DECE M B E R 2013 | $ 10
T H E F I R ST W O R D O N O I LPATC H I N N OVAT I O N
Unmanned Era Robotic aircraft set to transform oil and gas industry
13 Multiphysics To The Rescue Unconventional oil and gas sector leveraging increasingly realistic simulation technology
27 When Tiny Is Mighty Downhole micro sensor technology exposing new insights into reservoir characterization
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CONTE NTS
DECE M B E R 2013
FEATU R E S
VOL.19 | NO.10
D E PARTM E NTS E D ITOR’S VI EW
6
Big Brother Or Big Saviour?
VAN G UAR D
9
News. Trends. Innovators.
BYTE S
13
20
Multiphysics To The Rescue Unconventional oil and gas sector leveraging increasingly realistic simulation technology
R E S EAR CH
LAUNCH OF THE UNMANNED ERA
17
Robotic aircraft set to transform oil and gas industry
“Super Soap” Protects Subsea Surfaces Researchers create surfactant able to repel spilled oil without permanent substrate alteration
N EW TE CH
27
WHEN TINY IS MIGHTY
Downhole micro sensor technology exposing new insights into reservoir characterization
33
Too Much Of A Good Thing
35
Environmentally Friendly Diluent?
37
New Technology Rejuvenates Aging Pipelines
Cutting overuse of chemicals injected into oil and gas wells trims production costs
Company aims to perfect oil extraction from biomass
Smart Pipe offers low-impact remediation in sensitive areas
ADVE RTI S E R S Baker Hughes Canada Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OBC
geoLOGIC Systems Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Beijing Zhenwei Exhibition Co, Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Halliburton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Calfrac Well Services Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Canyon Technical Services Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Dragon Products Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Entero Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
IHS Global Canada Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC Momentive Specialty Chemicals Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 NCS Oilfield Services Canada Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC
EV Canada Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Packers Plus Energy Services Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Fluid Energy Group Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Schlumberger Canada Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4
N E W T E C H M AG A Z I N E . C O M
ADVE RTISE M E NT
MULTI-STAGE COMPLETIONS
What is the best completions method for the Bakken? Our results speak for themselves… OH
NORMALIZED CUM OIL (BBL)
80000
CH Packers Plus - Open Hole
70000
Average $2.8MM/Well
60000 50000
Cemented Liner
40000 30000 20000 10000 0
0
5
10
15
20
25
30
35
MONTHS FROM INITIAL PRODUCTION
OH
What is the best completions method for the Bakken?
CH
70
Despite what you may have heard, the Packers Plus StackFRAC® system continues to deliver significantly higher production while resulting in lower water cuts in the Bakken compared to cemented completions.
WATER CUT (%)
60 50 40 30 20
It is our commitment to provide the most innovative, best-built technology to deliver the highest ultimate recovery for your well, while providing the best options for secondary recovery and lower water production.
10
0 0
5
10
15
20
MONTHS FROM INITIAL PRODUCTION
25
For more on this topic, please visit: www.packersplus.com/productionperformance
Dan Themig, President & CEO, Packers Plus
STUDY DETAILS • Wells completed after 2010 • Data normalized to remove non-producing time • Data cross-checked between three databases
STUDY AREA
• All wells completed by single operator
E D ITOR’S VI EW
www.newtechmagazine.com
EDITORIAL
BIG BROTHER OR BIG SAVIOUR?
W
atching footage of an unmanned aerial vehicle (UAV) graphically revealing the ravages and human tragedy of typhoon Haiyan in the Philippines as it cruised over flattened buildings at not much higher than eye level recently, it was hard not to think of the two conflicting prospects of UAV technology—its potential to revolutionize how we see the world, and its threat of unrestrained intrusion into citizens’ privacy. The dichotomy is at the heart of a multibillion dollar question: how far will UAVs— for which there are a multitude of potential uses in the oil and gas industry—penetrate into commercial use? UAV systems’ rapidly advancing technology has outpaced lawmakers’ ability to regulate them, creating a situation in which the country with the most advanced technologies, the United States, has among the most restrictive regulations on their commercial use. That situation will change next September, when new regulations come into effect easing permitting requirements and, potentially, releasing pent-up demand for the technology to penetrate into many sectors of the economy. The uses for the technology are almost limitless, from law enforcement, disaster assessment and assistance, and search and rescue to traffic monitoring, surveying and mapping, and wildlife, forestry and agriculture monitoring. They’ve been used in potentially deadly situations, flying into hurricanes and over active volcanoes and the stricken Fukushima nuclear reactor to collect otherwise unavailable data. And they have been put to use for such mundane tasks as chasing geese from public beaches in Ottawa. The flying machines, also known as drones, are as varied as their potential uses. They range from craft like Northrop Grumman Corporation’s Global Hawk that can fly up to 30 hours with a range of 16,000 kilometres, to ones as small as a few pounds in weight, launchable by hand, with a battery life of 20 minutes. They get smaller, smarter and cheaper with every passing year—on the horizon are UAVs as small as birds or even insects. In the energy sector, they have been used to inspect difficult-to-reach areas,
6
such as the tops of flare stacks and offshore drilling derricks, as well as for surveying and environmental assessment. They can overfly open pit mines in a grid pattern to provide better 3-D modelling in far less time than manual surveying. Recently they were approved for use offshore Alaska, where ConocoPhillips Company used them in September to monitor ice floes and whales. But for all their potential beneficial uses, they are hobbled by their association with privacy intrusion and the reputation gained in their military application in spying and targeted killing. Even as the United States moves to ease restrictions, and both industry and governments clamour to reap the benefits (the Association for Unmanned Vehicle Systems International predicts the U.S. market alone will generate US$82 billion in revenues in a decade, while dozens of U.S. states have applied for the planned six drone test sites to be established in the United States), a backlash threatens to obstruct the industry. Privacy advocates are calling for continued restrictions and several states have proposed legislation to limit their use (in one instance, a Colorado community even voted on an ordinance to allow citizens to shoot down drones, though it would still be illegal under federal law). The sputtering start in the United States does offer Canada, with regulations less stringent and soon to be eased further, an opportunity to get into the industry on the ground floor. And it’s hard to think of a better fit than with the energy sector, a hightech industry for which UAVs offer much potential to save money and increase safety. As we learn in this issue’s cover story, while Canada may lack the breadth of technological expertise possessed by the United States, it can, and already does, compete in some niche areas of the UAV market. And, if it acts fast, it can lead in offering the airspace that developers need to pilot new UAV technologies in real-world conditions. It is likely UAVs are on their way to becoming an indispensable and game-changing technology—with some common-sense safety and privacy protections put in place, Canada has an opportunity to be a leader in the sector. Maurice Smith
N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2013
EDITOR Maurice Smith | msmith@junewarren-nickles.com STAFF WRITERS Lynda Harrison, Carter Haydu, James Mahony, Elsie Ross CONTRIBUTING WRITERS Jim Bentein, Godfrey Budd EDITORIAL ASSISTANCE MANAGER Tracey Comeau | tcomeau@junewarren-nickles.com EDITORIAL ASSISTANCE Laura Blackwood, Shawna Blumenschein, Sarah Eisner
CREATIVE PRINT, PREPRESS & PRODUCTION MANAGER Michael Gaffney | mgaffney@junewarren-nickles.com CREATIVE SERVICES MANAGER Tamara Polloway-Webb | tpwebb@junewarren-nickles.com CREATIVE LEAD Cathy Ozubko | cozubko@junewarren-nickles.com GRAPHIC DESIGNER Teagan Zwierink
SALES SALES MANAGER—ADVERTISING Monte Sumner | msumner@junewarren-nickles.com SENIOR ACCOUNT EXECUTIVES Nick Drinkwater, Tony Poblete, Diana Signorile SALES Terry Nelson Browning, Brian Friesen, Rhonda Helmeczi, Sammy Isawode, Mike Ivanik, Nicole Kiefuik, David Ng, James Pearce, Sheri Starko For advertising inquiries please contact adrequests@junewarren-nickles.com AD TRAFFIC COORDINATOR—MAGAZINES Lorraine Ostapovich | atc@junewarren-nickles.com
DIRECTORS CEO Bill Whitelaw | bwhitelaw@junewarren-nickles.com PRESIDENT Rob Pentney | rpentney@junewarren-nickles.com DIRECTOR OF SALES & MARKETING Maurya Sokolon | msokolon@junewarren-nickles.com DIRECTOR OF EVENTS & CONFERENCES Ian MacGillivray | imacgillivray@junewarren-nickles.com DIRECTOR OF THE DAILY OIL BULLETIN Stephen Marsters | smarsters@junewarren-nickles.com DIRECTOR OF DIGITAL STRATEGIES Gord Lindenberg | glindenberg@junewarren-nickles.com DIRECTOR OF CONTENT Chaz Osburn | cosburn@junewarren-nickles.com DIRECTOR OF PRODUCTION Audrey Sprinkle | asprinkle@junewarren-nickles.com DIRECTOR OF FINANCE Ken Zacharias, CMA | kzacharias@junewarren-nickles.com
OFFICES CALGARY 2nd Flr-816 55 Avenue NE | Calgary, Alberta T2E 6Y4 Tel: 403.209.3500 | Fax: 403.245.8666 Toll-Free: 1.800.387.2446 EDMONTON 220-9303 34 Avenue NW | Edmonton, Alberta T6E 5W8 Tel: 780.944.9333 | Fax: 780.944.9500 Toll-Free: 1.800.563.2946 SUBSCRIPTION INQUIRIES Tel: 1.866.543.7888 | Email: circulation@junewarren-nickles.com Online: junewarren-nickles.com GST Registration Number 826526554RT. © 2013 JuneWarren-Nickle’s Energy Group. All rights reserved. Reproduction in whole or in part is strictly prohibited. Publications mail agreement No. 40069240. Return undeliverable Canadian addresses to our circulation department, 2nd Flr-816 55 Avenue NE, Calgary, AB, T2E 6Y4. You may also send information on address changes by email to NewTechnology@junewarren-nickles.com. Please quote the code that begins with the prefix NTM. For members of the Society of Petroleum Engineers, please contact the SPE office directly with your address change. New Technology Magazine is owned by JuneWarren-Nickle’s Energy Group, a subsidiary of Glacier Media Inc., and is published 10 times per year. Printed in Canada by PrintWest. ISSN 1480-2147.
Frac water storage? We’ve got Canada covered.
Every type, every size, every situation. There are many challenges that you may face in frac water storage, but one thing is always constant – Dragon has the right solution. From 400-barrel uprights to insulated and non-insulated frac tanks to Water Corrals, we are the only company in Canada that offers the full range of water storage systems. Every product is severeduty engineered to perform in the harshest production environments, and Dragon knows frac water storage and handling like no other company. We offer on-site needs assessment so our engineers can design solutions specific to each job site, including custom packages. Plus, we are fully committed to serving Canada, with a location in Red Deer and a Canadian sales force dedicated to providing exactly what you need. All solutions, all from one source. Make it happen. www.dragonproductsltd.com — 1-403-340-3600 © Copyright 2013 Modern Group Inc. All rights reserved.
