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A modeling study of the effect of carbon dioxide mitigation strategies, natural gas prices and steam consumption on the Canadian Oil Sands operations

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  • Betancourt-Torcat, Alberto
  • Elkamel, Ali
  • Ricardez-Sandoval, Luis

Abstract

This paper presents a study that shows the effect of key environmental and operational factors on the Canadian Oil Sands operations for the production of synthetic crude oil (SCO) and commercial bitumen. Using an integrated energy optimization model developed in the GAMS platform, the present study determined the most economical oil schemes and energy commodities configurations at different CO2 capture levels, natural gas prices and steam-to-oil ratios (SOR). The sensitivity of these factors on the different aspects of the Oil Sands operations are explicitly discussed in this work, i.e., SCO unitary energy costs, energy commodity prices, energy plant's configuration. According to the CO2 emission target planned by the Canadian federal government for year 2020 (50 MT of CO2 eq/yr), 38% of CO2 emission reduction with respect to the baseline emission is required from the Oil Sands industry. Similarly, the natural gas price is the operational factor that affects the energy costs associated to every product considered in this study. Furthermore, the SOR factor has a significant impact on the energy production costs of SAGD SCO and commercial bitumen.

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  • Betancourt-Torcat, Alberto & Elkamel, Ali & Ricardez-Sandoval, Luis, 2012. "A modeling study of the effect of carbon dioxide mitigation strategies, natural gas prices and steam consumption on the Canadian Oil Sands operations," Energy, Elsevier, vol. 45(1), pages 1018-1033.
    • Handle: RePEc:eee:energy:v:45:y:2012:i:1:p:1018-1033
    DOI: 10.1016/j.energy.2012.06.043
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    Cited by:

    1. Szoplik, Jolanta, 2015. "Forecasting of natural gas consumption with artificial neural networks," Energy, Elsevier, vol. 85(C), pages 208-220.
    2. Akbilgic, Oguz & Zhu, Da & Gates, Ian D. & Bergerson, Joule A., 2015. "Prediction of steam-assisted gravity drainage steam to oil ratio from reservoir characteristics," Energy, Elsevier, vol. 93(P2), pages 1663-1670.
    3. Cheng, Linsong & Liu, Hao & Huang, Shijun & Wu, Keliu & Chen, Xiao & Wang, Daigang & Xiong, Hao, 2018. "Environmental and economic benefits of Solvent-Assisted Steam-Gravity Drainage for bitumen through horizontal well: A comprehensive modeling analysis," Energy, Elsevier, vol. 164(C), pages 418-431.
    4. Gavenas, Ekaterina & Rosendahl, Knut Einar & Skjerpen, Terje, 2015. "CO2-emissions from Norwegian oil and gas extraction," Energy, Elsevier, vol. 90(P2), pages 1956-1966.
    5. Pang, Zhan-xi & Wu, Zheng-bin & Zhao, Meng, 2017. "A novel method to calculate consumption of non-condensate gas during steam assistant gravity drainage in heavy oil reservoirs," Energy, Elsevier, vol. 130(C), pages 76-85.
    6. Wang, Han & Chaffart, Donovan & Ricardez-Sandoval, Luis A., 2019. "Modelling and optimization of a pilot-scale entrained-flow gasifier using artificial neural networks," Energy, Elsevier, vol. 188(C).
    7. Kovačič, Miha & Šarler, Božidar, 2014. "Genetic programming prediction of the natural gas consumption in a steel plant," Energy, Elsevier, vol. 66(C), pages 273-284.
    8. Lazzaroni, Edoardo Filippo & Elsholkami, Mohamed & Arbiv, Itai & Martelli, Emanuele & Elkamel, Ali & Fowler, Michael, 2016. "Energy infrastructure modeling for the oil sands industry: Current situation," Applied Energy, Elsevier, vol. 181(C), pages 435-445.
    9. Nimana, Balwinder & Canter, Christina & Kumar, Amit, 2015. "Energy consumption and greenhouse gas emissions in the recovery and extraction of crude bitumen from Canada’s oil sands," Applied Energy, Elsevier, vol. 143(C), pages 189-199.
    10. Charry-Sanchez, Jennifer & Betancourt-Torcat, Alberto & Ricardez-Sandoval, Luis, 2014. "An optimization energy model for the upgrading processes of Canadian unconventional oil," Energy, Elsevier, vol. 68(C), pages 629-643.
    11. Nimana, Balwinder & Canter, Christina & Kumar, Amit, 2015. "Life cycle assessment of greenhouse gas emissions from Canada's oil sands-derived transportation fuels," Energy, Elsevier, vol. 88(C), pages 544-554.
    12. Sapkota, Krishna & Oni, Abayomi Olufemi & Kumar, Amit & Linwei, Ma, 2018. "The development of a techno-economic model for the extraction, transportation, upgrading, and shipping of Canadian oil sands products to the Asia-Pacific region," Applied Energy, Elsevier, vol. 223(C), pages 273-292.

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