Hope for motorists:

Ivanhoe Energy

Ivanhoe Energy has successfully tested a patented technology that upgraded Athabasca bitumen feedstock to 19 API pipeline ready heavy oil. The technology might be used in tar sands areas to upgrade bitumen onsite for pipeline transport to refineries eliminating the need for diluent pipelines from refineries currently used to transport bitumen downstream of existing tar sands SAGD bitumen extraction facilities. The upgrade process produced distillate rich heavy oil and enough petroleum gases & C-5 naptha to fuel the upgrader and to power steam generators used to extract bitumen underground using proven SAGD methods without consuming any natural gas.

http://www.ivanhoe-energy.com/i/pdf/2008_WHOC.pdf

This above ground technology is a major step change in the oil industry and might provide pipeline ready heavy oil in the years to come as many conventional light oil fields continue to decline in production.

If you want to "upgrade" long hydrocarbon molecules to shorter ones you have to add hydrogen at some point. If not "upstream" then "downstream", i.e. at the refinery at the other end of the pipeline. The usual source of this hydrogen is natural gas. Theoretically the hydrogen source could be water, but that would require even more energy, that would have to come from something, e.g. coal or nuclear. In this case they probably are just trying to get around the limited amoung of NG available "upstream".

This process cracks the longer molecules. The plant only did the lowest part of the upgrading to 19 API. It incorporated a process called fluid cracking and fluid coking. There was some coke produced as a result of the operation. There was also a desulphurization unit to remove sulphur from the emissions. There was less surface disturbance and no tailings ponds to clean up. The layers containing tar sands are already polluted with the oil that occurs in a natural formation.

Another company called Petrobank has been trying underground THAI fireflood recovery. Other companies tried vertical fireflood methods for decades then gave up as SAGD appeared better to them. Per a recent presentation they have been able to get an average 12 API oil (12 is heavier than 19). This is similar to the API grade output that Suncor gets from its SAGD Firebag steaming operations. In the lab tests of the THAI process the initial API output was supposed to be higher (lighter oil). In the field testing the lab process cannot be duplicated. There is also a problem with sand production and irregular flow of liquids.

In a previous Drumbeat (maybe six weeks ago) a story described difficulty with the THAI -Toe to Heel Air Injection- process having big emissions problem. Too much air pollution and CO2 coming out with the bitumen. THAI does not look promissing for getting tar out of the sand in Alberta.

I did as much research as I could about the THAI process and after learning that the API increase in the process was less than what the initial lab tests suggested was possible, became skeptical. Later I learned of sand control issues. More recently there were issues about well control and well flow stated without quantitative data to define the situation. Am not sure whether or not these issues will be resolved. They seem to be planning as if the issues might be resolved, yet cannot state they have solved these problems. Their holdings in the Bakken field might help them generate cash flow while they try to resolve their issues.

if something sounds too good to be true........, well, you know.

the fortunate thing for petrobank is that their heavy oil operations are a small part of their business. they are doing very well in columbia, or so it would appear.

From the article, it sounds like they're getting the hydrogen from the feedstock itself, disproportionating the tar into lighter hydrocarbons and coke. It doesn't necessarily require the addition of water, but apparently does involve quite a lot of "cooking". And of course all that cooking is going to lower the EROEI of your product.

I am not a chemical engineer, but as a mechanical engineer with some background in chemistry I do understand what they are doing with this "HTL" process. The main advantage is the elimination of using natural gas in the ugrading of Bitumen to heavy oil for shipment to a refinery. The energy for the upgrading comes from boiling off the lighter fractions produced by this process and using them for heat source and hydrogen source instead of natural gas.

I see economic advantages to HTL by omitting high priced natural gas from upgrade process. Also the use of sand as a heat transfer media/carbon collection in vacuum process distillation is also beneficial. Main problems I see with this is that EROEI may be no better than current Bitumen upgrade methods using nat. gas. The fact that the residual coke is burned in this HTL process to make heat and clean sand may produce a large amount of CO2. So, in a nutshell the HTL process makes the oil from tar sands cheaper, but not necessaily more energy efficient and likely worse for AGW.

Most of the green house gas CO2 from oil comes from burning fuel in the gas/diesel tank, something most people have no problems with. Al Gore burned more gasoline and jet fuel in a year in his travels than over 90% of the world's population. Other people have justified their use of fuel also. Some have stated that if we were to stop using hydrocarbons at once we could not stop the effects of global warming as it might take decades or longer for the stuff to be removed from the air. Every time there is a flood, hurricane, or drought some blamed it on global warming. Are there any areas that might gain from global warming? A true expert might be able to quote any benefits warming might bring.

I have read of sea level rise of 1.8 mm per year. That means in 100 years the sea level might rise a foot and a half, unless as theorized sea level rise accelerates. Coastal erosion happened without sea level rise and is normal for some coastal areas. Wave erosion removed land mass on a regular basis while at the mouth of the Mississipi River new land mass was created. Other changes in coastal areas are due to the rising and falling of the earth's crust as the land masses and ocean floor are not static, but moving. The movements were not only horizontal but vertical.

People were currently demanding gasoline, not in pleased to be asked to give up its use to prevent global warming. One might not win an election by promising to ban the use of hydrocarbons.