Make it happen. U.S. owned and operated for over 50 years.
FRACTURE MODELING
maximize unconventional resources, divide the workload, but multiply the brainpower. To
With the new Halliburton CYPHERSM Seismic-to-Stimulation Service. CYPHER service is the new way to assure maximization
With the tailored approach of the CYPHER service,
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It provides a customized Integrated Asset Model that
resource data and geoscience modeling into a refined
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Integrated Asset Model that is continuously updated and
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validated. This ongoing calibration has led to enhanced
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unconventional resource plays.
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What’s your unconventional challenge? For solutions, visit halliburton.com/CYPHERservice
HALLIBURTON
NEWS. TRENDS. INNOVATORS.
trillion cubic feet
Containing an estimated 449 trillion cubic feet of marketable natural gas, the Montney Formation straddling the northern Alberta-B.C. border is one of the largest gas resources in the world, able to meet Canada’s needs for 145 years, according to the first study to estimate its marketable unconventional petroleum resources conducted by national and provincial regulatory authorities. Recent advances in technology, such as multistage hydraulic fracturing, have made it possible to economically develop unconventional gas and oil in the Montney Formation over the past several years.
2012
35 billion cubic feet 27.86 billion cubic feet
VANGUARD
Teck Resources 20%
$13.5
2011
Industry flared and vented 35 billion cubic feet of solution gas in 2012, up 24.6 per cent from 27.86 billion cubic feet in 2011, reflecting the growth in crude oil and bitumen production and low natural gas prices, according to the Alberta Energy Regulator, which plans to issue new rules to rein in the increase. The most significant source of venting is crude bitumen batteries where solution gas is vented from the production casing annulus at a large number of individual wells, it said.
“We’ve proven that we can get water into the ground. We’ve proven that there is an economic waterflood response. We’ve proven that it’s repeatable across the field.” — Neil Smith, chief operating officer,
Crescent Point Energy Corp.
Until recently an inconsequential play with negligible production, the Saskatchewan Bakken has seen output climb to almost 70,000 barrels per day thanks to advances in horizontal drilling and multistage fracturing. The next technological advance will enable waterflooding to slow declines and increase recoveries, reports Crescent Point, which announced it is poised to undertake Canada’s first large-scale commercial waterflood in a tight oil formation.
Suncor 40.8%
billion
Total E&P Canada 39.2%
Suncor Energy Inc. and its partners have given unanimous goahead for the long-planned Fort Hills oilsands mine, which has a planned production capacity of 180,000 barrels per day. “Great effort has been made to ensure that our depth of experience and recent technology improvements in oilsands mines are integrated into the development of the project,” Steve Williams, Suncor’s president and chief executive officer, says of the $13.5-billion project. Partners with Suncor (40.8 per cent interest) are Total E&P Canada Ltd. (39.2 per cent) and Teck Resources Limited (20 per cent).
“We’re creating a liquefied natural gas industry here that is going to be worth a trillion dollars over 30 years and a large part of that will be royalties, so we want to protect our royalties and we recognize that Alberta wants to protect theirs.” — Christy Clark, B.C. premier
In reaching a deal with Alberta Premier Alison Redford to join the Canadian Energy Strategy discussions initiated by Redford, Clark says that, in return for Alberta’s “broader understanding and acceptance of British Columbia’s five conditions” for the proposed Northern Gateway Pipeline through British Columbia, Alberta oilsands royalties were off the table.
N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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VAN G UAR D
INVESTMENT
Incubating Innovation Innovate Calgary seeks to create global go-to place for new energy tech firms
P
eter Garrett wouldn’t discount the possibility that the next Apple Inc. or Google Inc. will be developed by Calgary-based entrepreneurs—but it’s more likely a future oilfield services giant like Schlumberger Limited will emerge from the office towers or the industrial parks of Canada’s oil and gas industry capital. “We have strength in life sciences and information technology,” says Garrett, the president of non-profit business incubator Innovate Calgary, adding that there is strong competition in those areas from California’s Silicon Valley and other parts of North America and the world. “But we can become the leader in energy technologies, and I don’t think we are a global leader now.” In fact, Garrett thinks there’s a bit of a vacuum in the North American oil and gas industry, believing even the U.S. energy industry capital of Houston, Texas, doesn’t foster emerging companies that provide innovative technologies for the exploration, development and production of oil and gas. Innovate Calgary is launching a new strategy focused on establishing Calgary as the global go-to place to start and build new energy technology companies. The strategy is being built on existing strengths in the community and will build both incremental capacity and capability for supporting new energy tech company growth, the agency announced recently. Innovate Calgary was formed in 2010 as a result of the merger of Calgary Technologies Inc. and University Technologies International Inc. The latter was linked to the University of Calgary and other educational institutions, and both were funded by the Alberta government, the university and others. Innovate Calgary helps some 500 clients a year grow their businesses. “Our clients range from an entrepreneur who has a start-up and needs help with a business plan to a company that has a few million dollars a year in sales,” Garrett says. It has helped to raise more than $10.5 million in funding for companies, helped secure 680 patents, negotiated over 550 technology commercialization agreements in over 24 countries and
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N E W T E C H M AG A Z I N E . C O M
developed or assisted in the creation of over 40 spinoff companies. Oddly enough, even though Calgary is the country’s energy industry capital, Innovate Calgary has not had a lot of success in nurturing energy related companies. However, Jeremy Krol, who is both an Innovate Calgary employee and the vicepresident of corporate development with nFluids Inc., which utilizes nanoparticles to produce drilling fluids with fewer environmental impacts, says the start-up would not have gotten off the ground were it not for the organization. “We wouldn’t be here now without Innovate Calgary,” says Krol, who was previously manager, company creation, at Innovate Calgary, responsible for finding, managing and developing start-up companies with a focus on the commercialization of platform technologies. nFluids’ nanoparticle-based drilling fluids (featured in New Technology Magazine’s July/August issue) were developed by a team of University of Calgary researchers led by Geir Hareland and Maen Husein. They are utilizing microscopic bits of compounds, such as iron oxides, which are suspended in the drilling fluid. The particles, much smaller than a human hair, are added to conventional waterbased drilling fluids, which are usually a mix of clays and additives, sometimes including diesel or oils. The scientists say their nanoparticlebased drilling fluids offer a cost advantage over existing products and can be custom-designed in a lab. The product has been thoroughly lab-tested, and now Krol says a field test is being planned with Calgarybased Blackstone Drilling Fluids Ltd., a company involved in the drilling fluids business. “We talked to a number of companies,” he says. “This takes thousands of dollars to test it.” Krol says there are surprisingly few technologies developed at the university that have been able to gain traction in the energy industry. Part of the blame—if blame can be affixed—is the high capital costs involved in the industry, he says. In a sector where it now costs millions of dollars to drill deep wells, producers and
those in the drilling sector are reluctant to take many chances on new technologies. However, he says Innovate Calgary’s new emphasis on fostering energy industry– related technologies should help. There’s already another technology emerging from that emphasis, one that uses software to optimize the performance of a drilling rig. “Instead of having to insert a downhole tool at $7,000 a day, this software can be used,” he says, noting one of the industry majors has shown interest in the technology. Garrett, who spoke recently about the new energy industry emphasis to a gathering of the Calgary-based Petroleum Technology Alliance of Canada (PTAC), which since 1996 has fostered technology collaboration in the oil and gas industry, says he wants to see an “energy technology centre” developed in Calgary. That centre, which would be developed as part of a collaborative effort among associations like PTAC and his group, as well as educators and the industry, would be focused on “de-risking technologies.” In addition, because it would be investment-led, it would help technology developers access the capital and business expertise needed to advance technologies. “We have discussed the model with a number of energy-related parties,” he says. “There are a number of models in other industries that would apply, such as the accelerator centre approach used in the IT [information technology] world.” He says Calgary’s “rich history” of entrepreneurship makes it an ideal area for such an approach. But much of that entrepreneurship in the past has been “ad hoc,” and the new centre would streamline the process, helping entrepreneurs find the financial and other resources they need. Innovate Calgary itself might act as a model, Krol suggests, since it provides legal, accounting, fundraising and other assistance to entrepreneurs now. Jim Bentein CONTACT FOR MORE INFORMATION Peter Garrett, Innovate Calgary Tel: 403-284-6424 Email: pgarrett@innovatecalgary.com
ADVERTISEMENT
An Unconventional Perspective!
F
or EV Downhole Video, providing outstanding customer service is the key to doing business. “If they have an issue, it’s now our issue, which in today’s world is really what customer service should be about,” says Curtis Jerrom, EV Downhole Video VP Canada. “It’s our dedication to taking the burden off the customer. The average horizontal well is now twice as expensive as a conventional well to drill, so a lot of value is placed on every well. Companies need to know the information very quickly, succinctly and accurately, so they call us out.” A customer-orientated company with industry-leading technology, extensive experience and a global presence, EV provides innovative downhole video services that allow you to understand what is really going on in your well. EV’s cameras provide high-quality images, whether they’re deployed on electric line, slickline, coil tubing or drill pipe. EV Canada provides a unique valueadded service with its downhole camera—a qualitative tool that complements conventional logging data. The company operates electric line tools with surface readout at 25 frames per second of high-
designed for high-temperature and highpressure wellbores. EV also has memory cameras, which feature high-speed, full-colour video with audio, and can be downloaded at surface once they’re run. All tools are 43 mm in diameter, allowing EV to access the smallest of wellbores. “The industry is now drilling half as many wells at twice the cost. Now, when something fails, it fails miserably—it
Please contact for more information: Curtis or Blaine
could be catastrophic. As a result, every job we do is a crucial job,” says Jerrom, noting that EV technical staff are all highly experienced camera operators, with an average of 12–18 years’ downhole camera experience. “We are really accurate with what we see. We decipher it and relay it to the customer so they understand what they’re looking at. When you put two eyes down there, it makes a lot of difference. We get to see secondary and tertiary events downhole, such as sand deposition, chemical interactions anomalies, such as a casing collapse or parted casing. We get to see if the ports are open, if they are closed, or if the ball has seated. In the high-value horizontal world, we’re able to give a lot of information very quickly with a camera video. With one picture, it really sums up a lot of issues.” Established three years ago in Aberdeen, Scotland, EV opened its doors in Canada in September 2011. Based in Calgary, EV Canada has locations in Grande Prairie and Red Deer, providing service across Canada, including in B.C., Saskatchewan and offshore Newfoundland. EV Canada has 12 employees, and EV Downhole Video employs more than 90 staff worldwide. “We can mobilize pretty well anywhere in the world very quickly,” notes Jerrom. Long term, EV plans to add more sensor data to its camera, with the goal of producing faster and better quality images. “We are always advancing the technology,” Jerrom says.
EV Canada Inc. T: (403) 263.6144 E: canadasales@evcam.com www.evcam.com
PHOTO: ??????????
