Alberta Crude Oil Research Articles

Pipeline capacity and the dynamics of Alberta crude oil price spreads

AbstractWe investigate the effect of binding pipeline capacity on price spreads between crude oil in Alberta, Canada, and competing crude oils in export markets at the other end of the pipeline. Our goal is to determine whether these price spreads are consistent with capacity‐constrained spatial arbitrage models by estimating Markov switching models of the price spreads for both heavy and light crude oil. Our results for heavy crude oil agree with the theory: we find one regime with both a low mean and a low variance, consistent with sufficient pipeline capacity, and another regime with both a higher mean and a higher variance, consistent with constrained pipeline capacity. The difference in mean spreads between regimes then provides an estimate of the mean shadow price of capacity. Price spreads for light crude oil do not display significant differences in mean spreads across regimes, suggesting that pipeline capacity constraints are less important for this commodity. Comparing our results with pipeline capacity data, we find that tight capacity is not always associated with large price spreads.

Effects of Crude Oil and Diesel Exposures on Biochemical Activities of Polymorphonuclear Leukocytes in Cattle

Cattle exposed to low doses of an Alberta crude oil, Pembina Cardium crude oil (PCCO), or a winter diesel oil no. 2 (WDO-2) were assessed for their biochemical activities in polymorphonuclear leukocyte (PMNL) cells (mainly neutrophils). The study used a randomized block design containing five treatment groups (8 animals/group). The animals were dosed per gavage with the test substance on study days 0, 14, 28, and 42. The dosages given (on per kg body weight) were: Group 1 (control), 10 mL/kg of potable water; Group 2, 5 mL/kg WDO-2; Group 3, 2.5 mL/kg PCCO; Group 4, 5 mL/kg PCCO; and Group 5, 10 mL/kg PCCO. Blood was collected at the specified intervals during the pre- and post-exposure periods, and the biochemical activities of isolated PMNL were analyzed. Cattle groups exposed to WDO-2 and PCCO showed moderate and statistically significant reductions (p < 0.01) in the activities of (1) phorbol myristate acetate (PMA) stimulated cellular respiration (respiratory burst), (2) NADPH-oxidase (PMA-stimulated production of superoxide anion), (3) myeloperoxidase, and (4) n-acetylglucosidase as compared to the control group. These biochemical parameters also showed statistically significant (p < 0.01) dose-related periodic (study day) trends. In general, these biochemical activities were decreased after each dosing; however, they subsequently recovered to near the pre-dosing levels. Such a biochemical response in PMNL provides a valuable biological tool to follow exposure effects in cattle accidentally exposed to low doses of petroleum hydrocarbons.

Biochemical changes as early stage systemic biomarkers of petroleum hydrocarbon exposure in rats

Crude and refined petroleum contain a complex mixture of aliphatic, aromatic, polyaromatic and heterocyclic hydrocarbon compounds. The objective of our research was to investigate early-stage biochemical changes in rats exposed to low dosages of petroleum hydrocarbons. The animals were repeatedly exposed, per oral by gavage, to low dosages (0.5–2.5 ml/kg) of an Alberta crude oil (ACO) and their general health and systemic biochemical parameters were assessed. Rats exposed to these doses of ACO did not show any apparent symptoms of intoxication. Similarly, no significant changes were observed in clinical parameters of systemic impairment. Systemic biochemical assessment has shown that ACO exposure caused marked changes in the activities of several cytochrome P-450 (CYP)-linked polysubstrate monooxygenase enzymes in liver, kidney and lung tissues. Exposure to ACO caused dose-dependent increases in the hepatic activities of ethoxyresorufin- O-deethylase, a CYP 1A1/A2-linked enzyme; pentoxyresorufin- O-dealkylase, a CYP 2B-linked enzyme, and ethoxycoumarin- O-deethylase, a CYP 2B/1A-linked enzyme. Temporal assessment showed that these systemic biochemical changes were reversible in nature. Analysis of biomarker chemicals provided evidence that in exposed animals petroleum hydrocarbons were mainly distributed in the adipose tissues.

Effects of multiple exposures of small doses of Pembina Cardium crude oil and diesel in rats.

