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Unconventional Energy Resources

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Unconventional Energy Resources ( unconventional-energy-resources )

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equivalent production, and the only producer of upgraded bitumen (also called ‘‘SCO’’) and non- upgraded bitumen. Heavy oil is produced in both Alberta and Saskatchewan. Although there are oil sands resources in northwestern Saskatchewan, as yet these have not been brought to commercial production. In Alberta, of the 2011 primary energy production, bitumen accounted for 78% of the total crude oil and raw bitumen production, with pro- duction increasing by 4% in surface mining areas, and by 13% from in situ areas from the previous year. During this same time crude oil production increased by 7%, total marketable natural gas de- clined by 􏰙5%, total natural gas liquids production remained flat, and coal production declined by 5%. By comparison, only about 0.2% of energy is pro- duced from renewable energy sources, such as hydro and wind power. Starting in 2010, the downward trend of total crude oil production in Alberta was reversed, with light–medium crude oil production increasing due to technological advances, such as horizontal, multi- stage drilling with hydraulic fracturing and/or aci- dization. This resulted in an increase of total crude oil production by 7% in 2011 (ERCB 2012). Along with this technologically driven increase in crude oil production, the ERCB (Rokosh et al. 2012; Beaton et al. 2013) conducted a regional resource assess- ment of crude oil in six of AlbertaÕs shale and silt- stone-dominated formations, that pointed to a vast potential (best in-place estimates of 423.6 billion BBLs or 67.3 billion m3 of crude oil; 3,424 trillion cubic feet or 97 trillion m3 of natural gas; and 58.6 billion BBLs or 9.3 billion m3 of natural gas liquids) in tight formations, which until now were considered uneconomic due to challenges related to production from these low-permeability reservoirs. To date, these hydrocarbon resource estimates identify other (non-bitumen) unconventional resources in the province; but, how these relate to the total energy resource endowment of the province is not known until it is addressed if they are technologically or economically feasible to produce at large scales with existing or near-future resource technologies. In the future, it is expected that the in situ thermal pro- duction of bitumen will overtake the mined pro- duction of bitumen in the province; with perhaps a modest rise in both conventional and tight-forma- tion development—largely a result of improvements in multi-stage hydraulic fracturing from horizontal wells that are targeting these previously uneconomic (but potentially large) resources. A U.S. goal for energy independence could in- clude production from existing U.S. oil sands deposits using surface mining or in situ extraction. Current U.S. bitumen production is mainly for local use on roads and similar surfaces. This is due mainly to the different characters and scales of the bitumen reservoirs, but partly, perhaps, it is because the states do not have the infrastructure of the Alberta oil sands area. Schenk et al. (2006) compiled total measured plus speculative in-place estimates of bitumen of about 54 billion BBLs (8.6 billion m3) for 29 major oil sand accumulations in Alabama, Alaska, California, Kentucky, New Mexico, Okla- homa, Texas, Utah, and Wyoming (Table 8). How- ever, these older estimates of total oil sand resources provide only limited guidance for commercial, environmentally responsible development of the oil sand deposits. Additionally, the estimates do not factor in commercially viable heavy oil resources. The resources in each of the states have distinct characteristics that influence current and future exploitation. California has the second largest heavy oil re- serves in the world, second only to Venezuela (Hein 2013). CaliforniaÕs oil fields, of which 52 have re- serves greater than 100 million BBLs (15.9 mil- lion m3), are located in the central and southern parts of the state (Fig. 20). As of 2010, the proved reserves were 2,938 million BBLs (467.1 mil- lion m3), nearly 70% of which were in the southern San Joaquin basin (U.S. Energy Information Administration 2013f). Most of the fields were dis- covered and put into primary production in the period 1890–1930. However, with the introduction of waterflooding, thermal recovery, and other EOR technologies starting in the 1950s and 1960s, oil recoveries improved dramatically and the proved reserves increased several fold (Tennyson 2005). Nearly all of the oil is sourced from organic-rich intervals within the thick Miocene-age Monterey diatomite, diatomaceous mudstone and carbonate. Due to a combination of Type IIS kerogen, modest burial and thermal heating, and generally shallow depths of oil pools, the oil tends to be heavy and relatively viscous. These are thermally immature, partially biodegraded oils. Approximately 40% of the oil is produced by steam flooding, cyclic steam stimulation, or other thermal recovery methods. Thermally produced oil comes mainly from fields in the San Joaquin basin (Table 9, Fig. 20). In general, the reservoirs are poorly consolidated or un-con- solidated sandstones intercalated within or overlying American Association of Petroleum Geologists, Energy Minerals Division

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