OILPATCH SOFTWARE
BYTES
PRODUCTION
Multiphysics To The Rescue Unconventional oil and gas sector leveraging increasingly realistic simulation technology
PHOTO: C-FER TECHNOLOGIES LTD.
T
he costs and complexities of today’s unconventional oil and gas sector—from thermal in situ oilsands to shale gas—have prompted growing interest in a more diversified multidisciplinary approach to reservoir modelling and simulations. Until recently, reservoir models mostly fell into two categories: geological models that are designed to provide a static description of a reservoir prior to production, and reservoir simulation models that simulate the flow of fluids within the reservoir over its production life. Reservoir modelling software, based on the two disciplines, has been a mainstay and primary tool used to predict oil flow from a reservoir and to help develop a production strategy. Now, the challenges of unconventional resources are spurring the use of multiphysicsbased three-dimensional engineering software tools for both detailed analysis of equipment and for concept evaluations for drilling, completion and production programs.
Multiphysics simulation software was used recently to evaluate the potential of electromagnetic/radio frequency technologies for heating oilsands and incorporating fluid and structural mechanics, electromagnetics, acoustics and chemical reactions. The underlying technology is backed by decades of validationbased refinements and can be applied to studies of mass, momentum and heat transfer, as well as to analysis of stress, fracture, vibration, temperature, flow distribution, erosion, low- and high-frequency electromagnetic fields, multiphase and rock mechanics, and so on. ANSYS Inc. has been around for over 40 years, but since 2000 the steep rise in demand for multiphysicsbased simulation software for product development has resulted in explosive growth at the company in the last 10 years, says Ahmad Haidari, global industry director for process, energy and power at the software developer. Some equipment manufacturers supplying the oil and gas sector have been embracing this kind of
REDUCING FAILURES C-FER Technologies’ Jueren Xie shows a simulation of a premium connection under curvature loading. In this case, the simulation indicated the critical threads in the connection would experience alternating tensile (red) and compressive (blue) axial strain, causing potential connection fatigue failure under casing rotation loading.
N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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BYTES
simulation software. FMC Technologies, Inc. designs and makes subsea production and processing equipment, surface wellhead systems, high-pressure fluid control equipment, measurement devices and marine loading systems. In 2010, a new FMC team was formed, called the multiphysics simulation group. Its role is to enable the company to more rapidly develop and improve new and existing products by maximizing the impact of systems-level multiphysics simulations. Simulation software can be used to assess the risk of fatigue and deterioration for pipe and other equipment. The multiphysics simulation group at FMC recently completed an analysis of a component called a jumper, a short section of pipe that connects a flow-line to a subsea structure. A jumper typically has a lifespan of about 20 years, during which it is subjected to internal and external fluid flows. Vortex-induced vibration is a source of fatigue for these components. FMC’s analysts used ANSYS Fluent, a software package for computational fluid dynamics (CFD) modelling, and ANSYS Mechanical, which is designed for various types of analysis including structural, thermal, modal, linear buckling and 14
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shape optimization studies. It is typically used for product development by providing rapid feedback on a potentially wide range of design scenarios. The two software packages were coupled to simulate long-term fatigue caused by multiple physical forces. “This fluid-structure interaction analysis represented a complex problem that could not have been studied in any other way. By subjecting the jumper to a range of internal volumetric flow rates, FMC pinpointed very specific areas of stress and predicted with a high degree of confidence that the jumper design could withstand these stresses, and thus achieve fatigue life requirements,” states a recent ANSYS publication. Some of the tools for structural or geomechanical analysis, as with those for CFD, have been around for decades. Finite element analysis (FEA) is a numerically based simulation methodology that uses a software-supported model of a material or product design. Beginning with a 3D model, FEA software is used to transform it into a 3D mesh of geometric units—the “elements” in FEA. Each element is assigned a size and shape, mathematically representing a finite section
of the model. The elements, in turn, are linked by nodes that quantify their interrelationship. FEA elements can number in the hundreds of thousands, even millions, and are constrained by boundary conditions, material characteristics, “and a host of other inputs dictated by what type of product or structure is being modelled,” says a Dassault Systemes case study on the use of its Abaqus FEA software from SIMULIA, the company’s 3DEXPERIENCE application. The study looks at the use of FEA software in helping to figure out why the blind shear rams, along with other blowout prevention (BOP) devices on BP p.l.c.’s Deepwater Horizon well, failed to do their job. The proper functioning of any one of three critical systems on the Horizon’s BOP stack could have prevented the giant oil spill off the U.S. Gulf Coast in April 2010. (According to the Dassault case study, the forces unleashed by the blowout caused the drill stem to buckle, so that when the blind rams tried to shear and close on it, the pipe was off-centre, preventing the rams from fully closing and sealing the wellbore.) FEA was first developed as long ago as the 1940s and was initially used
PHOTO: DET NORSKE VERITAS (USA) INC.
FAILURE FORENSICS The damaged blind shear ram from the Deepwater Horizon, which experienced a blowout in April 2010, causing a record oil spill in the Gulf of Mexico. Software from Dassault Systemes was used to convert the original computer-assisted design files of the ram components into simplified surfaces for use with Abaqus FEA, enabling investigators to simulate and virtually test their theories of what happened.
IMAGE: ENI E&P
BYTES
mostly in aerospace, automotive design, nuclear power generation and other capital-intensive manufacturing sectors. Today, the reduced cost of computers and phenomenal increase in computing power has resulted in tools like FEA achieving a high level of precision—and much more widespread use. “Once an FEA model is set up, any number of static, dynamic, linear or non-linear events, including contact, collisions, buckling and/or collapse scenarios, and even multiphysics analyses (thermalstructural, fluid structure interaction and/or computational fluid dynamics), can be simulated and analyzed,” the Dassault case study says. Multiphysics simulation tools are expected to assume an increasingly important role in the design of drilling and completion programs. In simpler times, “The focus was on getting the physics correct, for example, the design of the drill bit, and a focus on the fluid mechanics of moving the cuttings away from the drill bit,” Haidari says. Now, he says, in today’s more complex environment, with the use of a rotary steerable drill string, for instance, more factors have to be considered besides moving cuttings and drill bit design—sensor technology, logging, electronics, downhole motors, among others. “As well as making sure the physics are reliable, you need a platform that ensures that all the simulation capabilities work together. The trend we have seen is that most problems require more than a single physics, and that the multiples [of physics] need to work together to support engineering processes working together. Just having the physics is not enough. You need tools to enable integrated multiphysics to support the engineering workflow and do the modelling to drive design,” he says. The interactions between formation structures and fluids are increasingly a focus right now, especially in the challenging unconventional sectors—as one might expect. “Subsidence was not taken into account before, but now, with formations that are more complex, it makes it more important to take the geomechanics into account. When you pump steam into a rock formation on a SAGD [steam assisted gravity drainage] project, the rock properties can change, potentially affecting the caprock, even wellbore integrity,” says Mahesh Kailasam, solution experience director, energy, process and utilities at Dassault.
He makes the point that by coupling fluid-flow with rock behaviour simulations one can also assess the impact of subsidence, for example, on both topside structures and downhole tools. Simulations are a form of virtual testing—whereby, for instance, one can sidestep having to place a six-storey-high BOP stack in a thousand metres of water
Abaqus FEA software has been a tool at C-FER Technologies Inc. (C-FER) for nearly 20 years. The company has used the software for full-scale tests, failure investigation and design optimization. C-FER is now applying the software to SAGD well design. “We found that loading analysis [alone] was not enough for thermal wells. We cannot use a canned
REALISTIC SIMULATION Eclipse fluid-flow analysis software from Schlumberger simulates oil, water and gas flow to forecast production. Linking Eclipse with Dassault Systemes’ Abaqus incorporates the geomechanical effects of extraction for a more realistic simulation of full site development over time.
to find out how it performs in a blowout situation. But not all the properties of a given material, or even an existing product if some components lack complete descriptions, are known, making simulations imprecise. To address this, the SIMULIA application includes a software product called Isight, which provides a probabilistic analysis of a scenario. “It’s been used in the automotive sector and in aerospace, now in energy. It can help assess and understand the impact of uncertainty. A key output gives a result and assigns a confidence level,” Kailasam says. A couple of years ago, Abaqus was upgraded with what he calls a cosimulation engine. “This allows Abaqus to be coupled with any third-party reservoir [flow] simulator out there,” he says. Examples include products like ECLIPSE from Schlumberger Limited and IMEX from Computer Modelling Group Ltd. Today’s simulation software for structural analysis can be used either on a forward basis for design or “backwards” forensically to find what or why something has happened.
calculation. We need FEA to develop a design of [steam assisted gravity drainage, or SAGD] wells,” says Jueren Xie, senior engineering advisor for C-FER. He adds that CFD software is sometimes used with FEA on SAGD design. Unconventional oil and gas is still awash with challenges despite the progress in the last decade, and multiphysicsbased software seems likely to have an expanding role in the sector. “The simulation of shales is difficult right now. You don’t have a reservoir until you do a fracture,” says Frank Sorensen, manager for reservoir studies at Sproule Associates Limited. He sees many situations today where multiphysics-based simulation could be useful. “It’s a cool idea,” he says. Godfrey Budd CONTACTS FOR MORE INFORMATION Brett Conard, Dassault Systemes Tel: 612-703-9818 Email: brett.conard@3ds.com Ahmad Haidari, ANSYS Tel: 603-727-5521 Email: ahmadhaidari@ansys.com N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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NEWS FROM THE LAB
RESEARCH
ENVIRONMENTAL PROTECTION
“Super Soap” Protects Subsea Surfaces Researchers create surfactant able to repel spilled oil without permanent substrate alteration
PHOTO: SUSHANTA MITRA
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he idea for what could become a breakthrough in how the energy industry cleans up underwater oil spills came to researcher Sushanta Mitra while watching detergents removing food stains from Tefloncoated pots and pans in his mother’s kitchen. Mitra has a PhD in mechanical engineering and is a professor and lead researcher at the University of Alberta, heading a team of researchers in the area of microfluidics and nanofluidics. Despite his extensive academic and research background (including a doctorate from the University of Waterloo, and masters degree from the University of Victoria), Mitra says the idea for the discovery came from that simple observation. “Your mother’s kitchen [in this case, the kitchen in his family’s Edmonton-area home] is where the best things happen,” he says. “To clean up a Teflon-coated frying pan, you need to use dish soap. I wondered if
you could use the same concept to remove oil [from plants and soils] underwater.” The detergent is a “surface active agent,” or more compactly, a “surfactant.” Surfactants are now used widely in enhanced oil recovery, including mixtures of sodium chloride and calcium chloride, butanol, naphthol and other agents. They have been shown to substantially improve oil recovery, particularly in older reservoirs. Mitra and his team members, Prashant Waghmare and Siddhartha Das, wondered if the same approach might work with underwater oil spills. The trend toward crude becoming heavier has increased concerns about the impact of spills on marine flora and fauna. Underwater oil-repellent technology can potentially prevent the toxic effects of oil on marine ecosystems. In lab tests, Mitra and his team proved that a simple glass surface could be made to repel oil underwater.