In lands used for agricultural purposes, petroleum- or diesel-contaminated wastes and accidental spills of crude oil at some drilling sites pose exposure risks for occupational public, livestock, and wildlife. This study has assessed the effects of an Alberta crude oil, Pembina Cardium crude oil (PCCO), and a commercial diesel fuel #2 (CDF-2) in Sprague-Dawley rats after repeated exposures at small dose levels. Rats were given by gavage on day 1, 3, 5, and 8 specified dosages of either the control vehicle, methylcellulose (MC) (1.25 ml/kg), or PCCO (0.25-1.25 ml/kg), or CDF-2 (1.25 ml/kg). Exposure of rats to these dose levels of the test substances caused no overt symptoms of intoxication. A small but statistically significant increase in liver somatic index was observed in rats exposed to 1.25 ml/kg doses of PCCO and CDF-2; however, kidney somatic index was not significantly affected by these treatments. Blood analyses for hematological and clinical indicators of systemic impairments did not show any significant changes (p > 0.05) between the control and PCCO- or CDF-2-exposed rats. Biochemical assessment of liver and kidney tissues showed that compared to the control group, the PCCO- and CDF-2-exposed groups had a marked and significant increase (p < 0.05) in the hepatic activity of ethoxyresorufin-O-deethylase (EROD, a cytochrome P-450 [CYP] 1A1/A2-linked enzyme). In PCCO-exposed rats, the induction of EROD was dose-dependent. Exposure of rats with PCCO and CDF-2 also caused dose-related increases from the unexposed (control) or MC dosed rats in (1) hepatic activities of aryl hydrocarbon hydroxylase (AHH, a CYP 1A1-linked enzyme), ethoxycoumarin-O-deethylase (ECOD, a CYP 2B/1A-linked enzyme), glutathione transferase (GT), and NADPH-catalyzed microsomal lipid peroxidation; and (ii) ECOD activity in kidneys. The induction of hepatic CYP-linked enzymatic activities by PCCO and CDF-2 could be due to de novo synthesis of selected isoforms, as evidenced by the relative differences in the inhibition of EROD activity with 7,8-benzoflavone or metyrapone.

Analysis Of One-Dimensional Rich Gas Displacements With An Equation Of State Simulator

Abstract Injection of enriched natural gas is widely applied in Alberta as a means to effect a miscible displacement process for improved oil recovery. Many such gas miscible projects are ongoing. The level of natural gas enrichment required for dynamic miscibility between solvent and reservoir fluid is most often determined in one dimensional laboratory displacements, i.e. slim tube tests. In order to best translate results from these idealized displacements into successful field applications, the mechanism of the mass transfer responsible for the high oil recovery achieved in these rich gasfloods must be understood. The variety of interpretations presented in the recent literature indicates that, in fact, the displacement process is not well understood. In this paper the authors outline the results of a study undertaken to characterize miscibility development for a typical rich gasflood system using an equation of state simulator. The simulator confirms that a frontal or "forward contact" mechanism, not the traditional condensing or "swept zone contact" mechanism is the pertinent process for this system. Also, the comparison of simulated 1-D displacements (slim tube experiments) and multiple phase contacts (analogous to rising bubble apparatus tests) indicates that the same basic mechanism applies to either miscibility testing technique. The insights gained from the study give increased confidence in the ability to make a meaningful interpretation of laboratory miscibility experiments. It is felt that investigation of the miscibility development process is necessary for the achievement of a better understanding of miscible displacement in the reservoir. Introduction There has been much written recently regarding the mechanisms leading to the development of miscibility in rich gas/crude oil systems. The papers by Zick(l) and Novosad, et al(2.3) challenged the long-held concept that miscibility development involved the condensing process(4) for all rich gas drives. Since these contributions, there has been a renewed study of the field using compositional simulators(5,8). Each of these studies revealed that miscibility could develop by a process other than the condensing mechanism. This topic was also the subject of this investigation which used an equation of state (EOS) simulator. An EGS simulator allows the examination of the effects of a model displacement process (e.g. slim tube) on the phase behaviour that describes miscibility development. The basic goal of this work was to examine this process for the case of an Alberta crude oil. Of special interest was the nature of the process in the situation of a l-D displacement of oil by solvent. Also, the developed phase behaviour predicted by simulations of 1-D displacements was compared to that from batch-type or discrete multiple phase contact calculations. Although some examination of the effects of discretization and the choice of relative permeability relationships was undertaken, a full investigation of the potential of simulation to predict slim tube results was not made. The purpose of the study was examination of trends in miscibility development phase behaviour and associated component transfer as functions of rich gas solvent enrichment level. The insights that this type of investigation reveals have important relevance to the field of solvent design for rich gas miscible floods.

