Abstract

Summary Solvent-steam bitumen extraction technology has the potential to reduce energy consumption and greenhouse gas (GHG) emissions. It is based on gravity drainage, wherein a steam and vaporized solvent mixture is used to extract bitumen from a reservoir. This can reduce the environmental impact compared with processes that use only steam for bitumen extraction [i.e., steam-assisted gravity drainage (SAGD)]. No techno-economic analysis of solvent-steam extraction has been made available in the public domain. In this study, a process simulation model was developed to assess costs. A capacity of 25,000 B/D of bitumen was considered with hexane as the solvent. Sensitivity and uncertainty analyses were conducted to assess how the supply cost of bitumen produced with diluent (dilbit) changes with changes in input parameters. The supply cost for the base case scenario is 55.5 CAD/bbl at a 10% internal rate of return (IRR). The scale factor was estimated to be 0.80, which suggests that oil production will be economically viable on a large scale. Capital cost, solvent price, and transportation and blending cost affect the supply cost. The most probable supply cost range is 53.0–65.4 CAD/bbl at a 90% confidence interval. The results also indicate that dilbit supply costs from the solvent-steam process are economically attractive compared with the current oil price.

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