Petroleum research is responsible for making previously unusable reservoirs economically viable and for limiting the environmental impact of petroleum development. Microfluidics, the study of fluid flow at the micro-scale, is predominantly used to study biological phenomena. Adapting microfluidics to study petroleum requires the use of materials and methods not commonly used. This thesis focuses on applying microfluidics to the study of petrochemical fluid flow at high-pressure and high-temperature. The first problem addressed is the study of fluids during alkaline steam assisted gravity drainage (alkaline SAGD). The addition of an alkaline additive is found to improve the bitumen production rate by 35-67%. Secondly, two high-pressure, high-temperature, solvent resistant microfluidic interfaces for glass chips are designed to be operated up to 140 bar and 70 degrees Celsius. Lastly, a novel method for fabricating solvent resistant microfluidic devices from Teflon film is demonstrated by measuring the viscosity of toluene-heavy oil blends.

Petroleum research is responsible for making previously unusable reservoirs economically viable and for limiting the environmental impact of petroleum development. Microfluidics, the study of fluid flow at the micro-scale, is predominantly used to study biological phenomena. Adapting microfluidics to study petroleum requires the use of materials and methods not commonly used. This thesis focuses on applying microfluidics to the study of petrochemical fluid flow at high-pressure and high-temperature. The first problem addressed is the study of fluids during alkaline steam assisted gravity drainage (alkaline SAGD). The addition of an alkaline additive is found to improve the bitumen production rate by 35-67%. Secondly, two high-pressure, high-temperature, solvent resistant microfluidic interfaces for glass chips are designed to be operated up to 140 bar and 70 degrees Celsius. Lastly, a novel method for fabricating solvent resistant microfluidic devices from Teflon film is demonstrated by measuring the viscosity of toluene-heavy oil blends.

Canada and Venezuela contain massive unconventional oil deposits accounting for over two thirds of newly discovered proven oil reserves since 2002. Canada, primarily in northern Alberta province, has between 1.75 and 1.84 trillion barrels of hydrocarbon resources that as of 2013 are obtained approximately equally through surface extraction or enhanced oil recovery (EOR) (World Energy Council, 2010). Due to their depth and viscosity, thermal based EOR will increasingly be responsible for producing the vast quantities of bitumen residing in Canada’s Athabasca, Cold Lake, and Peace River formations. Although the internationally accepted 174-180 billion barrels recoverable ranks Canada third globally in oil reserves, it represents only a 9-10% average recovery factor of its very high viscosity deposits (World Energy Council, 2010). As thermal techniques are refined and improved, in conjunction with methods under development and integrating elements of existing but currently separate processes, engineers and geoscientists aim to improve recovery rates and add tens of billions of barrels of oil to Canada’s reserves (Cenovus Energy, 2013). The Government of Canada estimates 315 billion barrels recoverable with the right combination of technological improvements and sustained high oil prices (Government of Canada, 2013). Much uncertainty and skepticism surrounds how this 75% increase is to be accomplished. This document entails a thorough analysis of standard and advanced EOR techniques and their potential incremental impact in Canada’s bitumen deposits. Due to the extraordinary volume of hydrocarbon resources in Canada, a small percentage growth in ultimate recovery satisfies years of increased petroleum demand from the developing world, affects the geopolitics within North America and between it and the rest of the world, and provides material benefits to project economics. This paper details the enhanced oil recovery methods used in the oil sands deposits while exploring new developments and their potential technical and economic effect. CMG Stars reservoir simulation is leveraged to test both the feasible recoveries of and validate the physics behind select advanced techniques. These technological and operational improvements are aggregated and an assessment produced on Canada’s total recoverable petroleum reserves. Canada has, by far, the largest bitumen recovery operation in the world (World Energy Council, 2010). Due to its resource base and political environment, the nation is likely to continue as the focus point for new developments in thermal EOR. Reservoir characteristics and project analysis are thus framed using Canada and its reserves. / text

