Progress on AMSO AMSO s s RD&D RD&D Progress on Pilot - - PowerPoint PPT Presentation

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Progress on AMSO AMSO s s RD&D RD&D Progress on Pilot - - PowerPoint PPT Presentation

Progress on AMSO AMSO s s RD&D RD&D Progress on Pilot Test Program Pilot Test Program Presentation to the 30 th Oil Shale Symposium Golden, CO October 18-20, 2010 Alan K. Burnham Chief Technology Officer 1 Outline of talk


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Progress on Progress on AMSO AMSO’ ’s s RD&D RD&D Pilot Test Program Pilot Test Program

Presentation to the 30th Oil Shale Symposium Golden, CO October 18-20, 2010 Alan K. Burnham Chief Technology Officer

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Outline of talk Outline of talk

Who is AMSO? AMSO’s process in brief Preparations for our Pilot Test in 2011 Supporting R&D Return on invested energy

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EGL Resources obtained a BLM

160-acre RD&D lease in January 2007, held under EGL Oil Shale

IDT acquired EGL Oil Shale in

2008 and renamed it AMSO

In March 2009, TOTAL acquired a

50% interest in AMSO

Upon demonstration of

commercial viability, the RD&D lease can be expanded to a 5120- acre Preference Right Area*

AMSO is one of three RD&D Leaseholders AMSO is one of three RD&D Leaseholders in Colorado in Colorado’ ’s Piceance Basin s Piceance Basin

*Using the USGS 2-million barrels per acre estimate (see map), this area contains an estimated 10 billion barrels of potential resource

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Many people contribute to Many people contribute to AMSO AMSO’ ’s s effort effort

Field Operations

  • Roger Day
  • George Nichols
  • Tim Roe
  • Rob Arcia

Oil and Gas expertise

by TOTAL

  • Pierre Allix
  • John Foulkes

Permitting

  • Jack Clark
  • Western Water & Land

Business Operations

  • IDT Corporation
  • Arnold Mackley

Process Design & Construction

  • Jim McConaghy
  • Stephen Kesler
  • ISI Engineering
  • ZAP Engineering

R&D Experiments & Modeling

  • Len Switzer
  • Schlumberger (SDR, EMI, Z-Seis)
  • Shale Tech International
  • New England Research
  • Lawrence Livermore Natl. Lab.
  • Lawrence Berkeley Natl. Lab.
  • Southwest Research Institute
  • Weatherford Labs
  • Gushor Inc.
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AMSO’s patent-pending

CCRTM* process uses convection to accelerate heat transfer throughout the retort

Faster heat transfer in our

process enables fewer wells, hence less surface impact, to extract the shale oil

* Conduction, Convection and Reflux

Our process is unique Our process is unique

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We believe We believe AMSO AMSO’ ’s s process proactively addresses process proactively addresses all environmental and community impacts all environmental and community impacts

Minimal surface footprint Protection of aquifers Low water usage High energy efficiency Low gas emissions High-value jobs

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Our 2011 Pilot Test will test the key physical and Our 2011 Pilot Test will test the key physical and chemical mechanisms of the CCR chemical mechanisms of the CCRTM

TM process

process

  • il

shale

~45o incline

Pilot test interval (2015-2135 ft) Nahcolitic oil shale

Surface processing facility heater well

(electrical cables only)

monitoring wells

Better water quality

heater

Saline water Dissolution surface

2000 ft 1000 ft

Wasatch (no producible water) Mahogany zone

production well

Aquifer system

Triangular convection loop

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Our Pilot Test facilities are under construction Our Pilot Test facilities are under construction

Test Pad has an Test Pad has an exploration well exploration well and will hold the and will hold the Heater Well and Heater Well and the Surface the Surface Processing Processing Facilities Facilities MWP 2 has MWP 2 has three hydrology three hydrology wells wells HB Pad has a HB Pad has a hydrology well hydrology well MWP 1 has a MWP 1 has a hydrology well hydrology well and staff trailers and staff trailers TM Pad currently has an TM Pad currently has an exploration well and a exploration well and a geophysical monitoring geophysical monitoring well over the retort area. well over the retort area. The Production Well and The Production Well and five monitoring wells will five monitoring wells will be added in 2011. be added in 2011. 3 MW power line 3 MW power line installed Feb 2010 installed Feb 2010 Facilities were Facilities were located to minimize located to minimize surface impacts surface impacts

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Construction of the Surface Processing Facilities Construction of the Surface Processing Facilities will be substantially completed this year will be substantially completed this year

Tank farm Process building Control room Fire control system

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Geology, hydrology and geochemistry of the illitic oil shale in

the Garden Gulch member

Modeling of microseismic, CASSM and ERT methods to be

used for imaging growth of the retort

Pyrolysis of the illitic oil shale under conditions relevant to

  • ur process

Rock mechanics at relevant temperatures and confinement Heat transfer characteristics of boiling and condensing oil Integration of chemical and physical processes into an overall

process simulator—STARS in our case

Design and interpretation of the Pilot Test Design and interpretation of the Pilot Test requires concurrent R&D requires concurrent R&D