OIL DETERRENT University of Alberta scientists recently showed for the first time that by merely changing the surfactant content of the water in which it is immersed, a glass surface can be made superoleophobic (oil repelling), a potentially important finding in devising better ways of dealing with oil spills.
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They concluded that this would have implications for the development of chemical repellent approaches for use in cleaning up oil spills. While surfactants typically attract oil on one side of their molecular chain and attract water on the other, which facilitates the washing off of oily substances from surfaces, the scientists created a new “super soap” able to both cling to surfaces underwater and to repel oil from those surfaces. And unlike the dispersants used in the BP p.l.c. Deepwater Horizon oil spill in the Gulf of Mexico, the new substance is not considered toxic to the sea life it comes into contact with. They used large concentrations of surfactants in lab tests to make the glass surface repel oil. They believe large concentrations of surfactants can be added to oil-contaminated water, ensuring marine plants and sea life exhibit similar oil-repellent characteristics. Early work involved studies in “drop-deposition,” looking at how liquid drops are deposited on liquid-repellent surfaces. The team published a paper
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dealing with that work in the scholarly journal Soft Matter. That was related to research they conducted using surfactants on liquid-repellent surfaces, which led to a paper they published in the journal Scientific Reports. Prior to their work, it was believed the only way to create liquid-repellent surfaces was through the fabrication of such surfaces, using a micro-nano fabrication process. That process is permanent. The researchers have demonstrated that the use of surfactants in water can help glass in repelling oil, without altering the nature of the glass. “The novelty of the study is that for the first time in the literature it shows that by altering the [water] medium characteristics [by adding surfactant], one can achieve the liquid-repellent surfaces,” the researchers conclude. “Also, one can easily obtain the original surface by simply washing the original glass surface and removing the absorbed surfactants.” They say this represents a “paradigm shift in efforts to achieve liquid-repellant systems, namely, altering the solvent
characteristics instead of engineering the surfaces.” Mitra says the approach works best with heavier crudes, since lighter crudes “don’t tend to come into contact with the marine system” and don’t require treatment. “Heavier crude is where the challenge is.” He says his team has held discussions with pipeline companies and producers about conducting experiments on a larger, applied scale. “We need a partner who can provide us with largerscale access.” He says the use of surfactants does lead to other questions that need to be addressed. “We need to explore what will be the environmental impact of the use of surfactants,” he says. “Will it have any long-term environmental challenges? You’re trying to preserve the pristine nature of the marine environment.” Jim Bentein CONTACT FOR MORE INFORMATION Sushanta Mitra, University of Alberta Tel: 780-492-5017 Email: sushanta.mitra@ualberta.ca
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LAUNCH OF THE
Unmanned Era Robotic aircraft set to transform oil and gas industry
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rom a distance, this small, hovering aircraft might appear to be the sort of remote-controlled gizmo one sees for sale at a mall kiosk, but closer inspection quickly reveals a sophisticated instrument—part of a revolution in unmanned technology geared to offer major advantages for the oil and gas sector. “It’s just a whole new technology with a big influence on the type of industry with which we’re involved,” says Brent Wanless, president of UAV Geomatics, while directing and monitoring the flight path of his quad-rotor Aeryon Labs Inc.–built unmanned aerial vehicle (UAV) with a touch screen computer tablet in a field outside Calgary. According to Wanless, when he first became interested in UAV technology a couple of years ago, he could perhaps envision some commercial applications, but there appeared to be little activity in the sector. Since then, however, he says the demand for UAVs “has just blown up” as new software comes online
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and these global positioning system–guided devices become an increasingly popular instrument within Canada’s energy sector. “I think most of it is just due to recognition of what it can do, the capabilities. One thing we promote, especially in oil and gas, is that we can provide a safer service in many applications.” Sterling Cripps, chief operating officer at the Canadian Centre for Unmanned Vehicle Systems (CCUVS), says Canada is positioned to become a leader in the civilian and commercial application of rotor and fixed-wing UAVs, due largely to Canada’s geography and domestic petroleum industry, both of which offer many opportunities for robotic aircraft development. Government restrictions on UAVs’ use of airspace has hindered their widespread use, particularly in the United States, and to a lesser degree in Canada, but the situation is expected to change as airspace is freed up for their commercial use.
“We have a chance here as Canadians to take the lead in this initiative if we get airspace set up. It’ll be the first of its type in North America open to commercial and civil development within a restricted airspace.” Based at Alberta’s Medicine Hat airport, CCUVS has submitted an application to Transport Canada and NAV CANADA for development of an area of approximately 1,000 square nautical miles in southeastern Alberta. The area, based out of the Foremost aerodrome, will be used to train and develop beyond-line-of-sight capabilities of commercial and civil UAV applications. Cripps says NAV CANADA is in the final months of wrapping up its airspace assessment, and he expects Transport Canada could sanction the airspace as early as spring 2014. He adds the ability to fly UAVs long distances is important for application in the oil and gas industry, considering the expansive and remote nature of much of the industry’s associated infrastructure.
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PHOTO: CARTER HAYDU
By Carter Haydu
Pipelines, for example, crisscross the continent, often through isolated areas. “I know there is an element at stake that is interested in having UAVs doing partial patrol of those [pipelines], which they are very capable of doing by using electrical, optical sensors, LiDAR [light detection and ranging], radar and things of that nature that can detect hydrocarbons, heat leaks and the sorts of things associated with problems in a pipeline. “The systems are out there and capable of doing the work, but we are bound by the regulatory process right now that says it is not feasible to do that. So what the Foremost [airspace] is going to provide under CCUVS is that we will offer an area of restricted airspace for the purpose of companies to come, train and develop their operating procedures to the satisfaction of Transport Canada for flying beyond line-of-sight.” While flight regulations have not always kept up with the new technology, changes are pending, Wanless says, adding his company is
nonetheless finding itself very busy with the variety of tasks it can perform for customers in the oil and gas industry. “We have done some pre-disturbance work where we fly in and look at the land ahead of time,” he says, adding his UAV has helped construction crews with clearing, drilling and, during a fracture job, designing and minimizing the drilling footprint by providing a level of visual detail that was previously unattainable. “I just did a job where the objective was to calculate volumes when they cleared a big area, because they want to know the volumes coming out. On that same job we’re going to do roadwork and map other facilities. The company will be rebuilding roads, and so you follow the road and map it that way.” Brad Cadieux, superintendent of civil earthworks at Talisman Energy Inc., says so far his company is only just beginning to test UAVs for well pad layout and design. “We know there is value in it, but it is just very hard
to quantify what the value is,” he says, adding the lifecycle of drill pads is quite long, so it will take awhile for the company to quantify the full potential of using UAVs. However, he says, there is certainly a need to optimize well layout, and he is optimistic robotic aircraft can aid in that task. “It is critical to make everything as compact, close and as tight as possible on the given size that we are dealing with, and the only way to do that is to have an as-built survey done or an aerial, geo-reference photo. The nice thing about a geo-reference photo is that it makes sense to all the different groups who look at it, because it is an actual picture and not just a schematic drawing.” On multi-well pads where his company will be returning over several years, Cadieux says, there is great benefit in using UAV technology, and he envisions the use of these aircraft eventually on all shale plays. He says the technology could also prove very beneficial for Talisman once the company
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“IF CANADA WANTS TO LEAD IN THIS FIELD, I THINK THE BEST SECTOR IN WHICH TO DO SO IS OIL AND GAS, because it is important to the economy, it’s characterized by use of high technology and embracing new technologies, and that sector can lead by embracing things and working on changes of regulation.”
has finished producing at a particular well pad location. “It definitely would be another piece of the puzzle for the reclamation folks [who need to] see the history of the site. Of course this kind of imagery would definitely help seeing the site as it goes through its life.” According to Cadieux, the industry is just “scratching the surface” as to all the ways UAVs might be used, and he fully expects the technology to play a greater role in his company’s operations into the future. “I think there is the potential to take it to another level, where the data is much more useful for, maybe, corporate presentations and investor relations, and that type of thing.”
CANADA COULD LEAD UAV REVOLUTION There is a cluster of about 70 companies in Alberta working in various facets of the unmanned systems sector, says Orest Warchola, senior director, U.S. Trade and Investment with Alberta International and Intergovernmental Relations. Though it is hard to calibrate the total size of the sector, he says one thing he is fairly certain about is that growth is imminent. “As soon as federal regulators develop regulations, standards and procedures to allow commercial flight operations of unmanned aircraft systems in national airspace, which currently requires special flight operations approval, the industry is poised for even further growth and development.” Warchola says economic diversification and increased market access is a cornerstone 22
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of Alberta’s international strategy, and adding commercial and civilian unmanned aircraft systems opportunities into the mix will further enhance the growth, diversification and competitiveness of Alberta’s economy in the global marketplace. “Building on the province’s aerospace and defense industry, which is significant in and of itself, we see the development of unmanned systems as a niche sector of the aerospace industry. As it further develops and attracts new investment into the province, as an economic diversification strategy, the sector is expected to generate jobs, create revenue and provide investment opportunities for companies from outside Alberta to come here and establish operations. “Frankly, much attention is being focused on Alberta already, and we’re beginning to realize the benefits.” According to Warchola, a domestically fostered unmanned systems sector could offer Alberta another advanced technology sector worthy of trade and investment both within Canada and internationally. “It will absolutely be an export niche industry. In fact, one of the strategies Alberta has recently engaged is signing a memorandum of cooperation to advance collaboration efforts in unmanned systems with the State of Nevada. The cooperation agreement was expressly intended to stimulate export and technology advancement opportunities for Alberta companies, while providing a platform for Nevada-based enterprises to explore partnerships, investment possibilities and explore collaborative
business opportunities between Alberta and Nevada companies.” For its part, Warchola says, Alberta International and Intergovernmental Relations strategically deploys sector-specific trade and investment missions to develop, grow and open new global markets, which could further strengthen the provincial economy. Through the promotion of focused trade and investment initiatives, the unmanned systems sector in Alberta is well positioned to capitalize on the burgeoning commercial and civilian unmanned systems market around the world, he says. “As an example, we recently attended the Association for Unmanned Vehicle Systems International Conference and Trade Expo [Unmanned Systems 2013] in Washington, D.C. A good number of Alberta companies attended and participated in a first ever AlbertaNevada Business to Business Roundtable to discuss business development opportunities, as well as exhibit their products and capabilities at the Unmanned Systems Exposition, the largest trade show of its kind in the world. “So the province is promoting the industry by facilitating these trade and investment missions to key global markets, and successfully doing so in collaboration with not only industry, but academia as well.” Although original equipment manufacturers are typically from other countries, Cripps says Canadians have a chance to lead in the UAV initiative, but it will require approval for that first-ever North American airspace to allow beyond-line-of-sight development and training for commercial and civil application.