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“Introduction to the Canadian Oil Sands”, “Canada’s Oil Sand Industry: An Overview”, “Heavy Oil Technologies”, and so many other topics about heavy oil have become the hotcakes in the oil industry. A number of new projects are in Execute phase for the development of heavy oil assets. This clearly shows the increasing demand for heavy oil. An oil industry is working hard to meet the world oil demand by developing deep water, HPHT, heavy oil, shale sands and all other non-conventional reservoirs but the main challenge is to develop and operate them in a risk free environment. Understanding the reservoir and fluid properties and developing new technologies help the industry to reduce the risk in developing non-conventional fields. A major problem in heavy oil field is to understand the behaviour of heavy oil. The viscous oil flows sluggishly in the formations and hence it is difficult to transport through unconsolidated formations and is very difficult to produce by conventional methods. Viscous oil recovery entails neatly designed enhanced oil recovery processes like Steam Assisted Gravity Drainage and the success of such technologies are critically dependent on accurate knowledge of reservoir, well and fluid properties of oil under variety of pressure and temperature conditions. This research project has provided some solutions to the challenges in heavy oil field development and can help the oil industry to optimise heavy oil production. Detailed experimental understanding of PVT properties has allowed this project to contribute to the knowledge. Reservoir, well and fluid properties were studied thoroughly and demonstrated the criticality of each parameter on the efficiency of Steam Assisted Gravity Drainage. An user friendly SAGD simulator is a big output of this research which allows the user to optimise the heavy oil recovery and enables to do risk assessments quickly during design phase of SAGD. A SAGD simulator is developed.

This report offers a comparative valuation of two bitumen production technologies, using real options analysis (ROA) techniques to incorporate strategic flexibility into the investment scenario. By integrating a probabilistic cost model into a real options framework, the value of an oil recovery facility is modeled to reflect the realistic alternatives available to decision-makers, where the course of the investment can be altered as new information becomes available. This approach represents a distinct advantage to traditional discounted cash flow (DCF) estimation, which is unable to capture operational adaptability, including the ability to expand, delay, or abandon a project. The analysis focuses on the energy inputs required for the recovery of heavy oil bitumen from Alberta, Canada, and examines both natural gas and nuclear steam plants as heat sources. The ACR-1000 reactor is highlighted as a substitute for conventional natural gas-fueled means of production, in light of the recent volatility of natural gas prices and the potential for emissions compliance charges. The methodology includes a levelized cost assessment per barrel of bitumen and estimation of cost ranges for each component. A mean-reversion stochastic price model was also derived for the both natural gas and oil price. By incorporating cost ranges into a ROA framework, the benefit of retaining project flexibility is included in its valuation. Formulated as a decision tree, built-in options include the initial selection to pursue nuclear or natural gas, site selection and licensing, the ability to switch heat source in the planning stage, and the final commitment to construct. Each decision is influenced by uncertainties, including the course of bitumen and natural gas price, as well as emissions policy. By structuring the investment scenario to include these options, the overall value of the project increases by over $150 million. The ability to switch technology type allows for an assessment of the viability of nuclear steam, which becomes economically favorable given high natural gas prices or high emissions taxes. Given an initial selection of natural gas SAGD, there is a 25% probability that a switch to nuclear steam will occur, as evolving financial conditions make nuclear the optimal technology. / text