Induction of hepatic cytochrome p‐450 and xenobiotic metabolizing enzymes in rats gavaged with an alberta crude oil

Changes in body weight gain and in biochemical parameters of blood and liver were assessed in Sprague-Dawley rats after multiple oral administration of three test doses of an Alberta crude oil (ACO). Rats treated with ACO (1.25-5 ml/kg) did not show statistically significant (p greater than .05) differences from control, corn-oil treated (5 ml/kg) rats, in body weight gains, liver weight, and blood biochemical indicators of liver (alanine aminotransferase, gamma glutamyltransferase), kidney (blood urea nitrogen, creatinine), and erythrocyte (adenosine 5'-triphosphate, 2,3-diphosphoglyceric acid, reduced glutathione) cytotoxicity. Treatment with ACO, however, caused statistically significant (p less than .05) and dose-related increases from control in (1) microsomal protein and cytochrome P-450 content, and NADPH-cytochrome c reductase, aryl hydrocarbon hydroxylase (AHH), and 7-ethoxycoumarin-O-deethylase (7-ECOD) activities, and (2) cytosolic glutathione transferase activity of liver. The induction of hepatic cytochrome P-450 and xenobiotic-metabolizing enzymes in microsomes of ACO-treated rats was probably associated with dose-related changes in isozymic forms of cytochrome P-450, as evidenced by (1) appearance of a 448-nm spectral peak in microsomes of ACO-treated rats and (2) differences in the inhibition pattern of AHH and 7-ECOD activities in microsomes of control and ACO-treated rats upon treatment with metyrapone and 7,8-benzoflavone.

HALIFAX '83 SEA TRIAL OF OIL SPILL DISPERSANT CONCENTRATES

ABSTRACT In September 1983, the Canadian Offshore Aerial Applications Task Force conducted a 3-day oil spill dispersant field trial using the commercial products Corexit 9527, Corexit 9550, and BPMA 70. A different dispersant concentrate was applied each day to one of two 15 barrel spills of 13 percent weathered Alberta crude oil using a Bell 212 transported Rotortech TC-3 spraying bucket. Both treated and control slicks were surveyed using remote sensing aircraft to determine surface area, spreading rates, and major differences in slick thickness. A water sampling program was undertaken to determine the extent of dispersant effectiveness. Sea conditions during the first two days' work (9527 then 9550) were comparable with a moderate increase in mixing energy on the third day (BPMA 700). Against these conditions, and with corresponding dispersant to oil ratios of 1:27, 1:8, and 1:9, the percentage of weathered oil dispersed into the water column was calculated to be 3.75, 20.5, and 41 respectively.

Enhanced Oil Recovery: Retrospect And Prospect

Introduction Outside of the ‘oil patch’, few people are aware that an oil reservoir normally will yield only a fraction of the oil held underground. However, much time and effort has been devoted to projects designed to recover a higher proportion of oil-in-place, to what in industry jargon is called enhanced recovery techniques. At present, enhanced recovery schemes1 account for about one-third of Alberta's conventional recoverable crude oil reserves. And as in the fullness of timeexploration prospects suffer from depletion, the ability to obtain more from what has already been found becomes of progressively greater importance as a source of additional oil supply. This paper looks at various aspects of enhanced recovery over the last decade or so, focussing on experience in Alberta where some 85 per cent of Canada's current conventional oil reserves is located. Trends in the nature and volume of reserves, costs, pricing provisions and economic incentives are examined. Finally, comments are made on the future outlook. Enhanced Recovery Reserve Trends Table 1 shows data for selected years on key features of Alberta oil reserves over the past decade. Over the 1973 to 1983 period, the TABLE 1. Recent trends in Alberta oil reserves. Available in Full Paper. average recovery factor for Alberta crude oil reserves fell by four percentage points [Column (2), Table 1], a reflection of a shift in the mix of reserves toward those with lower primary recovery factors especially heavy oil deposits such as Suffield and Provost. The relatively static volume of enhanced recovery reserves [Column (3) has somewhat reduced the share of such reserves in the over-all total [Column (4)] 2. The decline of late in the enhanced reserves recovery factor [Column (5) J is caused by the downward revision of many light and medium oil waterflood schemes. Examples here include Judy Creek BHL and Pembina Belly River. In short, the story of the last decade is that enhanced recovery reserves have shown no distinctive trends: they account ow for much the same proportion of provincial reserves as they did in 1973;similarly, the average recovery factor for enhanced recovery schemes has remained virtually constant. These trends seem disappointing in that although oil prices have been subjected to government controls nevertheless average wellhead prices rose over the decade by some $164/m3 ($26/bbl), an increase very considerably in excess of the rate of inflation. In other words, prices rose markedly in real terms. Ostensibly, suchan environment should and/or would ake the inception of new enhanced recovery schemes-especially those economically dubious at lower price levels more attractive and lead one to expect a strong growth in enhanced recovery reserves3. What, then, has happened to thwart the inception of more enhanced recovery schemes? The answer must lie in the interaction of the key elements of costs, ‘net back’ prices and technological scope. We look at each of these in turn.