PHOTO: CARTER HAYDU
— Jeremy Byatt, senior counsel of corporate affairs, ING Robotic Aviation
PHOTO: GENERAL ATOMICS
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“The world leaders [in UAV development] probably are the Americans, Israelis, British and Germans. Canada lags very far behind in this area, and that is primarily because of the lack of investment of government to this technology. You find it in the States and other places where it is heavily funded and heavily invested in. “But where Canada does have strength right now is possibly the regulatory process and how we do allow flight for commerce. If you’re planning to fly and you want to make some money in Canada, you can do that. You can’t do that in the States.” Jeremy Byatt, senior counsel of corporate affairs with ING Robotic Aviation, says the U.S. legal restraints on UAVs beyond military purposes puts Canada in the position where it can take the lead in development of this technology for commercial purposes. The Ottawa-based airborne sensing solutions company, which developed its expertise through operational surveillance work with the Canadian military, is branching out into a range of commercial services with a focus to replace manned aviation. “We’ve identified three growth sectors, which are oil and gas, utilities and mining,” Byatt says. While he sees UAV technology playing an increasingly important commercial and civil role in Canada, he says it is also likely the developing world will prove an important driver of the robotic aircraft industry, in part because many such jurisdictions are not burdened with extensive air traffic infrastructure that might make the addition of a UAV fleet cumbersome. In August, for example, Keymerging Technologies Ltd., a Mombasa, Kenya– based high-tech security firm, purchased two Responder rotary wing, vertical takeoff and landing robotic aircraft equipped with electro-optical and infrared cameras, as well as a ground control system and ancillary equipment, to be used at various East Africa border points. “If ING can perform so well while dealing with a client in Africa, I believe they will perform threefold, much better, while delivering their services to a Canadian user within Canada,” says Keymerging consultant Shuaib Sherman. He adds Keymerging’s government client was so impressed with the UAVs’ performance that his company is considering the purchase of further units.
Dealing With The “D” Word Commercial UAV proponents quick to differentiate their aircraft from military drones
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ne challenge faced by those promoting the use of unmanned aerial vehicles (UAVs) in the oil and gas sector is a public perception that this sort of technology is a weapon of war. The United States has come under considerable criticism in recent years for the use of armed UAVs such as General Atomics’ Predator—also known as drones—to spy on and kill enemy combatants in countries such as Afghanistan, Pakistan and Yemen. “People watch movies and TV and these action shows where they call in the drones or call in the Predator, and it gives you a sense that is what it is all about, but it’s not,” says Sterling Cripps, chief operating officer at Canadian Centre for Unmanned Vehicle Systems. “There is a very small percentage of [UAVs] that operate in that theatre compared to the rest of the world. [Military drones] are highly expensive, and the only types of people who could afford that sort of activity are governments.” Orest Warchola, senior director, U.S. Trade and Investment with Alberta International and Intergovernmental Relations, says it is important the public recognize that unmanned aircraft systems are not intended to invade people’s private lives or civil liberties. As issues and challenges related to the safe integration of unmanned aircraft systems into national airspace are addressed, commercial and industrial applications in a variety of sectors such as oil and gas, utilities, forestry, agriculture, environment and many more will be the focus. However, while unmanned aircraft systems are absolutely not meant to interfere with the general public, he says they could be important tools for law enforcement. “There are good examples of where the RCMP is starting to use unmanned aircraft systems for applications such as accident-scene or crime-scene reconstruction, effectively using the technology to provide that overhead visual of what happened. These operations are intended for very mission-specific applications, and as the public becomes more and more comfortable with unmanned systems, the safe use of these advanced technologies is expected to become the norm.” While in the United States the development of military drones takes up a big part of the public consciousness around UAV technology, Jeremy Byatt, senior counsel of corporate affairs at ING Robotic Aviation, says he does not foresee a similar controversy with Canada developing its UAV industry for the oil and gas sector. “It is more of an American issue,” he says, adding all he needs to do is show someone a photo of a commercial UAV and that person immediately realizes the growing Canadian sector is far different from what companies are doing south of the border. “They get it. People get it.” Carter Haydu
NARROWING THE UAV EDUCATION GAP As the industry moves from military applications to more work in the commercial and industrial realms, Byatt says unmanned N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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a lot of up-and-coming advancements in roTHE FUTURE OF UAVS aerial vehicles are geared to be a disruptive tor and fixed-wing UAV technology as well. technology that will revolutionize the global While it is still in the early stages of developByatt says he envisions potential “UAV economy, starting with Canada’s energy sector. ment, David Snir, chief executive officer for highways all over the place,” with aircraft “If Canada wants to lead in this field, WeWi Telecommunications Inc., says he flying back and forth without any need for I think the best sector in which to do so is believes the future of robotic aircraft in the oil human involvement aside from initial flight oil and gas, because it is important to the and gas sector will come filled with helium. instructions. For example, he foresees fully economy, it’s characterized by use of high “We’re developing something we call the autonomous operations in which one could technology and embracing new technoloULTAR-SV, which is an unmanned lighterplot a pipeline, type those coordinates into gies, and that sector can lead by embracing than-air concept vehicle. It’s sort of like a a computer, and the robotic aircraft would things and working on changes of regulation, semi-autonomous blimp that is stealthier repeatedly fly the route for extended time which they do all the time, to make these tools than other [blimps],” he says, adding radar periods without intervenwidespread for critical tion unless something in the infrastructure inspection, algorithm changes during pipeline monitoring, enoperations. “When I say that vironmental monitoring is ‘advanced technology,’ we and geometrics.” could do that in six months.” However, while there According to Cripps, miniis tremendous long-term aturization would continue to opportunity for Canada’s be an important part of the commercial and civil UAV future for all technologies, industry, Byatt says there including UAVs. “The neveris a limitation to the numending quest to make things ber of trained professionsmaller and more viable is alals who can operate and ways at the forefront, but we’re monitor the aircraft. at a point now where things That gap could be narare already quite micro-sized rowed by Canadore and you can do quite a lot College in North Bay, with what is out there in terms Ont., which is so confident of size and weight.” in the potential of UAVs While it “might sound borin the oil and gas industry ing,” Wanless says one of the and other civilian applimore important advances he cations that the school is envisions in UAV technology partnering with ING to of- EYE IN THE SKY will simply be better batterfer a 10-week operations ING Robotic’s Responder, a small rotary-wing aircraft able to take off and land vertically, can be used for applications such as critical infrastructure inspections. Two Responders ies, which is a need he notices and maintenance prowere recently sold to a company in Kenya for surveillance purposes. routinely with his own rotorgram for robotic aircraft, propelled aircraft. starting in June 2014. “Battery life varies with “The job opportunities the type of UAV and the weather conditions, are really as far as the imagination can take equipment could be easily attached to one especially wind and temperature. The [Aeryon you,” says Wade of these floating aircraft for the purpose or Labs’] Scout UAV has about 20 minutes, which Culliton, quality assurance coordinator/ geological surveying in the oilpatch. “It is ceris typical of rotary UAV systems. Aeryon Labs professor – aviation programs. “It’s a really tainly something we are very, very interested in.” has a new model that has a duration of about exploding market from what I can tell, with According to Snir, the real benefit with an 43 minutes, which is exceptional for a rotaryapplications in the geometrics industry for untethered blimp is that it is very quiet and it can style UAV. A lot of the fixed wings can go 40–45 the oil and gas sector, as well as precision stay in the air for long durations. “A blimp could minutes, but they need that time for takeoff, agriculture and forestry.” stay in the air for days. That’s the beauty of it.” turns at the end of lines and landing. Culliton says the 350-hour program is Carrying instruments used for deep radar “So as battery increases, operational a first of its kind in Ontario and provides scanning is challenging for traditional UAVs, efficiency increases.” students with the training to set up fixed-wing Snir says, due to weight limitations. With Wanless says better sensors and multior rotary-wing UAVs, both launching and a lighter-than-air vehicle, he says, heavier spectral cameras are certainly going to impact recovering vehicles, and conducting in-flight equipment could be easily carried and a the UAV industry and its applications in oil operations and data collection. blimp can float sturdy for extended periods of Culliton believes the program is likely to time. “So the equipment is very stable and you and gas, allowing for everything from detection of heat leaks to vegetation analysis. He grow as the UAV industry develops and recan have longer durations for exposures of the expects even smaller UAVs will soon be able quires more trained operators. “I think it will camera, and even add to that more autonoto carry small gas sensors that could detect expand and I think we will start to see some mous calculations that could help geologists carbon dioxide or hydrogen sulphide. international students and see multiple or the person mapping an area to make ac“Those things require lots of power and offerings per year,” he says, adding ING curate measurements.” designed the curriculum for the program Byatt says he is excited about the possibil- lots of memory, so there are lots of people looking at the potential of putting it on here, and Canadore College made sure it would be ities lighter-than-air vehicles might bring to and we’re following that.” academically valid and certifiable. the UAV sector. However, he notes, there are 24
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PHOTO: ING ROBOTIC AVIATION
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COMPLEX RESERVOIRS NEED BEST-IN-CLASS CHEMISTRIES FROM A CHAMPION SERVICE PROVIDER Canyon certified champions excel in the laboratory – and in the field, developing technical fracturing chemistries that deliver the results you need no matter how complex the reservoir. We’re a leader in high-ratio foam-based fracturing and pioneered lightweight proppant (LWP™) which is now being applied to the Cardium and Viking tight sands plays. A third-generation LWP is being developed for higher-temperature, high-pressure reservoirs such as the Duvernay shale. Intent on protecting the environment, we apply the least hazardous chemistries that can get the job done, which translates into 100 percent non-freshwater and a high ratio of recycled water. It’s all part of our Canyon-Certified operational excellence.
