Unconventional oil in the context of "Synthetic crude"

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⭐ Core Definition: Unconventional oil

Unconventional (oil and gas) reservoirs, or unconventional resources (resource plays) are accumulations where oil and gas phases are tightly bound to the rock fabric by strong capillary forces, requiring specialized measures for evaluation and extraction.

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👉 Unconventional oil in the context of Synthetic crude

Synthetic crude is the output from a bitumen/extra heavy oil upgrader facility used in connection with oil sand production. It may also refer to shale oil, an output from an oil shale pyrolysis. The properties of the synthetic crude depend on the processes used in the upgrading. Typically, it is low in sulfur and has an API gravity of around 30. It is also known as "upgraded crude".

Synthetic crude is an intermediate product produced when an extra-heavy or unconventional oil source is upgraded into a transportable form. Synthetic crude is then shipped to oil refineries where it is refined into finished products. Synthetic crude may also be mixed, as a diluent, with heavy oil to create synbit. Synbit is more viscous than synthetic crude, but can also be a less expensive alternative for transporting heavy oil to a conventional refinery.

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Unconventional oil in the context of Athabasca oil sands

The Athabasca oil sands, also known as the Athabasca tar sands, are large deposits of oil sands rich in bitumen, a heavy and viscous form of petroleum, in northeastern Alberta, Canada. These reserves are one of the largest sources of unconventional oil in the world, making Canada a significant player in the global energy market.

As of 2023, Canada's oil sands industry, along with Western Canada and offshore petroleum facilities near Newfoundland and Labrador, continued to increase production and were projected to increase by an estimated 10% in 2024 representing a potential record high at the end of the year of approximately 5.3 million barrels per day (bpd). The surge in production is attributed mainly to growth in Alberta's oilsands. The expansion of the Trans Mountain pipeline—the only oil pipeline to the West Coast—will further facilitate this increase, with its capacity set to increase significantly, to 890,000 barrels per day from 300,000 bpd currently. Despite this growth, there are warnings that it might be short-lived, with production potentially plateauing after 2024. Canada's anticipated increase in oil output exceeds that of other major producers like the United States, and the country is poised to become a significant driver of global crude oil production growth in 2024. The exploitation of these resources has stirred debates regarding economic development, energy security, and environmental impacts, particularly emissions from the oilsands, prompting discussions around emissions regulations for the oil and gas sector.

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Unconventional oil in the context of Oil sands

Oil sands are a type of unconventional petroleum deposit. They are either loose sands, or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water, soaked with bitumen (a dense and extremely viscous form of petroleum).

Significant bitumen deposits are reported in Canada, Kazakhstan, Russia, and Venezuela. The estimated worldwide deposits of oil are more than 2 trillion barrels (320 billion cubic metres). Proven reserves of bitumen contain approximately 100 billion barrels, and total natural bitumen reserves are estimated at 249.67 Gbbl (39.694×10^ m) worldwide, of which 176.8 Gbbl (28.11×10^ m), or 70.8%, are in Alberta, Canada.

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Unconventional oil in the context of Tight oil

Tight oil (also known as shale oil, shale-hosted oil or light tight oil, abbreviated LTO) is light crude oil contained in unconventional petroleum-bearing formations of low permeability, often shale or tight sandstone. Economic production from tight oil formations requires the same hydraulic fracturing and often uses the same horizontal well technology used in the production of shale gas. While sometimes called "shale oil", tight oil should not be confused with oil shale (shale rich in kerogen) or shale oil (oil produced from oil shales). Therefore, the International Energy Agency recommends using the term "light tight oil" for oil produced from shales or other very low permeability formations, while the World Energy Resources 2013 report by the World Energy Council uses the terms "tight oil" and "shale-hosted oil".

In May 2013 the International Energy Agency in its Medium-Term Oil Market Report (MTOMR) said that the North American oil production surge led by unconventional oils—US light tight oil (LTO) and Canadian oil sands—had produced a global supply shock that would reshape the way oil is transported, stored, refined and marketed.

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Unconventional oil in the context of Fugitive gas emissions

Fugitive gas emissions are emissions of gas (typically natural gas, which contains methane) to atmosphere or groundwater which result from oil and gas or coal mining activity. In 2016, these emissions, when converted to their equivalent impact of carbon dioxide, accounted for 5.8% of all global greenhouse gas emissions.

Most fugitive emissions are the result of loss of well integrity through poorly sealed well casings due to geochemically unstable cement. This allows gas to escape through the well itself (known as surface casing vent flow) or via lateral migration along adjacent geological formations (known as gas migration). Approximately 1-3% of methane leakage cases in unconventional oil and gas wells are caused by imperfect seals and deteriorating cement in wellbores. Some leaks are also the result of leaks in equipment, intentional pressure release practices, or accidental releases during normal transportation, storage, and distribution activities.

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Unconventional oil in the context of Economy of Alberta

The economy of Alberta is the sum of all economic activity in Alberta, Canada's fourth largest province by population. Alberta's GDP in 2018 was CDN$338.2 billion.

Although Alberta has a presence in many industries such as agriculture, forestry, education, tourism, finance, and manufacturing, the politics and culture of the province have been closely tied to the production of fossil energy since the 1940s. Alberta—with an estimated 1.4 billion cubic metres of unconventional oil resource in the bituminous oil sands—leads Canada as an oil producer.

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Unconventional oil in the context of Shale oil extraction

Shale oil extraction is an industrial process for unconventional oil production. This process converts kerogen in oil shale into shale oil by pyrolysis, hydrogenation, or thermal dissolution. The resultant shale oil is used as fuel oil or upgraded to meet refinery feedstock specifications by adding hydrogen and removing sulfur and nitrogen impurities.

Shale oil extraction is usually performed above ground (ex situ processing) by mining the oil shale and then treating it in processing facilities. Other modern technologies perform the processing underground (on-site or in situ processing) by applying heat and extracting the oil via oil wells.

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Unconventional oil in the context of Shale oil

Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding hydrogen and removing impurities such as sulfur and nitrogen. The refined products can be used for the same purposes as those derived from crude oil.

The term "shale oil" is also used for crude oil produced from shales of other unconventional, very low permeability formations. However, to reduce the risk of confusion of shale oil produced from oil shale with crude oil in oil-bearing shales, the term "tight oil" is preferred for the latter. The International Energy Agency recommends to use the term "light tight oil" and World Energy Resources 2013 report by the World Energy Council uses the term "tight oil" for crude oil in oil-bearing shales.

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