Effects of a crude oil and an oil dispersant (Corexit 9527) on populations of the littleneck clam ( protothaca staminea)

Field and laboratory experiments were carried out to investigate the effects of Alberta crude oil and an oil dispersant (Corexit 9527) on the larval settlement, survival, siphon activities and behaviour of the littleneck clam (Protothaca staminea). Corexit 9527 was much more toxic than crude oil, and the highest toxicity was obtained when Corexit 9527 was mixed with crude oil. Siphon activities were impaired and abnormal behaviour was exhibited when adult clams were treated with 100 ppm Corexit 9527, 1000 ppm crude oil or a combination of both. Larval settlement was not affected when the substratum was treated with 1000ppm crude oil but was retarded when the substratum was treated with a mixture of 1000 ppm oil and 100 ppm Corexit 9527. Gas chromatograms also showed that the retention time and depth of penetration of hydrocarbons in the substratum was increased when Corexit 9527 was used with crude oil.

Geochemistry of the thiourea adduct fraction from an Alberta petroleum

The thiourea adducted saturated hydrocarbon fraction (TUA) from a mature Alberta crude oil has been studied in detail. The predominating classes of compounds were found to be the acyclic isoprenoids, alkylcyclohexanes and alkylmethylcyclohexanes. Simulation experiments indicated that the alkylcyclohexanes and the alkylmethylcyclohexanes may have been formed by the advanced diagenesis of biologically occurring fatty acids.

Current And Required Economics In Relation to Further Alberta Enhanced Recovery of Conventional Crude

Abstract The status of Alberta crude oil reserves is reviewed briefly in respect to currently established recovery factors and the technical potential for additional recovery enhancement. A hypothetical pool is evaluated, with consideration given to the economics of pressure maintaining the pool by water flood, solvent flood and micellar solution flood. In each case, the technology is assumed to be proven and the recovery factor for each mechanism is established at a level generally believed applicable for a flood of that genre. Projected proration factors are applied to determine the comparative allowable that would result from depletion of the example pool by each of the cited depletion mechanisms. These are then extended into future cash flows and discounted rates of return, using the appropriate capitol cost, operating costs, royalties and taxes associated with each scheme. The schemes are then analyzed on an incremental basis to determine comparative economic potential related to the ultimate recovery of each scheme. The technical practicality of "exotic" depletion schemes is considered in terms of the need to proceed with theexotic scheme early in the producing life of the pool. Economic calculations for the hypothetical pool show that exotic schemes frequently cannot compete economically with waterflood operations. Therefore, under current economic conditions, exotic recovery is normally not feasible and, where it is feasible, would proceed only after the water-flood reserves of the pool have been totally, or almost totally, recovered. This deferment could seriously reduce the incremental tertiary economics to the point of making tertiary recovery entirely impractical. Consideration is given to methods of improving the economic attractiveness of enhanced recovery schemes throughroyalty and tax relief. A simplified cost-benefit analysis of the impact of such relief is presented. Introduction THE ENERGY RESOURCES CONSERVATION BOARD (ERCB) estimated that the year-end 1975 initial recoverable conventional reserves of the Province of Alberta amounted to some 11.5 billion barrels, This represents a recovery factor of 32.5 per cent of 35.4 billion barrels initially in place. The ERCB estimates that without the subsisting enhanced recovery projects, which are mostly water flood and solvent flood, the primary depletion recovery would be some 21.4 per cent. Thus subsisting enhanced recovery projects in Alberta have increased recoverable reserves by 50 per cent. Nonetheless, about 65 per cent of the oil in place discovered to date will not be recovered under current operations. The National Energy Board, in its 1975(1) report Oil Canadian Oil Supply and Requirements, estimated that by 1985 Canadian demand for indigenous feed stocks would exceed available supply by about 500,000 barrels per day. Under such circumstances, it is incumbent upon industry and government to ensure that the recovery of oil from established reserves is optimized. Alberta currently accounts for over 85 per cent of Canada's 6.65 billion barrels of proven remaining crude oil reserves and about 85 percent of its oil producibility. Enhanced recovery can and must play a vital role in meeting Canada's future supply problems. In order to do so, technical research and its application must proceed expeditiously and the economic environment must be favourable.