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The development of fast and efficient computer hardware technology has resulted in the rapid development of numerous computational software tools for making statistical inferences. The computational algorithms, which are the backbone of these tools, originate from distinct areas in science, mathematics and engineering. The main focus of this thesis is on computational tools which can be employed for estimating unmeasured variables in a process using all the available prior information. Specifically, this thesis demonstrates the application of a variety of tools for soft sensing of process variables and uncertain parameters of physiochemical process models, using routine data available from the process. The application examples presented in this thesis come from broad areas where process uncertainty is inherent and includes petrochemical processes, mechanical valve actuators, and upstream production processes in petroleum reservoirs. The mathematical models that are employed in different domains vary significantly in their structure and their level of complexity. In the petrochemical domain, the focus was on developing empirical soft sensors which are essentially nonparametric mathematical models identified using routine data from the process. The Support Vector Regression technique was applied for identifying such nonparametric empirical models. On the other hand, in all the other application examples in this thesis the physical parametric models of the process were utilized. The latter application examples, which cover a major portion of this thesis, demonstrate the application of modern state and parameter estimation algorithms which are firmly grounded on Bayesian theory and Monte Carlo techniques. Prior to the chapters on the application of state and parameter estimation techniques, a tutorial overview of the Monte Carlo simulation based state estimation algorithms is provided with an attempt to throw new light on these techniques. The tutorial is aimed at making these techniques simple to visualize and understand. The application case studies serve to illustrate the performance of the different algorithms. All case studies presented in this thesis are performed on processes that exhibit significant nonlinearity in terms of the relationship between the process input variables and output variables. / Process Control

Heavy oil production depends on the understanding of mechanical and flow properties of unconsolidated or weakly consolidated sands under different loading paths and boundary conditions. Reconstituted bitumen-free Athabasca oil-sands samples were used to investigate the geomechanics of a steam injection process such as the Steam Assisted Gravity Drainage (SAGD). Four stress paths have been studied in this work: triaxial compression, radial extension, pore pressure increase and isotropic compression. Absolute permeability, end-point relative permeability to oil & water (kro and krw), initial water saturation and residual oil saturation were measured while the samples deformed. Triaxial compression is a stress path of increasing mean stress while radial extension and pore pressure increase lead to decreasing mean stress. Pore pressure increase experiments were carried out for three initial states: equal axial and confining stresses, axial stress greater than confining stress and confining stress greater than axial stress. Pore pressure was increased under four boundary conditions: 1) constant axial and confining stress; 2) constant axial stress and zero radial strain; 3) zero axial strain and constant confining stress; and 4) zero axial and radial strain. These experiments were designed to mimic geologic conditions where vertical stress was either S1 or S3, the lateral boundary conditions were either zero strain or constant stress, and the vertical boundary conditions were either zero strain or constant stress. Triaxial compression caused a decrease in permeability as the sample compacted, followed by appreciable permeability enhancement during sample dilation. Radial extension led to sample dilation, shear failure and permeability increase from the beginning. The krw and kro increased by 40% and 15% post-compaction respectively for the samples corresponding to lower depths during triaxial compression. For these samples, residual oil saturation decreased by as much as 40%. For radial extension, the permeability enhancement decreased with depth and ranged from 20% to 50% while the residual oil saturation decreased by up to 55%. For both stress paths, more shear-enhanced permeability was observed for samples tested at lower pressures, implying that permeability enhancement is higher for shallower sands. The pore pressure increase experiments showed an increase of only 0-10% in absolute permeability except when the effective stress became close to zero. This could possibly have occurred due to steady state flow not being reached during absolute permeability measurement. The krw curves generally increased as the pore pressure was increased from 0 psi. The increase ranged from 5% to 44% for the different boundary conditions and differential stresses. The kro curves also showed an increasing trend for most of the cases. The residual oil saturation decreased by 40-60% for samples corresponding to shallow depths while it increased by 0-10% for samples corresponding to greater depths. The reservoirs with high differential stress are more conducive to favorable changes in permeability and residual oil saturation. These results suggested that a decreasing mean stress path is more beneficial for production increase than an increasing mean stress path. The unconsolidated sands are over-consolidated because of previous ice loading which makes the sand matrix stiffer. In this work, it was found that over-consolidation, as expected, decreased the porosity and permeability (40-50%) and increased the Young’s and bulk moduli of the sand. The result is sand which failed at higher than expected stress during triaxial compression. Overall, results show that lab experiments support increased permeability due to steam injection operations in heavy oil, and more importantly, the observed reduction in residual oil saturation implies SAGD induced deformation should improve recovery factors. / text