Frequently Asked Questions
What is bitumen?
Bitumen is best described as a thick, sticky form of crude oil, so heavy and viscous that it will not flow unless heated or diluted with lighter hydrocarbons. At room temperature, it is much like cold molasses.
Oil sands are substantially heavier than other crude oils. Technically speaking, bitumen is a tar-like mixture of petroleum hydrocarbons with a density greater than 960 kilograms per cubic metre; light crude oil, by comparison, has a density as low as 793 kilograms per cubic metre.
Compared to conventional crude oil, bitumen requires some additional upgrading before it can be refined. It also requires dilution with lighter hydrocarbons to make it transportable by pipelines.
Where are oil sands and heavy oil found?
Geographically, oil sands and heavy oil are found throughout the world with the greatest potential resources identified in Canada, Venezuela and the former Soviet Union. Globally, oil sands are estimated to contain approximately 20 trillion barrels of oil; however the true resource base could be much larger because heavy oil resources have not traditionally been documented unless they are economically viable in current market conditions.
In Canada, heavy oil deposits straddle the Alberta/Saskatchewan border in the region surrounding the city of Lloydminster.
Oil sands are found in three places in Alberta, Canada - the Athabasca, Peace River and Cold Lake regions - and cover a total of nearly 141,000 square kilometres.
It is estimated that the established remaining reserves of crude bitumen are approximately 174.5 billion barrels, as of December 31, 2003, of which about 10.8 billion barrels are within areas of active development.
What is SAGD? (Steam Assisted Gravity Drainage)
Two parallel horizontal oil wells are drilled in the formation. The upper well injects steam and the lower one collects the water that results from the condensation of the injected steam and the crude oil or bitumen. The injected steam heats the crude oil or bitumen and lowers its viscosity which allows it to flow down into the lower wellbore. The large density contrast between steam on one side and water / hot heavy crude oil on the other side ensures that steam is not produced at the lower production well. The water and crude oil or bitumen is recovered to the surface by several methods such as natural steam lift, where some of the recovered hot water condensate flashes in the riser and lifts the column of fluid to the surface, by gas lift where a gas (usually natural gas) is injected into the riser to lift the column of fluid, or by pumps such as progressive cavity pumps that work well for moving high-viscosity fluids with suspended solids.
How are heavy oil and bitumen transported?
Pipelines are the least expensive and most efficient way to move petroleum on land. In fact, pipelines transport about 95 % of Canada's crude oil and natural gas production. However, moving bitumen and heavy oil by pipeline is very difficult because of their inability to flow freely. To overcome this, producers reduce the density of the bitumen, generally by diluting it with light, low-viscosity petroleum.
Condensate and/or naphtha, a very light oil obtained from natural gas production, are the most common diluents. Bitumen might require as much as 40 % dilution.
How are oil sands and heavy oil used?
Ultimately, heavy oil and bitumen are used to make the same petroleum products as conventional forms of crude oil; however, more processing is required. In 2002, heavy oil, synthetic oil and crude bitumen accounted for almost 60 % of total Canadian crude oil production. Oil fuels more than 33 % of Canada's total energy needs. Approximately 75 % of the oil produced in Canada is refined into transportation fuels - gasoline and diesel for cars and trucks, kerosene for jet aircraft and fuel oil for ships. Other energy uses include domestic and industrial heating, fuels for industrial purposes and generating electricity.
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