultimate issue or challenge facing heavy oil projects in the Middle East at this point in time?

There are two major issues involving production and processing of heavy oils: (1) high cost of production and processing and (2) environmental issues related to heavy oil processing and increase in the rate of carbon emission. With oil price above $ 100 per barrel and development of new technologies for EOR processes, production of heavy oil in the region would be economical and attractive. Countries in the region are in the top list of countries in the world on carbon emission per capita as well as energy and electricity consumption. Produced CO2 from power plants could be used for gas injection projects in EOR processes for production of heavy oil in the region. Another scenario is to use solar energy in the region to produce steam from solar energy collectors for steam injection in heavy oil production. The region is rich in solar energy and it could be used for clean energy needed for steam generation. Therefore both CO2-EOR and Solar-EOR could be an attractive environmentally friendly processes for the production of heavy oil in the region. Finally refineries in the region should be equipped with more cracking units for deep conversion processes to process local heavy oil rather than exporting cheap heavy oil. It would be more economical for the region to export its conventional and light oil at much higher price and use heavy oil for domestic needs.

To read more advice from top industry experts on maximising production from mature and #HeavyOil fields, download our eBook, containing tips from: TOTAL Petroleum, Iraq Energy Institute, University of Teeside and more.

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Prof. M. R. Riazi is currently a Professor of Chemical Engineering at Kuwait University. He was previously an Assistant Professor at Pennsylvania State University (USA), where he also received his MS and PhD. He was also a visiting professor at various universities in U.S., Canada, Europe and Middle East.