Finding Pathways to Produce Heavy Oil From Canadian Carbonates

Abstract

Alberta Heavy Oil Nearly 2 million bbl of ultraheavy crude are produced each day from Canadian oil sands, but the notion of also producing bitumen from reservoirs made of carbonate rock can spark skeptical remarks. They are likely to say something like: “Carbonates are very different. In carbonates, it is just different,” said Daniel Yang, director of reservoir engineering at Laricina Energy, who has a different reading of the exploration history of formations that hold more than 400 billion bbl of the crude. Laricina has partnered with a second Calgary independent, Osum Oil Sands, to try to prove that bitumen can be commercially produced from the Grosmont formation, which holds 75% of the heavy crude known as bitumen in Alberta’s carbonates. The reality is the Grosmont is different. A pilot project by Laricina and Osum showed that the well design commonly used for oil sands is not a good fit in carbonates. But a mix of methods used for bitumen production worked well enough to convince the partners to plan a commercial test. that they plan to use for the first commercial development in the formation. The Laricina-Osum joint venture has filed for a permit to produce as much as 10,700 B/D from up to 32 wells, with first oil in 2015. Husky and Shell have also filed for permission to do pilot projects with the Alberta Energy Regulator, the agency formerly known as the Energy Resources Conservation Board (ERCB). “It is going like early development in major oil sands basins such as the Athabasca, where there were many field pilots,” said Eddy Isaacs, chief executive officer of Energy and Environment Solutions at Alberta Innovates, a provincial agency that funds research, including past carbonates work. But moving from wells producing oil in situ in the relatively consistent sandstones and unconsolidated sands to carbonates will require significant advances in production methods and simulation software. The Grosmont was born complicated. It was formed hundreds of millions of years ago from the hap-hazard deposition of marine life off a long shoreline, was chemically transformed into dolomite, followed by water flows that carved it up, widening the fractures and carving out so many holes in the rock that it created weak spots in a formation that has been lifted and crushed and filled with oil that degraded into some of the world’s heaviest crude.