The Relative Economics of Recovering And Upgrading Alberta's Hydrocarbon Resources

Summary In an attempt to provide a current appreciation of the comparative economics of the various Alberta hydrocarbon feedstocks in the petrochemical, electric power generation and fuel conversion areas, a methodology for preparing process economics in a 1980 Alberta context has been developed. The 1980 prices for the five basic hydrocarbon feedstocks of Alberta (crude oil, natural gas, natural gas liquids, sub-bituminous coal and oil sands) were projected or estimated along with certain by-product materials. Basic published quotes of known industrial energy processes were adjusted to account for inflation, location and scale. A consistent method for determining both operating and capital charges was applied to the processes. The final results demonstrate the comparative economics for six primary energy conversion and petrochemical processes: synthetic crude oil, synthetic natural gas, electric power generation, ethylene, ammonia and methanol. Analysis and interpretation of these economics has also been provided. Background The Canadian Public and its elected representatives have, over the last two years, become acutely aware of the non-uniform distribution of proven hydrocarbon reserves among the ten provinces and two territories. This distribution is illustrated in Figure 1. For six basic hydrocarbon sources (conventional crude oil and pentanes plus, natural gas, butanes and propane, synthetic crude oil, thermal coal and metallurgical coal), the ratio of Alberta's proven remaining reserve to the total Canadian proven remaining reserve has been calculated and plotted in the bar diagram of Figure 1. One can see that Alberta's share of the conventional crude oil and pentanes plus reserve is ninety per cent. Eighty per cent of the proven natural gas and ninety-eight per c.ent of the sub-bituminous coal of Canada is located in Alberta. Also, Alberta holds a virtual monopoly on any possible synthetic crude oil producible from oil sand. If lignite and bituminous coals are included in the analysis, Alberta's share of the national proven hydrocarbon-based energy reserve is sixty-five per cent. These statistics have been essentially obvious since the early fifties, but not sufficient in themselves to cause national attention. With the escalation of the international price of crude oil from 2.89$/bbl in January of 1973 to 11.25$/ bbl in December of 1973 (f.o.b., Persian Gulf) and the resulting pressure for an upward revaluation of all energy equivalents, Alberta's crude oil reserves became the center of vigorous and somewhat strained debate and controversy between federal and western provincial governments. The critical questions were for what price would Alberta's conventional crude oil be sold throughout Canada and what fraction of subsequent revenues would accrue to provincial and federal governments, as well as the producing companies. Alberta's goal was to maximize current revenues from its finite natural resources by reaching parity with international prices immediately. The federal concern centered around balancing its desire for self-sufficiency by accepting increased energy costs as being necessary to stimulate exploration and development efforts, and buffering industrial, populous Central Canada from the full effect of a five-fold price increase in energy. (The private sector was at least disheartened by all government activity in this area.)

The Behaviour of Crude Oil Spilled on Snow

Field and laboratory studies of the behavior of isothermal and hot oil spills on snow are described. Alberta crude oil spilled at 0&deg; C is readily absorbed by snow and contaminates an area of about 0.01 square metres per litre. A hot oil spill melts a channel in the snow and flows along the ground under the snow contaminating an area of about 0.024 square metres per litre. There may be considerable spreading of the oil during thaw. The flow regimes by which oil permeates into snow and the clean-up implications are discussed.