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when tiny
By Maurice Smith
IS MIGHTY Downhole micro sensor technology exposing new insights into reservoir characterization
ILLUSTRATION: TEAGAN ZWIERINK
O
il companies have spent untold billions of dollars on technologies in the search for better ways to produce oil in the last century and a half, yet they still have little idea what an actual oil reservoir looks like—part of the reason over 65 per cent of the oil in the average reservoir is never produced. Micro- and nanotechnologies are on the cusp of changing that. Companies and scientists are developing sensors tiny enough to send through reservoirs to collect never-before-available data that could revolutionize knowledge about the reservoir and how it changes throughout its producing life, leading to new ways to bolster production. Known by several monikers—from resbots and wise motes to nanoagents and nanorobots—these sensors are beginning to make their way into the field, with testing programs underway from Saudi Arabia to Texas to the heavy oil corridor along the Saskatchewan-Alberta border. The technology could see intelligent swarms of micro motes launched downhole to map the structure of reservoirs and, longer term, reveal the effectiveness of fracture stimulation with unprecedented detail. One of the most advanced programs, a joint venture of the Reginabased Petroleum Technology Research Centre (PTRC) and the Assen, Netherlands–based INCAS3, completed what it believes was an industry first when five- and seven-millimetre motes injected into a heavy oil reservoir undergoing waterflood were collected from a production well last fall. The agencies, which launched the PI Innovation Centre a year ago to develop the sensor technology, are preparing a second field trial this spring. The heavy oil fields in the Lloydminster, Alta., area are notoriously stingy, yielding an average of just eight per cent of the oil contained
in the shallow reservoirs, typically less than 500 metres deep, says Neil Wildgust, acting chief executive officer of the PRTC. “When the industry first started working these reservoirs, the theory was that you try to keep the sand out of the well, but what was found was that, if you produce sand with the oil, you actually get much more of the oil out, although it’s still only a few per cent [more].” The method, known as cold heavy oil production with sand (CHOPS), was thought to create voids, or wormholes, that enable increased access to the reservoir, a theory proved with the field trial. “These sorts of voids or wormholes are actually quite small—as small as a few millimetres [in] diameter—too small to detect with conventional geophysics like seismic surveys or other imaging techniques that oil companies use to monitor their reservoirs. They may be cylindrical or pipe-like in form, but they could equally be sort of flat structures. We are not exactly sure what their morphology is—how they look basically. And we don’t know whether they go in straight lines or waver or whether they have complex geometries or very simple ones. All of that information at the moment is speculation until we get some way of measuring them directly. “All of that is very important to know because if you are trying to improve oil recovery in the reservoir by flushing it with water or other agents, these voids form channels that basically short-circuit the reservoir, so in the long run they have a very negative effect on production. Understanding their geometry is crucial to being able to prolong the life of these heavy oil fields and getting more resource out of the ground.” Better reservoir characterization could, for example, lead to more intelligent design for the distribution of wells in the reservoir. In some cases, such as when a company is drilling a well to inject water or solvents to improve production, it wants to avoid existing wormholes, N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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INCREDIBLE JOURNEY About 10 per cent of the roughly 25,000 sensor motes—from five to nine millimetres in diameter— sent through an Alberta heavy oil reservoir were captured at the other end, proving the objects could traverse the reservoir’s wormholes.
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milestone. I think it opened up the imagination for the industry, because suddenly they saw possibilities to actually understand what is going on in the reservoir.” INCAS3 is now concentrating on the electronics to be incorporated into the motes for the next trial stage. It has already produced prototype sensor systems able to measure temperature and pressure dynamics. “We are now investing significant time and effort to bring the size down.”
WISE MOTES Incorporating electronics to measure and log temperature and pressure against time, in order to map out a temperature and pressure profile of the reservoir, is only the first step, Wildgust says. “The stage after that would be acoustic type measurements so that they would be able to measure the aperture of the wormhole they were travelling through, a similar principle to sonar. If they can record physically where they have been, we can eventually get to a full mapping function.” A further step would see the motes communicate with each other downhole, so that data downloaded from those that are recovered can provide information about what happened to those that are not recovered—such as where they might be accumulating in the reservoir. “The ultimate goal would be to have them talk to each other, so that they essentially then function like an intelligent swarm. You would only need to retrieve some of the motes to find out where most of them not only travelled, but got stuck as well, because as a swarm they would be communicating with each other underground. But it’s important to stress that this is the long-term objective, and it may take several years to reach that level of functionality,” says Wildgust. Several challenges remain, both to miniaturize the technology and ensure it will survive the downhole environment. Sensors must either be made durable enough themselves or be encapsulated in a protective fibre-enhanced plastic coating. “A plastic coating for these sensors needs to be stable at the temperatures and pressures that are present in the reservoirs and needs
PHOTO: PETROLEUM TECHNOLOGY RESEARCH CENTRE
Wildgust says, whereas in other cases, intersecting wormholes, in order to better flush fluids through a particular portion of a reservoir, could work to a company’s advantage. “It is very site-specific, but without that understanding of where these wormholes are, and what their dimensions are, in effect when you drill new wells you are drilling them blind.” The PTRC turned to INCAS3 for the necessary expertise in micro sensor technology. A non-profit research institute formed in 2008, INCAS3 has its own team of about 50 doctoral candidates, post-docs and senior scientists and engineers, and taps into the expertise from numerous universities and research organizations, serving as a bridge between leading-edge research and the real-world needs of industry. The first thing they had to do was prove the feasibility of having objects pass through reservoirs, which is no easy task, says John Van Pol, INCAS3 managing director. “As far as industry was aware, it wasn’t feasible to do this,” he says. The journey is a rigorous one for the motes. “They need to go about 300 metres down the injector [well] to the reservoir, cross the [12-millimetre diameter] perforations, pass through the reservoir, again through the perforations into the producer [well] and then they need to be caught by the pump, they have to survive the pump, and we have to retrieve them at surface.” Van Pol notes INCAS3 had performed integrity tests of the motes at a KUDU Industries Inc. pump facility to show they could survive the punishment of the journey through progressing cavity pumps. As a proof of concept, most of the motes used in the field trial were dummy motes, but some were equipped with RFID tags to provide unique identification and travelling time data. “We used three sizes—five, seven and nine millimetres—and two shapes, spheres and elongated objects. We sent down roughly 25,000 and about 10 per cent were recovered. It took about two or three days for them to get through,” Van Pol says. “Industry was rather hesitant that this would work, so proving the feasibility of having objects pass through reservoirs was a significant
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Z
0 y
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Well Wormholes
ELEMENTAL DEGRADABLE ALLOY
*Mark of Schlumberger. © 2013 Schlumberger. 13-CO-0066
to be resistant to any chemical interactions that could occur,” Wildgust says. “And they are engineered to have a neutral buoyancy within the fluids in the reservoir because we don’t want them to sit on the bottom of a wormhole or float up and get trapped at the top.” While not to a nanoscale, producing motes small enough to be useful to CHOPS producers does represent a technological leap, he says. “The amount of technology that needs to be crammed into that size is pretty incredible because you need not only your measurement devices, but you need to have a data recording system or data logger, and you need to have energy—some kind of battery system down there to power them. To fit all of that technology into a five-millimetre-diameter mote with a protective plastic shell is, I think, pretty groundbreaking.” Van Pol, who holds a doctorate in nuclear physics, says the effort requires a multidisciplinary approach bringing together experts in fields ranging from electrical and chemical engineering to software and information technology, in addition to oilfield geoscience experts, expertise that he says INCAS3 and its partners can provide. “We need
IMAGE: GARY ZHAO, UNIVERSITY OF REGINA
UNEARTHING WORMHOLES Computer model of wormholes formed in an unconsolidated sand reservoir undergoing CHOPS production. A better understanding of wormhole size and distribution could lead to a significant increase in heavy oil production.
so many disciplines that it would be difficult for a single university to provide, and, on [the] other hand, for a company it is at this stage too risky a venture to engage in—and that is where we come in.” INCAS3 is linking to European scientific institutions and universities, like the Eindhoven University of Technology, providing key technologies and expertise, as well as the Universities of Regina and Saskatchewan and the Saskatchewan Research Council. INCAS3 has a five-year roadmap for development of the technology. Van Pol suggests an early stage commercial product measuring temperature and pressure as a function of time could be on the market in two years, with increasingly sophisticated products released in the years to follow. Ultimately, the technology is likely to be spun out into a Canadian-based company, since “we would typically look at a commercialization very close to the application area,” Van Pol says, or purchased by an existing oilfield services company. Other uses for the technology are expected in fields ranging from subsurface mining to integrity monitoring of oil and gas pipelines and water treatment and distribution systems. In the longer term, as the technology is further miniaturized and made to withstand greater depths, Wildgust says characterization of natural fractures and of fracking stimulation in shale gas and tight oil reservoirs could provide a big potential market. “That would require another technological step in that the sensors would need to be smaller, but also they would have to be resistant to greater temperatures and pressures than we see typically in the heavy oil reservoirs. It may be, for example, that you would need to use ceramics rather than plastics for those kinds of applications.”
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N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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“
“
Industry was rather hesitant that this would work, so proving the feasibility of having objects pass through reservoirs was a significant milestone. I think it opened up the imagination for the industry, because suddenly they saw possibilities to actually understand what is going on in the reservoir. — John Van Pol, managing director, INCAS3
Because wormhole mapping is a high priority for the agencies’ industry participants, it was chosen to pioneer the technology. Canadian Natural Resources Limited, Devon Energy Corporation, Husky Energy Inc. and BP Alaska, which has encountered wormholes in its Alaskan heavy oil reservoirs, are current industry partners.
NANO-INTERLOPERS Elsewhere, nanoscale agents and sensors are nearing the commercial stage. In Saudi Arabia, the massive Ghawar oilfield, the largest conventional pool ever discovered, has produced billions of barrels, a majority of the country’s output, in its 62 years of production. But it, too, still holds many secrets from its sole owner, state-owned Saudi Aramco. To uncover some of those mysteries, Saudi Aramco has led development of nanosize robots it calls resbots, so tiny they can pass through not only the reservoir’s pores, but also its even smaller pore throats—the channels connecting the pores—necessitating a size on the order of 1/1,000th the width of a human hair. Still under development, the company’s active resbots were initially designed to analyze reservoir temperature, pressure, and rock and fluid properties. Reactive resbots also under development will be able to actually adjust conditions downhole by delivering chemicals like surfactants to increase production. In 2010, the company carried out the industry’s first field test of nanoagents transported through a portion of the Ghawar reservoir. “The promise of nanotechnology becomes limitless with the possibility of having functionalized molecular agents to ‘illuminate’ the reservoir and intervene to alter adverse oil recovery conditions,” say Saudi Aramco’s Mazen Kanj and co-authors Harunar Rashid and Emmanuel Giannelis of Cornell University in a 2011 Society of Petroleum Engineers paper, Industry First Field Trial of Reservoir Nanoagents. It is hoped, they state, that the successful nanoagents template will soon lead to sensing and intervention devices that can “help delineate the waterflood front, identify bypassed oil and map super-permeability zones in situ in the underground.” In the trial, the company used carbon-based fluorescent nanoparticles, synthesized through a hydrothermal treatment process, called A-Dots (Arab D-Dots) designed for the prolific but harsh, high temperature, high salinity Arab-D carbonate formation of the Ghawar field. In a single well test (push-hold-pull) in a 7,000-foot vertical observation well in huff and puff mode, the company confirmed a cumulative recovery rate of 86 per cent in nanoparticles, despite a well shut-in of up to three days. The trial, the authors conclude, “renders the concept of having active, reactive and even communicative in-situ reservoir nanoagents for underground sensing and intervention a well anticipated near-future reality.” Meanwhile, researchers at the Advanced Energy Consortium (AEC), headquartered at the Bureau of Economic Geology at the 30
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University of Texas at Austin (UT), are pursuing a number of nanoscale technology applications nearing the commercialization stage. The consortium’s seven member companies each contribute $1 million per year, which is funnelled out to 30–40 projects around the world, including Canada, says Sean Murphy, who managed the program until his recent transfer to another position. “Some of the projects are here at UT, but really the mindset is that we are looking for the best researchers in the world that can accomplish what we want to accomplish,” he says. “It’s done mainly through universities, just because that is where a lot of the cutting edge research is, and it’s multidisciplinary—we have everything from chemists to physicists to mechanical engineers and materials engineers as well as geoscientists working on these projects.” The AEC is pursuing four main areas of research: microfabricated sensors, such as nanoelectromechanical systems and microelectromechanical systems integrating mechanical elements, sensors, actuators and electronics on a silicon substrate to continuously monitor chemical and physical reservoir properties; contrast agents, dispersed in frac or injection fluids to determine spatial distribution of the fluids; nanomaterial sensors, which undergo a state change on contact with predetermined chemical or physical conditions; and mobility of nanoagents in reservoirs. “For mobility, we are looking at both the chemistry of the reservoirs and the chemistry of the nanomaterials and understanding the flow of nanoscale materials through permeable materials, and looking at stability in the harsh [downhole] environment. A lot of research has gone into what types of coatings these nanomaterials or nanoparticles will need to make sure that they don’t agglomerate, which they tend to want to do in this high-salinity brine environment, or even stick to rocks, so making sure they can travel through freely is really important,” says Murphy. One of the biggest issues is that the space between wells is really not very well understood. The industry does a lot of sophisticated modelling, but a lot of it is based on very limited information and a lot of inference, he says. “Reconstructing the geological environment that the oil was deposited in is a big part of that, and based on that, they will create models based on unit cells, which could be 50 metres by 100 metres, and they attribute to that unit cell a number of variables—they assume what the porosity and the permeability and the temperature and the pressure and those things are, and then they build very sophisticated models based on that inference. “What [nano-technology] potentially will enable us to do is to sample directly in that environment, and potentially to be able to give much higher resolution and better data to build these models, and knowing that we may be able to improve our recovery rate significantly. That’s what we are really going after.”
