Peak Oil: Meet Athabasca Oil Sands

The Athabasca oil sands region lies in northern Alberta Province, in Canada. The Chevron oil company has been involved in oil recovery efforts in Athabasca for several years. Now Chevron is moving into the region in a big way, having recently acquired several oil sands leases, for land with over 7 billion barrels of oil in place.

The new leases are approximately 76 miles west of Fort Mackay in northern Alberta, and 24 miles south west of AOSP.

Chevron will use Steam Assisted Gravity Drainage (SAGD), an in-situ technology that uses steam and horizontal drilling to extract the bitumen. Shell Canada and Western Oil Sands will each have the right to elect to acquire a 20% working interest in these leases.

The SAGD process involves drilling pairs of horizontal wells in the oil sands reservoir. Steam is injected through an upper well—about 3 to 10 meters above the lower—and contacts the bitumen. The heated bitumen becomes mobile and flows with condensed water from the steam chamber to the lower well through gravity drainage. Thence it is lifted to the surface for upgrading.

Each well pair is typically 2,500 to 3,000 feet in length, and optimally produces 1,000 to 1,500 barrels per day. Well pairs are drilled parallel to one another, and spaced 300 to 650 feet apart.

Read the full article here.

Oil sands are a heavy oil resource, requiring special refining methods, and not nearly as well suited for gasoline production as sweet crude oil. Along with shale oil, oil sands represent a huge and relatively untapped oil resource.

In addition to oil sands and shale oil, coal is another fossil fuel that can be converted to liquid hydrocarbon fuel form. Cleaner methods of processing and buring coal are a top priority in the industrial nations.

Peak Oil Debunked is an excellent source of information about Peak Oil Hype. Go on over and give them a look.

I am a big fan of renewable energy, having helped install a number of solar and wind home energy systems. Fossil fuels and nuclear fission should be seen as only a stopgap measure until renewable methods of energy production can take over.

One other source of gasoline that I should mention--cow dung! Japanese scientists have learned to make gasoline from the dung of cattle. They are a bit short on details at the moment, but it seems they are in earnest.

Update 6 March 06: Here is an update on the Chevron oil sands venture:

On Friday I was at the Stanford Institute for Economic Policy Research’s Economic Summit (some videos available), where among other things I learned that the oil sands of Canada are, unfortunately, more accurately thought of as “tar sands”. But Chevron has announced a $60 million deal to develop these sands. The Motley Fool’s Jack Uldrich speculates on why they are willing to take this big project on:

“The risky venture could ultimately cost tens of billions of dollars and take up to a decade to develop, since the tar in the oil sands isn’t easily converted to usable oil. But Chevron may have a very tiny ace up its sleeve, thanks to its involvement with nanotechnology…

“Chevron’s work in creating new nanoparticles offers the greatest promise. If the company can produce new nanoparticles with unique catalytic capabilities, it may be able to more effectively and efficiently refine the thick, gooey tar-sands into highly refined — and profitable –oil.

“Headwaters (NYSE: HW) is already developing nanocatalysts to convert heavy oils into higher-yield oils, and I have reason to believe that Chevron is doing the same. If the company succeeds, these powerful new nanocatalysts could make extracting oil from the tar sands profitable, even at prices lower than $35 a barrel. And if oil prices stay high, a cheaper extraction process will only bolster Chevron’s profit margins. It’s yet another small solution to a potentially big risk.”

The use of nanoparticles as catalysts to make the oil sands more productive, is just one timely synergy of technological development. There will be many more, that improve both the economy and the environment. The key is for the active members of society to think like problem solvers, rather than doomsayers.