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Oil shale really is oil shale Oil shale really is oil shale

The original definition of

“shale” was a field geology term not dependent on chemical composition

The Garden Gulch member is

a clay-rich oil shale

The term “oil” has always

meant that oil could be produced by destructive distillation

Parachute Creek Member Garden Gulch Member

FTIR analysis by Herron et al. at SDR

Carbonates Quartz + Feldspar Clay Minerals

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Our retort zone is very tight and Our retort zone is very tight and underpressured underpressured

A well was completed

  • ver the test interval at
  • ur retort location

Only 7’ of water and

some methane flowed into the well over six months

Water is brackish

(>10k ppm TDS and high chloride)

Hydrostatic pressure is

about 325 psi

100 200 300 4 8 12 16 20 24 Week from shut-in Pressure, psi

Measured gas pressure for the R1 interval 9-week time constant towards 325 psi

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Pyrolysis experiments demonstrate high yields Pyrolysis experiments demonstrate high yields

  • f high quality oil are possible from illitic shale
  • f high quality oil are possible from illitic shale

Apparatus patterned after

Burnham-Singleton (1983)

Our yields are consistent with

those results

70-90 vol% FA oil yield achieved for 150-750 psi at 2 oC/h

Effects of pressure modeled by

adaptation of Burnham-Braun model (1985, 1990)

Metals and N content lower

than previously reported for Green River shale oil

As, Fe, Ni, V below detection

H2 and CH4 yields indicate in-

situ hydrotreating

Back- pressure regulator To GC then vent Collected Oil (~1 L) scale Ar N2 sweeps annulus around shale can Condenser Flexible lines to enable real-time measurements

  • f liquid weights

Pressure relief valve To vent

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Oil and gas properties are related logically to Oil and gas properties are related logically to

  • il yield changes due to coking and cracking
  • il yield changes due to coking and cracking
  • 10

10 30 50 70 90 50% 60% 70% 80% 90% 100% Oil yield, wt% FA Pour point,

  • F

0.2 0.4 0.6 0.8 1.0 1.2 1.6 1.7 1.8 1.9 2.0 H/C atomic ratio Nitrogen, wt% 150-750 psi kinetic model 0.0 0.1 0.2 0.3 0.4 0.5 60% 70% 80% 90% 100% Oil yield, vol% FA (C1-C4)/(C5+ oil), g/g AMSO 2010 LLNL 1983 kinetic model 20 25 30 35 40 45 50 50% 60% 70% 80% 90% 100% Oil yield, wt% FA API gravity AMSO 2010 LLNL 1983 kinetic model

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Common generalizations about shale oil Common generalizations about shale oil upgrading and refining do not apply upgrading and refining do not apply

Expected API gravity is 35-40o with no residuum Low pour point and metals content mean pipeline restrictions

and catalyst poisoning are not an issue

Low nitrogen content (¼ of conventional shale oil and only

twice crude oil) and negligible olefin reduces hydrogen demand

Pyrolysis gas contains enough hydrogen for much of the final

refining if done on site

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The return on invested energy is about 4:1 The return on invested energy is about 4:1

3500 Total in final fuels 230 Total External 3680 Total exported 5 Reclamation (ext) 480 Gas exported (C3, C4) 215 Surface Ops (ext) 675 Gas consumed 675 Retorting (int) 3200 Premium shale oil 10 Field Ops (ext) Estimated NER (EROI) Energy Output (MJ/tonne) Total Internal Energy Input (MJ/tonne) 3.9 675

This is one possible conservative estimate using process assumptions yet to be engineered Retorting energies are for wet shale on a dry shale basis Lower heating value (H2O-g) used for heats of combustion Produces a nominally pure CO2 stream from combustor available for sale or sequestration About 60% of the surface ops power demand is for the O2 plant that enables CO2 sequestration Retorting energy input assumes 15% thermal inefficiency and no heat recovery Assumes combustion of produced hydrogen and no on-site upgrading Electric power for surface ops as thermal input, assuming off-site generation at 40% efficiency

The NER should be used with caution, as optimizing it optimizes neither process economics nor CO2/final fuel delivered, which are the two important quantities

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Our Pilot Test is moving towards realization Our Pilot Test is moving towards realization

Our site characterization activities confirm the suitability of

the Illite Mining Interval

  • Hydrologic isolation from protected waters has been demonstrated
  • High oil shale grade and minimal groundwater favor high retort efficiency
  • Minor amounts of gas and bitumen are already present

Most of the permits and agency approvals are in place Most of the infrastructure is in place Surface processing facilities are under construction Designs for the heater and production wells are nearly

complete

Our concurrent R&D will provide a basis for evaluation and

further steps