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TOOLS AND TECHNIQUES
NEW TECH
PRODUCTION
Too Much Of A Good Thing Cutting overuse of chemicals injected into oil and gas wells trims production costs
PHOTO: VOODOO INJECTION MANAGEMENT LTD.
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wo Alberta tech companies have joined forces to help reduce chemical wastage during well injection, with a view to saving producers money on production and transportation of oil and gas. Chemicals typically being injected into wells in western Canada are corrosion inhibitors, solvents and methanol. Wastage is common and represents lost money for producers, according to Shawn French, president of Voodoo Injection Management Ltd., a company that’s offering a potential solution. Formerly with an oil and gas producer, French recalls budgeting for chemicals as among the more frustrating tasks his team handled. “We always seemed to be over-injecting chemicals and overrunning our budget,” he says. “I wanted to develop a system that could retrofit [equipment] we already have.” How common is over-injection? It’s a question French has often thought about. “In every field I’ve looked after, we had over-injection,” he says. “But
chemical makers have refined their chemicals so we no longer need six or seven litres a day to treat corrosion or wax [buildup]. Now, we [often] need only one or two litres a day.” Apart from the financial cost involved, there’s the negative environmental impact that comes with injecting more chemicals than are needed. French and Mark Scantlebury, president and chief executive officer of Calgary-based Extreme Telematics Corp. (ETC), are partnering to offer a solution to the problem of chemical overconsumption during injection. In looking at case studies of Alberta wells, the pair saw a good deal of wastage. They did not set out to find “worst offenders,” but relied on data from ordinary wells—the kind most producers work with daily. In other words, far from having to search out cases of chemical wastage, they found them often, in varying degrees. On most wells, a typical chemical injection set-up uses a positive displacement pump, which can be a
INJECTION OPTIMIZATION Consisting of an electronic controller, a valve and an operator’s injection pump, Voodoo’s injection management solution allows pumps to be set to their optimum rates and best conditions for reliability.
N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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source of problems, according to French, who says the pumps are prone to vapour locks, stalling and plugged valve seats, especially when pumping at their lowest rates. Indeed, many such pumps don’t operate well at the low injection rates needed on some wells.
READY IMPLEMENTATION Voodoo’s injection management system is a retrofit addition that can work with any existing chemical injection pump to reduce chemical costs while allowing for remote pump operation.
Within the industry, a common response to the problem has been to set the injection pump at a higher rate, thereby over-injecting the chemical, but more nearly approaching an “optimal” injection rate, and at least avoiding under-injection. Still, at the end of the day, the result is wasted chemicals, higher costs and an environmental issue. Practically speaking, the Voodoo technical set-up is fairly simple, using a retrofit approach that allows the well operator to continue using the same injection pumps he’s always used. The Voodoo system consists of three main components: an electronic controller, a valve and the operator’s injection pump. The controller, designed and built by ETC, is the system’s core and “brain,” since it automatically makes the adjustments needed to keep the system operating smoothly. 34
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With the Voodoo system, the customer’s existing pump is typically set at an optimal rate. However, the controller can be set still lower, to yield a pumping rate of, say, one litre per day. The system maintains continuous injection, meaning the pump does not shut down, and the chemical is continually moving. In most cases, any excess chemical is circulated back to a holding tank, for later reinjection. One of the Voodoo system’s benefits is that it can reach injection rates lower than otherwise possible. As for the economics of wasted chemicals, French says many well operators already pay out more in daily chemical costs than the Voodoo chemical injection management system would cost them. “Shawn French is really the key to the [Voodoo] idea and the business that sprung out of it,” says ETC’s Scantlebury. “He was an operator for 20-plus years, and battled with over-injection and issues related to low-rate chemical injection. He came up with the Voodoo injection management solution and quit his job to pursue it.” Since the Voodoo system was first introduced roughly a year ago, a number of producers have figured out other ways to use it to solve their chemical injection problems, Scantlebury adds. For example, some producers have realized savings on methanol injection through temperature optimization, as well as splitting one pump between multiple injection points, among other strategies. Another mark of the Voodoo system is its ability to work with the sophisticated supervisory control and data acquisition (SCADA) systems common on many producers’ wells. While the controller is compatible with those systems, operators may also install the Voodoo system and controller on isolated wells not linked to any SCADA system. In southern Alberta, Voodoo has been test driven by Harvest Operations Corp. (formerly Harvest Energy Trust), a company that operates some 50 producing wells in the Crossfield area. The field produces natural gas that is about one per cent sour, as well as light oil and sweet gas. For years, Harvest has been injecting a methanol-based chemical as part of an ongoing corrosion mitigation program. The corrosion inhibitor is used to protect flow lines that run from the wellhead to local gathering system pipelines, according to Howie Ewashen, Harvest’s lead field operator in the Crossfield area.
“We use a pump near the wellhead and the Voodoo system to inject, and the chemical disperses into the gas stream… and prevents internal corrosion of flowlines and pipelines,” says Ewashen, whose four field operators work the field. In most cases, only small amounts of inhibitor—one to two litres a day—are injected, a rate Ewashen says often causes problems with the diaphragmoperated plunger pumps the company uses for chemical injection. “Some of the pumps simply stall at low injection rates,” he says. “With the Voodoo system, we can set the pump at a higher rate, which keeps it from stalling or gas-locking. We can still have a chemical injection rate of one litre a day, [while having] an [injection] pump rate of seven to 10 litres a day.” Although just two of Harvest’s 50 wells near Crossfield use the Voodoo system, installed in February 2012, Ewashen was upbeat. “We’ve had good luck. It’s very consistent [and] easy to use. There are only four simple inputs: your pump rates, desired target rates, pipeline pressure and a fine-tuning adjustment to increase or decrease your recycle time based on your needs.” Adjustments to pumping rates can be made through the company’s on-site SCADA system. With the Voodoo system, the operators need only take a base-rate reading of the pump, and if it wanders to rates of, say, seven to 10 litres a day, the operator need only tell the system, and it compensates and achieves the one-litrea-day injection rate, he says. “If you put a Voodoo system on your existing pump, it will let the pump work [at the rate] it wants to, yet achieve the low injection rate. When you’re not pumping chemical, the pump is still pumping, the valve is open and the chemical just goes back to the tank, so it circulates your tank [when not pumping].” As for cost-effectiveness, he has noticed a change. “Without even diving into the calculations, you can see in the numbers that these wells have been using less dollar amounts of chemicals than other sites in the field,” he says. James Mahony CONTACTS FOR MORE INFORMATION Shawn French, Voodoo Injection Management Tel: 403-638-9686 Email: sfrench@voodooinjection.ca Mark Scantlebury, Extreme Telematics Tel: 403-290-6300 Email: mark.scantlebury@etcorp.ca
PHOTO: VOODOO INJECTION MANAGEMENT LTD.
NE W TECH
NE W TECH
ALTERNATIVE ENERGY
Environmentally Friendly Diluent? Company aims to perfect oil extraction from biomass
IMAGE: STEEPER ENERGY CANADA LTD.
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erry Toms says that in the past 25 years he has examined virtually every kind of bio-energy production method using biomass: gasification, waste energy, garbage-to-energy, pyrolysis, briquetting and torrefaction among them. He even has a large investment in an Australia-based biochar company, so it’s not as if he doesn’t believe other methods have value, but when he got involved in hydrothermal upgrading five or six years ago, a light went on, he says, snapping his fingers. “Risk abatement? Check. Scale? Check. We can produce for $35 a barrel, ex-feedstock,” Toms told a recent Petroleum Technology Alliance Canada lunch-and-learn in Calgary. Toms is now president and chief executive officer of Steeper Energy Canada Ltd., a Calgary-based company whose hydrofaction process transforms organic matter to high-energy density liquids via a catalytic supercritical water technology platform. “So if you can deliver me dry feedstock for $30 a tonne, we’re in business,” Toms told the luncheon. “The sky’s the limit for the value of biomass. In Europe, subsidies for burning fuel pellets have [made] biomass very expensive, $100 a tonne, but my thermal efficiency is so high that even if I have to compete with those alternative uses I’ll still produce the lowest-cost biothermal energy in a liquid form. And we’re not limited just to bio. We can use these other materials including sewage sludge, peat, muskeg, lignite coal, maybe even sub-bituminous coals.” He says one dry tonne of biomass can produce about three barrels of oil, and that oil can be produced from about $51 per barrel from lignite to $78 per barrel from biomass, depending on the feedstock source. Toms says that with a small amount of tweaking and a tiny amount of upgrading, the resulting oil can be utilized by oilsands producers as a cost-effective, environmentally friendly diluent—used to thin out semisolid bitumen to make it transportable by pipeline. Hydrofaction uses supercritical chemistry and water technology to transform low-energy density organic
HYDROFACTION TECHNOLOGY TRANSFORMING LOW-ENERGY DENSITY FEEDSTOCKS INTO VALUABLE HIGH-ENERGY LIQUID FUELS
SUPER CRITICAL CHEMISTRY
SUPER CRITICAL PRESSURE MEDIUM TEMPERATURE
H2O WET BIOMASS OR LIGNITE
CAPTURED LIQUID CO2
LOW-COST CATALYSTS AND ANTI-COKING ADDITIVES
FILTERED H2 O
HYDROFACTION OIL
ENERGY FROM WASTE Steeper Energy’s hydrofaction technology uses super critical chemistry to transform low-energy density organic feedstocks into high-energy density products, as well as liquid CO2 and irrigation standard water.
materials such as biomass into a synthetic crude oil. This synthetic oil is closely related to a middle distillate. At 38–42 megajoules of energy per kilogram compared to crude oil, which has 41–42 megajoules per kilogram, it is at or just below the energy density of crude oil, says Toms. Supercriticality is a state of matter achieved when a fluid, like water, is heated well beyond its boiling point while being contained and pressurized. Any moisture inherent in the feedstock subjected to supercritical conditions becomes an aggressive chemical and physical force that, in the presence of catalysts, helps transform it into synthetic crude oils. The conditions allow for the selective removal of oxygen from the organic feedstock molecular structure, thus increasing the carbon-hydrogen ratio of the resulting fuel oil. The company is able to produce CO2 within the reactor system and has a patented process to remove that CO2 as a liquid that can be sold. The process conserves all water used and cleans it to irrigation or potable standards, Toms says, adding that for every
barrel of oil, the process makes about 550 kilograms of relatively clean, surfacedisposable water. “Our idea is to make that water available for irrigation or for surface disposal,” he says. “In a dry place like Alberta, that, I think, is another potential synergy and bonus.” Steeper says its hydrofaction oil can be burned directly to produce electricity, used as a marine propulsion fuel or upgraded further to produce diesel, jet fuel or other petroleum by-products such as plastics and lubricants. The hydrofaction technology, which is in the process of being patented, has been in the demonstration phase in Denmark for more than a year, and Steeper now wants to develop commercialscale pilot facilities. The company is proposing two projects. One is a 10-plus-barrel-per-day, continuous pilot-scale project planned for Alberta. The other is a 1,000-barrel-per-day, fullscale commercial facility possibly located at the Port of Frederikshavn in Denmark. Toms estimates a first-of-kind, 1,000barrel-per-day plant will cost about $90 million to build ($90,000 per flowing barrel) and subsequent modules of the N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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Thursday, February 13, 2014 • 9:30 a.m. – 6:00 p.m. • BMO Centre, Calgary, AB Next-Gen Corporate Social Responsibility and Shared Value Forum: Elevating CSR Practices and Partnerships for Canadian Industry Globally
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same size to come down to $65,000– $70,000 per flowing barrel. A precommercial pilot project is estimated to cost $15 million to $20 million. He says he conducted a feedstock delivery study for Westlock County, about an hour and a half’s drive northwest of Edmonton, using a combination of peat, straw and forestry residues. The forestry residues were from about 100 kilometres away, straw was from between zero and 20 kilometres away and the peat was from zero to five kilometres from the plant. The combined cost of oven-dried feedstock from real-life providers was about $40 per tonne at the plant’s gate, he says. Steeper is working with Natural Resources Canada’s Canada Centre for Mineral and Energy Technology (CANMET) on upgrading to finished fuels and petrochemicals, and with Alberta Innovates – Technology Futures with fuel and lubricant laboratories on assay work. Toms says the company intends to move beyond conventional biomass or renewable feedstocks—of which it has researched about 40 derivatives—and is starting to look at lignite coal, subbituminous coal, bitumen and bitumen derivatives, and combining its bio-oil directly into the hydrocyclone portion of a bitumen upgrader. “Work done by CANMET suggests that will add some value to that process,” he says. Other organic wastes that present opportunities include urban organics and manure, he adds.
“Our idea is to make that water available for irrigation or for surface disposal. IN A DRY PLACE LIKE ALBERTA, THAT, I THINK, IS ANOTHER POTENTIAL SYNERGY AND BONUS.” — Perry Toms, president and chief executive officer, Steeper Energy Canada Ltd.
Last May, Toms, Steen Iversen, chief technology officer of Steeper Energy, and Aalborg University in Denmark announced construction of a new hydrothermal liquefaction facility designed to test feedstocks for hydrofaction in Aalborg. Steeper Energy, started in 2010, is two separate legal entities. The technology development arm is headquartered in Denmark, where Iversen has been involved in the upgrading of low-energy density organic matter for most of his career. He has been working on hydrothermal liquefaction and hydrothermal upgrading for about 15 years, and has probably generated $30 million to $40 million in investment on development of the technology, says Toms. Steeper Energy is looking for partners—ideally an oil and gas company—that can help proliferate the technology. “It’s not about a cheque book. That’s not really as interesting to us,” he says. “We’ve got lots of investors who are interested in getting involved with our projects. What we really need are
opportunities to take feedstock, transform it into oil and make that oil available in a cycle that we can keep quite tight.” Production of 100 barrels per day is enough oil to be marginally interesting, but too little to be commercial in Canada, says Toms. However, a plant that size, on its own, interestingly enough, represents a great little market opportunity in the developing world, he says. “You can imagine places like Central America, South America and Asia would be very interested in that type of unit [in places like] palm and sugar plantations where there are naturally aggregated biomass materials. That project is precommercial and will not contribute to its own return on capital here in North America, but it may very well spawn a whole market opportunity for us.” Lynda Harrison CONTACT FOR MORE INFORMATION Perry Toms, Steeper Energy Canada Tel: 403-606-8954 Email: pt@steeperenergy.com
TRANSPORTATION
New Technology Rejuvenates Aging Pipelines Smart Pipe offers low-impact remediation in sensitive areas
A
s North American pipelines age, pipeline operators will increasingly be looking at how to ensure they remain safe, including the need to repair or replace segments of pipe that may have corroded or shifted over the years. In most cases that’s a relatively straightforward operation, but in environmentally sensitive areas, such as river crossings or urban areas, the need to expose the line can be extremely difficult or cost prohibitive.
Smart Pipe Company, Inc., a private Katy, Texas–based company, is addressing that issue with its proprietary XPL300 Series Smart Pipe, a high-pressure reinforced thermoplastic pipe with a design rating of 50 years. Manufactured and installed right on site, the strong, lightweight pipeline system can be installed into the old pipeline as a close-fit liner with the only disruptions to the surface being the entrance and exit points at either end, potentially miles apart.
The “smart” aspect of the technology refers to the embedded fibre optic inspection system that allows the pipeline operator to continually monitor and instantly detect possible leaks, abnormal temperature changes and third-party impacts or ground movement in its composite pipeline system. The system accurately locates the potential anomaly to within one metre. Enbridge Inc. is among the pipeline operators interested in Smart Pipe. The Calgary-based company has invested N E W T E C H N O LO GY M AG A Z I N E | D E C E M B E R 2 013
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Outer Wrap
High-Strength Fibre Winding
High-Strength Fibre Tapes
Monitoring System
Core Pipes Pulling Tape
EXTENDED LIFE When inserted into aging pipelines, Smart Pipe’s multilayered pipe technology both extends their service life and provides new leak-detection capability.
US$8 million as part of its ongoing effort to invest in promising pre-commercial technologies it believes have the potential to enhance its system integrity, says Chuck Szmurlo, vice-president of alternate and emerging technology. The technology is a composite of various materials, including a Kevlartype wrapping around a high-density polyethylene core pipe that can be pulled through an existing pipeline the company thinks may have some integrity concerns, he says. “It coats the pipe, if you will, from the inside out. “We think it will be particularly useful for those sections of pipe that we have identified as warranting remediation but are in environmentally sensitive areas where the traditional dig and replace might be disadvantageous or unduly expensive,” says Szmurlo. At present, Smart Pipe can be deployed internally for up to several miles in length, he says. “It will accommodate marshlands, river crossings, environmentally sensitive areas.” However, Smart Pipe is currently being deployed in relatively smaller diameters than Enbridge would like, according to Szmurlo. “They can do larger diameters over shorter distances, but we want to maximize the flexibility by having the long distances and the larger diameters.” Part of the Enbridge funding is for the development of a technology that would have greater applicability for the larger diameter (mainly 24- and 36-inch) 38
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pipes in its pipeline network. Initially, it would be deployed in environmentally sensitive areas—of which there are a large number. Szmurlo says Enbridge is setting up some pilots in the United States in the upcoming year to demonstrate its viability. Assuming all goes well, it expects something commercial in the next year or two. Currently, Smart Pipe Company can manufacture and install its patentpending technology into pipelines from six to 16 inches in diameter over long distances, depending on the profile of the existing pipeline, says Robin McIntosh, director of marketing. It can also manufacture Smart Pipe in short sections, up to 1,000 feet, in diameters up to 32 inches. In the composite pipeline world, he notes, anything over 12 inches is considered large diameter because of the complexities of manufacturing and deployment. Smart Pipe is designed and developed in accordance with ASTM F2896-11, Standard Specification for Reinforced Polyethylene Composite Pipe for the Transport of Oil and Gas and Hazardous Liquids, and American Petroleum Institute recommended practice 15S, Qualification of Spoolable Composite Pipe. Although the pipe can handle pressures of more than 1,000 pounds per square inch, at present that is the maximum it is qualified for under ASTM F2896-11, says McIntosh. “The company,
though, will be working on qualifying for higher-pressure-rated pipe.” When it comes to installation, Smart Pipe Company has a portable manufacturing plant, essentially a production line, which it sets up close to the pipeline. “The materials go in one end and the Smart Pipe comes out the other,” says McIntosh. While the Smart Pipe is most often installed within an existing pipeline, it is not simply a liner system, he emphasizes. “It is fully structural; in theory the steel pipe could disappear once we are in place and the Smart Pipe would take all the pressure.” The Smart Pipe, which fits closely inside the existing pipeline, is folded into a C shape, held by tapes, prior to insertion into the pipeline. “Once installed, we put couplings on each end and apply pressure with either liquid or gas. This breaks the sacrificial tapes as it reverts back to its naturally round shape,” says McIntosh. Once the Smart Pipe is in place, a “black box”—what the company calls an interrogator—is installed on the end of the pipeline. “Now you have a leakdetection system and you have also got a system that can detect any movement in the pipe, which includes third-party impacts such as a backhoe hitting the pipe,” he says. The pipeline operator determines the configuration of the information. It can be tied into a supervisory control and data acquisition system or the signal may be sent to a smartphone or a computer. While Smart Pipe is attracting a lot of interest for use in water crossings, that’s not the only area where it could replace conventional remediation methods, according to McIntosh. Other areas include pipelines running through national parks, anywhere an environmental impact study is required or where there are issues with disrupting the public. “Our mantra is public safety and environmental security, so we are trying to avoid digging up roads and shutting down traffic, or destroying golf courses,” he says. Smart Pipe was in research and development for a number of years before going commercial only last year. Smart Pipe is currently installed in California (20- and 24-inch pipelines), Texas (12 inch) and Illinois (six-inch pipes). Elsie Ross CONTACT FOR MORE INFORMATION Robin McIntosh, Smart Pipe, Tel: 281-945-5700 Email: robin.mcintosh@smart-pipe.com
IMAGE: SMART PIPE COMPANY, INC.
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